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
  • Local firm wins contract for Kuwait power project

    19 November 2025

    Local firm Alghanim International has won a contract to provide engineering services at the Subiya power and water distillation plant.

    Kuwait’s Central Agency for Public Tenders approved the award following a request from the Ministry of Electricity, Water & Renewable Energy.

    The contract, valued at $286m, covers engineering, supply, installation, operation and maintenance services to convert the 250MW second phase of the plant’s open-cycle gas turbines to combined-cycle gas turbines.

    The upgrade is intended to increase efficiency and provide additional generation capacity during periods of high demand.

    In July, MEED reported that Alghanim had submitted the lowest bid for the tender ahead of local firms Al-Daw Engineering General Trading & Contracting and Al-Zain United General Trading & Contracting.

    In 2024, US-based GE Vernova completed separate upgrades of four GE Vernova 9F.03 class gas turbines at the 2GW Sabiya combined-cycle power plant. Alghanim International acted as GE’s local engineering partner for that work.

    The Subiya power and water distillation plant is the largest power and water plant in Kuwait, with a power generation capacity of 7,046.7MW, accounting for 35% of the country’s installed capacity.

    It has a water desalination capacity of 100 million imperial gallons a day.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15116135/main.jpg
    Mark Dowdall
  • UKEF issues $3.5bn interest letter for Al-Maktoum airport

    19 November 2025

    Register for MEED’s 14-day trial access 

    The UK’s export credit agency UK Export Finance (UKEF) has issued a $3.5bn expression of interest letter to support the participation of UK businesses in the $35bn expansion of Al-Maktoum International airport, which is also known as Dubai World Central (DWC).

    Chris Bryant, UK minister for trade, handed the letter to Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai Aviation Engineering Projects (DAEP), and Paul Griffiths, CEO of Dubai Airports.

    Letters of interest from UKEF, although not binding commitments, help ensure that UK exporters are given every opportunity to bid for contracts on a project. This is typically achieved by providing financial solutions in exchange for an agreed level of UK content used on the project.  

    Previous letter

    It is not the first time UKEF has issued a letter of interest for the expansion of Al-Maktoum International airport. In 2014, it issued a $2bn letter of interest. In a statement at the time, UKEF said five prime UK-based contractors were being supported, along with UK suppliers across the supply chain.

    The five prime contractors were Carillion, Kier, Balfour Beatty, Laing O’Rourke and Interserve. Of those five companies, Carillion entered liquidation in 2018 and Interserve entered administration in 2019. Balfour Beatty sold its shareholding in Dubai-based Dutco Balfour Beatty in 2017.

    Although some progress was made on the project after the UKEF offer in 2014, the scheme stalled and was revived again in April 2024, when Dubai approved new designs for the airport.

    Project progress

    Since then, the project client, DAEP, has been awarding and tendering contracts for the first construction packages. It has awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works for the terminal building are being undertaken by Abu Dhabi-based Tristar E&C.

    DAEP is also close to formally awarding a contract for the substructure works for the West Terminal and Concourse One, Concourse Two and Concourse Three.

    Tendering is also ongoing for an automated people-mover (APM) system. The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.

    Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

    The airport’s construction is planned to be undertaken in three phases. Construction works on the project’s first phase are expected to be completed by 2032.

    The airport will cover an area of 70 square kilometres (sq km) south of Dubai and will have five parallel runways, five terminal buildings and 400 aircraft gates.

    It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

    Dubai has said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

    This aviation package also includes:

    > Middle East invests in giant airports
    > Broader region upgrades its airports
    > Global air travel shifts east

     

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115788/main.jpg
    Colin Foreman
  • Riyadh gives Expo infrastructure bidders more time

    19 November 2025

     

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, has extended the deadline for firms to submit commercial offers for the contract to undertake the initial infrastructure works at the site to 23 November.

    ERC had initially set deadlines of 26 October and 9 November for the submission of technical and commercial bids, respectively.

    The tender for the project’s initial infrastructure works was issued in September, as MEED reported.

    In October, MEED revealed that 16 firms had been invited to bid for the contract to undertake the initial infrastructure works at the Expo 2030 Riyadh site.

