MARKET HIGHLIGHTS  

• Oman’s economy has seen positive changes over the last two years. The country’s public debt has decreased from 65% of GDP in 2020 to circa 40% in 2022.
• The government’s focus is firmly set on building infrastructure, diversifying the economy, investing in green energy, and creating long-term economic opportunities for the Omani population. In line with these objectives, investments in infrastructure developments have taken centre stage.
• The government is also pushing ahead with a crucial passenger and freight rail link connecting the country’s industrial hub in Sohar to the UAE. As part of this initiative, Oman Rail and Etihad Rail established the Oman-Etihad Rail Company in 2022.
• Macroeconomic & Demographic Overview: With significantly improved economic conditions, 2022 saw the expatriate population increase by 20%, and the first five months of 2023 have continued to see good growth, with the expatriate population rising by 5% in comparison to last year. Overall, the Sultanate’s economic position is much healthier than could have realistically been expected in 2020.
• Office Rental Market: Globally, commercial real estate has undergone significant changes over the last year. A slowdown in economic growth across most advanced economies, structural changes in working patterns, and increased focus on environmental and building standards are influencing demand and supply of office space. The supply of new developments remains stable across Muscat, but the pace at which new projects are being introduced has slowed. In terms of demand, the uptake of office space in Muscat remains moderate, with a focus on smaller office spaces. Demand for larger office spaces remains relatively limited.
• Residential Rental Market: A steady growth in the number of expatriates has led to a gradual uplift in demand for rental properties across Muscat during 2023.As a result of strong demand relative to supply, the number of residential units available for rent has dropped.  Communities such as Al Mouj have increasingly become one of the most desirable residential localities in the city due to the quality of the properties, professional property management, a growing range of retail and food & beverage outlets, and a wide offering of leisure facilities.

You can read the full English report HERE

You can read the full Arabic report HERE