Overview
Physical infrastructure underpinning Oman’s real estate sector spans transport networks, utilities, industrial zones, and specialised facilities. The government has committed significant capital to infrastructure development, with the national infrastructure pipeline valued at over USD 50 billion across all sectors. For real estate specifically, infrastructure investment of OMR 6 billion in active developments targets capacity expansion, connectivity improvement, and modernisation of existing assets.
Key Indicators
| Infrastructure Element | Current Status | 2040 Plan |
|---|---|---|
| GDP Contribution | ~10% | 12% by 2040 |
| ITCs Operational | 6 | 15+ by 2040 |
| Omanisation Rate | ~28% | 40%+ by 2040 |
Analysis
Infrastructure quality and availability significantly determine the competitiveness of Oman’s real estate sector. The Sultanate’s geographic advantages (3,165 km coastline, strategic location between Asia and Africa) are leveraged through purpose-built infrastructure. Omran Group, Al Mouj, Eagle Hills, Dar Al Arkan, Majid Al Futtaim benefit from dedicated industrial zones, port access, and utility connections. However, infrastructure gaps persist in secondary cities and remote governorates, creating geographic disparities in sector development. The Oman Rail project (2,200 km) and road expansion programmes will enhance connectivity, while digital infrastructure (5G, fibre) enables technology-intensive operations.
Challenges
Infrastructure financing gaps, construction delays, maintenance backlogs, and geographic dispersion increase costs. Oversupply in luxury segments, limited affordable housing stock, slow mortgage market development, low Omanisation in construction trades, and regulatory complexity in land use planning.
Opportunities
PPP models for infrastructure delivery, modular construction approaches, smart infrastructure integration, and cross-sector infrastructure sharing reduce costs and improve utilisation. Affordable housing PPPs, smart city development (Madinat Al Irfan, Sultan Haitham City), ITC expansion attracting foreign buyers, REIT legislation enabling institutional investment, and sustainable building standards driving green construction.
Vision 2040 Targets
Increase GDP share to 12 percent; deliver 300,000 affordable housing units; achieve 40 percent Omanisation in construction; launch a REIT framework; develop three smart cities.