Dhofar Sees Sharp Rise in Investment Activity: Key Opportunities for Investors and Entrepreneurs in Oman
SALALAH: Dhofar Governorate is currently experiencing remarkable economic growth, driven by significant expansion in commercial and industrial activities alongside a substantial influx of new investments. These developments align with Oman’s national strategy to empower its governorates, supporting the economic diversification goals outlined in Oman Vision 2040.
Mohammed bin Khalifa al Badrani, Director General of the Directorate General of Commerce, Industry, and Investment Promotion in Dhofar, highlighted that key indicators reveal a strong acceleration in development and investment activities during the first half of 2025. He attributed this progress to government initiatives aimed at promoting balanced growth across Oman by enhancing the business environment, streamlining procedures, and attracting high-quality investments.
In the second quarter of 2025 alone, the Directorate registered 1,204 new commercial licenses, bringing the total number of registered commercial entities in Dhofar to 63,193 by the end of June. “These figures underscore the vitality of Dhofar’s economy and growing investor confidence in the region’s potential,” Al Badrani noted.
Construction contracting emerged as one of the fastest-growing sectors, especially in residential and non-residential building construction, which saw an extraordinary 452.5 percent increase compared to the same period last year. A total of 757 new licenses were issued in this category during Q2 2025, up from just 137 in Q2 2024. This surge reflects Dhofar’s expanding urban and infrastructure projects driven by rising demand for housing, tourism facilities, and industrial infrastructure. Al Badrani emphasized the governorate’s strategic location, advanced logistics services, and natural resources as key factors making it an attractive destination for construction and investment.
Foreign investment also witnessed significant growth, with 697 new foreign investors registering in the first half of 2025—a more than 160 percent increase from 266 in the same period in 2024. The total number of foreign investors in Dhofar now stands at 8,813. This rise is supported by a more favorable investment climate, including digital transformation initiatives like the Oman Business platform, which simplifies registration and licensing with efficient, transparent processes that eliminate the need for direct review.
Additionally, government incentives such as the Golden Residency Programme, which offers long-term residence permits and family benefits for investors, have been pivotal in attracting foreign capital. These measures provide stability and confidence for investors to establish long-term ventures in Oman, Al Badrani explained.
The industrial sector is also rapidly growing, with 1,156 new industrial licenses issued by the end of Q2 2025. This increases the total number of industrial licenses to 23,361 since records began. Moreover, 63 new investment licenses were granted, representing 1.54 percent of all registered investments, underscoring Dhofar’s appeal for value-added industrial and manufacturing projects.
The general commercial sector continues to expand, as evidenced by 10,357 new commercial licenses issued during the first half of 2025, bringing the cumulative total to 135,118. Automatic licensing also surged, with 9,215 new licenses issued and a cumulative total of 147,851.
“These achievements reflect the Ministry’s success in simplifying procedures and fostering a competitive business environment,” said Al Badrani. “Dhofar is now well-positioned to attract more value-added investments, create jobs for citizens, and strengthen its role as a vital contributor to Oman’s national economy.”
He added that the Directorate continues to monitor economic indicators to ensure sustainable growth and enhance coordination between government entities and the private sector. “Our goal is to maintain Dhofar’s positive momentum by promoting innovation, supporting entrepreneurs, and ensuring inclusive, sustainable development,” he concluded. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The rapid economic growth and surge in investment activity in Dhofar Governorate signal a transformative opportunity for businesses and investors in Oman’s evolving market. With a 452.5% rise in construction licenses and a 160% increase in foreign investment, Dhofar is emerging as a strategic hub, driven by government incentives and streamlined digital processes. Smart investors and entrepreneurs should consider capitalizing on Dhofar’s expanding infrastructure and industrial sectors to align with Oman Vision 2040 and benefit from sustained economic diversification.
