MUSCAT: The Public Authority for Special Economic Zones and Free Zones (OPAZ) has unveiled a master plan for the Al Duqm waterfront that aims to transform the area into one of Oman’s largest tourism and mixed-use developments, as authorities seek to attract new investment and accelerate economic diversification.
The plan was presented to developers, investors, banks and private-sector representatives during a meeting hosted by OPAZ as part of efforts to promote investment opportunities within the Duqm Special Economic Zone.
Covering an area of 31 square kilometres and stretching along a 15-kilometre coastline, the development is designed to combine tourism, hospitality, residential, commercial and recreational activities in a single integrated destination.
Authorities said the master plan leverages Al Duqm’s natural assets, including its beaches, rock formations and coastal landscapes, while incorporating modern urban planning concepts focused on sustainable tourism and quality of life.
Under the proposed development roadmap, the waterfront is expected to feature more than 2,600 hotel units by 2040, alongside over 3,700 residential units and more than 63,000 square metres of retail space. The project will also include cultural, entertainment and leisure facilities covering more than one million square metres.
Officials estimate the destination could attract around 370,000 visitors annually once key phases of the project are completed.
The development forms part of broader efforts to diversify Al Duqm’s economic base beyond heavy industry, logistics and energy. While the economic zone has attracted major investments in petrochemicals, manufacturing, logistics and green energy projects, authorities are increasingly focusing on tourism as a complementary growth sector.
The waterfront development benefits from Al Duqm’s strategic location between Muscat and Salalah and from infrastructure investments already completed in the economic zone, including Duqm Port, Duqm International Airport and an expanding road network linking the region with the rest of the country.
Investment incentives available within the special economic zone are expected to support investor interest. These include tax exemptions of up to 30 years, 100 per cent foreign ownership and land usufruct rights of up to 99 years.
The tourism sector in Al Duqm has already attracted significant investment. OPAZ said committed investments in tourism projects within the economic zone exceeded RO 853 million by the end of 2025.
Existing and planned tourism developments include 21 hotels, 10 hotel apartment projects and integrated tourism complexes incorporating hotels, villas and serviced residences.
According to data from the Special Economic Zone Authority at Duqm (SEZAD), 16 tourism projects had been completed by the end of last year, while 11 projects were under construction and another five remained in the planning stage.
Officials said the new waterfront strategy represents a shift from building core infrastructure towards creating an integrated destination capable of attracting tourists, residents and investors.
The authority believes the project will help strengthen the contribution of tourism to Oman’s economy while creating new opportunities in hospitality, retail, entertainment and real estate development.
The initiative also aligns with the objectives of Oman Vision 2040, which seeks to expand non-oil sectors, attract private investment and create sustainable economic growth.
With large-scale infrastructure already in place and tourism investments gaining momentum, authorities see the waterfront development as a key component of Al Duqm’s next phase of growth and a catalyst for attracting long-term investment to one of Oman’s most strategically located economic zones.
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