Sultani Decree 6 of 2021 on the Issuance of the Constitution of the State states at Article 2 that Islam is the religion of Oman, and that Islamic law (Shari’ah) is the basis of legislation in Oman.  For civil and commercial law purposes however, Oman, as with all other Arab countries, can be considered, in the main, as a civil law jurisdiction.

The Civil Transactions Law, also referred to as the Civil Code, promulgated by Sultani Decree 29 of 2013, which came into force on 6 August 2013, codified existing principles of law, including principles derived from Islamic law and civil jurisprudence.

Article 1 of the Civil Code provides that: “Should the present law be void of relevant provision, the court shall rule as per Islamic jurisprudence provisions, if there is no relevant provision, it shall rule as per the general principles of the Islamic Sharia, and if the latter is void of such provision, the court shall rule according to custom.”

Articles 66 to 173 of the Civil Code contain the general principles under Omani law in relation to the formation, interpretation, performance and termination/expiry of contracts.  Articles 176 to 200 contain the general principles under Omani law in relation to liability for acts causing harm (similar, but not identical, to the common law concept of ‘tort’).  Articles 220 to 354 contain the principles under Omani law in relation to the effects of obligations.

At Articles 626 to 650, the Civil Code contains a specific set of provisions dealing specifically with Muquwala contracts (independent contracts for making something or performing work in return for compensation, which include construction contracts). These include a number of default provisions, which will apply in the absence of the parties having agreed their own terms (for example, in relation to the time to complete), as well as mandatory provisions applicable to all construction contracts, such as the decennial liability provisions of the contractor, architect and engineer at Articles 634 to 637 of the Civil Code.

Decennial liability is also a mandatory provision of Sultani Decree 27 of 2016 issuing the Law Regulating the Work of Engineering Consultancy Offices; Article 16 which provides that the contractor and engineer/architect will be liable for unforeseen ground conditions, where the engineer/architect was responsible for the design and supervision of the works.

Sultani Decree 55 of 1990 promulgating the Commercial Law (usually referred to as the “Commercial Code”) also contains provisions applicable to construction and engineering projects. Article 2 of the Commercial Code provides, that: “In defining the rules applied on merchants and commercial activities, the legally recognized contracts shall be taken into account. The said contracts shall become effective upon mere congruence of offer and acceptance unless the articles of this law stipulate otherwise.”

As with the Civil Code, the Commercial Code also prescribes limitation periods that may apply to construction contracts.

(a) health and safety;

In 2008 the Ministry of Manpower issued Ministerial Decision No. 286 of 2008 (MD 286/2008) introducing the Regulation of Occupational Safety and Health for Establishments Governed by the Labour Law.  The Regulation provided a comprehensive regulatory framework with the aim of improving health and safety standards in the workplace and protecting workers from various occupational hazards.

The Regulation consists of 43 Articles covering a wide range of issues including lighting, ventilation, heat stress, noise, uniforms, personal protection equipment, first aid, and occupational diseases.

In 2021, MD 286/2008 was amended and updated by Ministerial Decision No. 4 of 2021.

(b) environmental issues;

Sultani Decree No. 114/2001 On the Issuance of the Law of Environment Protection and Pollution Control (Environmental Law) is the principal legal framework for environmental protection in the Sultanate of Oman which sets out the environmental control and pollution prevention requirements, including penalties for violations.

Article 9 of the Environmental Law states that no process or activity that could directly or indirectly cause environmental pollution is to be carried out without an environmental permit granted by the Environmental Authority ,

Ministerial Decision No. 107 of 2023 was issued on August 8, 2023, regulating the issuance of environmental permits in Oman, streamlining the process of obtaining environmental permits in Oman by enhancing procedures and reducing permit fees.  It also imposes new obligations on the project owner, such as using the best environmental practices and globally available technology to treat, recycle, recover, or reduce the concentration and quantity of pollutants and emissions, environmental residues, unpleasant odours, or sources of nuisance to the maximum extent possible.

(c) planning;

Planning laws are issued at Ministerial and at the Municipality level.

On 27 November 2023, the Ministry of Housing and Urban Development issued the Regulation of Land Planning Controls 220 of 2023 (Regulations) which replaced the earlier 2013 regulations.

The Regulations were issued to reflect the Oman National Spatial Strategy (the general framework for directing urban growth in accordance with Oman Vision 2040) and based on the Land Law (Sultani Decree No. 5 of 1980).

