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
Related Articles
  • Aramco-backed firm tenders logistics hub expansion

    9 November 2026

     

    Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, has set a 15 November deadline for a contract to expand the logistics complex at King Salman Energy Park (Spark) in Saudi Arabia’s Eastern Province.

    The logistics hub will add over 124,000 square metres (sq m) at Spark.

    Al-Khobar-based engineering firm House of Consulting Office is the project consultant.

    The tender for the expansion works comes shortly after Asmo awarded an estimated SR820m ($218m) contract to build the logistics complex’s first phase in May this year.

    The overall project will feature a 43,000 sq m, temperature-controlled Grade A warehouse; more than 3,000 sq m of offices and staff amenities; 5,300 sq m dedicated to chemicals storage; and an open yard covering about 1.2 million sq m.

    Asmo signed an agreement with Bahrain‑headquartered Arcapita Group Holdings in February to deliver the project at Spark.

    Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.

    It will also be developed in line with internationally recognised sustainability standards, featuring solar photovoltaic readiness, electric-vehicle charging infrastructure and a target of Leed Gold certification.

    The development aims to support the next stage of Saudi Arabia’s logistics and supply chain expansion.

    Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.

    According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.

    Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21267403/main.gif
    Yasir Iqbal
  • Prequalification begins for multibillion-dollar Dubai road

    9 November 2026

     

    Dubai’s Roads & Transport Authority (RTA) has begun prequalifying contractors for a design-and-build contract for a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.

    Contractors have until 30 November to submit their prequalification statements.

    The latest development follows contractors’ expressions of interest for the project on 10 October, as MEED reported.

    The project’s scope covers about 30 kilometres (km) of works. These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.

    The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.

    Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.

    The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through traffic while existing at-grade lanes served local access.

    The plans ultimately became standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.

    The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.

    Planning for growth

    Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

    In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

    In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

    The policy aims to ensure residents can meet 80% of their daily needs within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21266194/main.gif
    Yasir Iqbal
  • Contractor begins early works on Ardara’s AlWadi project

    9 November 2026

    Saudi Arabia’s Shibh Al-Jazira Contracting Company (Sajco) has started early construction works on the first cluster of its AlWadi mixed-use development in Abha.

    Ardara, backed by the sovereign wealth vehicle the Public Investment Fund (PIF), is developing the AlWadi project.

    Sajco will carry out sewerage works, while local engineering firm Dar Al-Riyadh will provide project management and supervision services for the infrastructure works.

    The AlWadi project will cover 2.5 million square metres (sq m) and will be developed around architectural styles informed by the heritage and character of the Aseer region.

    The masterplan has a planned gross floor area of about 2.02 million sq m. It includes 7,306 apartments, 90 villas and townhouses, and 2,783 hotel keys.

    The scheme will also provide 154,082 sq m of retail and food and beverage space, 64,161 sq m of offices, and 59,075 sq m of leisure and entertainment facilities.

    The wider development will comprise five districts and include 16 kilometres of waterfront assets and 17km of walking, cycling and sports tracks. 

    US-based Parsons is the infrastructure designer, while Miami-based OBMI is providing architectural and public realm design services.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21265927/main.jpg
    Yasir Iqbal
  • Syria in talks for refinery project worth $6bn-8bn

    9 November 2026

    Register for MEED’s 14-day trial access 

    Discussions are under way with international companies to develop a refinery in Syria’s Furqlus area, worth $6bn-8bn, according to a senior official at state-owned Syrian Petroleum Company (SPC).

    The project will be “very large” and, after completion, will replace Syria’s Homs refinery, according to SPC’s deputy executive president for refining affairs, Tariq Shalash Al-Abdullah, who spoke to Syria’s state-owned daily newspaper Al-Thawra Al-Souriya.

    He said the international companies currently involved in talks about the planned refinery project specialise in design work, engineering and technical studies.

    He also stated that, for large-scale projects of this type, consortiums are typically formed from a group of companies with complementary interests in study, manufacturing, financing, implementation and operation.

    In June, SPC published an invitation for companies to submit proposals to finance, build and operate the refinery under a build-operate-transfer agreement.

    The tender document published by SPC said the refinery would have the capacity to process 210,000 barrels a day (b/d).

    It also said the facility would be developed with the option to add an “ancillary petrochemical complex”.

    Al-Abdullah said the refinery’s total investment value would depend on the equipment's country of origin, adding that the equipment could potentially be procured from the US, Europe or China.

    Another factor that could alter the project’s value is the technology licences selected for the project, according to Al-Abdullah.

    The refinery project is expected to take around four years to develop from the date of signing the contract and completing other related preparatory activities.

    The project will be developed on a site that covers 400 hectares, according to the document that was published by SPC in June.

    SPC invited companies to submit three separate documents relating to their proposals.

