Omran’s tourism strategies help deliver Oman 2040

24 December 2024

 

Tourism is a key component of Oman 2040, the overarching vision guiding social and economic development in the sultanate. 

The sector will play a key role in promoting Omani culture and national identity by showcasing cultural and historical landmarks, while at the same time promoting economic diversification by creating opportunities for work and investment. 

Oman Tourism Development Company (Omran Group), which was established in 2005 by the government, is playing a leading role in delivering these objectives with a multi-faceted approach that aims to enhance Oman’s tourism offering so that it can deliver on the goals of Oman 2040. 

Omran’s approach covers the entire value chain of the tourism industry, says Hashil Al-Mahrouqi, CEO of Omran.

“This covers three key areas. Number one is creating experiences so that people have a reason to come and visit the sultanate. Number two is hospitality, which means that once people come to Oman, they need somewhere to stay, and Omran has a portfolio of hotels and resorts. The third part is development, which is what we do for people who want to stay in the sultanate, so for that we create destinations.”

Oman’s diverse landscape allows it to be a year-long destination, but only if we emphasise the experiences as part of a year-round calendar and let people know about it

Delivering experiences

While the three areas are all interconnected, creating experiences is the most important aspect for Al-Mahrouqi. “That is the focus because it is the gateway for getting people to Oman,” he says. 

Oman has a long history, wide-ranging geography and varied climates to tap into for tourism experiences.

“We have assessed 15 different locations within the sultanate to showcase the different experiences we can offer,” says Al-Mahrouqi. “What really matters is connecting the experiences and the country’s unique selling points. Oman’s diverse landscape allows it to be a year-long destination, but only if we emphasise the experiences as part of a year-round calendar and let people know about it.”

Distinct submarkets

The variety of Oman’s tourism offering means it already has distinct submarkets with different visitor profiles and durations of stay. When visiting the coast or the mountain destinations, the duration of stay is typically about two days, while visitors to Salalah during the summer monsoon, known as the Khareef, tend to stay longer, with stays of about five days.

“We know that people love to visit Salalah for the Khareef, and we know that it is a long stay for people from the region and within Oman. During the winter, we have visitors who want to glimpse a bit of the city and then want to go camping. Those visits are normally two days and two days,” says Al-Mahrouqi. 

By developing new experiences, Omran will enhance these existing offerings. “With our projects, we want to give experiences that will give visitors a reason to stay longer. We want to give more variety so they can spend more time here in Oman,” says Al-Mahrouqi.

Sustainability commitment

Experiences are just part of Omran’s project portfolio, and the agency is working on a range of other development and hospitality projects.

“Anything we do as a development project has to support our overall goals for the tourism sector. It also has to be sustainable, because sustainability is part of our DNA as an organisation.”

Omran’s commitment to sustainability was underscored in September, when it published its environmental, social and governance (ESG) framework for the group’s operations so they align with Oman Vision 2040 and the United Nations Sustainable Development Goals (UN SDGs).

For specific projects, Omran has a broad range of development and hospitality schemes across the sultanate.

“We are working on Sustainable City at Yitti and that is in construction now. Then there is Madinat Al-Irfan, which, with 7 million square metres (sq m), will be a destination with experiences, hospitality and lifestyle, so that it connects all the dots with what we are doing as Omran,” says Al-Mahrouqi. 

Two other major projects in Muscat are planned. “There is a very important project called the Opera District next to the Royal Opera House. We are working with our neighbours so that the whole area is thoroughly masterplanned to ensure we are doing something different,” says Al-Mahrouqi. “We are also working on the redevelopment of Sultan Qaboos Port.” 

Outside of the capital, another masterplanned development is planned for Salalah. “It is related to agri-tourism, and covers an area of 5.5 million sq m,” says Al-Mahrouqi. The project will leverage Salalah’s unique climate on the Arabian Peninsula by growing 50,000 coconut trees along with papaya and banana trees.

We are [bringing] Club Med to the region for the first time as a hotel operator 

Omran is also working on hospitality projects. One such project is the Four Seasons development project, which will offer a hotel and branded residences, including what will be Muscat’s most expensive penthouse. 

To the north, on the Musandam Peninsula, Omran is working on a Club Med resort. “We are [bringing] Club Med to the region for the first time as a hotel operator,” says Al-Mahrouqi. 

Another project Omran is developing is a resort on Oman’s tallest mountain, Jebel Shams, which is also the tallest mountain on the Arabian Peninsula. “That is a wellness resort called the Stars Reserve,” he says. “It has been carefully designed so there is no light pollution to affect the views of the night sky.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/13175402/main.gif
Colin Foreman
Related Articles
  • Iraq and Turkiye discuss oil pipeline deal

    3 July 2026

    Turkiye’s Energy Minister Alparslan Bayraktar has met with senior Iraqi oil and foreign ministry ‌officials to discuss energy cooperation, including on the Iraq-Turkiye Pipeline (ITP) that runs from Kirkuk to Ceyhan, according to a statement.

