meed-logo

line1 line2 line3
SIGN IN / REGISTER

Oman construction is back on track

19 December 2023

MEED's January 2024 special report on Oman includes:

> COMMENT: Muscat needs to stimulate growth
> GOVERNMENT & ECONOMY: Muscat performs tricky budget balancing act
> BANKS: Omani banks look to projects for growth
> OIL & GAS: Oman diversifies hydrocarbons value chain
> POWER & WATER: Oman expands grid connectivity
> HYDROGEN: Oman seeks early hydrogen success 
> CONSTRUCTION: Oman construction is back on track

 

In November, Oman restarted its plans to build the long-stalled Blue City project. The revival of the scheme, which was first launched in 2005, is the latest sign of the improving market conditions in the sultanate.

The country has shown resilience, with an increase of 17.4 per cent in real estate trading in the first two months of 2023 compared to the same period in 2022.

Factors such as the easing of global travel restrictions and the economic rebound following the Covid-19 pandemic have stimulated demand for residential and commercial properties.

The improving market conditions have prompted the government to push forward with other schemes as well.

In November, Oman’s Housing & Urban Planning Ministry issued tenders for Sultan Haitham City, a 14.8 square-kilometre mixed-use smart city project located in Muscat. The ministry issued a tender inviting companies to bid for contracts covering the construction consulting services and the enabling works packages.

In January 2023, the ministry also signed agreements to develop the $415m Surouh integrated mixed-use projects at Al-Amerat in Muscat and Halban in South Al-Batinah Governorate. Bids were received for project management consultancy services in October.

Elsewhere, the sultanate's cultural complex project was revived after almost a decade when Oman’s Culture, Sports & Youth Ministry awarded an estimated $384m design-and-build contract to a joint venture of the local Saif Salim Issa al-Harrasi and Turkiye’s Sembol Construction.

Oman’s Finance Ministry is also preparing to develop schools using a public-private partnership (PPP) model. Bid clarification is under way for the contract to develop 42 schools, for which the ministry received three bids earlier in 2023.

Planned pipeline

The pipeline of planned and unawarded projects in Oman’s construction sector is valued at more than $33bn, making it the second-largest sector in Oman. Of this total, $25bn-worth of the projects are for mixed-use schemes, $3.8bn are in the hospitality sector and $2bn are for residential developments.

The pipeline consists of $4.9bn-worth of projects in the bidding stage, $20bn in the design or front-end engineering and design (feed) phase, and just over $8bn under study.

The sultanate’s 10th five-year plan gives priority to construction development by ensuring optimal resource use and investment opportunities throughout the various governorates.

Transport schemes

In an effort to diversify its economy and grow the tourism sector, Oman has been investing heavily in upgrading its transportation infrastructure. Several projects to facilitate the movement of people and goods around the country are under way.

The Oman-Etihad Railway Company has qualified firms to bid for the three civil works packages of its rail project linking Oman and the UAE.

Plans are also in the study phase for a railway link between Oman and Saudi Arabia. If constructed, the line will stretch from the southeastern coast of Oman, through the city of Ibri and then on to Riyadh.

Oman also tendered a pre-feasibility consultancy services contract for the first phase of its planned Muscat Metro network at the end of January 2023. The move added further weight to the expectation that major new rail projects will progress in the sultanate and the rest of the region in the next decade.

Ports are also being expanded to support the growth of Oman’s industrial base. In October, contractors submitted bids for the Masirah multipurpose port in the wilayah of Masirah in Al-Sharqiyah South Governorate.

Contractors are also preparing bids for the contract to develop the Mahout fishery harbour in Oman's Al-Wusta Governorate.

Other major transport PPP projects planned in Oman include developing a seaport in Musunah, the Sohar Port expansion and the Salalah-Thumrait truck road (STTR).

