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
  • Dubai seeks consultants to develop drainage strategy

    18 March 2026

    Dubai Municipality has issued a request for qualifications (RFQ) for a study to develop a sustainable urban drainage systems (Suds) strategy across the emirate.

    The bid submission deadline is 9 April.

    The tender, issued through the Sewerage and Recycled Water Projects Department, covers the development of a strategy and conceptual implementation plan for Suds in Dubai.

    It follows a separate RFQ issued by the municipality in March for consultancy services to study the emirate’s sewage treatment strategy.

    The Suds project, designated TF-23-D1, aims to support the emirate’s flood protection and drainage infrastructure by promoting a more sustainable approach to stormwater management.

    The scope of work includes a review of international best practices in Suds and their applicability to Dubai. It also involves undertaking a Suds opportunity study and carrying out catchment-scale modelling and financial evaluation for a pilot study area.

    Consultants will be required to develop Suds design guidelines, specifications and standard drawings. The project also includes establishing a strategy, policy, legal and regulatory framework to support a Suds implementation roadmap.

    Dubai Municipality said the initiative represents “a significant step towards a more resilient, sustainable and forward-looking stormwater management approach for Dubai.”

    The study forms part of a broader review of Dubai’s water and wastewater infrastructure. Earlier this month, the municipality issued a separate consultancy tender (P115-D1) to assess the emirate’s sewage treatment and recycled water distribution strategy. 

    The study will focus on infrastructure requirements to support future population growth. 

    This includes identifying locations for potential future facilities such as treatment plants and pumping stations.

    The bid submission deadline is 23 March.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16027434/main.jpg
    Mark Dowdall
  • Oman awards power purchase agreements

    18 March 2026

    Oman’s Nama Power & Water Procurement Company (PWP) has issued letters of award (LoA) for new power purchase agreements (PPAs) to three independent power producers (IPPs), according to regulatory filings.

    The new PPAs will extend the operating life of existing gas-fired power plants beyond the expiry of their current contracts.

    The projects have a combined capacity of about 3,500MW.

    The agreements have been awarded to Phoenix Power Company, Al-Batinah Power Company and Al-Suwadi Power Company.

    Phoenix Power Company operates the 2,000MW Sur IPP.  It is owned by a consortium of international and regional investors, including Japan’s Marubeni Corporation and Chubu Electric Power, Qatar’s Nebras Power, Qatar Electricity & Water Company and Multitech of Oman’s Bahwan Engineering Company.

    Al-Batinah Power Company and Al-Suwadi Power Company operate the 750MW Sohar 2 IPP and the 750MW Barka 3 IPP, respectively.

    According to regional projects tracker MEED Projects, Nama PWP signed the original PPA for the Barka 3 project in 2010 with a consortium led by Gaz de France (GDF) Suez under a special purpose vehicle (SPC) called Al-Suwadi Power Company.

    The shareholders comprised GDF Suez (46%), Bahwan Engineering Company (22%), Shikoku Electric Power Corporation (11%), Sojitz Corporation (11%)  and the Public Authority for Social Insurance (10%).

    In 2015, GDF Suez was rebranded as Engie following a strategic shift towards low-carbon energy and utilities.

    All three companies said the new PPAs will run for 15 years under agreed commercial terms. Acceptance of the LOAs has been requested by 18 March 2026.

    The new agreements for Sohar 2 and Barka 3 will take effect on 1 April 2028 and run until 31 March 2043. The agreement for the Sur IPP will commence on 1 April 2029 and run until 31 March 2044.

    The awards form part of Nama PWP’s 2028-29 procurement programme. The programme aims to secure firm generation capacity from existing assets whose current PPAs are due to expire during that period.

    In Oman, IPP projects are developed under a build-own-operate model. This allows plant operators to continue running assets beyond the initial PPA term, either through contract extensions or by selling power into a future electricity market.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16027001/main.jpg
    Mark Dowdall
  • DP World awards Jafza warehouse construction deal

    18 March 2026

    Dubai-based ports operator DP World has awarded a contract to build a multi-tenant warehouse development at Jebel Ali Freezone in Dubai, UAE.

    The contract was awarded to local firm Group Amana.