    In a post on social media, Bayraktar said that Turkiye aims to work closely with the new Iraqi government on more effective use of existing energy infrastructure.

    The decades-old agreement, which governs crude oil exports through the ⁠pipeline, is due to expire on 27 ​July.

    Baghdad and Ankara are still ​discussing a new draft agreement.

    Turkiye is ​also seeking ​to support ⁠existing infrastructure with new connections, Bayraktar said.

    Baghdad last month asked ​Ankara to extend the pipeline agreement ​for ⁠at least a year to allow time for more talks, but Ankara said ⁠it ​does not want an extension ​under current conditions.

    If the existing pipeline deal expires without Turkiye agreeing to an extension, it would be a major blow to Iraq, which has recently seen a large drop in crude exports due to disruption to shipping through the Strait of Hormuz.

    At the moment, in addition to transporting oil from northern Iraq, the ITP is also transporting crude from southern Iraq, which is brought to the north by truck and then injected into the pipeline network.

    At the end of March, Amer Khalil, the director-general of Iraq’s state-run North Oil Company, said that Iraq was exporting 200,000 barrels a day through the ITP.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17538073/main.jpg
    Wil Crisp
  • Oman begins procurement for truck road PPP

    2 July 2026

     

    Oman’s Ministry of Transport, Communications & Information Technology (MTCIT) has tendered a contract for the sultanate’s second public-private partnership (PPP) road scheme.

    The project spans 66 kilometres between Al-Buraimi and Al-Dhahirah governorates, starting at the Al-Khatm border crossing in Mahdah and ending at the Al-Fath area in Dhank.

    Under the scheme, the winning bidder will design, build, finance and transfer the project, which is specially designed for heavy vehicles.

    MTCIT issued the tender on 30 June. The deadline to purchase tender documents is 11 August, and the clarification period will run from 11 to 18 August.

    The bid submission deadline is 30 January 2027.

    In August 2023, Oman shortlisted five of the eight prequalified teams to compete for the Salalah-Thumrait truck road (STTR) project, the sultanate’s first PPP road project.

    The project failed to materialise beyond that point.

    In January, MEED reported that Oman is planning to establish a new commercial railway line to transport essential supplies between Salalah and Thumrait – an initiative understood to have preceded the STTR project. The railway is planned to be implemented as a PPP.

    The scheme comprises the construction of a railway line approximately 150-170km long. Two main stations are planned: Salalah Station, near the port and food storage facilities, and Thumrait Station, which will serve as a distribution hub for the surrounding areas.

    Trains are expected to be equipped with refrigerated and dry containers. The scheme aims to reduce transport costs between the two areas by 20%-30%, and Oman plans to pitch the project to major food companies to secure long-term transport contracts.

    The proposed project timeline is:

    • 2025: Conduct economic, technical and environmental feasibility studies
    • 2026: Launch the project for investment on a PPP basis
    • 2027-30: Construction of the railway line
    • 2031: Trial operations
    • 2032: Full commercial operations

    The project is touted as a key initiative under Oman Vision 2040, which aims to transform the sultanate into a global logistics hub.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17525698/main.jpg
    Yasir Iqbal
  • Acwa signs Mauritania gas IPP agreements

    2 July 2026

    Saudi Arabia’s Acwa has announced it has signed the public-private partnership (PPP) and power-purchase agreements for the 230MW N’diago combined-cycle gas turbine (CCGT) power plant in Nouakchott, Mauritania.

    The agreements cover the development, financing, construction and operation of the project. They were signed in Nouakchott in the presence of senior officials from the Mauritanian government and Acwa chairman Mohammad Abunayyan.

    The project is Mauritania’s first large-scale gas-fired independent power project (IPP). It is also expected to be the country’s first major gas-fired power plant procured through a PPP structure.

    The CCGT plant will provide 230MW of baseload generation capacity. It will use Mauritania’s domestic natural gas resources to supply the national grid.

    Separately, Mauritanian Electricity Company (Somelec) has been advancing procurement for the construction of a 50MW solar power and battery energy storage system IPP project. It issued an expression of interest request in May.  

    Mauritania currently has several wind and solar power projects in the early study stages, according to regional project tracker MEED Projects.

    There are also plans to build a 1,200MW wind power plant near Port Etienne in the Bay Province of Nouadhibou, for which China Energy Engineering was appointed as the main contractor in 2024. 

    Meanwhile, Acwa’s portfolio comprises 111 assets that are operational, under construction or in advanced development. These represent investments of SR468.9bn ($125bn).

    According to the company, it has a power generation capacity of 98GW, including 52.3GW of renewable energy, and manages 9.7 million cubic metres a day of desalinated water globally.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17525605/main.jpg
    Mark Dowdall
  • Saudi water sector awaits next catalyst

    2 July 2026

    Commentary
    Mark Dowdall
    Power & water editor

    Saudi Arabia’s water sector is entering a critical period as developers and investors wait for the next signal that the kingdom’s project pipeline is moving forward.