In August, Oman’s Finance Ministry, together with the Transport, Communications & Information Technology Ministry, shortlisted five prequalified teams to compete for the STTR project. The scheme is the first of its kind to be developed under a PPP model in Oman.

The Transport, Communications & Information Technology Ministry also received proposals from bidders for packages three, four and five of the Adam-Thumrait road dualisation project. The scheme was retendered in 2023 after having been cancelled in 2019.

In 2020, Oman announced its National Aviation Strategy 2030 to attract an investment of $3.6bn in airport cities. The country plans to expand its aviation infrastructure and open the sector to private international investors by granting concessions for managing and operating local airports and aviation-related services.

In March, Oman’s Civil Aviation Authority invited international consultants to submit bids for the design and supervision of the proposed development of Musandam airport.

The pipeline of planned and unawarded projects in the transport sector is valued at $13.4bn, making it the third-biggest sector in Oman. Of this total, rail schemes account for $6bn, roads and utility networks comprise $4.5bn, and $1.6bn is for seaport projects. The pipeline consists of about $7.7bn-worth of projects in the bidding stage, $5.1bn under study and $500m in the design or feed phase.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11354819/main.gif
Yasir Iqbal

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • UAE firm withdraws Yemen solar operations

    26 January 2026

     

    UAE-based Global South Utilities (GSU) has completed the handover of the Aden and Shabwa solar power plants to Yemen’s Public Electricity Corporation, following an official request by Yemeni authorities for the withdrawal of all UAE companies from the country.

    The move comes amid Yemen’s ongoing political fragmentation and security challenges, which have complicated foreign commercial and infrastructure operations in the country.

    In a letter dated 22 January 2026, GSU said it had evacuated all operations and maintenance teams from the 120MW Aden solar plant and the 53MW Shabwa solar plant.

    Both facilities were handed over fully operational and placed under the authority of the state-owned utility.

    GSU operates solar power plants in Yemen with a combined capacity of 173MW. The company said the withdrawal of its technical teams was carried out to ensure personnel safety and to enable a structured and responsible transfer of assets.

    “Global South Utilities did not suspend operations unilaterally or abruptly,” the company said. “Both power plants were handed over while operating at full technical capacity, under a formal handover process.”

    GSU added that continuing to operate large-scale power facilities without specialised technical teams on the ground would pose operational risks and would not meet internationally recognised standards for energy facility operations.

    Several projects are at advanced stages of development and have been paused following the company’s exit from the Yemeni market, including:

    • Al-Mokha – phase 2 (40MW): 85% complete
    • Al-Khokha (10MW): 80% complete
    • Hays (10MW): 75% complete
    • Socotra (10MW): 35% complete (civil works and procurement)
    • Aden expansion (120MW): 35% complete (civil works and procurement)

    In November, GSU announced $1bn-worth of new energy projects in Yemen to support the rebuilding of the country’s electricity sector.

    The programme was expected to be delivered through solar and wind energy projects, battery energy storage systems and the development of distribution networks.

    According to GSU, its $1bn energy project portfolio in Yemen covers 13 projects across six governorates, with a combined capacity exceeding 1,000MW.

    In August, GSU began work on a 120MW expansion of the Aden solar photovoltaic plant, doubling its capacity to 240MW. The plant began operations last year with a 120MW first phase.

    At the time, the company said phase two would begin commercial operations in 2026.

    READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

    Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

    > ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15511888/main.jpg
    Mark Dowdall
  • Saudi Arabia postpones 2029 Trojena Asian Winter Games

    26 January 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia has confirmed the postponement of the 2029 Asian Winter Games, which were scheduled to be held at the Trojena mountain destination in Neom, in the northwest of the kingdom.

    The confirmation came on 25 January, when the Olympic Council of Asia (OCA) and the Saudi Olympic & Paralympic Committee (SOPC) released a joint statement saying that they have agreed to indefinitely postpone the event.

    The OCA and SOPC have yet to announce a revised timeline or confirm whether another country will now host the event.