    These were:

    • A package outlining the company’s qualifications and legal documents
    • A technical proposal
    • A financial and investment proposal

    According to the tender document, the scope of the refinery project includes developing:

    • Three independent atmospheric distillation units, each with a capacity of 70,000 b/d
    • Two vacuum distillation units
    • Hydrotreating units
    • Sulphur recovery units
    • A base oil unit
    • Power and steam generation facilities
    • A grid interconnection substation
    • A safe shutdown system
    • An environmental water treatment system
    • A gas recovery system
    • A unit to produce nitrogen and oxygen
    • A fire water network
    • Maintenance and repair workshops
    • Tank farm and storage facilities

    Under the plans outlined in SPC’s tender document, at least 85% of the refinery’s products should meet Euro-5 specifications.

    SPC is also seeking a “plan for the establishment and integration of an advanced petrochemical complex”, which would be connected to the refinery, according to the document.

    Because of this, it said the refinery design must allow diversion of some light and heavy naphtha and liquid petroleum gas (LPG) to be used as feedstock for the future petrochemical complex.

    The petrochemical complex is planned to use 20% to 40% of the naphtha and LPG.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21263584/main.png
    Wil Crisp
  • Three Libya oil and gas projects see developments

    9 November 2026

     

    Three key oil and gas projects in Libya have seen developments amid an uptick in activity in the North African country’s hydrocarbon sector.

    The contract scopes include seismic work, subsea pipeline development and drilling services.

    An invitation to prequalify has been issued for a project to provide two-dimensional (2D) and three-dimensional (3D) offshore seismic surveying services.

    The survey area is the Libyan Offshore Area O1, located in the Sirte Basin.

    The winner of the contract will be responsible for:

    • Acquisition of approximately 6,100 square kilometres (sq km) of 3D full-fold marine seismic data
    • Acquisition of approximately 3,000 sq km of 2D full-fold marine seismic data

    The client on the project is the Italian oil and gas company Eni.

    In a statement posted on the website of Libya’s National Oil Corporation (NOC), it said: “The objective of the survey is to acquire, within the required operational window from September 2027 to March 2028, high-quality broadband seismic data to improve the imaging of Cretaceous reservoir sequences and support future exploration activities.”

    The deadline to submit prequalification documents is 2 December 2026.

    Deadline extended

    Libya’s Mellitah Oil & Gas Company (MOG) has extended the deadline for companies to submit prequalification documents for a major offshore package as part of its Mellitah complex expansion and CO2 management integrated development project, which is estimated to be worth about $8bn.

    The previous deadline of 5 November 2026 has been extended to 3 December 2026.

    MOG, a joint venture of NOC and Eni, is the project client.

    The package, known as WP4B1, focuses on developing offshore pipelines and subsea systems for the E offshore installation and CO2 project.

    The turnkey contract will use the engineering, procurement, installation and commissioning (EPIC) model.

    As part of the Mellitah complex expansion and CO2 management integrated development project, two offshore structures – Structure A and Structure E – will be developed in Libya’s offshore block NC 41.

    Structure A is also known as wellhead production fixed platform A (WHPA) and Structure E is also known as production platform E (PPE).

    Structure A is in the central-western part of the area, about 80 kilometres (km) from the Libyan coast, with a water depth of 95-105 metres.

    Structure E is located in the central-eastern part of the area, about 130km from the Libyan coast, in a water depth of 205-235 metres.

    The scope of the wider project includes:

    • A new production platform installed in about 220 metres of water depth as part of the development of Structure E (Package WP1)
    • A new wellhead platform installed in 96 metres of water as part of the development of Structure A (Package WP2)
    • Modification of the existing Sabratha platform (Package WP3)
    • Sealines and subsea systems extending from the Sabratha platform to Structure A (Package WP4A1)
    • Sealines and subsea systems for Structure E and the CO2 system (Package WP4B1)
    • Supply of seamless carbon steel pipes for CO2 injection from the Mellitah complex to Sabratha platform (Package WP4B2)
    • Subsea Production Systems (SPS) for Structure E and CO2 (Package WP4B3)
    • Upgrading the existing onshore Mellitah complex (WP5)

    The package known as WP4B1 has been broken down into two phases.

    The first phase focuses on the installation of the project’s subsea CO2 pipeline and its related system network.

    The second phase of WP4B1 is focused on the pipeline to structure E and its related subsea system network.

    Monitoring drilling

    MOG has also issued a separate invitation for prequalification relating to a contract to provide hydrogen sulphide monitoring services for offshore drilling.

    The contract focuses on providing H2S monitoring services for 18 offshore development wells as part of the “Structures A&E” project.

    Four of the wells will be subsea wet wells and a further 14 will be dry tree wells.

    The deadline for submitting prequalification documents is 3 December 2026.

    The work will be carried out in the zone known as Area D, Block NC41.

    H2S monitoring in the oil and gas industry involves tracking H2S gas concentrations in the air using electronic sensors and detectors to protect workers, prevent fatal exposures and avoid equipment damage.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21263383/main.jpg
    Wil Crisp