Oman’s Growing Role in the Short-Term Rental Market: What This Means for Investors and Entrepreneurs
A recent white paper published by UnderTheDoormat Group projects the Middle East’s short-term rental market will reach $8.7 billion by 2030, driven by tourism growth, regulatory reforms, and changing traveler preferences.
Titled The Short-Term Rental Opportunity in the Middle East, the report highlights the region’s emergence as one of the fastest-growing and most strategically significant markets globally for professionally managed short-term rentals. Saudi Arabia, the UAE, and Oman are identified as key contributors to this expansion.
The analysis underscores significant structural changes, including ambitious tourism strategies, substantial infrastructure investments, and clearer regulatory frameworks. These developments are fostering increased demand for flexible, high-quality accommodation options that go beyond traditional hotels.
Travelers are increasingly seeking larger, residential-style accommodations suitable for families, extended stays, and frequent business travel. The white paper points to Saudi Arabia as the region’s most prominent growth opportunity, fueled by Vision 2030, a surge in inbound tourism, and regulatory measures aimed at activating vacant and underutilized properties. In 2024 alone, Saudi Arabia issued over 8,300 private hospitality licenses, demonstrating rapid professionalization within the sector.
The UAE remains the Gulf’s most established short-term rental market, with Dubai’s mature regulatory environment and Abu Dhabi’s event-driven demand providing a robust foundation for ongoing growth.
Oman is recognized as an emerging market offering early-mover advantages, supported by government tourism initiatives and increasing demand for licensed, professionally managed accommodations.
Merilee Karr, CEO of UnderTheDoormat Group, stated, “The Middle East is undergoing a fundamental shift in how accommodation demand is being met. Decision-makers across the region are actively encouraging tourism growth, while travelers seek more flexible, residential-style stays that hotels can’t always offer. We are witnessing a clear move towards professionally operated short-term rentals as a core part of the hospitality ecosystem.”
The report also highlights the critical role of technology in supporting this growth. Regulatory compliance, revenue optimization, and operational scalability are essential for property owners and operators entering the market. Integrated platforms, such as UnderTheDoormat Group’s Hospiria technology, are increasingly crucial for ensuring compliance, facilitating distribution, and enhancing performance across multiple jurisdictions.
Combining regional market data, policy analysis, and real-world operational insights, the white paper offers valuable perspectives for real estate and hospitality professionals aiming to engage with the evolving short-term rental market in the Middle East.
Special Analysis by Omanet | Navigate Oman’s Market
The emerging short-term rental market in Oman, fueled by government-backed tourism initiatives and regulatory reforms, presents a strategic early-mover advantage for businesses and investors aiming to capitalize on evolving traveler preferences for flexible, residential-style accommodation. Smart investors should focus on integrating technology for compliance and operational efficiency to optimize revenue and scale sustainably amid regional competition and regulatory shifts. This trend signals a transformative opportunity to diversify Oman’s hospitality sector beyond traditional hotels, positioning it as a key player in regional tourism growth.