    In October 2022, Trojena was chosen to host the Asian Winter Games in 2029, as MEED previously reported.

    Construction is progressing on the Trojena Ski Village project; however, the overall infrastructure required for the venue to be ready remains behind schedule.

    The most recent edition of the Asian Winter Games was held in February last year in the city of Harbin, China.

    Japan held the first edition in 1986 and went on to host four of the previous editions of the event.

    China has hosted three editions, while South Korea and Kazakhstan have each hosted the games once.

    South Korea staged the Winter Youth Olympics in 2024, using mostly the same venues built for the 2018 Winter Olympics in the eastern province of Gangwon.

    In August last year, MEED reported that high-level discussions had started regarding changing the 2029 Asian Winter Games venue, possibly from Saudi Arabia to South Korea. 

    According to reports in South Korean media, citing a senior Korean Sport & Olympic Committee official, the OCA had contacted the Korean Sport & Olympic Committee about the possibility of hosting the event.

    The report added that the meeting was followed by an official letter sent by the OCA to South Korea.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15511718/main.jpg
    Yasir Iqbal
  • McDermott wins $942m Adnoc Offshore field expansion contract

    23 January 2026

    Adnoc Offshore, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), has awarded US-based contractor McDermott International a contract valued at $942m to perform engineering, procurement and construction (EPC) works on a project to increase the oil production capacity of the Nasr offshore field to 115,000 barrels a day (b/d).

    The Nasr offshore oil field is located approximately 130 kilometres (km) northwest of Abu Dhabi. The Nasr-115 expansion project is a critical component of the overall Nasr phase two full field development project that is expected to increase oil production capacity to 115,000 b/d by 2027.

    In a statement, McDermott said the scope of work on its contract covers comprehensive engineering, procurement, construction and installation services for two topside structures, one new manifold tower, one jacket, one bridge and all associated pipelines, high-speed subsea cables and brownfield modifications.

    “This is the latest milestone in Adnoc’s strategy to deliver an oil production capacity of 5 million barrels a day by 2027, as we help responsibly meet the world’s long-term energy demand,” .

    More than 55% of the investment value will flow back into the UAE economy through Adnoc’s In-Country Value programme, the Abu Dhabi energy giant added.

    Sarb deep gas development project

    Prior to winning the main EPC contract for the Nasr-115 project from Adnoc Offshore, McDermott also won a key contract for a project covering deep gas development at the Satah Al-Razboot (Sarb) oil and gas field, located 120km offshore Abu Dhabi.

    Adnoc achieved the financial investment decision on the Sarb project earlier in January. The company said it intends to produce 200 million standard cubic feet a day of gas from the Sarb field through this project before the end of the decade, “enough energy to power more than 300,000 homes daily”.

    The value of the EPC contract won by McDermott is estimated to be worth about $500m, sources told MEED.

    The basic scope of work on the Sarb deep gas development project covers EPC of a large offshore wellhead tower with four gas production wells, which will be connected to Das Island, where the gas produced will be tied into Adnoc Gas facilities for upstream treatment, “maximising the integration with other Adnoc projects”.

    The work scope also includes installation of pipelines and intra-field lines connecting the Sarb field development to gas processing facilities at Das Island.

    READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

    Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

    > ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15501962/main1449.jpg
    Indrajit Sen
  • Oman signs PPAs for Misfah and Duqm power plants

    23 January 2026

    Register for MEED’s 14-day trial access 

    Oman's Nama Power & Water Procurement (Nama PWP) has signed power purchase agreements (PPAs) for the development and operation of the Misfah and Duqm gas-fired independent power projects (IPPs).

    The two combined cycle gas turbine plants have been awarded to a consortium comprising Korea Western Power (Kowepo), Qatar’s Nebras Power, the UAE’s Etihad Water & Electricity (EtihadWE) and Oman’s Bhawan Infrastructure Services.

