Oman: Tourism, Investments, and Real Estate in the Sultanate of the Future

Oman: A Sultanate on the Arabian Peninsula

The Sultanate of Oman, located on the Arabian Peninsula, is renowned for its cultural heritage, stable security, and neutral international position. The country's nature is remarkable in its diversity: here you will find vast sandy deserts, majestic mountain ranges, as well as picturesque waterfalls and charming fjords. Despite being a Muslim state, its citizens and visitors face no strict restrictions.

Islam and society

The majority of the population in Oman practices Ibadism, a moderate branch of Islam. Significant changes in the country began with the ascension of Sultan Qaboos to power in the 1970s. Throughout his more than half a century of rule, numerous reforms were implemented, and oil revenues were directed towards the development of the social sector, improvement of the education system and healthcare, as well as the creation of modern transportation infrastructure.

The new sultan and the economy

Since 2020, the Sultan of the state has been Haitham bin Tariq, who is actively working on establishing economic diversification. Currently, Oman's economy is showing stable indicators, and the gross domestic product increased by an impressive 30% after the pandemic in 2022. The inflation rate remains very low, not exceeding 1% over the past 12 months. At the same time, interest rates on deposits in Omani rials, which are pegged to the US dollar, are three times higher than the rates on similar deposits in American currency.

Economic diversification

The Sultanate of Oman is actively seeking to reduce its dependence on oil revenues by attracting foreign investments and developing the logistics and tourism sectors. One of the government's main goals is to increase the share of tourism in the gross domestic product from the current 2.4% to 10% by 2040. Given the year-round tourist season and a milder climate than neighboring countries like Dubai, Oman has every chance of successful development in the tourism sector. The summer months attract tourists from Middle Eastern countries, while in winter, Oman becomes a popular destination for Europeans.

Tourism and transportation

In the first quarter of 2023, the number of passengers passing through Omsk airports increased by 67% compared to the same period in 2022. At the same time, revenues from the hotel business grew by 32%. The country is actively expanding its foreign economic ties, located at the crossroads of the Gulf of Oman and the Arabian Sea, which provides it with convenient access to the markets of Asia and Africa.

• The country's foreign economic relations are developing with states such as the United Arab Emirates, Saudi Arabia, Qatar, the Republic of South Africa, India, and China.
• It is noted that the share of exports to the USA is gradually decreasing, which may indicate a reduced dependence of Oman on American markets.

These factors create favorable conditions for Russian investors, as the risk of restrictions on investments from Russia is minimal.

Real estate market

Regarding the real estate market, it should be noted that back in 2007-2008, the sultan granted foreigners the right to acquire property in special zones called integrated tourist complexes (ITCs). This rule is still in effect today, and these complexes represent extensive projects with residential apartments and villas, as well as well-developed internal infrastructure, which includes hotels, shops, restaurants, yacht marinas, golf courses, and water parks.

Investment opportunities in Oman

Today, six major real estate projects are actively being developed in Oman, located in key areas such as the capital Muscat and the resort city of Salalah. Plans include the construction of about twenty additional properties, indicating a growing interest in investments in this country.

It is noteworthy that foreign investors have the opportunity to acquire real estate through the ITC program with full ownership rights, known asfreeholdThe minimum investment threshold is just 140,000 dollars, which makes it relatively easy to enter the market and later sell the property in the secondary segment. The demand for such properties comes from both local citizens and foreign buyers, including Europeans.

The profit potential from investments

Investment in Oman can generate income both from the increase in market value during construction, which is estimated at20-25%...as well as from rental income, where the yield varies from...4% to 10%per year.

• In Muscat, apartments for long-term rent are usually available.
• In Salalah, short-term rentals are especially appealing for vacationers.
• Every builder takes on property management, charging20%from income from short-term rental and5%for the long term.

Thus, purchasing real estate in such projects opens up excellent opportunities for passive income.

