Tourism

Kuwait’s UREC to build island tourism complex in Oman

June 12, 2025, 4:05 PM

A dhow in the harbour on Masirah Island, where UREC Oman is building a resort

Kuwaiti developer United Real Estate Company (UREC) is planning to create an island tourism complex in Oman, as the sultanate strives to develop its tourism sector and catch up with its Gulf neighbours.

UREC said in a bourse statement on Wednesday that its subsidiary in the sultanate UREC Oman has signed a contract for the 60,000 sq km project on Masirah Island, Oman’s largest island in the Arabian Sea.

UREC said the complex comprises hotels as well as residential and commercial units and that its annual contract value is RO12,000 ($31,000) with a 50-year term.

UREC is already involved in several tourism development projects in Oman, including the Junoot Eco Resort in Shuwaimia and the Salalah Gardens Mall & Residences.

Oman has launched a drive to develop its tourism sector, in a bid to diversify its state revenues away from hydrocarbons.

Last month, the Ministry of Heritage and Tourism signed three agreements valued at more than RI56 million ($145 million) to develop integrated tourism projects in the wilayats of Khasab, Nakhal and Sur.

The agreements “mark a major step in Oman’s strategy to enhance its tourism sector and diversify the national economy,” the official news agency reported.

Oman also awarded contracts worth more than $600 million to build three tourist resorts and an adventure park in Musandam Peninsula and other parts of the country.

“We need more tourists but we also need more cash-loaded investors to buy properties and live here,” said Saud Al-Hashmi, managing director of Muscat-based Capital Investments.

Oman is aiming to increase the number of tourists to at least 7 million and expand the tourism sector’s contribution to GDP to more than 6 percent by 2040 from less than 2 percent in 2022, according to government data.

Despite the progress, Oman’s tourism sector performance remains lagging behind other Gulf destinations, according to NCSI, which said the number of visitors fell by around 3 percent to 4 million last year.

That compares with a 9 percent increase for Dubai and Saudi Arabia and 25 percent growth in Qatar

“Oman’s comparatively slower tourism sector growth compared to other GCC countries, especially the UAE and Saudi Arabia” is in large part down to its “focus on cultural, heritage and nature-based tourism rather than a multi-sector approach,” said Mansoor Ahmed, an economic research consultant based in Dubai.

Trade between Oman and Kuwait amounted to around $4 billion in the first ten months of 2024, an increase of around 78 percent year on year.

One of the biggest joint ventures between the two Gulf states was the $9 billion OQ8 crude oil refinery, which opened in February last year.

The refinery has been developed by Duqm Refinery and Petrochemical Industries, a joint venture between Oman’s OQ Group and state-run Kuwait Petroleum International.