Overview
Investment in Oman’s real estate sector totals OMR 6 billion in active developments, reflecting both sovereign and private capital deployment. The sector’s GDP contribution of ~10% is targeted to reach 12% by 2040, requiring sustained capital inflows across the investment pipeline. Deal flow has accelerated since 2020 with Vision 2040 providing a clear policy framework for investor confidence.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Total Investment | OMR 6 billion in active developments | Growing |
| GDP Contribution | ~10% | 12% |
| Key Investors | Omran Group, Al Mouj, Eagle Hills, Dar A… | Diversifying |
Analysis
The investment landscape for real estate in Oman is shaped by a combination of government-led strategic investments and growing private sector participation. Omran Group, Al Mouj, Eagle Hills, Dar Al Arkan, Majid Al Futtaim represent the core investor base, with increasing interest from international institutional investors and sovereign wealth funds. The Oman Investment Authority (OIA) has prioritised the sector in its portfolio rebalancing strategy. Foreign direct investment is facilitated through free zones, tax incentives, and streamlined licensing processes. However, deal sizes remain modest compared to UAE and Saudi equivalents, suggesting room for growth.
Challenges
Capital mobilisation faces headwinds from 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
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. Green and sustainable financing instruments (sukuk, green bonds) represent an emerging channel for sector investment.
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.