The resort city of Salalah

Salalah, the second largest city in Oman, is a comfortable resort with a warm climate. Summer temperatures rarely rise above33 degrees Celsius...which makes it an ideal place for relaxation, especially during the hot months from May to September, when residents of neighboring countries seek to escape the scorching heat.

In winter, from October to April, Salalah is visited by tourists from Europe who wish to enjoy cooler and drier conditions.

Real estate for vacation rental

In this region, real estate is mainly intended for vacation rentals and is in demand on platforms like Booking or Airbnb. One of the leading projects of the concept is being implemented on the coast of Salalah.welfarewhich is also part of the ITC program. This is the only project of its kind in Salalah, designed by a famous London architectural firm.SB Architects.

The project includes villas located both by the sea and on elevated ground, providing stunning views of the Arabian Sea.

Project infrastructure

The infrastructure of this complex is quite diverse:

• The beach line stretches forseven kilometers.
• Beach club.
• Pool.
• Spa salon and fitness center.
• Water sports center.
• Running and cycling paths.
• Playgrounds for children.
• Restaurants and bars.

Over the past ten years, an aquazone, a marina, and several hotels, including one from an international chain, have been built in this region.Rotana — Salalah Rotana Resort.

Real estate prices and purchasing conditions

The price of the 58-square-meter apartments in this project starts from202.9 thousand dollarswhile villas can cost up to439.4 thousand dollarsPersonal use of the acquired property is not subject to strict limitations, but it may affect the profitability, which varies from8% to 10%per year.

It is expected that the last facilities will be put into operation inin the year 2025Moreover, investors can take advantage of the developer's installment plan for a period of up tothree yearsthat positively affects the availability of these real estate properties.

Initial contributions and payments

The initial investments amount to 10% of the total cost, and subsequent payments will be made every three months over a three-year period.

Tourists' interest in Muscat

A multitude of tourists eager to visit the capital of Oman, Muscat, are interested in the unique nature of this region, including its picturesque sandy beaches and mountainous landscapes, as well as the Eastern atmosphere and rich historical heritage.

The population of Muscat

As of today, the population of Muscat exceeds 1.5 million people, which accounts for approximately one-third of the total number of residents in the country. A significant portion of them are foreigners, particularly people from Europe and the United States, making up about 62% of the population. They are attracted by the comfortable living conditions and the high level of education in private educational institutions, which opens the way to admission to universities in the UK.

Real estate for foreign citizens

In Muscat, there are five major integrated tourism complexes where foreign citizens can purchase residential real estate.

A new large-scale project on the coast

On the coast of the Oman Gulf, just 30 minutes from the city center, a modern large-scale complex is being built, scheduled for completion in 2025. This project emphasizes environmental sustainability. It includes:

• Private beach
• Pools
• Educational institutions such as schools and kindergartens
• Sports complexes
• Treadmills
• Playgrounds for children
• Racetrack
• Commercial spaces
• Luxury hotels — 4 and 5 stars

Each apartment in this entry-level complex starts at140 thousand US dollarsIt has an area of 52 square meters. It is recommended to consider renting such apartments on a short-term basis, as the income from long-term rentals is expected to be around 4% per year.

A completed complex at the foot of the mountain

Another significant project is the completed complex located 40 minutes from the center of Muscat, at the foot of a picturesque mountain, near a lagoon and beach. This area is home to several well-known international educational institutions, making it particularly attractive for families with children. Inside the complex, there is a five-star Jumeirah Resort hotel with its own beach and numerous amenities, including:

• Parks
• Pools
• Fitness centers
• Shopping center
• Equipped areas for children
• Restaurants and bars
• Helipad

Some apartments have already been rented out and are generating income of4%from long-term rental. The client offers a unique installment plan for one or three years, which is a rarity for move-in ready properties. Prices for the apartments start at236.6 thousand dollars.

