Oman investment agreements top $1.4bn at Muscat forum

Oman investment agreements worth more than RO550 million ($1.43 billion) were signed at a forum in Muscat this week, led by a RO400 million tourism complex in Dhofar, the Oman News Agency reported.

The deals cover tourism, real estate, education, food security and housing. They were concluded at an investment forum during the Urban October event at the Oman Convention and Exhibition Centre, according to the Oman News Agency.

The Ministry of Housing and Urban Planning organised the four-day event with UN-Habitat. It ran from 5 to 8 October and brought together government bodies, private developers, banks and charitable organisations.

The forum deals follow 20 agreements worth more than RO1 billion ($2.6 billion) that were signed when the exhibition opened on 5 October, according to Oman Observer.

Dhofar tourism complex leads Oman investment agreements

The largest single deal is a development agreement for the Madana integrated tourism complex, valued at more than RO400 million ($1.04 billion). It was signed by the Ministry of Heritage and Tourism and Dhofar Tourism Company, the project’s owner and developer.

That agreement alone accounts for roughly three-quarters of the value announced at the forum. The site, hotel capacity and construction timetable of the Dhofar tourism complex were not given in the reports reviewed.

The second-largest project is Tilal Al Amerat, a RO78 million ($203 million) development in the wilayat of Al Amerat in Muscat Governorate. It was one of 82 agreements signed through the Tatwir platform.

In education, Al Daham Real Estate and Al Injaz International Private School agreed to build an international school in the Saraya Bawshar development. Investment in the school will exceed RO10 million ($26 million).

Food security, housing and finance deals

In total, the forum produced 197 usufruct agreements, which give investors the right to use and develop state land. Of these, 85 were food-security agreements with the Ministry of Agriculture, Fisheries and Water Resources.

Those 85 agreements cover about 26,000 acres and carry investment of more than RO53 million ($138 million). A further 30 agreements, worth more than RO1.3 million, were signed with the Small and Medium Enterprises Development Authority.

Banks also took part. Bank Dhofar signed a RO10 million financing agreement with Al Ahly Sabbour Oman for the Wadi Zaha project in Sultan Haitham City.

Other financing agreements for residential projects were signed with Ahli Bank and Ahli Islamic, involving developers Al Nama Real Estate and Talaat Moustafa Group. Their values were not disclosed.

Social housing featured as well. An agreement with Al Rahma Association for Motherhood and Childhood Care supports a programme to build 300 homes for low-income families and orphans, including three projects of 63 homes valued at more than RO2.14 million.

A separate agreement between the ministry and the Oman Charitable Organisation will fund 71 homes. It is backed by more than RO2 million from Rikan, the energy sector’s social responsibility foundation.

The ministry also signed a memorandum of understanding with Hamptons International to support its Real Estate Development Services Centre.

Why it matters for Oman Vision 2040

Oman is working to reduce its dependence on oil revenue under Oman Vision 2040, which centres on economic diversification, private-sector development and investment. The government is using tourism and real estate projects to attract private capital.

The Oman investment agreements signed this week pair ministries with private developers, lenders and community organisations. Similar partnership and development agreements were signed on the opening day of Urban October.

Dr Khalfan bin Said Al Shueili, Minister of Housing and Urban Planning, said at the opening that the ministry had prepared structural plans covering about 70% of Oman’s cities. He said the plans provide a 20-year development roadmap, Oman Observer reported.

For regional investors, the size of the Dhofar agreement stands out. Oman permits foreign ownership of property within licensed integrated tourism complexes, which makes such projects relevant to international buyers and hotel operators as well as local developers.

The pipeline also adds to a busy period for Gulf property, which includes luxury real estate developments in Dubai and new residential districts across Oman’s governorates.

The projects now move to design, financing and construction. No completion dates were given for Madana or Tilal Al Amerat, and the reports did not include masterplans or phasing for either scheme.

More coverage of regional deals is available in the Outlook Middle East news section.