Strategic Health Sector Projects Backed by RO 1 Billion Budget: Implications for Investors and Entrepreneurs in Oman
MUSCAT, FEB 25 – The Ministry of Health reports that the implementation of new health projects is progressing in alignment with the health priorities established by Oman Vision 2040. This progress is facilitated by enhancing spending efficiency through program and performance budgeting and transitioning from a purely financial approach to a more comprehensive economic perspective in fund allocation.
The health infrastructure in Oman is undergoing significant expansion, with over 11 projects recently completed, including the Central Public Health Laboratory, Khasab Referral Hospital, and Al Suwaiq Hospital. Additionally, more than 15 projects are currently in development for the 2026-2027 period. Noteworthy undertakings include Al Namaa Hospital, Samayil Hospital, Mahout Hospital, Sur Al Balush Health Centre, Al Duraiz Health Centre, and dialysis units in Suhar and Bidiyah.
Salalah is preparing for the trial opening of the new Sultan Qaboos Hospital in October, a significant health project with a total cost of RO 138 million. This facility spans 100,000 square meters, features seven floors, and accommodates 700 beds across 3,238 rooms.
Dr. Ahmed bin Salim al Mandhari, Under-Secretary of the Ministry of Health for Planning and Health Regulation, announced the development of a national guide for health services planning methodology. This guide encompasses gap analysis, investment prioritization, and the involvement of governors’ offices.
The Ministry’s future plans include the establishment of over 20 new projects, notably the National Centre for Women’s and Children’s Health in Sultan Haitham City, the National Centre for Ophthalmology, the National Genome Programme, and various hospitals and health centres across the country.
Oman’s health sector has seen remarkable growth between 2020 and 2024, with the number of healthcare facilities rising by 50% to a total of 2,384, up from 1,592 four years ago. According to 2025 health statistics, private clinics account for more than half of these facilities (51%), highlighting the expanding role of the private sector in enhancing the national healthcare system.
The Ministry’s 2026 budget, which totals approximately RO 1 billion, underscores the Sultanate’s commitment to health sector development and the expansion of comprehensive coverage. This funding will bolster the Ministry’s capacity to implement expansion and development projects across various governorates.
Investment in the health sector appears to be promising due to the government’s focus on improving healthcare services and the increasing demand for them. The Ministry aims to further stimulate investment in the sector as a strategic element of the economic diversification efforts, supported by existing infrastructure and a robust regulatory framework, alongside favorable future prospects.
Special Analysis by Omanet | Navigate Oman’s Market
The ongoing expansion of Oman’s health infrastructure signifies a substantial opportunity for businesses, particularly in the health sector, as government investment is projected to increase in alignment with Oman Vision 2040. Smart investors and entrepreneurs should consider entering this evolving market, as the combination of a growing private sector and a clear national strategy for health projects serves as a catalyst for innovation and potential profitability. However, they must also be aware of the increased competition that comes with this sector’s rapid growth, necessitating strategic positioning and differentiation.
