Oman’s construction industry is entering a new phase of growth in 2025, driven by surging foreign direct investment, higher public spending, and a wave of transformative infrastructure projects. According to Blackridge Research's Oman construction database, the construction sector is forecasted to grow at an annual average rate of 4.4% from 2026 to 2029, supported by investment in renewable energy, transportation, housing, and logistics.

The largest construction projects in Oman driving this transformation include Sustainable City Yiti and Duqm Refinery, the massive Al Khuwair Downtown, Hafeet Rail network, and Duqm Port Expansion. Both upcoming and ongoing construction projects in Oman reflect the Sultanate’s commitment to sustainable urbanization, energy diversification, and cross-border trade integration.

According to the National Center for Statistical Information (NCSI), the total FDI of Oman is rising by 18.2% in 2024, and development disbursements are reaching OMR254 million in Q1 2025 alone.

In this article, we explore the Top 10 new and ongoing construction projects in Oman 2025 according to the estimated project cost.

List of Top 10 Biggest Construction Projects in Oman 2025: According to Project Cost

Great Blue City Development (Al Madina Al Zarqa)

Al-Madina Al-Zarqa is currently the largest ongoing construction project in Oman (2025). The project comprises a 32-square-kilometer waterfront city positioned along 16 kilometers of the Gulf of Oman’s coastline, just 45 minutes from Muscat Seeb Airport.

As one of the largest urban developments in the Middle East, the city integrates luxury living, commerce, industry, and institutional infrastructure. Phase 1A of the project initiates with a premium mix of residential and hospitality components, including 100 luxury villas and 202 lagoon-side villas spanning a total built-up area of over 84,800 m².

A 5-star hotel, set on a 26,000 m² plot, will offer 135 rooms and high-end suites across a 15,000 m² BUA. Additionally, a substantial mixed-use apartment zone is planned across 78,500 m², featuring up to 130 serviced units and 270 residential units.

Project Scope:

• Architectural

• Civil works

• Structural

• Mechanical

• Electrical

• HVAC

• Roads

• Landscaping

• Communications and security systems

Duqm Integrated Refinery and Petrochemical Complex

The Duqm Refinery is one of Oman’s most strategic projects in the construction industry, situated within the Special Economic Zone at Duqm (SEZAD), approximately 600 km south of Muscat. The downstream oil and gas refinery project has a refining capacity of 230,000 barrels per day.

The project includes the construction of a crude oil export terminal, an 80 km pipeline from Ras Markaz, and crude import facilities collectively managed under EPC packages awarded to leading international contractors. The refinery is designed to drive long-term industrial growth and urban development in the Al Wusta Governorate, such as jetties, storage facilities, and utility buildings.

The refinery construction project represents a USD 6 billion investment through the Duqm Refinery & Petrochemical Industries Company (DRPIC), a 50:50 joint venture between Oman Oil Company and Abu Dhabi’s IPIC.

Project Scope:

• Construction of a 230,000 BPD refinery

• 80 km crude oil pipeline from Ras Markaz to Duqm

• Crude oil import and export facilities

• 3 jetty areas with 13 loading arms

• Construction of 11 buildings and two large-scale solid storage shelters (for petcoke and sulphur)

• Integrated utilities and support systems

• Engineering, procurement, and construction (EPC) packages managed by major international consortia

• Development of supporting infrastructure within SEZAD

Oman-UAE Railway (Hafeet Rail)

The Oman-UAE Railway (Hafeet Rail) is one of the largest rail infrastructure projects in the Middle East, designed to strengthen trade and transport links between the Sultanate of Oman and the United Arab Emirates.

Spanning a total length of 303 kilometers, the rail line will connect Abu Dhabi to the port city of Sohar, establishing the first transnational railway in the Arab world. As a joint venture between Etihad Rail, Oman Rail, and Mubadala, the project marks Oman’s entry into railway infrastructure while extending the UAE’s national rail network.

The construction project is part of the wider GCC vision for an integrated regional rail system, aiming to improve logistical efficiency, reduce carbon emissions, and stimulate economic and industrial growth. The railway will enable the movement of goods equivalent to 300 trucks per train and significantly reduce border congestion.

Siemens Mobility and Hassan Allam Construction have been awarded the contract for signaling, telecom, and power systems integration, including the deployment of ETCS Level 2 signaling designed for reliability in desert conditions. The rail link will serve key ports, economic zones, and industrial hubs, boosting both supply chain resilience and regional tourism.

