Oman Construction Market Size, Share, Trends, and Growth Forecasts (2026-2031) | Vision 2040 Megaprojects and Green Hydrogen Drive USD 8.46 Billion Opportunity

Dublin, Nov. 10, 2026 (GLOBE NEWSWIRE) -- "Oman Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering

The Oman construction market size is estimated at USD 7.27 billion in 2026, up from USD 7.05 billion in 2025. The market is projected to reach USD 8.46 billion by 2031, expanding at a CAGR of 3.08% during 2026-2031. Growth is supported by government-backed megaprojects, infrastructure development, rising housing demand, green hydrogen investment and the expansion of new economic centers.

Vision 2040 Megaprojects Support Long-Term Construction Demand

Large-scale public investment under Oman Vision 2040 continues to reshape the construction market. Major developments include Duqm's 150 km renewable-energy zone and the first phase of Sultan Haitham City, which covers 5.5 million m and is expected to provide approximately 7,000 homes. These multi-year projects provide contractors, engineering firms and suppliers with improved order visibility and more stable workloads.

Oman's state debt declined to OMR 14.5 billion, equivalent to approximately USD 37.8 billion, creating additional capacity for capital expenditure. Contractors that successfully meet In-Country Value requirements and Omanisation targets are well positioned to secure repeat project awards. Continued public spending also helps protect the Oman construction market from short-term fluctuations in oil revenue.

Green Hydrogen Projects Expand EPC Opportunities

Dhofar has emerged as an important center for Oman's green hydrogen ambitions, with USD 11 billion in signed agreements targeting annual production of 1.38 million tonnes from 4.5 GW of renewable-energy capacity. The development pipeline is generating engineering, procurement and construction demand across solar facilities, electrolysers, ammonia storage infrastructure and export jetties.

Joint funding from sovereign and private investors is helping reduce project credit risk and encouraging equipment manufacturers to establish local operations. Partnerships that support Omanisation and domestic supply-chain development are expected to play a central role in project delivery. Successful execution could strengthen Oman's position as a regional exporter of lower-carbon fuels while creating sustained demand for industrial construction expertise.

Residential and Infrastructure Construction Drive Market Expansion

The residential segment accounted for 32.10% of the Oman construction market in 2025, supported by housing demand in Muscat and expanding coastal communities. Public-housing programs and preferential mortgages for first-time buyers continue to support activity. Limited land availability in established urban areas is also encouraging more compact residential designs.

Infrastructure construction is forecast to grow at a CAGR of 5.18%, making it one of the market's strongest growth areas. Key investments include the USD 15 billion railway program, port expansions at Sohar and hydrogen-related infrastructure in Dhofar. New transport and utility projects are also expected to unlock mixed-use and residential development in secondary cities.

Digital construction practices are gaining importance across both residential and infrastructure projects. BIM submittals will be required for projects over 4 stories beginning in 2026, encouraging contractors to modernize project planning, coordination and delivery. Modular construction methods are also being adopted to address skilled-labor shortages and improve completion times.

New Construction Leads While Renovation Gains Momentum

New construction represented 79.68% of the Oman construction market in 2025, reflecting significant greenfield development across Duqm, Sohar and Salalah. Turnkey procurement models continue to support large contractors, while stronger sustainability requirements are increasing demand for low-carbon cement, recycled aggregates and energy-efficient building systems.

Renovation activity is projected to expand at a CAGR of 4.29% as buildings completed in the early 2000s require modernization. HVAC upgrades in schools and hospitals, updated seismic and fire regulations, and office re-configuration for flexible-working models are supporting retrofit expenditure. Renovation is expected to account for approximately 24.60% of the market by 2031.

Raw-Material Volatility Remains a Key Challenge

Despite domestic cement output of 5.2 million tonnes and gypsum production of 10.7 million tonnes, construction costs remain exposed to fluctuations in global freight, energy and imported material prices. Reliance on imported structural steel and specialty finishes further increases sensitivity to currency movements and supply-chain disruption.

