Oman construction returns to growth in 2026: 3.6 percent, OMR 3.81 billion, and where it comes from

Research and Markets' Oman construction industry report, published in February 2026, projects the market growing 3.6 percent in 2026 to OMR 3.81 billion, from a 2025 base of OMR 3.68 billion. That follows a compound annual decline of 0.8 percent over 2021 to 2025. The report forecasts 2.8 percent compound growth from 2026 to 2030, reaching OMR 4.40 billion, across residential, commercial, industrial, institutional and infrastructure segments.

Other analysts cite government plans for more than 60,000 new homes and close to 6,000 hotel rooms by 2030, the Sultan Haitham City and Al Khuwair Downtown programmes, the Duqm and Sohar industrial build-out and Hafeet Rail as the demand behind the number.

A growing market fills contractors' order books. Full order books mean fewer bidders per tender, higher margins in the prices that do arrive and less appetite for onerous conditions. Owners who tendered into the 2021 to 2025 market got keen prices because contractors were hungry. That is ending.

The response is not to rush. It is to tender well: complete documents, a bill of quantities that removes pricing risk, a realistic programme and a payment regime that a good contractor can live with. In a seller's market the quality of your tender is what attracts the contractors you want.

Skilled labour and specialist subcontractors, MEP in particular, tighten before general contractors do. Preliminaries and programme allowances should reflect it. Cost plans set in 2025 should be re-based before they go to tender in 2026, and contingency should be held rather than spent at design stage.