Project Scope:

• Construction of a 303 km cross-border railway between Abu Dhabi and Sohar

• Integration of European Train Control System (ETCS) Level 2 signaling

• Installation of telecom and power supply systems along the route

• Construction of rail infrastructure for passenger and freight services

Sultan Haitham City

Sultan Haitham City is one of Oman’s futuristic development projects, aligned with the national objectives outlined in Oman Vision 2040. Positioned in Al-Seeb, just west of Muscat, this smart city initiative spans 14.8 square kilometers and represents a major expansion of the capital’s urban footprint.

Designed to accommodate 100,000 residents across 20,000 diverse housing units, the city is built around the vision of “Treasure the Future.” It aims to enhance livability, support economic growth, and promote sustainable development.

The master plan (developed by international design firm Skidmore, Owings & Merrill (SOM) and funded by the Oman Investment Authority) includes 19 integrated neighborhoods, 39 schools, 11 healthcare facilities, 25 mosques, a central park, and a grand boulevard.

The project, backed by the Ministry of Housing and Urban Planning and executed by Nama Group, Sultan Haitham City is set to be a major hub for domestic and international investments.

Project Scope:

• Development of a 14.8 km² smart city in Al-Seeb, west of Muscat

• Construction of 20,000 residential units for up to 100,000 residents

• Creation of 19 integrated neighborhoods

• Development of 39 schools, 11 healthcare facilities, and 25 mosques

• Central Park and public boulevard are key public spaces

• Conversion of a 7.5 km dry wadi into a climate-adaptive green park

• Implementation of solar energy and wastewater reuse systems

Batinah Expressway

The Batinah Expressway is determined to enhance connectivity between the capital, Muscat, and the United Arab Emirates. Spanning 256 kilometers, the 8-lane highway links the Muscat Expressway at Halban to the UAE border at Khatmat Malaha, streamlining cross-border traffic and supporting regional economic integration.

The expressway provides a high-capacity alternative for passenger and freight movement, reducing travel time and easing congestion on existing routes with four lanes in each direction.

Completed over a six-year period, the project involved extensive engineering works, including the construction of 1,106 concrete channels, 25 wadi bridges, 17 overhead bridges, and 12 tunnels. These features were implemented to overcome the area’s varied terrain and seasonal water flow challenges.

Project scope:

• Construction of a 256 km, 8-lane highway connecting Halban (Muscat Expressway) to Khatmat Malaha (UAE border)

• Construction of 1,106 concrete drainage channels

• 25 bridges constructed over wadis (seasonal riverbeds)

• 17 overhead vehicular and pedestrian bridges

• 12 tunnels to navigate complex terrain

AIDA by Dar Global

AIDA is a premium mixed-use residential and golfing development currently under construction in Muscat, Oman. Developed by DarGlobal, AIDA is designed as a luxury lifestyle destination, seamlessly integrated into its natural surroundings.

The community offers panoramic sea views and access to world-class outdoor activities set 130 meters (427 feet) above pristine coastal shores. Inspired by the beauty of destinations like the Maldives, Mykonos, Seychelles, and the Algarve, AIDA is envisioned as a tranquil yet vibrant escape, blending high-end living with resort-style amenities.

The project’s first phase, Oceana, features a range of upscale properties, including 3-bedroom attached villas, spacious 4 to 5 bedroom villas, and expansive 6 to 7 bedroom mansions. The units are designed with modern architecture, coastal aesthetics, and timeless craftsmanship.

Located within 25 minutes of Muscat International Airport and near five UNESCO World Heritage sites, AIDA offers an ideal setting for both investment and leisure living. The gated community also includes a renowned golf destination, elevating its appeal as a long-term residential and tourism hub.

Project Scope:

• Development of a luxury mixed-use residential and golf community in Muscat

• Elevation: 130 meters (427 feet) above sea level with sea-facing views

• Construction of:

• 3-bedroom attached villas (starting from 125 sqm)

• 4–5 bedroom standalone villas

• 6–7 bedroom mansions

• Target completion: December 2028

United Solar Polysilicon Factory

United Solar Polysilicon Factory is the Middle East’s first polysilicon production facility in Oman. Constructed by United Solar Holding, the project positions Oman as a key player in the global solar supply chain and aims to attract upstream and downstream solar manufacturing to Sohar.

 Located at Sohar Port and Freezone (a strategic deep-sea port between Muscat and Dubai), the USD 1.35 billion facility will cover an area of 160,000 square meters and is designed with an annual production capacity of 100,000 tons of high-quality metallurgical silicon.

The plant will feature an advanced production process, including the casting, cooling, grinding, and packaging of liquid metal silicon for global export, and is expected to begin operations in 2025.

