New cities in Oman

Oman is developing planned communities and economic cities, including Sultan Haitham City, Thuraya City and Khazaen Economic City.

Key facts

Status
Several cities at different stages

Overview

Under Oman Vision 2040, the Ministry of Housing and Urban Planning is advancing new planned cities and districts. They differ in purpose: some are mainly residential, while others are economic and logistics hubs.

Sultan Haitham City is the flagship project near Muscat. Phase 1 is planned for 2024 to 2030, covering more than 5 million m² with over 7,000 homes for more than 39,000 residents. Oman Observer reported in May 2026 that awarded construction and service packages had reached RO 280 million, and that residents were expected to begin moving into Al Wafa District in October 2026.

Thuraya City is a planned mixed-use district in the Muscat area. Its Phase 1 is described as about 2,600 homes across eight neighbourhoods. Formal development was launched in November 2024.

Khazaen Economic City is described as an economic city rather than a purely residential new town. It appeared alongside the other two in an October 2026 package of urban-development agreements, though detailed figures were not found.

At the October 2026 housing exhibition, 20 agreements worth more than RO 1 billion were announced across these and other projects. These are announced values, not completed construction.

What it means for buyers

New planned cities offer buyers the chance to consider master-planned communities with services built in, usually delivered in phases over several years.

Phasing means amenities, roads and neighbouring neighbourhoods may not all be ready at handover. Handover dates should be confirmed for each specific project.

Published figures describe planned, contracted or sold homes, not necessarily completed homes. Investors should compare units, payment terms and delivery plans, and should not assume price growth or returns.

The Off-Plan Oman team can share the latest confirmed information on each city on WhatsApp.

Timeline

November 2024
Formal development of Thuraya City reported as launched.
May 2026
Sultan Haitham City awarded packages reported at RO 280 million.
October 2026
20 agreements worth more than RO 1 billion announced; first residents expected at Al Wafa District in Sultan Haitham City.

Frequently asked questions

Which new cities are being built?

Reported projects include Sultan Haitham City, Thuraya City and Khazaen Economic City.

Are they all residential?

No. Sultan Haitham City and Thuraya City are mainly urban and residential, while Khazaen is an economic and logistics hub.

Are homes ready to move into?

Not yet for most. Residents were expected to begin moving into Al Wafa District in Sultan Haitham City from October 2026, which is a projection. Check each project.

Is the RO 1 billion figure all investment already spent?

No. It is the combined announced value of agreements at the exhibition, not completed construction.

Official sources

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