The regulations set out the parameters for the control of residential and commercial development, including the creation, subdivision, partitioning, reconfiguration and consolidation of land plots.

A number of changes to the 2103 regulations include:

• the introduction of a new ground for changing land use to establish ‘value-added projects’ within urban zones;
• the introduction of a new land reconfiguration process allowing individual to change the configuration of their land plots (albeit in very narrow circumstances);
• abolishing land extension rights (which previously allowed individuals to request an extension to the size of a land plots in certain circumstances);
• introducing prohibitions for land use changes, including the prohibition of the change of the use of an agricultural land to a non-agricultural use (unless the land is situated within an urban zone); and
• granting the Ministry powers to reserve parts of land plots—whose use has been reconfigured—for the purpose of public services without compensating the owner of the land.

Concerning construction, the Regulations have also introduced new provisions on construction planning controls, setting out the requirements for both residential and commercial developments and which include rules on ‘buffer zones’ and ‘harmonious visual alignment’ requirements with adjacent buildings.

(d) employment;

The new Labour Law promulgated by Sultani Decree 53 of 2023 introduced new provisions, the most significant being in relation to the termination of employment contracts, including:

• the termination of expatriate employment contracts to comply with Omanisation requirements;
• the termination of employees for poor performance (until 2023 this was not a valid reason for termination);
• the introduction of redundancy as a valid ground for termination of an employment contract; and
• termination for economic reasons (being the accumulation of losses in two consecutive years),

aimed at ensuring an equitable process for both employer and employee.

(e) anti-corruption and bribery.

Relevant Laws and Regulations to combat money laundering and terrorism financing are fairly standardised with international norms and comprise the following:

• Sultani Decree 27 of 2014 on the Ratification of the Arab Convention on anti-Money Laundering and Terrorism Financing;
• Sultani Decree 30 of 2016 issuing the Law on Anti-money Laundering and Combating Financing Terrorism (a revision of the earlier law, Sultani Decree 79 of 2010);
• Oman Capital Market Authority Decision No. E/4/2020 on Instructions to the Companies Operating in the Field of Securities on the Implementation of the Provisions of the Law on Combating Money Laundering and Terrorism Financing;
• Oman Ministerial Decision No. 25/2021-1 on the Issuance of the Regulation of Control Over Lawyers, Law Firms and Civil Law Firms on Combating Money Laundering and Terrorism Financing; and
• Oman Ministerial Decision No. 113/2021 On the Issuance of a Regulation for the Control of Brokerage Offices and Companies in the Real Estate Fields and Real Estate Developers in the Matter of Combating Money Laundering and Terrorist Financing.

The consents, permits and licenses for a construction process are project specific, but usually the following would be required from a regulatory perspective for both temporary construction site and permanent project facilities:

Before:

• Site/plant approval from the Ministry of Housing and Urban Planning, the Environmental Authority, the Authority for Public Services Regulation and local municipalities;
• Preliminary environmental permits from the Environmental Authority;
• No Objection Certificates for construction of building/plant required to be obtained from the local municipality and the Environmental Authority;
• Excavation permits from the local municipality, Environmental Authority, Ministry of Housing and Urban Planning; and the Royal Oman Police (ROP)/Civil Defence;
• Approval for temporary facilities (temporary construction site) from the local municipality and the Environmental Authority;
• ROP approval of site drawings; and
• Electrical line site clearance from Ministry of Housing and Urban Planning and the regional electricity distribution company.

During:

• Permits for the transportation of heavy plant and equipment and for the transportation of hazardous waste from ROP;
• Permission for the installation of sign boards from the local municipality; and
• Waste disposal consents from the local municipality and the Environmental Authority.

On Completion:

• Municipality permits, such as certificate of completion;
• Electricity and water supply connection approval from the relevant distribution company and Authority for Public Services Regulation; and
• A fire safety certificate from the Director-General of Civil Defence.

In case of non-compliance with the permit terms and conditions, the permit holder may be fined, and/or the permitted activity suspended, until the conditions are satisfied.

The parties responsible for the obtaining of said permits and approvals will be as per the contractual terms agreed.

Chapter Three of the Civil Code (Articles 176 to 200) recognises the concept of tortious liability based violations.  However, in principle, in the presence of a contract, a party cannot choose between contractual and tortious claims.  When the cause of action is a party’s failure to perform its contractual obligation (i.e. contractual fault), the plaintiff/claimant may only bring a claim based on contractual liability, unless it is exceptionally established that the breach is due to a criminal act, fraud or gross fault.

