meed-logo

line1 line2 line3
SIGN IN / REGISTER

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

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

Click here to register
Exclusive from Meed
Related Articles
  • Iraq readies tender for additional Al-Faw port piers

    6 July 2026

    Iraq is preparing to issue a tender inviting international contractors to bid for a contract to build the remaining piers at Al-Faw Grand Port in Basra.

    According to local media reports, construction work on the project's first phase is expected to be completed by the end of this year.

    This will be followed by port operations, for which the client, state-owned General Company for Ports of Iraq, shortlisted three out of the initial 11 international companies that were invited to bid, as MEED reported last year.

    At the time, the shortlisted companies included:

    • China Merchants Port Group (China)
    • Evergreen (Taiwan)
    • CMA CGM (France)
    • Mediterranean Shipping Company (Switzerland)
    • Adani Group (India)
    • International Container Terminal Services (Philippines)
    • Cosco (China) 
    • ABM Global Shipping (UAE)
    • AD Ports (UAE)

    In April last year, Iraq’s Shafaq News Agency reported that the country was in talks with US-based KBR to assist in operating the Al-Faw port.

    KBR was expected to provide training in port operations and management to Iraqi personnel, along with related services.

    The first phase of the project is scheduled for completion by the end of this year, while the second phase is expected to be completed by 2029.

    The first phase of the project cost approximately $5bn, including $2.5bn for its five main piers, which were constructed by South Korea’s Daewoo Engineering & Construction.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17562198/main.jpg
    Yasir Iqbal
  • Chinese contractor completes 70% of Iraq oil project

    6 July 2026

     

    The project to develop new crude oil processing facilities at Iraq’s Rumaila field is 70% complete, according to industry sources.

    The project scope for the planned plant in Mishrif Qurainat includes developing two new oil trains, each with a capacity of 120,000 barrels a day (b/d).

    When it was originally announced, the planned plant in Mishrif Qurainat was the first new crude oil processing facility project at the oil field in 10 years.

    In the fourth quarter of 2022, China Petroleum Engineering & Construction Corporation signed a contract for the design, procurement, construction and testing of the crude oil processing facilities.

    The contract was valued at about $386m, and construction was expected to take three years to complete.

    Since 2022, the project has seen significant delays and the date for completion is currently uncertain, according to industry sources, as bringing the new crude processing facility online is no longer a priority for the client.

    One source said: “Work is continuing on this project at a slow pace because the client is not prioritising commissioning the oil trains.

    “The companies that form the joint venture, which operates the Rumaila field, are dealing with a range of other issues right now as a result of the regional war and disruption to shipping through the Strait of Hormuz.”

    Rumaila is operated by Rumaila Operating Organisation (ROO).

    ROO is a joint venture formed by state-owned Basra Oil Company; Iraq’s State Oil Marketing Organisation (Somo); and Basra Energy Company, a joint venture owned by UK-based oil company BP and PetroChina.

    PetroChina is the listed arm of state-owned China National Petroleum Corporation.

    Oil exports from Iraq have dropped steeply since the US and Israel attacked Iran on 28 February, leading to a regional conflict.

    The conflict has caused significant disruption to Iraq’s oil exports via the Strait of Hormuz.

    This has had a knock-on impact for production in the country, where output from many major oil fields has had to stop or has been significantly lowered.

    One source said: “At the moment, Basra Oil Company is prioritising restoring production, where it is possible, from assets that have seen reductions in output.

    “They are using a lot of resources just to keep existing facilities online and restarting facilities that have stopped due to the crisis.

    “Commissioning a brand new project, like the Mishrif Qurainat facilities, is unlikely to be a priority until Iraq’s oil sector returns to a situation that is more like business as usual prior to the conflict with Iran.”

