Overview
Oman’s real estate sector accounts for approximately 10 percent of GDP, bolstered by Integrated Tourism Complexes (ITCs) that permit foreign ownership of property. Major developments include Al Mouj Muscat, Muscat Hills, Saraya Bandar Jissah, and the Madinat Al Irfan smart city project. Vision 2040 targets sustainable urban growth, affordable housing, and positioning Oman as a residential destination for GCC and international investors.
The value chain for Oman’s real estate sector encompasses upstream inputs, midstream processing and logistics, and downstream distribution and export channels. Mapping this chain reveals critical nodes where value addition can be maximised and leakage to imports can be reduced.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| GDP Contribution | ~10% | 12% by 2040 |
| ITCs Operational | 6 | 15+ by 2040 |
| Omanisation Rate | ~28% | 40%+ by 2040 |
| Affordable Housing Gap | ~80,000 units | Eliminated by 2040 |
| Foreign Property Ownership | ITC zones only | Expanded zones by 2040 |
Analysis
The real estate value chain in Oman is characterised by significant upstream concentration, with Omran Group, Al Mouj, Eagle Hills, Dar Al Arkan, Majid Al Futtaim dominating primary production. Midstream processing and logistics represent the largest opportunity for value capture, as much of the raw output is currently exported with minimal transformation. Investment of OMR 6 billion in active developments signals strong commitment to building out downstream capacity. The sector employs ~110,000 (construction and property services) workers, though value-chain deepening could multiply employment effects significantly.
Challenges
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.
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.