How Oman’s Fast-Growing Tourism Sector Will Drive 2.4% Growth in GDP: Opportunities for Investors and Entrepreneurs
MUSCAT: The tourism sector has been identified as a crucial area for development under the Eleventh Five-Year Plan, aimed at enhancing economic diversification. The Ministry of Economy reports that this Plan targets an average contribution of 2.4% to the Gross Domestic Product (GDP), alongside a projected annual growth rate of 5.7% for the sector.
To bolster the sector’s growth, the Ministry has devised policies focused on amplifying impact and creating value. Key strategies include implementing the National Tourism Development Strategy, creating an attractive investment climate through improved competitiveness in governorates and special economic zones, diversifying tourism products and experiences, and promoting investment and entrepreneurship.
Recent statistics indicate that as of September 2025, the sector’s direct value added reached RO 873 million, while total tourism output amounted to RO 1.99 billion. An annual investment target of approximately RO 900 million has been set for the sector, along with RO 400 million allocated for supporting economic transformation projects during the Eleventh Five-Year Plan.
Economic experts highlight that Oman’s current strategy emerges at a challenging global time, characterized by market volatility and geopolitical uncertainties that are reshaping investment landscapes. This period also emphasizes fiscal discipline, operational standardization, and enhanced sustainability foundations, marking a transition from merely maintaining fiscal balance to actively pursuing growth.
During the Tenth Five-Year Plan, the Ministry of Heritage and Tourism secured investments exceeding RO 2.6 billion in tourism, with over 12 tourism complexes currently in development. These initiatives are significantly boosting Oman’s attractiveness as a regional and international hub for investment and tourism.
The Eleventh Five-Year Plan is integral to the second phase of Oman Vision 2040, which aims for an economic growth rate of about 4% at constant prices.
To further fortify the tourism sector, a subcommittee of the Economic and Financial Committee of the State Council is conducting a study on tourism development. This study, aligned with Oman Vision 2040, focuses on investment, economic performance, and competitiveness. Its objectives include evaluating the relationship between tourism investment and sectoral growth, attracting high-quality and sustainable investments, pinpointing key challenges, identifying future opportunities, and proposing actionable measures to enhance overall efficiency and economic impact.
Looking ahead to 2026, strategic directions will prioritize sustainable tourism, emphasizing adventure tourism, ecotourism, and the preservation of historical landmarks to reinforce the cultural significance of the economy. Additionally, geographical diversification across governorates will be prioritized to encourage broader community engagement and benefits from tourism-driven growth.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s tourism sector, targeted for growth under the Eleventh Five-Year Plan, represents a significant opportunity for businesses to invest in diverse tourism offerings, from adventure to ecotourism. However, potential risks arise from global economic volatility that could impact investment flows and consumer spending. Smart investors should focus on establishing sustainable practices and exploring partnerships in underrepresented governorates to maximize benefits from this strategic sector’s expansion.
