logo
RO56mn for Wadi Shab development, ITCs in Nakhal and Khasab

RO56mn for Wadi Shab development, ITCs in Nakhal and Khasab

Muscat Daily25-05-2025
Muscat – Ministry of Heritage and Tourism has signed three usufruct agreements valued at RO56mn to develop two integrated tourism complexes (ITCs) and transform Wadi Shab into a year-round destination for nature and adventure tourism.
This is in line with efforts to diversify the economy and boost the tourism sector. The projects are located in three governorates.
The agreements were signed by H E Salim bin Mohammed al Mahrouqi, Minister of Heritage and Tourism, at a ceremony on Sunday.
The first agreement, signed with Omran Group worth RO2mn, is for development of Wadi Shab in Tiwi, wilayat of Sur in South Sharqiyah. The site will be transformed into an eco-tourism destination, featuring a zip line, mountain trails, suspension bridges, swimming areas and dining facilities.
'Wadi Shab is a site of exceptional natural beauty and biodiversity, known for its clear waters, caves and waterfalls,' H E Mahrouqi said. 'This project will promote environmental sustainability while offering unique recreational experiences.'
The second agreement is for development of the Sandan – Pearl of Khasab tourism complex in Musandam. Built on a 43,658sqm site near Khasab Fort and Atana Musandam Hotel, it will include a 200-room four-star hotel, 450 residential units for Omanis and foreign nationals, a traditional market, shops, restaurants and leisure facilities.
The third agreement is for the Halban Gardens complex in wilayat of Nakhal in South Batinah. Spread over 201,031sqm, the project will feature a four-star hotel with 156 rooms, 535 residential units including villas and apartments, a market, water park, restaurants and recreational amenities.
In a statement, the ministry said the agreements reflect the government's strategy to promote sustainable tourism and attract investment to key regions. The projects support Oman Vision 2040 objectives to position tourism as a key non-oil economic sector while preserving the country's natural and cultural heritage.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Employment: policies, progress, and prospects
Employment: policies, progress, and prospects

