Oman unveils New City Salalah masterplan

Muscat: The Ministry of Housing and Urban Planning has unveiled the New City Salalah masterplan, a 7.3 sq km waterfront development designed to transform Salalah into a premier year-round coastal destination. As part of Oman Vision 2040, the project is set to enhance the city’s economic and tourism appeal while integrating sustainable urban planning and climate resilience strategies.

Designed by Sasaki Associates, the masterplan will introduce:
12,000 residential units housing up to 60,000 residents
A 6 km-long public beach

3.5 million sq m of green spaces and parks

200,000 sq m of retail and hospitality spaces

100,000 sq m for cultural attractions and amenities

A pedestrianized marina with tourism and retail offerings

Two new hospitals and multimodal transport infrastructure

The first phase, set to break ground later this year, will deliver 5,827 residential units as part of Oman’s RO 33 billion ($85.4 billion) development pipeline. The project is expected to generate developer returns of 10.2%, positioning Salalah as a key investment hub.

New City Salalah incorporates climate resilience measures, including wetland parks, natural revetments, and flood mitigation systems, to combat rising sea levels and extreme weather conditions during the khareef monsoon season.

Dr. Khalfan Al Shueili, Minister of Housing and Urban Planning, emphasized that the project aligns with Oman Vision 2040’s goal of economic diversification and sustainable development.

“Our plans for the evolution of Salalah epitomise Oman Vision 2040, designed to deliver a sustainable and prosperous future for our people. This project demonstrates how integrating tourism and urban development is opening new opportunities for international investors,” he stated.

Salalah, already home to Oman’s largest logistics port, has seen a surge in tourism, with over 1 million visitors in 2024. The Sultanate aims to double tourism’s GDP contribution to 5% by 2030 and 10% by 2040, with a RO 51 billion investment target for the sector.