Two New Water Projects in Oman: What Investors and Businesses Need to Know About Closing Supply Gaps
MUSCAT: To address anticipated water capacity shortfalls over the next four to six years, Oman plans to develop two new Independent Water Projects (IWPs). Nama Power and Water Procurement Company (Nama PWP), the sole buyer and procurer of electricity and desalinated water capacity in the Sultanate, announced the initiatives.
The first project, North Batinah IWP, will have a capacity of 150,000 cubic meters per day and is scheduled to begin operations in 2032. The second, Dhofar Water IWP 2030, with a capacity of around 80,000 cubic meters per day, is expected to start operations by 2030.
According to Nama PWP’s latest 7-Year Outlook Statement, the North Batinah project will adequately meet demand growth within the Main Interconnected System (MIS), which includes the Muscat, Barka, and Sohar supply zones. Procurement will commence once the Pre-Investment Appraisal Documents (PIAD) receive approval from the Authority for Public Services Regulation (APSR). Coordination with Nama Water Services (NWS) is underway to secure an appropriate site for this project.
Peak water demand in the MIS is projected to increase by 3% annually, from 1,211 thousand cubic meters per day in 2025 to approximately 1,483 thousand cubic meters per day by 2032. Actual average water demand in the MIS reached 1,088 thousand cubic meters per day in 2025. Supply enhancements will continue with the upcoming Ghubrah III IWP, expected to begin commercial operations in 2027, offering an additional capacity of 300,000 cubic meters per day.
In the Sharqiyah Zone, encompassing Al Sharqiyah North and South governorates (excluding Masirah Island), peak water demand is anticipated to grow by 4% per year — from 137 thousand cubic meters per day in 2025 to 178 thousand cubic meters per day by 2032. No new water capacity is planned for procurement in this zone during the forecast period.
For the Dhofar Zone, peak water demand is predicted to rise by 3% annually, increasing from 201 thousand cubic meters per day in 2025 to 240 thousand cubic meters per day by 2032. Nama Dhofar Services (NDS), a Nama Group subsidiary, manages potable water supply and infrastructure development for Salalah, Taqah, and Mirbat.
Water demand growth in Dhofar is assessed based on two main factors: city demand from Salalah, Taqah, and Mirbat supplied by the existing network, and Jabal demand from mountainous areas still partly reliant on local wellfields. NDS plans to expand its current network to cover more Jabal areas and explore supply extensions to nearby wilayats such as Thamrait and Sadah.
The Dhofar Water IWP 2030 is proposed for development in Raysut, with site selection in progress. Project development will proceed following a hydrological study to establish safe water withdrawal levels from the main system’s wellfields covering Salalah, Taqah, and Mirbat.
These strategic water projects underscore Oman’s commitment to ensuring a sustainable and reliable water supply to meet future demand across key regions.
Special Analysis by Omanet | Navigate Oman’s Market
The launch of North Batinah and Dhofar Independent Water Projects signals significant infrastructure expansion to meet rising water demand, presenting strategic investment opportunities in Oman’s water and utilities sector. Businesses should leverage the anticipated 3-4% annual growth in water demand, while smart investors must assess regulatory and site-preparation timelines to capitalize early on emerging public-private partnerships. This development also underscores the growing criticality of sustainable water supply solutions in Oman’s evolving urban and industrial landscapes.