As a matter of Omani procedural law, combining contractual and tortious claims (two different sources of obligations regarding the same breach or claim) is not permissible. In other words, a creditor may not file two simultaneous actions, one that is a contract-based claim and the other that is a tort-based claim, both being brought on the same set of facts.

However a creditor may pursue both contractual and tortious claims, when:

• the source of the obligation is simultaneously contractual and statutory (i.e. the obligation is prescribed by the law and contemplated by the contract);
• the breach of such obligation (i.e. the fault) is characterised as a criminal offense, a fraud or a gross fault; or
• the basis of the claim are two (or more) separate, distinct acts (i.e. one act being a pre-contractual (tort) claim, the other a contractual breach).

The underlying rationale of these limited exceptions is that, in the foregoing scenarios, the breaching party has violated the law by committing an act, which it should have refrained from irrespective of whether it is a contracting party or not and, where no claims are combined, no issues of ‘double claiming’ or ‘hybrid claims’ arise.

The Government, government entities, real estate developers and project companies (utilities, infrastructure) typically act as employer in construction and engineering projects in Oman.

Contractors are local construction contractors and joint venture entities or arrangements (local construction/engineering contractors with international construction/engineering contractors).

Consultants are typically engaged to provide a variety of services including:

• architecture and engineering;
• project supervision; and
• project management.

Large-scale projects are often procured on either:

• a design-and-build basis, with the contractor being responsible for the design of some, or all, of the works to meet requirements specified by the employer; or
• on an EPC/turnkey basis, where the contractor is responsible for the engineering, procurement and construction of a ready-to-use asset capable of achieving specified outputs and performance criteria (such as a power and/or desalination plant).

For smaller, more common projects, the usual procurement and contractual arrangements (both local and international) is where the employer engages its own design, supervision and project management consultants and separately procures a contractor to construct the project according to that design.

Contracts awarded by public authorities are required to use the Oman Standard Form Documents (modelled on early iterations of the FIDIC contracts) with no amendments, and include:

• Sultanate of Oman Standard Documents for Building and Civil Engineering Works (3rd edition, 1981, 4th edition, 1999 (both widely used) and, more recently, the 2019 edition);
• Sultanate of Oman Standard Documents for Electrical and Mechanical Works (1st edition 1987); and
• Sultanate of Oman Standard Form Agreement and Condition of Engagement for Consultancy Services for Building and Civil Engineering Works (1st edition 1987).

Private parties also use the standard forms of contract and can negotiate terms and amendments subject to compliance with the applicable laws of Oman.

Private parties also use other standard forms of contract, with the FIDIC suite of contracts widely used across the Sultanate.  They are usually amended in favour of the employer with extensive re-allocation of risks. The role of the engineer under the FIDIC Red Book is also usually limited, resulting in the engineer being required to seek to obtain the employer approval for many of the important decisions that the engineer is required to make under the contract.

Contracts based on the FIDIC Yellow Book are also used for design-and-build projects, FIDIC Silver Book for EPC contracts, and FIDIC blue for dredging and marine contracts.

Bespoke contracts are used for substantial projects in Oman, particularly in relation to EPC contract for utility, industrial and infrastructure projects, (usually involving project finance).  A prime example of their use in Oman is the sole water and electricity buyer, Oman Power and Water Procurement Company’s developed EPC contracts for International Power Projects and International Water Projects across the Sultanate.

For civil engineering and electrical and mechanical projects developed by the government, the use of the Oman standard forms of contracts (see 8 above) are required to be used, unamended.

For government projects, consultants are typically engaged under the Oman standard forms for consultancy services which is based on the FIDIC White book.

Private appointments also rely on the standard forms of contract or can use the FIDIC White book or other conventional professional services contracts.

Subcontracting is permitted, except where prohibited or constrained by the terms of the main contract.

Local construction contractors and local specialist contractors typically act in the role of subcontractor in construction projects in Oman.

The rights and obligations of the subcontractor under a construction contract in Oman are as per the Civil Code and the contractual terms agreed between the parties (subject to not being contrary to the law, public policy and Sharia). These can include being passed through the contractor to the employer (on a back-to-back arrangement). The relationship between employer-contractor-subcontractor is usually adversarial and black-letter law (contractual terms) led.

“Nominated subcontractors” are common in Oman , where the employer selects the subcontractor and requires the main contractor to appoint that particular subcontractor for the specified work.

