Launch of Sultan Haitham City’s First Phase: Key Opportunities for Investors and Businesses in Oman
MUSCAT, FEBRUARY 24 — A portion of the first phase of Sultan Haitham City is anticipated to be inaugurated this year, as infrastructure and service projects progress, according to Dr. Khalfan bin Said al Shueili, Minister of Housing and Urban Planning. He revealed that approximately 1,700 housing units have already been sold.
During the inaugural Ramadan lecture hosted by the Oman Chamber of Commerce and Industry (OCCI) on February 23, 2026, Dr. al Shueili stated that the Sultan Haitham City project aims to provide about 20,000 housing units in total, with an annual target of roughly 1,000 units. The total investment in infrastructure for Phases 1 and 2 is estimated to reach around RO 300 million.
The minister noted that 70% of the tenders for Phases 1 and 2 are currently in execution, with road and utility installations being progressively implemented. He expressed optimism that parts of the first phase will be operational within this year.
Demand for housing in the city is increasing, with buyers from over 35 nationalities having purchased units. Eight developers are actively participating and competing for further opportunities in the project. Dr. al Shueili mentioned that investment prices are approximately RO 900 per square meter for investors, while Omani families pay around RO 400 per square meter, with state support exceeding 50% for Omani households. He encouraged the public to take advantage of the opportunities available through this initiative.
Expanding upon the broader real estate market, Dr. al Shueili highlighted that the future landscape of Oman’s real estate sector has become clearer following a five-year period of reforms. He noted that the Sultanate has established a robust legislative and regulatory framework compared to its regional counterparts.
He emphasized that the Real Estate Development Law has significantly enhanced sector organization and announced a new regulation expected in the coming months to address additional market aspects and protect the rights of consumers and industry players.
Dr. al Shueili indicated that future initiatives will focus on regulation, programs, and digital systems aimed at improving efficiency and stabilizing the sector.
On the topic of property financing, he acknowledged that while securing funding remains a challenge within the sector, there is “good alignment” from the banking sector, particularly the Central Bank of Oman. He pointed out that developers generally do not face significant hurdles in obtaining financing, especially under the off-plan sales policy. However, financing issues affect around 30% of eligible Omani beneficiaries in certain programs.
The ministry is collaborating with the Oman Housing Bank to tackle these challenges and is also advocating for tax exemptions for first homes, a matter currently under review by the relevant authorities.
Dr. al Shueili further explained that the ministry offers programs allowing citizens to develop their own homes, with plot sizes ranging from 500 to 4,000 square meters. He reported a rise in contracts from over 1,000 in previous years to approximately 13,000 now, with annual growth rates not less than 10%. The success rate among land beneficiaries stands at around 70%, while undeveloped land plots are being withdrawn.
The “Sorouh” program, launched in 2015, has overcome initial challenges and now encompasses more than 20 projects led by Omani institutions across over 12 locations. The ministry aims to initiate 60 projects in the coming years, comprising integrated residential complexes, with each project containing between 150 and 1,000 housing units.
Special Analysis by Omanet | Navigate Oman’s Market
With the upcoming launch of Sultan Haitham City, resulting in the sale of 1,700 housing units and planned annual development of 1,000 units, businesses in Oman should prepare for a robust increase in real estate demand. This presents opportunities for investors, particularly those in construction and property development, to capitalize on an expanding market. However, entrepreneurs must remain vigilant about financing challenges affecting Omani beneficiaries, which could impact overall housing market stability in the near term.
