Market Overview
Oman’s infrastructure investment pipeline exceeds OMR 25 billion across transport, utilities, and social infrastructure. Flagship projects include the Oman National Railway, Muscat Metro feasibility studies, port expansions at Duqm and Sohar, and a national water transmission network upgrade.
The government has shifted toward PPP and concession models to fund infrastructure expansion while managing fiscal constraints.
Opportunity Assessment
Transport infrastructure dominates the pipeline, with the Duqm-Muscat road corridor and port capacity expansions advancing. Desalination and wastewater treatment PPPs offer stable, long-tenor revenue streams. Social infrastructure including schools and hospitals is increasingly delivered through availability-payment PPP structures.
| Metric | Value |
|---|---|
| Total infrastructure pipeline | OMR 25+ billion |
| PPP projects in development | 22 |
| Port capacity expansion | 3 projects |
| Desalination PPPs | 5 awarded/in progress |
| Road network expansion | 2,500 km planned |
| Railway project value | OMR 3.5 billion |
Risk Factors
PPP framework maturity varies across sectors. Land acquisition can cause delays. Fiscal constraints may stretch project timelines. Construction cost inflation has moderated but remains a monitoring point.
Entry Strategy
Infrastructure funds should engage with the Financial Affairs and Energy Resources Council (FAERC) which oversees PPP approvals. Consortium structures with local contractors satisfy ICV requirements. Multilateral co-financing from AIIB and IsDB reduces country risk exposure.
Vision 2040 Alignment
Infrastructure development underpins all five Vision 2040 pillars, with the National Infrastructure Master Plan providing a prioritised investment framework through 2040.