In Oman, financing is usually sourced through local lenders, international institutional lenders and export credit agencies or a combination of them.  Islamic finance structures are also available which provide an alternative to conventional financing

The rights and obligations of the financier under a construction contract in Oman are as per the contractual terms agreed between the parties. The financier’s rights are usually treated on a priority basis , with those rights protected through the use of direct agreements.

Recently, the Oman government has reinvigorated its Public Private Partnership (PPP) framework with legislation and supervision to be undertaken  by the Ministry of finance in order to finance the transportation and infrastructure requirements of the country, including schools, hospitals and health care centres.

Aimed at larger projects, PPP financing is underwritten, in whole or in part, by international export credit agencies and a combination of local, regional and international banks. Based on long-term concession agreements with the contracting authority and a special purpose company established to undertake the project.

Although the new PPP regime is relative new to Oman, the same structure and process is how the country’s water and power sector has developed over the last 30 years or so.

Where the contracting entity is a subsidiary or special purpose vehicle, the employer will often require a parent company guarantee from the ultimate parent entity (or entities) to secure the performance of the contractor’s obligations and protect the employer against the consequences of insolvency of the subsidiary company.

In addition, the contractor will be required to provide an ‘on-demand’, unconditional performance guarantee, or bond, until the taking over of the project by the employer at the end of the contract defects liability period (DLP) agreed.

Advance payment guarantees, or bonds, are always required when an advance payment to fund the commencement of the project is provided to the contractor by the employer.  The advance payment will subsequently be reduced by deductions through the monthly certified payments, with the bond being correspondingly reduced in value.

Article 639 of the Civil Code provides a general presumption that payment is due upon completion of the relevant works:

“The employer shall be obliged to pay the remuneration immediately upon the receipt of the work that is the subject-matter of the contract unless otherwise provided by agreement or applicable custom.”

Such provision is rarely referred to because the parties are free to, and usually, agree specific payment terms in their contracts and which will generally be enforced in accordance with their terms.

Pay when paid provisions in contracts, particularly in sub-contract agreements, are very common as the main contractors seek to pass certification and payment risks down to them.

This is seen as an important protection for main contractors, particularly where they are being required to subcontract to nominated subcontractors that have been selected by the employer and with whom they may not be familiar with as they have never worked with them previously.

Subject to their terms, the courts of Oman will generally up-hold such provisions.

Retention requirements are commonplace in Oman law governed construction contracts.  Generally, 10% of the contract price, retained from each interim payment, is usually stipulated by the employer, of which 5% is released back to the contractor once taking over of the works is complete and the other 5% after the expiration of the defects liability period.

Liquidated damages provisions are commonly adopted in construction contracts performed in Oman, mainly relied upon in delay and performance failures.

Article 267(1) provides:

“If the subject-matter of the obligation is a sum of money, the contracting parties may determine the amount of compensation by stipulation of the same in the contract in advance or by a subsequent agreement.”

However, a court (or arbitral tribunal) is allowed, upon the application of a party, to vary the liquidated damages provision so that the compensation awarded is equal to the harm actually suffered. This is a mandatory provision and therefore any attempt to contract out of it will be void.

Article 267(1) provides:

“In all cases, the court may, at the request of both parties, amend said agreement so as the compensation becomes equal to the damage; any agreement to the contrary shall be void.”

Clauses that seek to limit or exclude liability are generally enforceable under Oman law, subject to various exceptions including:

• Article 183 of the Civil Code: “Any exemption from liability for the wrongful act shall be void.”
• Liability for civil fraud or gross fault cannot be excluded or limited.
• Any attempt to exclude or limit liability that contravenes a mandatory provision of law will be void. For example, it is not possible to limit or exclude liability in respect of the decennial liability provided for under Article 636 of the Civil Code and Article 16 of Sultani Decree 27 of 2016 issuing the Law Regulating the Work of Engineering Consultancy Offices.

A contract of Muqawala shall terminate upon the completion of the work agreed or by cancelling of the contract by consent or court order (Article 646 of the Civil Code). In such circumstances, the contractor, as a matter of law, shall be compensated to the value of the works performed. Contractual terms may provide additional remuneration. In any event, any party who incurs losses as a result of the termination may be entitled to claim damages.

Article 167 of the Civil Code provides that:

“The contracting parties may not rescind or modify a contract that is valid and binding unless by mutual agreement or legal action.”

It is considered that a party may terminate for convenience by way of ‘mutual agreement’ set out in the contract terms and which includes the (positive) effect on the other party, i.e. compensation payable by the party terminating for convenience.