    Rumaila is the ‎second-largest producing field in the world, and it is estimated to have about 17 billion barrels of ‎recoverable oil remaining.‎

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17561830/main.jpg
    Wil Crisp
  • Riyadh awards Thumama Road eastern section contract

    6 July 2026

     

    Register for MEED’s 14-day trial access 

    The Royal Commission for Riyadh City (RCRC) has awarded a contract for the eastern section of the Thumamah Road development project in Riyadh.

    Yuksel Saudi, the local subsidiary of Turkish construction firm Yuksel Holding, won the contract.

    The mobilisation works are expected to begin by mid-July and the project is expected to be completed by 2028.

    The project covers about 8 kilometres (km) and includes three bridges and three tunnels. It is designed to handle up to 200,000 vehicles a day.

    The RCRC is investing in upgrading the road networks in the capital. Earlier in July, it awarded another contract to local firm Sapac for the Jeddah Road development project.

    Covering 29km, 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 projects form 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 cover 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 a day.
    • Othman Bin Affan Road development project: The northern section will cover 4.3km and include seven bridges and other related upgrades to enhance traffic flow in 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 in the city’s road network, where advanced engineering solutions will be applied to reduce congestion and improve intersection performance, increasing traffic capacity by 40%-60%.

    The contract for the Thumamah 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 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.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17561818/main.jpg
    Yasir Iqbal
  • PIF’s 2025 results back 2026-30 strategy shift

    3 July 2026

    Saudi Arabia’s Public Investment Fund (PIF) has published its audited consolidated financial statements for the year ended 31 December 2025, the first full set of annual results to follow the board’s approval of the fund’s 2026-30 strategy.

    The results show a sharp improvement in profitability last year even as leverage rose and volatility in its listed equity holdings widened. The performance helps explain the strategic shift towards capital discipline and focus on private sector partnerships set out in April.

    In April, PIF’s board, chaired by Crown Prince Mohammed Bin Salman Al-Saud, approved a new five-year strategy structured around three portfolios, the Vision Portfolio, the Strategic Portfolio and the Financial Portfolio, and organised around six domestic ecosystems: tourism, travel and entertainment; urban development and liveability; advanced manufacturing and innovation; industrials and logistics; clean energy, water and renewables infrastructure; and Neom as a standalone ecosystem.

    Project reprioritisation

    The strategy followed a period of reprioritisation across PIF’s gigaproject portfolio and set out a renewed emphasis on private capital, with PIF stating it would “further enable the role of the private sector as an effective partner for sustainable economic development”.

    PIF’s consolidated profit for 2025 rose to SR65.2bn ($17.4bn) in 2025, up 152% from SR25.8bn in 2024. The increase was driven by operating profit more than doubling, to SR78bn from SR34.7bn, as revenue growth outpaced cost of revenue and general and administrative expenses moderated relative to the prior year. Profit attributable to the owner of the fund rose to SR46.4bn, up from just SR1bn in 2024, a swing that accounts for most of the year-on-year improvement.

    Total revenue, comprising SR312bn of operating revenue and SR137.9bn of income from investment activities, rose 8.8% to SR449.9bn. Core operating revenue alone was up 9.9%, from SR284bn in 2024.

    Segment mix                                                     

    The segment breakdown shows where that growth came from, and it lines up closely with the six ecosystems named in the 2026-30 strategy. Banking and financial services remained the largest single revenue line at SR85.3bn, followed by telecommunications at SR76.8bn ($20.5bn), which was down slightly on 2024. Mining revenue rose 19.3% to SR38.8bn, consistent with the strategy’s focus on industrials and logistics, while revenue from electronic gaming and related services held broadly flat at SR15.6bn, an area PIF governor Yasir Al-Rumayyan specifically cited as a sector for strategic investment alongside artificial intelligence and renewable energy. Agricultural and livestock revenue nearly tripled, to SR7.6bn from SR2.5bn, and revenue from events operations rose to SR7.6bn from SR6bn, both pointing to the diversification into domestic ecosystems the strategy describes. Real estate operations revenue and revenue from advanced electronics and aerospace both declined slightly year-on-year.

