Salalah Future City Moves from Vision to Design Stage: What This Means for Investors and Entrepreneurs in Oman
صلالة: Oman’s ambitious Salalah Future City project is progressing from broad master planning towards detailed engineering design, with the consultancy contract anticipated to be awarded in July, according to a recent project-tracking report.
This transition is a pivotal step that will influence how one of Dhofar’s largest urban developments is phased, financed, and integrated with the wider city. It aligns with Oman’s broader goals to foster new urban centers that enhance liveability, attract investment, and promote balanced growth beyond the capital, Muscat.
Zawya Projects reported that the Ministry of Housing and Urban Planning is set to award the detailed engineering design consultancy contract in the third quarter of 2026, based on information from a source familiar with the tender process. The tender was initially issued on October 12, 2025, with submissions closing on February 24, 2026.
The significance of this upcoming award extends beyond administrative purposes. The detailed design phase will address practical challenges such as roads, utilities, drainage, flood resilience, public spaces, environmental protection, and phased investment.
Salalah Future City is especially critical due to its strategic location along the coast, nestled between the Arabian Sea, existing urban areas, and environmentally sensitive khors (coastal inlets). The Ministry describes the project as one of Oman’s “future-city” developments, planned to include approximately 12,000 residential units with a capacity for up to 60,000 residents, marking it as a major long-term urban initiative in Dhofar.
The development will feature 2.5 million square meters of open and green spaces, encompassing cultural, natural, and recreational parks, alongside a waterfront designed to draw investment. The site lies at the heart of Greater Salalah’s urban center, bordered by the Arabian Sea to the south, Arzat Farm to the north, Khor Shaa’e to the east, and Khor Al Dahareez to the west.
According to Zawya Projects, the city is envisioned as an integrated coastal urban development, incorporating smart systems, intelligent mobility infrastructure, pedestrian-friendly streets, public parks, beaches, waterfront promenades, hospitality venues, Integrated Tourism Complexes, and climate-resilient urban design.
The project is expected to connect to Greater Salalah via Highway 49 and secondary roads, while safeguarding nearby ecologically sensitive khors.
Financial bids for the consultancy contract reflect strong interest from several local and international engineering firms. The lowest bid was submitted by Scientific Ink Engineering Consultants at approximately RO 1.48 million, with most bids ranging between RO 3 million and RO 3.7 million. Other bidders include Khatib and Alami, WSP International, Dar Al Handasah, F&M Middle East Engineering Consultancy, and Renardet SA & Partners.
Earlier international design efforts were led by a consortium headed by F&M Middle East, with Sasaki as the technical lead. UK-based consultancy Cundall also contributed, focusing on advanced utility systems, smart-city technologies, and flood-risk management strategies.
Beyond its urban scope, the Salalah Future City project holds significant economic potential for Dhofar. If carefully executed, it could boost housing supply, attract investment, support hospitality growth, provide ample public spaces, and establish smart infrastructure—strengthening Salalah’s stature as a major urban and economic center year-round, beyond the Khareef season.
However, the project also presents important planning and environmental challenges. Its coastal positioning and proximity to khors necessitate robust measures for flood resilience, traffic management, environmental safeguarding, and ensuring public access to open spaces.
The imminent award of the detailed engineering design consultancy will be a critical milestone, offering clearer insights into infrastructure phasing, investment strategy, and construction timelines for this transformative project.
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The progression of Salalah Future City into detailed engineering design signals a critical phase for sustainable urban development in Dhofar, presenting major opportunities for real estate, hospitality, and smart infrastructure investments. Businesses must strategically consider the project’s focus on climate resilience and ecological protection, while entrepreneurs should explore innovations in smart mobility and green technologies to align with this visionary, integrated coastal city. Smart investors will benefit from closely monitoring contract awards and infrastructure phasing to capitalize on early-stage development advantages.
