Abu Dhabi sets out Dh764m investment plan to boost tourism in Oman's Salalah

Major project will include new luxury resort in popular holiday destination

Wadi Darbat near Salalah, southern Oman, is a a popular tourist spot, particularly during the Khareef monsoon season. AFP

Abu Dhabi has set out a Dh764.5 million ($208 million) investment strategy to boost tourism in Salalah, Oman, with plans for a sprawling luxury resort and a marina and beachfront revamp that will help generate hundreds of jobs.

The major development – set across a 2.5 million square metre area in Jinawf – aims to bolster Oman's rising status as a tourism hub in the region and globally.

Abu Dhabi Fund for Development took part in a ground-breaking ceremony for the Integrated Tourism complex project in Salalah, southern Oman, on Monday, along with Omani authorities.

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The first phase, covering 604,000 square metres, will feature a high-end resort with more than 120 rooms and chalets, as well as the development of the marina and the regeneration of coastal and beachfront areas.

The significant funding injection from ADFD will also support essential infrastructure works, including roads and public utilities.

“This project is a testament to the deep-rooted strategic ties between the UAE and the Sultanate of Oman,” said Mohammed Saif Al Suwaidi, director general of ADFD.

“It reaffirms ADFD’s continuing commitment to supporting the development strategies of partner nations through investments that enable economic growth and generate a positive, sustainable impact for local communities.

“The project also reflects our vision of economic diversification and our proactive approach to advancing sustainable development through meaningful regional partnerships and shared prosperity.”

Azzan Al Busaidi, Undersecretary of the Ministry of Heritage and Tourism in Oman, said the scheme was expected to create hundreds of job opportunities while stimulating growth across key economic sectors.

The project is central to Oman Vision 2040, which positions tourism as a key driver of economic diversification.

Salalah is already a popular tourist destination, particularly for travellers within the Gulf.

Holidaymakers visit the city in large numbers during the Khareef season – typically from June to September – when monsoon rains turn the desert landscape into a vibrant sea of lush greenery, leading to cooler temperatures.

Last year there were 15 million domestic tourists and four million internationally, exceeding previous record levels of 2019.

The UAE, India, Germany and other western European countries were the main tourist source markets for the sultanate.

Last year, the UAE and Oman established investment partnerships worth Dh129 billion across several sectors including renewable energy, railway, green metals and technology.

These collaborations were announced following the state visit of Oman's Sultan Haitham to the UAE in April last year.

The two countries will set up an industrial and energy mega project valued at Dh117 billion, with solar and wind projects, and green metal production units.