New Mandarin Oriental project

A license for a new project has recently been obtained, which includes a Mandarin Oriental hotel and residences with a private beach. Currently, there are only a few remaining.15 out of 156residences. The complex is located on the first line by the sea in the prestigious Shatti Al Qurum area, close to the city's main attractions. The infrastructure includes:

• Beach
• The waterfront with shops and restaurants
• Pools
• Fitness and spa centers
• Children's playgrounds

The prices for apartments start from494 thousand dollarsfor 82 square meters. The payment terms are as follows:50%the amounts are paid upon purchase, the remaining ones50%It is possible to pay in installments over two to three years or upon receiving the keys. The completion of construction is planned forDecember 2023This opportunity represents a wonderful chance for short-term rental with a return of8 to 9%per year.

Independent housing options in Oman

Oman offers a wide range of residential properties suitable for both permanent living and investment. For example, in the very center of the capital, Muscat, there are apartments available for €255,128. These apartments have an area of 115 square meters and are located in an elite residential complex, which is situated 40 minutes away from the main city attractions.

The residential complex is located at the foot of picturesque mountains, in close proximity to a tranquil lagoon and beach. There are well-known international schools in the area, making this place ideally suited for families with children.

The infrastructure of the complex includes:

• 5-star Jumeirah Resort hotel with its own beach;
• landscaped parks;
• pools;
• modern fitness center
• retail spaces;
• children's play areas;
• restaurants and bars;
• helipad.

Elegant villas on the coast

There are also six-bedroom villas available in Muscat, priced at 917,066 euros. These stylish villas are located on the shores of the Oman Gulf and are part of the prestigious residential community of Al Mouj. Each villa is equipped with:

• elevator;
• a separate service room;
• a workspace;
• home theater;
• fitness gym.

Additionally, there is a swimming pool, a garage, and covered parking with charging stations for electric vehicles. The houses feature thoughtful architectural designs and open layouts, allowing residents to make the best use of the space and enjoy stunning panoramic views of nature.

Modern apartments in Muscat

You can also find apartments in Muscat with an area of 128 square meters for 320,973 euros. These modern apartments are located in the prestigious Al Mouj residential complex, situated near the waterfront with a yacht marina, offering options with one or two bedrooms. The complex is surrounded by greenery, and various restaurants and entertainment venues are within walking distance.

Nearby are:

• beaches;
• golf poles;
• luxury hotels.

Villas for golf enthusiasts

For golf enthusiasts, villas with an area of 159 square meters are offered at a price of 500,443 euros. These homes are located on the hills by the Arabian Sea and are designed for luxurious and secluded living, not far from bustling metropolises, but with convenient access to the capital and the airport.

Residents of these villas have the opportunity to become members of the prestigious Trump golf club and enjoy the services of a high-end hotel. This location offers magnificent views and conditions for a comfortable stay.

Special offers on villas

There is also an offer for a villa priced at 884,000 euros, with an area of 357 square meters, located in a popular complex just 40 minutes from the center of Muscat, near the mountains, lagoon, and beach. Nearby, there are well-known international educational institutions, and the infrastructure includes the same Jumeirah Resort hotel, green areas, swimming pools, and other amenities.

Exclusive Aida Villas

Finally, it is worth mentioning the Aida villas, located 130 meters above sea level, with prices starting from 345,466 euros.

Interior and location

The focus is on the Intermark Global project in Salalah, Oman — an exclusive residential development that offers a unique blend of chalets and villas with an emphasis on wellness concepts. These luxurious properties are located in four stunning areas, each providing its residents with fantastic panoramic views of the ocean.

Residents can enjoy direct access to the beach and also have the opportunity to join a prestigious beach club that is suitable for the whole family.

Chalets and villas

• Chalet with an area of 58 m²For sale at a price of €186,074. This project was elegantly designed by the London architectural firm SB Architects, known for its innovative solutions in residential architecture. The interiors of the chalet provide everything necessary for comfortable living and a full-fledged rest.
• Chalet of 100 m²Offered for €331,428. This is another property inspired by the wellness concept, which creates a unique atmosphere of comfort and tranquility for its residents. With carefully crafted details and high-quality architectural execution, these chalets create the perfect living environment.
• Villa for €439,400with an area of 133 m². The wellness concept here includes elements that promote the improvement of the physical and emotional well-being of the residents. This property sets new standards of comfort and luxury in the real estate market.
• Villa priced at €674,062with a total area of 243 m². The space presented here opens up opportunities for organizing a comfortable life amidst the beauty of nature and seaside landscapes. The perfectly designed living areas offer maximum convenience for all family members.