Contractors are increasingly using escalation clauses to share cost risk with clients, while government-led bulk purchasing provides partial protection from price spikes. However, uneven adoption means raw-material volatility remains a leading cause of cost overruns. Other factors influencing the Oman construction market include rapid urbanisation, housing demand, GCC rail and road connectivity programs, and delays in municipal permit approvals.

Overall, Oman's construction outlook remains positive as Vision 2040 investment, green hydrogen development, infrastructure modernization and residential expansion create a diversified project pipeline through 2031.

Key Topics Covered:

1 Introduction

1.1 Study Assumptions

1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

4.1 Market Overview

4.2 Current Economic & Construction Scenario

4.3 Market Drivers

4.3.1 Govt investments in Vision 2040 megaprojects

4.3.2 Rapid urbanisation & housing demand

4.3.3 Tourism-focused infrastructure push

4.3.4 GCC rail/road connectivity programmes

4.3.5 Modular construction to offset labour shortages

4.3.6 Green hydrogen EPC pipeline

4.4 Market Restraints

4.4.1 Volatile raw-material prices

4.4.2 Fiscal tightening & capex cuts

4.4.3 Water-scarcity-related compliance costs

4.4.4 Slow municipal permit approvals

4.5 Value / Supply-Chain Analysis

4.5.1 Overview

4.5.2 Real Estate Developers and Contractors - Key Quantitative and Qualitative Insights

4.5.3 Architectural and Engineering Companies - Key Quantitative and Qualitative Insights

4.5.4 Building Material and Equipment Companies - Key Quantitative and Qualitative Insights

4.6 Government Initiatives & Vision

4.7 Regulatory Landscape

4.8 Technological Outlook

4.9 Industry Attractiveness - Porter's Five Force Analysis

4.9.1 Bargaining Power of Suppliers

4.9.2 Bargaining Power of Consumers

4.9.3 Threat of New Entrants

4.9.4 Threat of Substitutes

4.9.5 Intensity of Competitive Rivalry

4.10 Pricing (Construction Materials) and Construction Cost (Materials, Labour, Equipment) Analysis

4.11 Comparison of Key Industry Metrics of the Oman with Other Countries

4.12 Key Upcoming/Ongoing Projects (with a focus on Mega Projects)

5 Market Size & Growth Forecasts (Value, In USD Billion)

5.1 By Sector

5.1.1 Residential

5.1.1.1 Apartments/Condominiums

5.1.1.2 Villas/Landed Houses

5.1.2 Commercial

5.1.2.1 Office

5.1.2.2 Retail

5.1.2.3 Industrial and Logistics

5.1.2.4 Others

5.1.3 Infrastructure

5.1.3.1 Transportation Infrastructure (Roadways, Railways, Airways, others)

5.1.3.2 Energy & Utilities

5.1.3.3 Others

5.2 By Construction Type

5.2.1 New Construction

5.2.2 Renovation

5.3 By Construction Method

5.3.1 Conventional On-Site

5.3.2 Modern Methods of Construction (Prefabricated, Modular, etc)

5.4 By Investment Source

5.4.1 Public

5.4.2 Private

5.5 By Geography

5.5.1 Muscat

5.5.2 Dhofar

5.5.3 Rest of Oman

6 Competitive Landscape

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)

6.4.1 Galfar Engineering & Contracting SAOG

6.4.2 Bahwan Engineering Group

6.4.3 Bechtel

6.4.4 Larsen & Toubro Oman

6.4.5 Consolidated Contractors Company (CCC)

6.4.6 Petrofac Ltd

6.4.7 Hyundai E&C

6.4.8 Samsung Engineering

6.4.9 Daewoo E&C

6.4.10 VINCI

6.4.11 Bouygues

6.4.12 McDermott

6.4.13 SNC-Lavalin Inc.

6.4.14 United Engineering Services

6.4.15 Al Hassan Engineering Co. SAOG

6.4.16 Khalid Bin Ahmed & Sons LLC

6.4.17 Oman Gulf Company LLC

6.4.18 Ray International Group

6.4.19 Be'ah Environment Services

6.4.20 Shanfari & Partners Co.

7 Market Opportunities & Future Outlook

7.1 White-Space & Unmet-Need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/ew3k98

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