    The Misfah IPP will be led by Nebras Power and located in Wilayat Bousher in Muscat Governorate, with a planned capacity of 1,600MW.

    The Duqm IPP will be led by Kowepo and located in Wilayat Duqm in Al-Wusta Governorate, with a capacity of 800MW.

    According to Nama PWP, the total investment for the two projects is estimated at approximately RO1bn ($2.6bn)

    MEED reported in October that Nama PWP had received three bids for the development and operation of the gas-fired IPPs.

    The other bids included a consortium comprising China’s Shenzhen Energy Group and Oman National Engineering & Investment Company, and a lone bid from Saudi Arabia’s Acwa Power.

    Synergy Consulting is the financial advisor and lead advisor to Nama PWP for these projects.

    In November, Oman’s OQ Gas Networks received final investment approval to proceed with gas supply connections for the facilities.

    The Misfah IPP will receive 8.5 million cubic metres a day (cm/d) of natural gas. The Duqm IPP will be supplied with 4.5 million cm/d of natural gas.

    Both plants are scheduled to deliver early power by April 2028 and to reach full commercial operations in 2029.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15499940/main.jpg
    Mark Dowdall
  • Chiyoda wins feed contract for North Field West LNG project

    23 January 2026

    Register for MEED’s 14-day trial access 

    QatarEnergy has awarded Japan-based Chiyoda Corporation a contract for front-end engineering and design (feed) work on its North Field West liquefied natural gas (LNG) project.

    The North Field West project is the next phase of QatarEnergy’s North Field LNG expansion programme. The scheme will further increase Qatar’s overall LNG production capacity to 142 million tonnes a year (t/y) upon commissioning, which is scheduled for 2030.

    Chiyoda said in a statement that the feed contract for the project was awarded by QatarEnergy’s subsidiary QatarEnergy LNG, which is overseeing the North Field LNG expansion programme on behalf of its parent company. The Japanese firm has yet to provide further details about its contract.

    QatarEnergy announced the North Field West project, which is the third phase of its estimated $40bn North Field LNG expansion programme, in February 2024.

    The North Field West project will have an LNG production capacity of 16 million t/y, which is expected to be achieved through two 8 million t/y LNG processing trains, based on the two earlier phases of QatarEnergy’s LNG expansion programme. The new project will draw feedstock for LNG production from the western zone of the North Field offshore gas reserve.

    MEED recently reported that QatarEnergy had awarded a contract for the engineering, procurement, construction and installation (EPCI) of four offshore jackets and associated units at the North Field gas reserve in Qatari waters, as part of the wider North Field West project.

    US-headquartered McDermott International won the contract for the offshore jackets package, which is estimated to be valued at around $200m, according to sources. The new jackets to be installed will boost gas production from the North Field reservoirs, providing additional gas feedstock for the North Field West LNG project.

    Major projects under execution

    QatarEnergy is understood to have spent nearly $30bn on the first two phases of its North Field expansion programme – North Field East and North Field South – which will raise its LNG production capacity from 77.5 million t/y to 126 million t/y by 2028. Engineering, procurement and construction (EPC) works on both projects are progressing.

    QatarEnergy awarded the main EPC contracts for the North Field East project in 2021. The project aimed to boost LNG output to 110 million t/y by 2025. The $13bn EPC package – covering the EPCI of four LNG trains, each with a capacity of 8 million t/y – was awarded in February 2021 to a consortium of Chiyoda and France’s Technip Energies.

    In May 2023, QatarEnergy awarded the $10bn main EPC contract for the North Field South project to a consortium of Technip Energies and Lebanon-based Consolidated Contractors Company.

    The contract includes two large LNG trains, each with a capacity of 7.8 million t/y.

    Once fully operational, the first two phases of the North Field expansion will add 48 million t/y of supply to the global LNG market.

    ALSO READ: QatarEnergy achieves strategic oil and gas goals in 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15493998/main.jpg
    Indrajit Sen