Focus falls on boosting non-oil revenue streams
Oman is focused on controlling public spending and increasing non-oil revenue streams. So, despite solid growth expected in 2018, as natural gas production starts at Khazzan gas field and the new Muscat airport opens, the 2018 budget for developments is down 17 percent from 2017.
This fall should be offset by increased private-sector investment. Meanwhile, Oman has held off declaring an official date to roll-out VAT, which might otherwise lift inflation and dent demand in an already flat real estate market.
The new airport is expected to boost the hospitality
sector. There are many four-and five-star hotels being planned across Muscat. Development linked to Duqm, as an industrial port city, is gathering pace. There is strong private-sector interest in a USD2.6bn railway link to transport limestone from Al Shuwamiyah. The government is said to have granted rights to Chinese companies for industrial projects worth USD3bn.
|Market:||Staying the same|
|Cost escalation 2017–18:||-1.0%|
|Cost escalation 2018–19:||1.0%|
|Location factor (USD):||34.4|
The Tanfeedh programme to promote economic diversification will boost hospitality and tourism. Development opportunities will expand with the opening of the new Muscat airport, while proposals to set up free zones in Buraimi and Musandam are still under review.
This content is part of the International construction market survey 2018