Infrastructure Oman borrows $630m to construct flood defences By Saleh Al-Shaibany May 22, 2025, 3:13 PM Arab World Press via Reuters Connect Flooded streets in Muscat after heavy rains in 2024. Insurance companies in Oman have paid out $65m over the last two years Flood gates and dams to be built $1.5bn spent over last decade 17 killed by floods last year Oman is to borrow $630 million from the Saudi Arabia-based Islamic Development Bank (IDB) to build flood protection gates and dams across the country. “The loan will help the protection from floods causing damage to many parts of Oman’s low lying areas, especially in towns and small villages,” Al Habsi was quoted as saying by Oman Television. Oman has spent about $1.5 billion in the last ten years building dams and other flood protection measures, Al Habsi said. The loan was signed by Oman’s Minister of Finance Sultan al Habsi and IDB chairman Dr Mohammed al Jasser during a meeting of the bank’s board of governors in Algiers. ‘Protection gap’ is growing in the Gulf as insurance costs rise Gulf’s record floods highlight ‘balance between risk and investment’ Dubai floods third most costly disaster of 2024, says insurer According to the Ministry of Commerce and Industry, insurance companies paid out about $65 million in the last two years in compensation after heavy rains devastated businesses across the country. Last year, 17 people died in flash floods in Oman triggered by heavy rains. In April, neighbouring UAE and Oman were hit by the heaviest rains on record, causing billions of dollars of damage. Oman, which lies outside the Arabian Gulf on the Arabian Sea and Indian Ocean, is prone to regular torrential rains, strong winds and heavy seas. In 2007, Cyclone Gonu killed 50 people in Oman and caused around $4.2 billion in damage. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