    Total assets grew 5.1% to SR4.54tn from SR4.32tn, continuing the expansion PIF has reported since 2015, when the strategy document put assets under management at $150bn, against more than $900bn today. The two figures are not directly comparable, since the IFRS consolidated balance sheet captures the full assets of consolidated subsidiaries such as the fund’s banking, telecommunications and mining operations, while PIF’s publicly cited assets-under-management figure uses a different valuation methodology, but both point to the same order of scale.

    Total equity, by contrast, fell 2% to SR2.63tn ($701bn) from SR2.68tn, despite the sharp rise in reported profit. The gap is explained by other comprehensive income, which swung to a loss of SR113.3bn for the year, driven primarily by a SR112.8bn fair-value loss on equity instruments measured at fair value through other comprehensive income. In other words, unrealised mark-to-market losses on part of PIF’s listed equity portfolio outweighed the operating profit improvement, leaving total comprehensive income attributable to the owner of the fund at a loss of SR64.7bn for the year, though this was narrower than the SR154.4bn loss recorded in 2024.

    Total liabilities rose 16.7%, to SR1.91tn from SR1.64tn, driven mainly by loans and borrowings, which climbed 27.2% to SR725.3bn from SR570.4bn. Property, plant and equipment grew 6.3%, to SR429.6bn, reflecting continued capital spending across PIF’s real estate and gigaproject portfolio, including the stadium, hospitality and urban development programmes.

    Strategy context

    The scale of PIF’s investment activity in the run-up to 2025 is set out in the April strategy announcement rather than the financial statements themselves. Between 2021 and 2025, PIF says it invested more than $199bn in new projects in Saudi Arabia, contributed $243bn to real non-oil GDP and spent more than $157bn with the local private sector, alongside growing assets under management six-fold and delivering an annualised total shareholder return of more than 7% since 2017. Read against the 2025 results, the rise in mining, gaming, agricultural and events revenue is an early indication that this domestic ecosystem investment is beginning to show up in operating performance, even as the wider balance sheet shows the cost of that expansion in higher borrowing and greater sensitivity to listed equity markets.

    The results reinforce a theme demonstrated by PIF’s ongoing award of construction contracts for Expo 2030, the 2034 Fifa World Cup and other gigaprojects in the kingdom. Growth is increasingly funded through a combination of retained earnings, debt and, with the new strategy, private co-investment, rather than balance-sheet expansion alone. The explicit retention of Neom as a named ecosystem in the 2026-30 strategy, despite the cancellation of several Trojena contracts and the loss of the Asian Winter Games over the past year, suggests PIF intends to continue funding the project, but within a more disciplined framework most likely centred on industrial development around the Port of Neom, which is also known as Oxagon.

    The 2025 results and the 2026-30 strategy point to a fund entering a new phase: profit generation has improved markedly, but leverage has grown and comprehensive income remains exposed to swings in listed markets, both factors consistent with a strategy that emphasises capital efficiency, institutional excellence and a larger role for private capital rather than a further scaling-up of gigaproject spending on PIF’s own balance sheet.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17540500/main.gif
    Colin Foreman
  • UAE to add Ajman to its Etihad Rail passenger network

    3 July 2026

     

    Register for MEED’s 14-day trial access 

    As part of ongoing procurement for the UAE’s national passenger rail rollout, Abu Dhabi’s Etihad Rail is adding Ajman to the planned network, extending coverage to five of the seven emirates.

    Etihad Rail tendered a design-and-build contract in late June to construct a section of the network to Hamriyah in Ajman, branching off from its existing freight network.

    The scope includes civil and track works, the construction of a passenger station and other associated infrastructure.

    Contractors have until 27 July to submit their proposals.

    The extension to Ajman brings Etihad Rail’s passenger network closer to the wider Northern Emirates, where Umm Al-Quwain and Ras Al-Khaimah still sit outside the current rollout, despite lying along the existing freight corridor, which currently terminates at Al-Ghail dry port in Ras Al-Khaimah.

