MUSCAT, FEB 24
A part of the first phase of Sultan Haitham City is expected to be opened this year, with infrastructure and service works advancing and around 1,700 housing units already sold, according to Dr Khalfan bin Said al Shueili, Minister of Housing and Urban Planning.
Addressing the maiden Ramadhan lecture hosted by Oman Chamber of Commerce and Industry (OCCI) on Monday, February 23, 2026, he said the Sultan Haitham City project targets about 20,000 housing units in total, at a pace of roughly 1,000 units annually, adding that infrastructure investment in the Phases 1 and 2 stands at around RO 300 million.
He said 70% of tenders in Phases 1 and 2 are under execution, with roads and services being rolled out progressively, and expressed hope that part of the first phase would open during the current year.
The minister said demand for the city was growing, noting that buyers from more than 35 nationalities had purchased units in Sultan Haitham City, while eight developers are participating and competing for additional opportunities.
He said prices are around RO 900 per square metre for investors, compared with about RO 400 per square metre for Omani families, adding that state support for Omani households exceeds 50%. He urged the public to take advantage of the opportunities available in the project.
On the wider market, Dr Al Shueili said the future shape of Oman’s real estate sector had become clearer after a five-year period of reforms and implementation, adding that the Sultanate of Oman had built a strong legislative and regulatory base compared with regional markets.
He said the Real Estate Development Law marked an important step in organising the sector and revealed that a new regulation is expected in the coming months to govern additional aspects of the market while safeguarding the rights of both consumers and industry participants.
Dr Al Shueili said the next phase would focus on regulation, programmes and digital systems to strengthen efficiency and place the sector on a firmer footing.
On property finance, the minister said financing remains one of the sector’s challenges, but noted “good alignment” from the banking sector led by the Central Bank of Oman. From the ministry’s perspective, developers do not face a major challenge in securing finance, particularly with the off-plan sales policy in place, he said.
However, he noted that the challenge is more concentrated among some eligible Omani beneficiaries in certain programmes, with financing issues affecting around 30% in some cases.
The ministry is working with the Oman Housing Bank to address those issues, he added, while also pursuing a tax exemption for first homes, a file currently under discussion among the relevant authorities.
Dr Al Shueili also said the ministry offers programmes that enable citizens to act as developers of their own homes, with usufruct plot sizes ranging from 500 sq metres to 4,000 sq metres.
He said the number of contracts had risen from more than 1,000 in previous years to around 13,000 currently, with annual growth of no less than 10%. The success rate among land beneficiaries has reached around 70%, he added, while the withdrawal of undeveloped land plots continues.
The minister said the “Sorouh” programme, launched in 2015, had overcome early challenges and now includes more than 20 projects led by Omani institutions across more than 12 locations.
The ministry is targeting 60 projects in the coming years under integrated residential complexes, with each project ranging from 150 to 1,000 housing units, he added.
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