Omran and TUI Partner to Develop Five Hotels in Dhofar: What This Means for Investment and Tourism Growth in Oman
Muscat – Oman Tourism Development Company (Omran Group), the government’s lead agency for tourism development, has signed a term sheet to form a strategic alliance with TUI Group aimed at positioning Oman as a premier year-round global tourism destination.
This term sheet outlines the key terms and conditions for collaboration between Omran Group and TUI Group, serving as a foundation for a detailed partnership agreement that will follow after comprehensive negotiations and due diligence.
As part of this agreement, the two parties plan to jointly develop an initial portfolio of five hotels and resorts in Dhofar Governorate, scheduled to open to international visitors starting in 2028. These properties will be managed under TUI’s well-known brands—ROBINSON, TUI Blue, RIU, Jaz, and The Mora—offering a variety of hospitality experiences designed to enhance Dhofar’s tourism appeal and establish it as a competitive, year-round destination.
Salem Mohammed al Mahruqi, Minister of Heritage and Tourism, emphasized the significance of the partnership, stating: “This term sheet marks an important milestone in advancing Oman’s global tourism stature. In collaboration with Omran and TUI, we are dedicated to creating world-class tourism destinations and experiences that will attract more visitors, generate quality employment, and attract impactful, value-driven investments. These efforts align with the Ministry’s comprehensive tourism development plan across all governorates, enhancing competitiveness through exceptional services and diverse offerings tailored to evolving international traveler preferences.”
Azzan Qassim al Busaidi, Undersecretary for Tourism at the Ministry of Heritage and Tourism and Chairman of Omran Group, remarked, “This agreement underscores Omran Group’s commitment to developing distinctive tourism destinations that elevate Oman’s profile on the global stage. By merging international expertise with our local vision, we are unlocking Oman’s full potential as a year-round destination, promoting sustainable economic growth, and creating meaningful opportunities for our citizens and businesses, in line with Oman Vision 2040.”
Sebastian Ebel, Chief Executive Officer of TUI Group, said, “Signing this term sheet is a crucial step toward establishing Oman as an emerging tourism destination. Globally, TUI develops integrated destinations—with projects in West Africa, Central America, and Asia. We aim to work with our partners in Oman to create a destination distinguished by quality, sustainability, and uniqueness.”
Peter Krueger, Chief Strategy Officer and CEO of Holiday Experiences at TUI Group, added, “There is strong demand from international travelers to explore Oman. This alliance will introduce new tourism offerings to the Sultanate. Our TUI hotel brands—ROBINSON, TUI Blue, RIU, Jaz, and The Mora—will bring their loyal clientele to Oman, presenting a significant growth opportunity.”
The signing of the term sheet initiates the formation of a joint venture, where Omran and TUI Group are expected to hold 45% equity each, with the remaining 10% owned by a private investor. The term sheet also includes Omran Group’s intention to acquire a 1.4% strategic equity stake in TUI Group, subject to final agreements and regulatory approvals.
This partnership marks a pivotal development in Oman’s tourism sector, promising enhanced international appeal and sustainable growth.
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The strategic alliance between Omran Group and TUI Group positions Oman as a compelling, year-round global tourism destination, unlocking significant opportunities for the hospitality sector, particularly in Dhofar. For businesses and investors, this partnership signals robust potential for sustainable growth, heightened international visitor influx, and diversification of tourism offerings under renowned global brands. Smart entrepreneurs should now consider aligning with this expanding market by leveraging innovative, value-driven tourism services that meet evolving traveler preferences in line with Oman Vision 2040.