Project Scope:

• Construction of a USD 1.35 billion polysilicon production facility

• Annual production capacity: 100,000 tons of metallurgical-grade silicon

• Advanced processing operations: melting, casting, cooling, grinding, and packaging

Al Khuwair Waterfront

The Al Khuwair Downtown project is one of the biggest urban developments in Oman, spanning approximately 3.6 million square meters in Muscat. The upcoming project features a dynamic mix of high-rise buildings (ranging from 35 to 40 floors) with approved heights of up to 150 meters.

This urban development will integrate a marina, beaches, a waterfront with sports facilities, a canal walkway, a dedicated cultural quarter, and a new ministry complex, creating a vibrant, multi-use district for residents and visitors alike.

Planned in response to Muscat’s projected population growth (from 1.5 million to 2.7 million by 2040), the project will accommodate approximately 64,500 people and is aligned with Oman’s Vision 2040 and National Spatial Strategy.

Project Scope:

• Development area: ~3.6 million square meters

• Construction of high-rise buildings (35 to 40 floors, up to 150 meters tall)

• Marina and waterfront with public beaches and sports facilities

• Canal walkway and integrated pedestrian zones

• Cultural quarter with museums, galleries, and performance spaces

• Government ministry complex

• Mixed-use zoning: residential, commercial, and cultural spaces

The Sustainable City – Yiti

The Sustainable City Yiti (TSC Yiti) is Oman’s first planned ‘net-zero’ city and a landmark mixed-use tourism and residential development situated 30 km south of central Muscat along the Gulf of Oman. The project spans 11 square kilometers and is jointly developed by Oman Tourism Development Company (OMRAN Group) and Diamond Developers, with the master plan designed by Kettle Collective.

The city is being delivered in four phases, with the first phase already underway at a development cost of approximately USD 900 million. Once complete, TSC Yiti will house over 3,000 residential units across two districts, including villas, apartments, and luxury serviced residences.

It will also feature hospitality destinations, public parks, schools, and wellness and fitness facilities. A key focus is sustainable mobility, with non-motorized infrastructure such as cycling and jogging tracks, as well as food production through vertical farms and greenhouses.

Project Scope:

• Development of Oman’s first net-zero city across 11 km² in Yiti, Muscat

• 4 development phases; Phase 1 spans 1.43 km² with a cost of USD 900 million

• 1,657 residential units:

  • 300 villas

  • 1,225 apartments

  • 132 luxury serviced apartments

• Yiti Marina Town and Yiti Resort: mixed-use zones with residences, resorts, retail, and business spaces

• Public amenities, including a hotel, wellness center, fitness center, school with a sustainability-focused curriculum, and SEE Lab

• Green spine and large public spaces to support livability and social inclusion

• Non-motorized mobility network (cycling and jogging tracks, pedestrian paths)

• Agricultural zones featuring vertical farms and greenhouses

Duqm Port Expansion

The Duqm Port Expansion is located in the  Special Economic Zone at Duqm (SEZAD) and is one of the largest port infrastructure expansion projects in Oman. The port offers direct maritime connectivity between Asia, Africa, and Europe, making it a gateway to major emerging markets such as India, the GCC, and Sub-Saharan Africa.

Managed by the Port of Duqm Company (a 50:50 joint venture between ASYAD Group and the Antwerp Port Consortium), the port features three main berths: a commercial berth, a government berth, and a liquid and bulk materials berth. The port is capable of accommodating the world’s largest container and cargo vessels with a breakwater stretching 8.7 kilometers, a basin depth of 18 meters, and an entry channel of 19 meters.

In alignment with the concession agreement, the development also includes the promotion of 5,000 hectares of leasable industrial and logistics zones within SEZAD, establishing Duqm as a central platform for regional and global trade, logistics, and manufacturing.

Project Scope:

• Expansion of Duqm Port within SEZAD to handle global maritime traffic

• Construction and operation of the three main berths:

• Commercial berth

• Government berth

• Liquid and bulk materials berth

• Breakwater infrastructure: 8.7 km in total length

• Deep-water access:

• Basin depth: 18 meters

• Entry channel depth: 19 meters

Conclusion

The development of Oman is accelerating with the momentum supported by large scale projects supporting real estate and infrastructure development, with its Vision 2040 objectives and push toward net-zero emissions by 2050. 

Recent agreements worth over OMR 100 million signed by the Ministry of Transport, Communications, and Information Technology signal the government’s commitment to modernizing ports, airports, and logistics zones with advanced technologies. The active pipeline of new construction projects in Oman 2025 (like Khazaen economic city) is shaping a long-term economic resilience and global competitiveness.

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