The output of the construction industry in Oman to expand by 2.1% in real terms in 2024, supported by rising foreign direct investment (FDI) in rail and road infrastructure, renewable energy, and housing projects, according to a recently published report by GlobalData.

According to Oman’s National Center for Statistical Information (NCSI), the total value of foreign direct investment (FDI) in the country rose by 25.2% in 2023, with the FDI in the oil and gas sector rising by 38.1% during the same period.

Growth in 2024 will be mainly supported by construction of several rail and airport infrastructure projects. Rail projects that are planned and underway include the Hafeet Rail project that connects to the UAE, and a planned metro network for Muscat. In January 2024, Oman’s Civil Aviation Authority announced tenders for several airport construction projects, which include development of Jebal Akhdar, Masirah, and Sohar airports.

Read more: Oman signs new deals for Sultan Haitham City project

Looking further ahead, the Omani construction industry is expected to register an annual average growth of 4.2% from 2025 to 2028, supported by investments as part of the Oman Vision 2040 Plan, under which the government plans to allocate RO20bn ($52bn) to the tourism sector and aims to attract 11 million visitors annually by 2040.

Oman also plans to achieve net zero emissions by 2050, and as part of its efforts, the country plans to produce 30% of its electricity from renewables by 2030 and 11% of Oman’s electricity production from solar and wind by 2025. Forecast period growth in the industry will also be supported by investments in the green hydrogen sector.

Read more: Actis, Fortescue Oman hydrogen project moves to pre-feed