Omran and TUI Partner to Develop Five New Hotels in Dhofar: What It Means for Investment and Tourism Growth in Oman
Muscat – Oman Tourism Development Company (Omran Group), the government’s key agency for tourism development, has signed a term sheet establishing a strategic partnership with TUI Group aimed at enhancing Oman’s reputation as a year-round international tourism destination.
This term sheet outlines the principal terms and conditions for collaboration between Omran Group and TUI Group and serves as the foundation for a comprehensive partnership agreement, which will be finalized following detailed negotiations and due diligence.
As part of this agreement, the two parties plan to jointly develop an initial portfolio of five hotels and resorts in Dhofar Governorate. These properties, set to open in 2028, will operate under TUI’s globally recognized brands—including ROBINSON, TUI Blue, RIU, Jaz, and The Mora—offering a range of hospitality experiences to boost Dhofar’s appeal as a competitive all-season tourism hub.
Salem Mohammed al Mahruqi, Minister of Heritage and Tourism, emphasized the significance of the agreement, stating: “This term sheet marks a crucial milestone in strengthening Oman’s global tourism standing. Through strategic collaboration with Omran and TUI, we are dedicated to creating world-class destinations that attract more visitors, generate high-quality employment, and foster impactful, value-driven investments. These efforts align with the Ministry’s broad tourism development strategy across all governorates, enhancing competitiveness by delivering exceptional services and diverse experiences tailored to evolving international traveler preferences.”
Azzan Qassim al Busaidi, Undersecretary for Tourism at the Ministry of Heritage and Tourism and Chairman of Omran Group, added, “This milestone highlights Omran Group’s commitment to developing unique tourism destinations that elevate Oman’s international profile. By integrating global expertise with our local vision, we are taking vital steps to unlock Oman’s full potential as a year-round destination, driving sustainable economic growth and creating valuable opportunities for our people and businesses in line with Oman Vision 2040.”
Sebastian Ebel, CEO of TUI Group, remarked, “With this term sheet, we are advancing a significant step towards establishing Oman as a promising tourism destination. Similar to our projects in West Africa, Central America, and Asia, TUI focuses on building integrated destinations. Together with our partners in Oman, we aim to develop a destination distinguished by quality, sustainability, and uniqueness.”
Peter Krueger, Chief Strategy Officer and CEO of Holiday Experiences at TUI Group, noted, “There is strong international demand to visit Oman. This alliance will enable new tourism offerings in the Sultanate. Our TUI brands—ROBINSON, TUI Blue, RIU, Jaz, and The Mora—will bring their loyal clientele to Oman, representing a significant growth opportunity.”
The signing of the term sheet initiates the formation of a joint venture, with Omran and TUI Group each expected to hold 45% equity, and a private investor acquiring the remaining 10%. Additionally, the agreement outlines Omran Group’s intention to acquire a 1.4% strategic equity stake in TUI Group, subject to final approval and regulatory processes.
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The strategic alliance between Omran Group and TUI Group marks a transformative opportunity for Oman’s tourism sector, positioning Dhofar as a premier year-round destination with globally recognized brands. For businesses and investors, this creates significant growth potential in hospitality and related services, while also opening avenues for high-quality job creation and sustainable economic development aligned with Oman Vision 2040. Smart entrepreneurs should focus on leveraging this partnership to innovate in luxury, eco-friendly tourism experiences that cater to increasing international demand.