Complex in Muscat

The complex in Muscat is equally remarkable, offering luxurious apartments managed by a well-known international hotel operator. For example,an apartment with an area of 82 m²available for €452,763, and it offers a magnificent view of the sea and the Hajar Mountains, combining luxury with the absolute beauty of the surrounding nature.

This complex also featuresapartments with an area of 134 m²The price of these apartments is €986,862. They include two bedrooms and offer residents additional space with balconies and terraces. All of this creates an atmosphere of privacy and luxury that is characteristic of only the highest-class projects.

Mandarin Oriental Residence project

The Mandarin Oriental Residence project in Muscat, filled with stunning panoramic views, promises its residents a high level of comfort and service, making it the perfect choice for those who seek to live in luxury and enjoy life by the sea.

Conclusion

Each of the proposed real estate properties is designed for those who wish to live a life of luxury and tranquility by the ocean. These projects become true oases for their owners, allowing them to enjoy a high-class lifestyle in a unique natural environment. Each chalet and villa here is not just a place to live, but a manifestation of a certain lifestyle.

Unique offers from Intermark Global

Intermark Global offers exceptional housing options and investment opportunities in Muscat, the capital of Oman. One of the most interesting offerings is the apartments in the famous Mandarin Oriental complex, located in a picturesque area with stunning views of the endless sea and the majestic Hajar Mountains.

These luxurious apartments, covering an area of 132 square meters, feature two cozy bedrooms and spacious balconies of up to 15 square meters, making them a truly attractive place to live. The complex offers the highest level of service provided by a world-renowned hotel operator, highlighting the prestige and comfort of this residence.

Villas in Oman

In addition, in this paradise corner, you can also purchase villas, with starting prices of 762,999 euros. Each villa is designed with local traditions and cultural heritage in mind, which gives them a unique character.

Oman is renowned for its vibrant, diverse culture and its rapidly developing tourism sector, which attracts numerous investors due to the stable economic situation and the absence of personal income tax. All of this creates wonderful opportunities for peaceful living and investment growth.

Luxurious villa for a large family

One of the most luxurious villas in the area is a 750 square meter property, perfectly suited for large families or those who value space and comfort. Villas in Oman not only provide a high level of convenience but also offer stunning views of the surrounding nature, making life in the Muscat Bay area a true celebration.

Compact studios for comfortable living

For those who prefer compact options, there are also excellent studios measuring 53 square meters in Muscat. These apartments offer modern amenities and a comfortable standard of living, making them appealing for both personal residence and investment purposes.

All projects on this coastline, covering an area of about 1 million square meters, focus on ecology and the implementation of innovative technologies that promote the conservation of natural resources.

Financing and purchase conditions

Moreover, the funding for these projects accounts for 50% of the government-supported initiatives, which confirms a serious approach to the development of this field. The payment terms are diverse and flexible:

• 5%when booking,
• 25%at the construction stage,
• 70%upon completion.

Conclusion

Thus, anyone considering life or investments in Oman can find numerous attractive offers that meet high quality standards, ensuring comfort, safety, and an impressive level of service. We invite you to explore the various options for investing or living in this beautiful corner of the world.

Investment opportunities in Muscat

Apartments located in Muscat, the capital of Oman, present enticing opportunities for potential investors, especially in the context of modern construction projects. One outstanding example of this is a residential complex covering an area of 1 million square meters, situated along the picturesque shores of the Oman Gulf. This complex is just a 30-minute drive from the city center and is designed with sustainability in mind, incorporating eco-friendly technologies and systems powered by renewable energy sources. Notably, more than half of the funding for this ambitious project comes from...