Whereas, Article 170 provides, as follows:

“It may be agreed that a contract be automatically revoked without the need of a court order in case of any default in the performance of any obligations arising therefrom. Said agreement shall not exempt from a notice thereof unless the contracting parties have expressly agreed on the exemption therefrom.”

Article 172 of the Civil Code provides the effect of a continuing Force Majeure event to the effect that:

“…if force majeure occurs rendering the performance of the obligation impossible to complete, the corresponding obligation shall be extinguished, and the contract shall automatically be revoked.”

For funders such security rights are similar to the normal positions in other jurisdictions relating to such rights. Typically, security can be provided and perfected:

• over assets of the project company, including tangible assets and contractual rights;
• by way of a legal pledge over the land or site upon which the project is based;
• by way of direct agreements with the funders; and
• through the use of collateral warranties with funders.

A purchaser’s rights will be in accordance with the contractual terms agreed with the developer and under law.

A renter’s rights will be in accordance with the contractual terms agreed with the landlord and under law.

It is common for construction contracts performed in Oman to contain provisions specifying that entitlements to, for example, extensions of time and/or additional payment will be lost unless intimated within a specified period of time.

The existence of a condition precedent leads to the existence of an obligation.  Pursuant to Article 155 of the Civil Code: “Each contracting party must fulfil its obligations as specified by the contract.” Accordingly, agreements that contain a condition precedent clause to, for example, the obtaining of payment or additional time will generally be upheld if such a condition, and the effect of not adhering to it, is clear.

However, there are provisions of the Civil Code that may support attempts by a claimant to circumvent the harshness of a notice provision that is subject to a time bar. They include the following:

• Article 59 of the Civil Code: “Whoever abuses his right shall be held liable for compensation; the abuse of right shall be in the following instances: …(3) Should the benefit be not proportionate to the damage sustained by third parties…” in circumstances where a day late, for example, may be disproportionate to the effect of being prevented to pursue a claim.
• Article 156 of the Civil Code: it would be inconsistent with the requirement of good faith for, say, an employer to seek to rely on a time bar provision in circumstances where the claim relates to the employer’s own breach of contract, or even where the employer is already fully aware of the circumstances giving rise to the claim, and of the contractor’s intention to pursue it.
• Article 202(1) of the Civil Code: a contractor may not be precluded from claiming compensation for work properly carried out in accordance with the contract, and which provides a benefit to the employer, simply because the related claim may have been submitted late.

Omani law does not specify which insurance policies are required to be obtained for the performance of a construction contract. However, some of the following policies are required under the Oman Standard Forms of Contract whilst others are usually included under common industry practice:

• third-party liability insurance;
• workman’s compensation insurance;
• vehicle insurance (third party);
• professional liability insurance; and
• contractor all risks (CAR).

Contractors and engineers should also consider obtaining decennial liability insurance to protect against liability under Article 636 of the Civil Code and Article 16 of Sultani Decree 27 of 2016 issuing the Law Regulating the Work of Engineering Consultancy Offices.

Any disputes being referred for determination will proceed according to the dispute resolution terms of the particular construction contract.

Pursuant to the dispute resolution terms of the Omani Standard Forms of Contract, post engineer determination disputes are referred to ad hoc arbitration in accordance with Sultani Decree 47 of 1997, as amended, issuing the Law of Arbitration in Civil and Commercial Disputes.

Construction disputes, as is the case with all other disputes, can be determined by the courts of Oman where the contractual provisions provide, are silent, or where the court assumes jurisdiction.

Dispute Arbitration Boards, expert determinations and mediations are still relatively uncommon but are starting to gain more favour in Oman.  This is, in part, to the Oman commercial Arbitration Centre advocating and providing ADR courses so lawyers are becoming aware of these alternative methods and are willing to try them.

Most contracts provide for senior management meetings and an attempt at negotiation before a formal dispute resolution procedure commences. Although this may result in a positive outcome in some instances, the courts will uphold a procedural obligation under the contract just as it would for a substantive one.  Accordingly,  recalcitrant parties may use such a pre-dispute process to delay and obfuscate the progress of the timely resolution if the dispute.

Oman is a signatory to the New York Convention on the Enforcement of Arbitral Awards (1958).  Its courts are considered to be “arbitration friendly.”