    The firms invited to bid include:

    • Shibh Al-Jazira Contracting (local)
    • Hassan Allam Construction (Egypt)
    • El-Seif Engineering Contracting (local)
    • Al-Ayuni Investment & Contracting (local)
    • Kolin Construction (Turkiye)
    • Al-Yamama Trading & Contracting Company (local)
    • Saudi Pan Kingdom (local)
    • Unimac (local)
    • Mapa Insaat (Turkiye)
    • Yuksel Insaat (Turkiye)
    • IC Ictas / Al-Rashid Trading & Contracting (Turkiye/local)
    • Mota-Engil / Albawani (Portugal/local)
    • Almabani / FCC Construction (local/Spain)

    The overall infrastructure works – covering the construction of the main utilities and civil works at Expo 2030 Riyadh – will be split into three packages:

    • Lot 1 covers the main utilities corridor
    • Lot 2 includes the northern cluster of the nature corridor
    • Lot 3 comprises the southern cluster of the nature corridor

    MEED previously reported that ERC was expected to issue the tender for some of the infrastructure packages in September.

    In July, US-based engineering firm Bechtel Corporation announced it had won the project management consultancy deal for the delivery of the Expo 2030 Riyadh masterplan construction works.

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within Riyadh.

    Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.

    The expo is forecast to attract more than 40 million visitors.

    The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth vehicle, launched ERC in June as a wholly owned subsidiary to build and operate facilities for Expo 2030.

    In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115697/main.jpg
    Yasir Iqbal
  • NHC and Turkish firm sign $266m investment deal

    19 November 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Housing Company (NHC) has signed an investment agreement worth over SR1bn ($266m) with Turkiye’s Emlak Konut to develop new residential communities within the Mecca Gate project in Mecca.

    The agreement was signed on the sidelines of the Cityscape Global 2025 event in Riyadh.

    Emlak Konut will develop 1,000 residential villas spanning over 255,000 square metres (sq m).

    The latest agreement follows the NHC’s signing of deals worth over SR8.5bn ($2.2bn) for the development of two mixed-use and residential communities in Riyadh.

    The first agreement, worth over SR5.2bn ($1.4bn), was signed with local developer Retal Urban Development Company.

    The deal encompasses the development of 4,839 residential units in the Al-Fursan suburb of Riyadh.

    The other contract, worth over SR3.3bn ($880m), was signed with a joint venture of Egypt’s Hassan Allam Holding and local developer Tilal Real Estate for a mixed-use project in the Khozam district.

    The development will cover an area of over 228,000 sq m.

    It will be delivered through Grova Developments, the development arm of Hassan Allam Holding.

    In 2023, NHC and Saudi Arabia’s Housing Ministry signed investment agreements totalling more than SR24bn ($6.4bn) to launch the Al-Fursan residential project.

    Al‑Fursan is described as the largest scheme in terms of area and number of housing units that NHC is implementing in partnership with other real estate developers. 

    MEED reported in 2020 that Riyadh planned to oversee the development of more than 1 million homes by 2025 to meet growing demand in the kingdom.

    By 2030, the Saudi capital aims to more than double its population, from 7-8 million to 15-20 million, and become one of the 10 wealthiest cities in the world.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115626/main.png
    Yasir Iqbal
  • Egypt announces oil discovery in Western Desert

    19 November 2025

    Register for MEED’s 14-day trial access 

    A new gas discovery has been made in Egypt’s Western Desert region, according to a statement released by the Ministry of Petroleum & Mineral Resources.

    The discovery was made by Khalda Petroleum Company, a joint venture of state-owned Egyptian General Petroleum Corporation (EGPC) and US-headquartered Apache Corporation.

    The field is expected to be brought online this week, according to the ministry.

    The reserves were discovered after drilling the exploratory well ‘Gomana-1’, the ministry said.

    It added that sensors confirmed the presence of gas reserves, and tests indicated that the well is expected to have a production rate of around 36 million standard cubic feet of gas a day.

    Further tests are ongoing, and the initial evaluation of the well’s reserves is currently being finalised.

    The ministry said that the discovery followed the introduction of new incentives designed to encourage additional gas investment within Khalda’s areas of operation.

    Earlier this month, Egypt started gas production from the West Burullus field in the Mediterranean Sea, after connecting the first wells to the national gas grid.

    The country is currently pushing to increase domestic gas production in order to meet domestic demand and reduce its import bill.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15112551/main.png
    Wil Crisp