Oman's Real Estate Sector: Growth in Company Profits and New Investment Incentives

The real estate sector in the Sultanate of Oman witnessed a series of developments yesterday that enhance its investment attractiveness and confirm its pivotal role in the national economy. A notable growth in the profits of listed companies was announced, alongside significant incentives for investors in special economic zones. The news also revealed foreign real estate companies’ interest in expanding within the Sultanate, in addition to signing substantial usufruct contracts and highlighting the vital role of the sector in the GDP.

Key Updates

• Growth in net profits of listed companies on the Muscat Securities Market in Q1 2026, with one real estate company turning from loss to profit.

• Clarification of attractive incentives for investors in special economic zones and free zones, including full freehold rights for real estate developers.

• Egyptian "Peter Home" company targets expansion in the Omani real estate market.

• The Ministry of Housing and Urban Planning signs 182 usufruct contracts worth 37.8 million Omani Riyals.

• The development and construction sector contributes 8.38% to the Sultanate's GDP.

Also read: Real Estate Investment Returns in Oman

Details

Growth in Listed Companies’ Profits and Improvement in the Real Estate Sector’s Performance

Preliminary results for Q1 2026 showed that public joint-stock companies listed on the Muscat Securities Market achieved net profits of 406.6 million Omani Riyals, a 14.5% increase compared to last year. Among the highlights of the report was the transformation of "Al Wataniya for Real Estate Development and Financial Services" from loss to profit, reflecting overall performance improvement and increased demand in the real estate-related sector.

New Investment Incentives in Special Economic Zones

An opinion article published detailed the law regarding special economic zones and free zones, emphasizing important incentives for investors. These incentives include 10-year tax exemptions (renewable), customs incentives, and legal protections for investors. Most importantly in the real estate context is the possibility for non-Omanis to fully own projects within these zones, including real estate developers, without the need for a local partner, with land allocated through leasing or usufruct rights.

"Peter Home" Real Estate Company Expands in the Omani Market

News revealed that the Egyptian "Peter Home" real estate company is considering expansion in the Omani market as part of its international plans. The company already owns land in Oman designated for a future project, confirming foreign investors’ interest in growth opportunities within the Sultanate's real estate sector.

Signing of 182 Usufruct Contracts Worth 37.8 Million Omani Riyals

As part of the Oman Real Estate, Design, and Construction Exhibition and Conference 2026, the Ministry of Housing and Urban Planning signed 182 usufruct contracts with an investment value exceeding 37.8 million Omani Riyals. These contracts cover various sectors such as health, industry, and agriculture, enhancing the efficient use of government lands to support projects with economic and social impact.

The Real Estate and Construction Sectors Lead the Omani Economy

The Oman Real Estate 2026 Conference confirmed that the development and construction sector contributes 8.38% of the Sultanate’s GDP and employs around 516,000 individuals. Ongoing projects in Sultan Haitham City alone exceed 3 billion Omani Riyals in value, highlighting the pivotal and vital role this sector plays in driving the economy.

Also read: Real Estate Usufruct Rights in the Sultanate of Oman for Foreign Residents: Does It Suit Your Situation?

What Does This Mean for Investors or Buyers?

These developments paint a promising picture for investors in the Omani real estate market. The growth in listed companies’ profits indicates an improved business environment and increased demand, boosting confidence in real estate assets and related stocks. New incentives in economic zones offer exceptional opportunities for foreign and local developers to establish projects with full freehold ownership and tax exemptions, reducing risks and increasing investment attractiveness. Foreign companies’ interest in expansion and the government’s large usufruct contracts reflect a clear trend toward urban and sustainable development. Finally, the sector’s significant GDP contribution confirms its stability and role as an engine for the national economy, providing a stable and attractive environment for both buyers and investors.

Conclusion

The Sultanate of Oman continues to strengthen its position as a promising real estate investment destination, supported by economic growth, government incentives, and increasing interest from local and international investors. These combined developments confirm the positive trajectory of the Omani real estate market and its future aspirations for further growth and prosperity.

Imtilak Global facilitates the real estate ownership process in Oman by providing numerous comprehensive and distinguished services to real estate investors, ensuring full follow-up of ownership procedures, including the facilitation of legal and bureaucratic transactions.

Editorial: امتلاك Global©