Tourism sector investments enhances Oman diversifying strategy

Business Saturday 06/September/2025 15:53 PM
By: ONA
Tourism sector investments enhances Oman diversifying strategy

Muscat: The package of integrated tourism projects and new diversified investments announced by Omran Group, a subsidiary of the Oman Investment Authority (OIA), enhances the role of tourism as one of the targeted sectors in the economic diversification strategy during the tenth five-year development plan (2021-2025) and future development plans within the implementation of Oman Vision 2040, the Ministry of Economy said.

These projects aim to diversify sources of income and tributaries of national economic growth, and maximise the benefit from the Sultanate of Oman's unique natural resources and rich cultural and civilizational heritage, consolidating its position as a regional and global investment destination and a destination for sustainable tourism, the Ministry added.

The Ministry of Economy emphasised the effectiveness of tourism promotion efforts in regional and international markets and exhibitions, the continuous diversification of tourism options, and the security and stability enjoyed by the Sultanate of Oman, which increasingly enhances its position as a leading tourist destination.

The implementation of the National Urban Strategy holds promising prospects for tourism in various governorates, with the implementation of unprecedented urban projects such as Sultan Haitham City and the New Salalah City within the smart and future cities system in a number of governorates, which represent an innovative model for a lifestyle that combines the elements of modernity, heritage, and sustainability, and contributes to attracting investments that enhance the objectives of diversification and financial and economic sustainability in the Sultanate of Oman.

The Ministry noted that the Sultanate of Oman, during the Tenth Five-Year Development Plan, has made continuous progress in developing infrastructure projects and implementing development projects through the development budget and the Governorate Development Programme.

This has increased the attractiveness and competitiveness of the tourism sector, contributed to improving tourism services and the standard of living for citizens, encouraged and attracted more local and foreign investments, opened a wider scope for small and medium-sized enterprises, localized jobs and provided job opportunities, and stimulated economic activities in all governorates in support of the implementation of the social and economic objectives of Oman Vision 2040.

The Ministry further elaborated that among the most important development projects that enhance the Sultanate of Oman's position as an authentic destination for culture, heritage and ecotourism, the Oman Across Time Museum was opened during the tenth plan, as an icon that highlights the unique cultural character of the Sultanate of Oman and introduces Oman's ancient history.

The Oman Botanical Garden project is also nearing completion, representing a new added value to diversify tourism sector options and celebrate Oman's unique plant heritage through environments that mimic natural environments and contribute to their preservation.

The actual completion rate is also witnessing progress in one of the most important projects that enhance identity, citizenship, knowledge and creativity, namely the Oman Cultural Complex, which is a unique cultural edifice that highlights Oman's ancient history, its renewed renaissance and its ambitious future towards a country among the ranks of developed countries.

The Ministry of Economy added that progress is also continuing in implementing the Governorates Development Programme, which achieves important targets in enhancing the social and economic impact of development projects, including supporting service aspects, stimulating economic activities, providing job opportunities, and maximising the benefit from competitive elements in the governorates. 
Within the Governorates Development Programme projects, projects to develop and beautify governorate entrances and residential, industrial, and commercial areas represent 9 percent of the total programme projects, projects to develop facades, views, and tourist sites represent 6 percent, events and festivals represent 5 percent, and gardens, parks, and health walkways projects represent 17 percent, in addition to service projects and road projects that are being implemented through the Governorates Development Programme.

The Ministry indicated that by the end of 2024, 50 events and festivals were implemented within the Governorates Development Programme. The number of projects that enhance the growth of tourism activities that were implemented within the Governorates Development Programme, such as views and facades, the development of water springs and tourist sites, amounted to 60 projects.

The number of parks, gardens and health walkways that were implemented within the programme reached 162 projects by the end of 2024. It added that among the most important events and festivals organised through the Governorates Development Programme are the Al Buraimi Governorate Festival and Carnival, and the Sur Maritime Heritage Festival.

The Ministry indicated that the most important projects under the Governorates Development Program this year include the development of the Ibri Overlook in Al Dhahirah Governorate, the Grand Canyon in Al Dakhiliyah Governorate, the development of the historic center in North Al Batinah Governorate, the establishment of Nizwa Public Park, and a number of public park maintenance and waterfront development projects.

The Ministry of Economy stated that the average real value added growth rate of the tourism sector, represented by accommodation and food services activities, reached 6.2 percent during the period (2021-2024), exceeding the targeted growth of the tourism sector by the end of the tenth five-year development plan, which amounted to 1.4 percent.

The sector’s contribution to the Sultanate of Oman’s gross domestic product (GDP) reached OMR691 million in 2024. The tourism sector achieved a high growth rate during the first quarter of this year, at 11.7 percent, increasing its contribution to the Sultanate of Oman’s GDP from OMR181 million during the first quarter of 2024 to OMR202 million during the first quarter of this year, 2025.