Oman to Launch First Phase of Sultan Haitham City This Year

70% of tenders in Phases 1 and 2 of Sultan Haitham City are under execution, with roads and services being rolled out progressively: minister

Muscat, Oman: A portion of Sultan Haitham City’s first phase is slated to open this year, as infrastructure and service works continue to progress. Approximately 1,700 residential units have already been sold, according to Dr. Khalfan bin Said Al Shueili, Minister of Housing and Urban Planning.

Speaking at the inaugural Ramadhan lecture organised by the Oman Chamber of Commerce and Industry (OCCI) on Monday, February 23, 2026, he noted that Sultan Haitham City is planned to deliver approximately 20,000 residential units overall, with development progressing at an average of 1,000 units per year. He added that infrastructure investments across Phases 1 and 2 total around USD 779M (RO 300 million).

He stated that 70% of the tenders across Phases 1 and 2 are currently under execution, with roads and essential services being implemented in stages. He also expressed optimism that a portion of the first phase will be inaugurated within the year.

The minister highlighted the rising demand for the development, revealing that buyers representing more than 35 nationalities have secured units in Sultan Haitham City. He also noted that eight developers are currently involved in the project, competing for further development opportunities.

He added that prices stand at approximately RO 900 per square metre for investors, compared to around USD 1,040 (RO 400) per square metre for Omani families, with government support for Omani households exceeding 50%. He encouraged the public to capitalise on the opportunities offered by the project.

Addressing the broader market, Dr. Al Shueili said the trajectory of Oman’s real estate sector has become more defined following five years of reforms and implementation. He noted that the Sultanate has established a robust legislative and regulatory framework compared to other markets in the region.

He added that the Real Estate Development Law represents a significant milestone in structuring the sector, and revealed that a new regulation is anticipated in the coming months to oversee additional aspects of the market while protecting the rights of both consumers and industry stakeholders.

Dr. Al Shueili said the next stage will prioritise enhanced regulation, targeted programmes, and digital systems aimed at improving efficiency and reinforcing the sector’s foundations.

Turning to property finance, he acknowledged that funding continues to present challenges for the sector, but pointed to strong coordination with the banking industry under the leadership of the Central Bank of Oman. From the ministry’s standpoint, developers are not facing significant difficulties in accessing finance, particularly with the off-plan sales framework in place, he explained. He added, however, that financing constraints are more evident among certain eligible Omani beneficiaries within specific programmes, with funding-related issues impacting around 30% in some instances.

He added that the ministry is collaborating with the Oman Housing Bank to resolve these challenges, while also advancing discussions with relevant authorities regarding a proposed tax exemption for first homes.

Dr. Al Shueili further noted that the ministry has introduced programmes allowing citizens to develop their own homes, with usufruct plot sizes ranging between 500 and 4,000 square metres.

He said the number of contracts has increased from just over 1,000 in previous years to approximately 13,000 at present, reflecting annual growth of at least 10%. The success rate among land beneficiaries has reached around 70%, he added, while the withdrawal of undeveloped plots remains ongoing.

The minister stated that the “Sorouh” programme, introduced in 2015, has moved beyond its initial challenges and now comprises more than 20 projects spearheaded by Omani institutions across over 12 locations.

He added that the ministry aims to expand this momentum by delivering 60 projects in the coming years under integrated residential complexes, with each development comprising between 150 and 1,000 housing units.