    The development spans 141,916 square metres (sq m) and comprises 187 units across seven blocks.

    These comprise warehouses, light industrial units, a retail shop, a mosque and other associated infrastructure.

    The new contract builds on their existing partnership to deliver the logistics park at Jeddah Islamic Port in Saudi Arabia.

    In February last year, MEED exclusively reported that Dubai’s DP World and the Saudi Ports Authority (Mawani) had awarded a SR347m ($92m) design-and-build contract to Group Amana for the project.

    The scope of the contract covers construction work on the buildings under package two of the project’s first phase.

    Earlier this week, MEED reported that DP World has kept its 2026 capital expenditure budget at nearly $3bn, focusing on two domestic assets and four overseas projects.

    The company said in a statement that the priority developments include Jebel Ali and Drydocks World in Dubai.

    Earlier this month, the group announced record financial results for 2025, with revenue up 22% to $24.4bn and adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) up 18% to $6.4bn, delivering a 26.3% margin.

    DP World said this performance was driven by strong momentum across its ports and terminals and logistics business.

    The group’s gross throughput rose 5.8% to 93.4 million 20-foot equivalent units.

    Profit for the year increased 32.2% to $1.96bn, and operating cash flow grew 14% to $6.3bn.

    Return on capital employed increased to 9.9% in 2025, up from 8.9% in 2024, reflecting stronger earnings despite ongoing geopolitical and trade uncertainty.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16026660/main.png
    Yasir Iqbal
  • Egyptian firm starts building Sal’s Riyadh logistics centre

    18 March 2026

    Egyptian contractor Rowad Modern Engineering, a subsidiary of the Elsewedy Electric Group, has begun construction on the expansion of Saudi Logistics Services Company (Sal) facilities at King Khalid International airport in Riyadh.

    The scope of work includes the rehabilitation and upgrade of existing infrastructure, as well as the construction of new supporting facilities and services.

    Sal started the tendering process for its SR4.2bn ($1bn) logistics zone in the north of Riyadh in September last year, as MEED reported.

    UAE-based Global Engineering Consultants is the project consultant.

    The logistics hub aims to meet the demand for customised warehouses located near King Khalid International airport and the Riyadh Metro.

    The project is in line with Vision 2030 and the National Transport & Logistics Strategy, which aims to support the kingdom’s logistics sector and enhance Saudi Arabia’s position as a global logistics hub.

    Sal and Sela signed an agreement to develop the project in March last year.

    This was followed by another lease agreement for the project, which will span about 1.57 million square metres. 

    According to an official statement: “The lease will extend for 30 years, which is further extendable to an additional 15 years upon agreement of both parties.”

    GlobalData expects the kingdom’s construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the $850bn-plus gigaprojects programme.

    Growth will also be supported by government investments in rail, dams, industrial and road infrastructure projects. 

    The industrial sector is estimated to grow by 3.3% in 2025-28, supported by investments in the development of manufacturing, logistics, chemicals and pharmaceuticals plants.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16026154/main.gif
    Yasir Iqbal
  • Jabal Omar plans next phase of its Mecca development

    18 March 2026

    Saudi Arabian developer Jabal Omar Development Company is carrying out planning for phase seven of its Jabal Omar master development in Mecca, according to a fourth-quarter 2025 financial presentation.

    The company said phase seven will be a mixed-use scheme comprising hotels, retail and residential components, but did not disclose a breakdown of the project elements.

    Jabal Omar plans to use a development partnership model for the phase to minimise capital expenditure.

    Separately, the developer said it is targeting the delivery of 1,346 hotel keys and more than 20,000 square metres of gross leasing area in phase four by 2027.

    Rotana Jabal Omar Makkah, comprising 655 keys, is due to be fully operational in the first quarter of 2026, after 450 keys began operating in the final week of December 2025.

    The 1,141-key Sofitel is scheduled to become operational in the fourth quarter of 2026, while the 20,000 square metres of gross leasable area is expected to be ready in 2027.

    Jabal Omar estimates its 2026 capital expenditure at SR1.1bn ($293m), with spending expected to fall once the phase four hotels are completed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16026145/main.png
    Yasir Iqbal