    Seven months have passed since preferred bidders were announced for the Arana and Hadda independent sewage treatment plant (ISTP) projects, which together will provide 350,000 cubic metres a day (cm/d) of treatment capacity. The projects had been expected to reach financial close in the second quarter of this year, but have yet to do so.

    In parallel, Saudi Arabia’s Vision Invest was selected as preferred bidder last December for the estimated $2bn Riyadh-Qassim independent water transmission pipeline (IWTP) project. It was reported at the time that the company had submitted a levelised tariff of SR2.627 ($0.70) a cubic metre, almost 20% below the next nearest bid. The project, which will comprise an 859-kilometre pipeline with transmission capacity of 685,000 cm/d, had been tipped to reach financial close this quarter.

    The uncertainty extends beyond projects awaiting financial close. The developer tender bid deadline was recently pushed back again for the $150m Riyadh East ISTP. Meanwhile, Saudi Arabia’s Water Transmission Company (WTCO) is understood to be reviewing the delivery model for the Jubail-Buraidah and Ras Mohaisen-Baha-Mecca independent water transmission system (IWTS) projects.

    According to sources familiar with the plans, WTCO is considering establishing a special purpose vehicle that would take equity stakes in both schemes. This could further delay procurement for a project that has already seen multiple deadline extensions. Sharakat’s next wave of independent water projects (IWPs) is also in the pipeline. The first of these is not expected to be tendered until early 2027.

    According to regional project tracker MEED Projects, Saudi Arabia’s water infrastructure sector recorded $3.14bn-worth of awards in the first half of this year, substantially lower than the $7.58bn recorded during the same period in 2025.

    While activity has slowed, the longer-term outlook remains unchanged. Population growth and industrial expansion continue to drive demand for desalination, wastewater treatment and water transmission infrastructure. In the meantime, key stakeholders are looking for the next clear signal that the project pipeline is regaining momentum.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17510220/main.jpg
    Mark Dowdall
  • Contractor wins Jeddah road expansion deal in Riyadh

    2 July 2026

     

    The Royal Commission for Riyadh City (RCRC) has awarded a contract for the Jeddah Road Development Project in Riyadh.

    Local construction firm Saudi Pan Kingdom (Sapac) won the contract.

    Spanning 29 kilometres, the scheme includes 14 bridges and five lanes.

    Designed to handle up to 353,000 vehicles a day, the road is expected to be completed by 2028, with mobilisation works already under way.

    The project forms part of the third package of the RCRC’s Riyadh Main and Ring Road Axes Development Programme, which was announced in January.

    The other schemes include:

    > Taif Road Development Project: The project stretches 15km and includes four bridges, each with four lanes. It also features two tunnels. It will have a capacity of up to 200,000 vehicles a day and will enhance connectivity between Riyadh’s southern and western districts and the city centre.

    Thumamah Road Development Project: The eastern section of the project will span 8km and include three bridges and three tunnels, linking the northern and eastern parts of Riyadh. The project will have a daily capacity of up to 200,000 vehicles.

    King Abdulaziz Road Development Project: The northern section of the project stretches 4.7km and will include four bridges, four lanes and one tunnel, with a capacity of up to 450,000 vehicles per day.

    Othman Bin Affan Road Development Project: The northern section will span 4.3km and include seven bridges and other related upgrades to enhance traffic flow across northern Riyadh. The project will have a daily capacity of up to 500,000 vehicles.

    Second phase of engineering enhancements for congested areas: This project targets eight locations across the city’s road network, where advanced engineering solutions will be applied to reduce congestion and improve intersection performance, increasing traffic capacity by 40% to 60%.

    The contract for the Jeddah Road Development Project is the latest of several high-profile deals awarded by the RCRC recently. In May, it awarded an estimated SR5bn ($1.3bn) contract to construct the Sheikh Jaber Al-Sabah Road project in Riyadh.

    That contract went to a joint venture of Riyadh-based Al-Rashid Trading & Contracting Company (RTCC) and Turkiye’s IC Ictas.

    Stretching 12km, the project runs from Khurais Road to Al-Thumama Road and is a key component of the Second Eastern Ring Road scheme.

    Works include five interchanges: Prince Bandar, King Abdullah, Imam Abdullah, Dammam Road and Al-Thumama.

    In 2021, Saudi Arabia’s Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud said the population of Riyadh would double to 15-20 million people by 2030. 

    He directed government entities to work closely with the RCRC to prepare the city’s development strategy.

    The RCRC’s major projects include Riyadh Metro, Riyadh Art, Sports Boulevard, King Salman International Park, Green Riyadh and several road development projects in the capital.


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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

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

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17523376/main.jpg
    Yasir Iqbal