Observer

time20 hours ago

  • Observer

Employment: policies, progress, and prospects

Oman is currently going through an extensive national transformation as outlined in Vision 2040 which seeks to diversify the economy, reduce reliance on hydrocarbons, and promote sustainable development. One of the most defining features of this transformation is the integrated framework designed around the strategic goal of generating employment opportunities for nationals and increasing local content in all economic activities. Oman's development agenda also places critical importance on 'local content', which can broadly be referred to as the value added of the workforce, goods, and services employed in a specific industry. It is my intention in this article to examine the evolving landscape of employment in Oman, local content policies and laws, sectoral performance, the role of SMEs, skill development programs, as well as the impending challenges and prospects of the economic transformation. Oman's inclusive economic resilience vision is being supported by government programs and hard data, and this is what the paper seeks to present. NATIONAL LOCAL CONTENT POLICY (2024-2030) In 2024 the council of ministers approved the national local content policy (2024-2030) as a guiding document aimed at embedding Omani goods, services, and labor into the economy. Maximising the in-country value (ICV) generated from public and private sector investments is one of the main objectives under the policy. It also supports Oman Vision 2040 on economic diversification, social inclusion, and sustainability. The policy is built on four strategic pillars: • Supply Chain Development: Sponsoring local Omanis by both the government and private sectors as suppliers and contractors. • Workforce Development: Equipping Omanis through strategic educational programs, vocational trainings, and practical job placements. • Innovation and Technology Transfer: Improving the national capabilities through partnering in R&D and knowledge transfer as well as through licensing. • Entrepreneurship and SME Participation: Supporting small and medium enterprises (SMEs) through finance, mentorship, and contract allocation. The policy requires the ministries and large corporations to embed the ICV framework into their tendering processes. This also includes provisions for workforce, procurement from Omani suppliers, and local subcontractor employment. To foster sustainable job creation, Oman has established targeted Omanisation goals tailored to particular sectors. OMANISATION STRATEGY Legal Changes: To boost Omanis' employment opportunities, the country introduced several new labor laws and ministerial decrees. The most impactful include: • Labour Law No. 53/2023: Introduces new rules on employment contracts, termination, and conflict resolution. • Ministerial Decree No. 501/2024: Broadened the scope of occupations reserved for Omanis and added fines for breaches. • Workforce Localisation Plans: Companies must file annual plans detailing the number of Omanis employed (or to be employed), their distribution by gender, salary, training, and outlined promotion pathways. Non-licenced firms may be penalised with fines, restricted expatriate hiring, or barred from public tenders. Omanisation Sector Goals: To foster sustainable job creation, Oman has established targeted Omanisation goals tailored to particular sectors. These depend on the strategic value and labor intensity of each sector: Banking & Insurance (60-70%), Manufacturing (35-40%), Retail/Wholesale (20-25%), Oil & Gas (40-50%), Tourism & Hospitality (30-35%), and Construction (15-20%). These benchmarks are met through mandatory quotas, regular audits, and integration into the licensing and visa issuance processes. The private sector is the backbone of Oman's economy, with a workforce of more than 1.7 million. Nevertheless, the share of Omanis working in it is very small in proportion to foreign workers. Employment in the Public Sector: As noted earlier, the public sector continues to be the biggest employer of Omanis, with more than 90 per cent coming from the local population out of a total of 195,902 employees. Focused on increasing the number of Omanis in the private sector, the government has also implemented new policies and training initiatives directed at the sector. LOCALLY DEVELOPED CONTENT AND RESULTS Key Initiatives: A number of local content initiatives have been started at the national level to achieve the intended objectives: • Majd Programme: Launched in 2024 by the Ministry of Energy & Minerals, this initiative mandates that 10-30% of contract value in the energy sector be allocated to Omani companies and SMEs. 12 contracts amounting to 172.5 million USD were granted in the first phase. • Taseen and Itqan Programs: These industrial development initiatives are aimed at decreasing the volume of imports, increasing local production, and advancing research and development activities. They also promote partnerships between local companies and foreign technology partners. Economic and Employment Impact: The economic impact of local content policies is visible on a much wider scale. • More than $33 billion has been injected into the local economy as from 2013 • Over 3000 direct employment opportunities in the private sector • Around 100 industrial facilities established with total investments of $400 million SME Participation in Local Content Small and medium enterprises are a cornerstone of Oman's local content strategy. The government has put in place systems such as Riyada and Esnad that enable SMEs access to government contracts, training opportunities, and funding options. Oman has committed itself to develop an education and training ecosystem that cultivates market-oriented skills among its youth. • Technical and Vocational Education & Training (TVET): Offers diploma and certificate courses in engineering, electronics, mechanics, and logistics. • Public-Private Collaboration: Employers work with polytechnics and schools to align course content with workplace expectations. • STEM and Digital Skills: Coding, AI, and renewable energy are national priorities. • Mandatory Training Plans: Expat employment mandates carry with them legal obligations to train Omanis for the role. SCULPTING VALUE AND PROFIT: • Value Retention: Offsetting capital outflows through local production and procurement. • Job Creation: Thousands of jobs created predominantly among women and youth. • SME Empowerment: Entrepreneurial opportunities from greater access to tenders. • Innovation: National competitiveness is enhanced through incentivised R&D and technology transfer. FURTHER ISSUES AND CONCERNS: Despite these developments, the following issues are still a concern: • Skill Gaps: Graduates not being able to fill available roles due to a lack of essential skills. • Compliance vs. Performance: Meeting quotas doesn't always result in hiring the best qualified candidates. • Misuse of SME Benefits: Larger companies registering as shell SMEs for contract access. • Investor Uncertainty: New companies might have problems with employment demands before they become profitable. • Expat Displacement: Rapid Omanisation may exacerbate the shortage of specialists in certain fields. CONCLUSION Oman is undergoing a tremendous shift within its socio-economic framework. With a blend of policy structural adjustments, strategic planning, inter-agency collaboration, and targeted investment, the country is working towards achieving an independent and more equitable economy. Moving forward, a perpetual fine-tuning towards prioritisation and market forces will be necessary, however, everything is now set. While policy is yet to be converted into action, Oman has excellent opportunities to realise its benefits and safeguard the welfare of its citisens as the Vision 2040 promises.

Dhofar: From seasonal escape to sustainable destination
Dhofar: From seasonal escape to sustainable destination

