RO 8.8 Billion Investments Across Regulated Sectors: What This Means for Business Growth and Opportunities in Oman
Investments in Oman’s Public Services to More Than Double in 2026-2030 Five-Year Plan
By Afrah Al Balushi
Muscat, March 31, 2026
Investments in sectors regulated by the Authority for Public Services Regulation (APSR) are set to exceed RO 8.8 billion during the Eleventh Five-Year Plan (2026–2030), marking an increase of RO 3.4 billion compared to the Tenth Five-Year Plan.
Revealed at APSR’s annual media briefing on March 31, 2026, officials highlighted significant achievements within Oman’s public services sector. The Authority also announced three new strategic initiatives: a continuous renewable energy generation project, the introduction of battery energy storage systems, and the launch of a demand response management programme. Additionally, improvements to service assurance standards for 2026 were unveiled.
The Authority reported substantial progress in digital transformation, with smart metering reaching 99% penetration in the water sector and 80% in electricity. Remote meter reading rates stand at 97% for electricity and 97.71% for water. Over the past five years, APSR has implemented 17 regulations, issued 14 licenses, approved 14 exemptions, developed 15 subscriber rights frameworks, and set six safety and eight network reliability standards.
Dr. Mansour Talib Al Hinai, APSR Chairman, emphasized enhancements to service guarantee standards, including doubling compensation for repeated provider non-compliance. He outlined a structured regulatory framework clarifying roles for policymakers, regulators, and operators to boost efficiency and governance.
Reviewing sector growth from 2021 to 2025, Dr. Al Hinai noted a 13% rise in water consumption and a 12% increase in water subscribers. Electricity subscribers grew by 14%, while consumption surged by 27%, reflecting ongoing economic expansion and urbanisation in Oman.
In renewable energy, clean power’s share of total generation sharply increased from 1.95% in 2021 to a projected 9.46% by 2025, with output sufficient to supply approximately 155,000 homes.
Abdulaziz Al Siyabi, Director of Strategic Studies at APSR, detailed rigorous regulatory oversight including audits of billing, meter reading, and service disconnection, supplemented by a “mystery shopper” programme. Compliance hit 96% in 2025, surpassing the 95% target. Compensation totaling around RO 153,000 was paid to over 9,000 subscribers, while customer satisfaction improved to 75%. Average service connection times are 1.17 days for electricity and 6 days for water.
APSR also reported strong localisation efforts, with Omanisation reaching 98.55% across regulated companies. Spending on SMEs increased 80% to RO 119 million, and local value added rose 35% to RO 50 million.
In infrastructure, Eng. Alaa Al Lawati, CEO of Nama Distribution Company, highlighted a 40% increase in electricity transmission line length and a 13% growth in substations. Distribution networks expanded by 13% in length and 8% in substations.
In gas transmission, network capacity grew by 3%, pipeline length by 5.9%, and transported volumes by 22%. Major projects include the second 42-inch Fahud–Sohar pipeline, supplying gas to Marsa LNG, connecting Sohar Oman Gas Liquefaction’s network to the national grid, and enhancing safety, business continuity, and regulatory frameworks such as RAB optimisation and system expansion studies.
In the water sector, Eng. Qais al Zakwani, CEO of Nama Water Services, reported a 32% increase in network length, a 9% rise in treatment plants, and near-complete wastewater treatment at 98%. Water quality testing surged 74%, with compliance with drinking water standards reaching 99.81%. Currently, 97 projects worth approximately RO 966 million are underway to expand capacity and enhance service efficiency.
APSR confirmed that ongoing and future investments will focus on sustainability, operational efficiency, and resilience across Oman’s regulated utility sectors.
Special Analysis by Omanet | Navigate Oman’s Market
The doubling of investments to RO 8.8 billion under Oman’s Eleventh Five-Year Plan signals significant growth opportunities in regulated public services, particularly in renewable energy and smart infrastructure. Businesses should capitalize on the accelerating digitalisation and localisation trends, while investors must consider the enhanced regulatory framework that prioritizes sustainability, efficiency, and customer protection, mitigating risks related to operational compliance and market entry. This evolving landscape demands strategic alignment with Oman’s push for clean energy and service excellence to unlock long-term value.