Luxury complex Marsa

It is also worth paying attention to the luxurious complex calledMarsathat offers unique apartments at a price453,031 €with a total area245 square metersThese residences, which are located in close proximity to the ocean, on the waterfrontAl Mouj MarinaThey create an atmosphere of the perfect resort. The inner courtyards are surrounded by greenery, highlighting their prestigious location. These residences are ready to welcome their residents and will be a wonderful choice for those who value a high level of comfort and sophistication.

Obtaining a residence permit

It is noteworthy that there is no minimum investment threshold for obtaining a residence permit in Oman when purchasing real estate, which simplifies the process for interested buyers. The main condition is that the acquired property must have the status of a tourist complex and must be put into operation for the first time. Accordingly, the submitted application for a residence permit may include:

• spouse of the investor,
• minor children,
• parents.

After the financial documents are processed, the process of obtaining the status can take up to six months. The conditions for complying with the regulations remain relatively simple.

Extension of residence permit

The obtained residence permit will be valid for2 yearsand its extension depends on whether the foreigner remains the owner of this property. The privileges available to the residence permit holder include:

• the right to long-term residence in the country,
• the ability to apply for various visas, including Schengen and Chinese visas.

It is also possible to open a multi-currency account in local banks.

The process of opening a bank account

As for the procedure for opening a bank account for the purpose of purchasing real estate, the entire process will take only14–21 daysand will require the buyer's personal presence. An open account will provide access to all financial markets, including Europe, the USA, the Middle East, and Asia, which is an attractive option for investors.

Financial aspects of purchasing real estate

Speaking about the financial aspects of purchasing, when buying real estate from a developer, the investor must pay:

• 5%value-added tax,
• 3%from the cost specified in the contract, upon completion of the construction of the facility.

In Oman, there are no taxes on rental income, sales, capital gains, or inheritance, which makes real estate investments even more attractive.

Support when purchasing real estate

CompanyIntermark Real EstateI am ready to provide support in gathering the necessary documents to meet the requirements of bank compliance, in order to facilitate the acquisition process. By following all the specified requirements, you will be able to lay the groundwork for living and investing in one of the most picturesque countries in the Middle East.

Conclusion

In conclusion, it can be confidently said that the Sultanate of Oman represents a unique combination of rich cultural heritage, picturesque nature, and modern economic opportunities. The prospects for the country's development are encouraging, affecting both the tourism sector and the real estate market. Despite the numerous challenges faced by the modern world, Oman demonstrates stable growth and successful diversification of its economy, which is particularly important in the context of global changes.

I was impressed by how the republic, under the leadership of Sultan Haitham, is striving to strengthen its position in the region by encouraging foreign direct investment and attracting tourists. The creation of new tourist complexes and the development of transportation infrastructure are opening new horizons not only for local residents but also for international investors. The opportunities for acquiring real estate in integrated complexes or ITCs, which offer full ownership, make the real estate market in Oman attractive to foreign buyers.

The appeal of tourist resorts

In addition, the beautiful climate and stunning resorts like Salalah attract people from all over the world. This oasis is becoming not only an ideal place for relaxation but also a lucrative platform for investing in rental properties. The infrastructure of new projects, among other things, meets all modern requirements, providing residents and tourists with everything they need for a comfortable stay.

Advantages of the Omani real estate market

• Full ownershipfor foreign investors in ITC;
• Development of transport foreign investments;
• The creation of numerous tourist complexes;
• A strategically important location for international trade.

Thus, Oman is not just a travel destination, but also an attractive location for investment, making it an important part of the global economy. In recent years, Oman has become more open and safe for foreign investors, and this will undoubtedly lead to even greater international integration and development in the future. It can be confidently said that the Sultanate is capable of offering not only beauty and culture but also numerous opportunities for entrepreneurship and investment. I remain optimistic about the future of this wonderful country and encourage you to pay attention to it.