Sultani Decree 47 of 1997 On the Promulgation of the Law of Arbitration in Civil and Commercial Disputes (Arbitration Law), as amended, requires any application seeking to nullify an award to be brought within 90 days from notification of the award.  Once the 90 days has expired, the creditor is entitled to proceed with enforcement in accordance with the provisions of Sultani Decree No. 29/2002 Promulgating the Law of Civil and Commercial Procedure for foreign awards and the Arbitration Law for domestic ones.

The enforcement process is commenced in which the arbitration award is recognised as an Oman court judgment and the enforcement of which proceeds as such.

There are a significant number of differing limitation periods in relation to commencing claims in Oman.

However, generally speaking, for commercial contracts, the limitation period in which to bring a claim is ten years.  For tort based claims, it is considered to be 15 years (but, again, different limits apply to different types of tort based claim).

Multi-party disputes are not that common in Oman, compared to, say, Dubai.  That said, there would seem to be a general rise in applications before both courts and tribunals of additional parties being joined to proceedings as the original defendants to those claims seek to pass on liability, either wholly or in part, to others involved in the same supply chain.  This, it is considered, is as a result of potentially credible claims arising against numerous participants involved in the same supply chain issues which have arisen over recent years.

Net contribution clauses are not common in the context of construction contracts in the Oman but, in principle, they would likely be held valid if in accordance with statutory requirements considering the limiting of liability.

The apportionment of liability will be assessed on the basis of the breach or wrongdoing of each individual participant and the direct damage occasioned by it.

Although significant signs of recovery are evident post the pandemic years, supply chain issues and the ‘cost of living’ crisis has stalled the recovery of confidence returning to the sector.

Nevertheless, more projects previously stalled or mothballed continue to come back ‘on-line’ and new projects have either commenced or in the process of being launched.

In January 2024, the government announced that OMR 900 million had been allocated for the prioritising of projects having social dimensions like education, health, culture, sports and youth, housing and urban planning, transport and agriculture, fisheries and water resources.  This is in addition to the USD 533.67 billion worth of projects purportedly underway in Oman , including the recent OMR 521 million Abu-Dhabi – Sohar railway link project awarded by Oman-Etihad Rail LLC.

Accordingly, optimism and the illusive confidence is returning.

However, in addition to high price volatility, the challenges that the construction industry in Oman is facing concerns the depleted supply chain in circumstances where a significant number of operators did not survive the pandemic lock down measures introduced in Oman, the region and the world.  At present, there is a shortage of experienced operators in-country which, when sourcing substitute suppliers from overseas, compounds the issues of delay and lack of efficiency currently being faced in supplying the market.

Liquidity and solvency issues will continue to affect the supply chain but, in particular, at the subcontractor and supplier level. Similarly, banks have become more cautious about issuing on-demand performance bonds which has placed constraints on the ability of some construction companies to actually bid for projects.

Oil and gas, power and water, and transportation infrastructure projects continue to attract a significant share of government investment. Some of the key projects in these sectors include:

• as recently announced, the continued expansion of the Etihad Rail network, with the joint venture project between Ethar Rail and Oman Rail to extend the UAE National Rail Network from Abu-Dhabi, UAE to Sohar in Oman;
• the Salalah – Thamrait Truck Road project, a competitive tender for which is already underway in cooperation with the Ministry of Transport, Communications and Information Technology. Five international companies have been shortlisted to bid for a concession to design, construct, finance, operate and maintain the proposed 67km long blacktop connecting Thamrait with the Port of Salalah in Dhofar Governorate. The first-of-its-kind carriageway, designed to cater to heavy trucks, is envisaged to operate on a toll system;
• road project linking projects from Al Maabela in Muscat Governorate with Thamid near Bidbid in Al Dakhiliyah Governorate.

The real estate sector is also attracting a great deal of private foreign investment with projects such as Sultan Haitham City commencing this year, the continuing development of Yiti Sustainable City, and the plans for the Dar Global Trump Golf Resort.

Developers and contractors in Oman are increasingly looking to increase efficiency in the ways in which they deliver projects, from planning to completion.  Building Information Modelling (BIM), modular construction and 3D-printed materials, along with an increase in the use of data capture technologies for monitoring and managing the delivery of projects, are  already being used in the Sultanate with positive performance related outcomes which is set to continue.

Projects will continue to face continued challenges arising from escalation, supply chain disruption, liquidity issues and constraints in accessing sufficient plant and manpower. Added to this is the competition being witnessed from the GCC and, in particular, KSA with its fast-track transformative approach compounding the continuing supply chain issues.