Construction
From The Report: Oman 2013
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A range of construction projects lies at the heart of Oman’s growing economic development. The construction sector contributed more than OR307m ($800m) to the economy during the first quarter of 2012, showing growth of almost 4% when compared to the same period in 2011. While many projects in Muscat are focused on increasing the city’s tourism appeal, construction related to industrial and transport expansion is growing substantially in cities such as Sohar, Salalah and Duqm. The development of new road networks and upgrades to existing routes is also planned, and other infrastructure projects involve upgrading the seaports. However, as the construction sector expands, challenges remain. Perhaps foremost of these is the relatively high level of competition of both local and foreign bidders.

This chapter includes an interview with Sultan bin Hamdoon Al Harthi, Chairman of the Muscat Municipality.

Articles from this Chapter

Overview

Sustained activity: Diversified projects have meant more work for contractors, but competition is heating up
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A range of construction projects lie at the heart of Oman’s growing economic development. From infrastructure to housing and from tourism to health care, contractors and construction firms are playing a major role in facilitating economic growth in the sultanate. Much of the expansion is driven by a desire to convert Muscat into a more appealing tourist destination, which involves transferring heavy industry out of the city. Reducing pressure on the capital’s primary airport and seaport is an…

Interview

OBG talks to Sultan bin Hamdoon Al Harthi, Chairman, Muscat Municipality
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Interview: Sultan bin Hamdoon Al Harthi How will transport network expansion facilitate efficiencies between Muscat’s business districts and complement the city’s ongoing development? SULTAN BIN HAMDOONAL HARTHI: This is one of the most crucial issues we are facing. We are faced with accommodating the expansion of the existing city, the densities of the growing business districts, the airport development and the decommissioning of Matrah Port from a transport and logistics centre to an…

Analysis

Mixing it up: New projects are adding value to the industrial and tourism sectors
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As Oman’s construction sector grows, the types of building projects under way are becoming more diversified. One of the most significant trends is the increase of mixed-use developments. In terms of housing, mixed-used developments are becoming more popular among Omanis – who typically prefer villas – because of the improved quality of the residential units. In addition to this increased demand, well-built, mixed-use developments raise the value of a property, thus adding to the attractiveness…

Analysis

Setting a foundation: Spate of local and regional projects should give cement prices a boost
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The large number of ongoing or expected construction projects in Oman is positively impacting a range of industries and sectors throughout the country’s economy. The cement segment is no exception to this trend. After experiencing a period of lower prices during 2011, the industry is expected to grow steadily over the coming three to four years. Lower cement prices in the recent past can be largely attributed to low-cost cement being imported from the UAE. The construction sector had weakened…

Analysis

Going green: Sustainable building practices should help to address housing shortages
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As Oman’s economy and population continue to grow, developers are interested in more than simply increasing supply quickly. Indeed, a range of factors must be considered as environmental and energy concerns are becoming more important. Growing Needs According to recent World Bank data, the sultanate’s economy grew by 53% between 2009 and 2011, from almost $47bn in 2009 to nearly $72bn two years later. Less dramatically, the country’s population increased from around 2.5m in 2006 to over 2.8m…

Analysis

Down to business: Free zones attract commercial real estate investors
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Although Oman’s office real estate segment is generally characterised as being oversupplied, the market still presents opportunities for construction firms. Indeed, much of the market’s oversupply is in lower- to mid-range quality office space, while the availability of higher-quality real estate that meets the needs of multinational firms is still relatively limited. A number of recent projects are addressing this need. According to Dubai-based investment bank Alpen Capital’s recent report…