    The sequencing of the Ajman section could pave the way for further extensions if this section proves successful.

    The latest development follows Etihad Rail’s start of passenger rail operations on 30 June 2026, with an introductory operational phase on the Abu Dhabi-Fujairah route.

    The passenger roll-out marked a major milestone for Etihad Rail, which was established in 2009 and tasked with delivering a roughly 900-kilometre railway linking key cities, ports and industrial hubs from Ghuwaifat to Fujairah on the eastern coast.

    The launch came less than five years after the UAE announced its ambition to create a national passenger railway under the country’s “Projects of the 50” programme, aiming to support economic diversification and sustainable development.

    According to Etihad Rail, passenger services will be introduced in planned phases through 2026 and 2027:

    • 23 June 2026: Passenger tickets went on sale via the Etihad Rail app and a dedicated booking website (as well as the contact centre for certain fares)
    • 30 June 2026: Introductory operational phase begins with services between Abu Dhabi and Fujairah only
    • 30 September 2026: Passenger rail services formally commence and expand to include Abu Dhabi, Dubai, Al-Dhaid and Fujairah
    • 30 December 2026: Services extend to Al-Dhafra stations
    • 30 March 2027: Services expand further to include Sharjah

    In response to MEED’s request for comment on the Ajman section, Etihad Rail said:

    “Etihad Rail remains committed to supporting the UAE’s vision for an integrated, efficient and sustainable transport network that enhances connectivity between communities and supports the nation’s long-term economic and social development.

    “As previously announced, Etihad Rail’s passenger services are being introduced in phases, with further expansion planned over time. We do not comment on market speculation, commercial discussions, procurement activity, or projects that have not been formally announced.

    “Any updates regarding future developments will be communicated through official channels in due course.”

    Passenger rail operations

    Tickets for the Abu Dhabi-Fujairah route are already on sale through the operator’s digital platforms.

    Customers can book tickets up to four weeks before travel. Tickets for new destinations will be released in line with the phased roll-out.

    At this point, Etihad Rail’s passenger service will officially connect 11 cities and regions across the UAE, supported by a station network that links key urban and economic centres. The station list includes:

    • Abu Dhabi – Mohamed Bin Zayed City Station
    • Dubai – Al-Yalayis Station
    • Sharjah – University City Station
    • Fujairah Station
    • Al-Dhaid Station
    • Al-Dhannah Station
    • Madinat Zayed Station
    • Liwa Station
    • Al-Mirfa Station
    • Al-Sila Station
    • Al-Faya Station
    Construction history

    The first phase of Etihad Rail comprised a 264-kilometre freight line spanning Shah, Habshan and Ruwais. This was primarily delivered by a consortium of Italy’s Saipem and Maire Technimont, alongside UAE-based Dodsal Engineering & Construction.

    Stage 2 of Etihad Rail comprises four major packages.

    India’s Larsen & Toubro worked with Chinese state-owned PowerChina International on the design and construction of freight facilities for Stage 2 under a AED1.87bn contract.

    A joint venture comprising China State Construction Engineering Corporation and South Korea’s SK Engineering worked on the first of four civil and track works packages for the 139km line between Ghuwaifat and Ruwais. The contract, worth AED1.5bn, was confirmed in March 2019.

    Packages B and C of Stage 2 were awarded to a joint venture of Beijing-based China Railway Construction Corporation and local Ghantoot Transport & General Contracting in June 2019.

    Both packages are understood to have a combined value of AED4.4bn and cover 310km of the rail network.

    In December 2019, a joint venture of CRCC and local National Projects & Construction was formally confirmed for the AED4.6bn Package D.

    Package D will link the ports of Fujairah and Khorfakkan to the network at the Dubai-Sharjah border and stretches over a distance of 145km.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17525193/main.jpg
    Yasir Iqbal