Tuesday 25 / August / 2026
The construction industry in Oman is witnessing rapid expansion and has emerged as the second-largest contributor to the national economy, surpassed only by the oil sector. Oman’s construction market is projected to reach USD 7.27 billion in 2026 and expand to USD 8.46 billion by 2031.
The construction industry – the largest employer in the private sector – is witnessing significant growth, Industry forecasts indicate that Oman’s construction market will continue its upward trend over the next four quarters. The construction sector is projected to maintain an average annual growth rate of 4.4% between 2026 and 2029, supported by sustained investments in renewable energy, transportation, and housing.
In February 2026, the Public Authority for Projects, Tenders and Local Content launched a USD 3.9 billion development pipeline, scheduling 10,000 future tenders across 57 government groups to stimulate the private sector, The Omani government has introduced a range of initiatives targeting the development of affordable housing, healthcare, transportation, renewable energy, and essential infrastructure.
Residential builds currently lead with over 32% of total market share. The government plans to construct over 60,240 new homes and nearly 6,000 hotel rooms by 2030 to accommodate urban migration and a targeted surge in tourism.
Infrastructure: Strong expansion, driven by national railway projects, road improvements, and new ports and logistics hubs.
Residential & Urban Development: Major city projects for 100,000 residents and initiatives for smart, sustainable cities are underway.
Energy & Utilities: Renewables are targeted to reach 30% of electricity generation by 2030 through major investments.
Tourism & Hospitality: Increased hotel construction and new tourism complexes are set to boost commercial building activity.
Key Trends in the Construction Sector: digital transformation, sustainability, and AI, BIM, alongside the rise of modular/prefabrication for faster, safer, and greener building, and increased focus on data management for efficiency.
Embracing Green Building Practices
Sustainable construction is becoming increasingly important within the sector.Notable practices include the incorporation of rainwater harvesting systems and the installation of solar panels, both of which contribute to reducing the overall carbon footprint of new developments.
Adoption of Modular and Prefabricated Construction
Another significant trend is the growing use of modular and prefabricated construction methods. These approaches offer considerable advantages, such as accelerating project timelines and improving quality control.
Advanced Engineering and Dewatering Solutions
The introduction of new dewatering technologies is making it possible to manage groundwater more efficiently during construction activities. These innovations are helping to ensure that projects are delivered on time and to a high standard, despite environmental and logistical challenges.