Observer

time20 hours ago

  • Observer

Dhofar: From seasonal escape to sustainable destination

Dhofar is no longer just Oman's monsoon hideaway. A quiet transformation is underway—one that aims to shift the governorate from a three-month seasonal destination into a vibrant, sustainable tourism hub active year-round. With upgraded infrastructure, flagship investments, and an emerging vision aligned with Oman Vision 2040, Dhofar is preparing for its next chapter. FOUNDATIONS IN PLACE Roads have been expanded, Salalah Airport upgraded, and municipal services improved to better serve both residents and the growing number of visitors. In areas like Salalah, Taqah, Mirbat, and Dalkut, we're seeing new hospitality projects, retail developments, and expanded urban services—laying the groundwork for a richer tourism offering. Official data reflects this shift. Tourism contributed RO 2.7 billion to Oman's GDP in 2024, with Dhofar playing a key role—especially during the Khareef season. Still, the governorate's impact remains modest compared to its potential. Meanwhile, outbound travel by Omanis and residents reached RO 1.8 billion—a strong indication that domestic destinations like Dhofar could capture more of that spending if they delivered the right experiences. More than 3.8 million tourists visited Oman in 2024, with over half arriving from the United Arab Emirates. That market—familiar, affluent, and right next door—remains under-leveraged. TWO PROJECTS, ONE DIRECTION Among the most promising signs of Dhofar's evolution are two standout developments: Janaen Salalah, a 5.5 million square metre agritourism destination developed by Omran Group, is designed to blend farming, hospitality, and environmental learning. Coconut and papaya plantations will sit alongside eco-lodges, educational trails, a local produce village, and spaces for cultural exchange. It is a model that fuses sustainability with lifestyle—rooted in place, yet globally relevant. Just a few kilometres away in the Ittin Plain, the award-winning Boulevard al Rathath is preparing to offer something entirely different: a 470,000 m² leisure and entertainment district inspired by the interplay of mist, water, and the Omani identity. With a total investment of RO 40 million, the project includes the 'Grand Souq,' botanical gardens, canal-side restaurants, suspended walkways, open-air theatres, and retail experiences—all built around a central theme of nature in motion. The first phase will be funded by the Ministry of Finance with RO 10 million, with the remaining capital coming from the private sector. Together, the two projects are expected to attract more than 1 million visitors annually and generate over 1,500 jobs, helping diversify Dhofar's economy while creating lasting value for local communities. Both are firmly aligned with Oman Vision 2040's pillars: economic diversification, sustainable cities, private sector empowerment, and local value creation. THE MISSING PIECE: INTEGRATION Despite such gains, the region's tourism landscape remains fragmented. Activities during Khareef are not yet unified under a central brand or management body. Events are often organised in silos, and promotional campaigns—though well-intentioned—lack the consistency, identity, and storytelling power required to position Dhofar competitively on the global map. If Dhofar is to become a true four-season destination, we must move from infrastructure to orchestration—from building roads and hotels to building narratives, partnerships, and systems that hold everything together. FOUR PRIORITIES FOR THE FUTURE 1. Establish a central tourism authority in Dhofar to plan, brand, and coordinate all tourism seasons—Khareef and beyond. 2. Boost investment in eco-, cultural, and adventure tourism in underutilised protected areas, while maintaining environmental integrity. 3. Launch a unified digital platform for booking, navigation, real-time updates, and feedback—making every visitor's phone a smart travel companion. 4. Empower local communities not just as workers, but as owners and storytellers, bringing Dhofar's identity to life through food, crafts, hospitality, and heritage. A TOURISM VISION ROOTED IN PEOPLE At the end of the day, tourists don't come back because of how many stars a hotel has. They return because of how a place made them feel. The warmth of a honey-seller in Mirbat, the pride of a farmer planting coconut trees in Janaen, or a young guide explaining the history of frankincense under the drizzle of Khareef—these are the memories that turn visits into stories, and stories into loyalty. Dhofar's natural beauty is already world-class. What will set it apart is how it uses that beauty to foster connection—between people and place, past and future, economy and ecology. There is no shortage of effort. Ministries are supporting, investors are building, and communities are ready. But to truly elevate Dhofar, these efforts must converge. With coordination, imagination, and a clear sense of purpose, Dhofar can become more than a season—it can become a signature of what sustainable tourism in Oman looks like. The map is drawn. The first foundations are in place. What comes next will define not just Dhofar's tourism—but its legacy.

Oman, Changi airports sign pact to increase passenger experience
Oman, Changi airports sign pact to increase passenger experience

Observer

time3 days ago

  • Observer

Oman, Changi airports sign pact to increase passenger experience

Muscat: The agreement signed between Oman Airports and Changi Airport of the Republic of Singapore aims to increase revenues by expanding both aeronautical and non-aeronautical activities within and outside the terminal premises of Muscat International Airport. Eng Ahmed bin Said al Amri, CEO of Oman Airports, stated to the Observer, "We are focusing on the commercial aspect of the business by attracting new airlines and positioning Muscat International Airport as a hub for other airlines. This will increase our revenues through the existing facilities." Changi Airport, which serves over 68 million passengers annually and generates revenues of over $2 billion, is globally recognised as one of the best airports in the world. It has received numerous international awards, including being named the World's Best Airport for twelve consecutive years (2012–2020), and is ranked second worldwide for the quality of its retail services, according to Al Amri. He continued, "The agreement will involve developing strategies to enhance the passenger experience at the airport and increase its utilisation. It will also involve training Omanis to benefit from Changi's experience and apply it to our airport." Eugene Gan, CEO of Changi Airport, said, "We will utilise our industry experience, network and connections to boost passenger traffic and revenues at Muscat International Airport, which has relatively new infrastructure." Regarding potential projects, Gan mentioned, "It may be premature to provide specific details, but we are considering projects such as theme parks as part of our strategy. There are other possibilities both within the terminal building and outside, including cargo-related businesses." Oman Airports also recently signed a Memorandum of Understanding (MoU) with Malaysian company WCT International. It will focus on expanding hospitality, entertainment, interactive experiences, and other mixed-use services to increase land investment value and enhance returns from direct and joint ventures.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store