Oman unveils mega masterplan for redevelopment of Salalah

Trade Arabia

05-03-2025

Oman's Ministry of Housing and Urban Planning has announced a mega masterplan for the redevelopment of the sultanate's second largest city, Salalah, covering 7.3 sq km, that will seek to further boost Salalah's attraction as a year-round sea and sun destination at the gateway between Asia, Europe and Africa, with the introduction of a new 6km-long public beach.
Designed by leading international design studio Sasaki, the New City Salalah masterplan comprises over 12,000 residential units that can house 60,000 residents across four distinct, walkable neighbourhoods.
Prioritising mixed-use and a soft-mobility focus throughout, it will also encompass 3.5 million sqm open space and parks, 200,000 sqm of retail and hospitality space and 100,000 sqm of cultural space and amenities, two new hospitals, and integrated, multimodal transport links.
A new pedestrianised marina will host retail, tourism and hospitality offerings, stated the ministry.
Part of the sultanate's RO33 billion ($85.4 billion) pipeline of development being delivered across the country as part of the Oman Vision 2040, the New City Salalah waterfront development will start on site later this year.
The work on the New City Salalah waterfront development will start on site later this year.
The ministry officials said the New City Salalah strikes a balance between celebrating the area's coastal context and protecting its unique natural features. A major focus on resilience to climate change has seen New City Salalah designed to withstand rising sea levels and flooding, particularly in consideration of the area's khareef monsoon season.
This includes the introduction of wetland park and a series of revetments and natural infrastructure strategies which will mitigate the impacts of extreme weather events, it stated.
The waterfront plans are an integrated part of the Greater Salalah Structural Plan, a structural framework to enhance liveability by resolving spatial, infrastructure and mobility issues, and increase capacity to cater to the growing Wilayat Salalah, projected to hit a population of 674,000 by 2040.
The phased development approach will get underway later this year, with 5,827 residential units due to be delivered in Phase 1. The project is forecast to deliver developer returns of 10.2%.
Unveiling the masterplan, Dr Khalfan Al Shueili, Minister of Housing and Urban Planning, Oman, said: "Our plans for the evolution of Salalah epitomise the Oman Vision 2040, designed to deliver a sustainable and prosperous future for the people of Oman. It serves as an exemplar of how combining tourism and urban development is driving the diversification of Oman's economy and bringing forward compelling opportunities for the international community."
"Salalah is a beloved and important city that contributes significantly to our nation. These plans will help to ensure it can continue to serve our people and economy for many generations to come, while showcasing some of Oman's greatest strengths to visitors from across the globe," stated Al Shueili.
"With works due to begin this year, we look forward to bringing New City Salalah to fruition alongside the Omani people and leading international partners, investors and developers," he noted.
A two-hour flight from Dubai and 1.5 hour drive from Muscat, Salalah is already home to Oman's largest logistics port and is a popular tourist destination due to its access to nature and temperate climate, attracting over one million tourists in 2024.
The master plan seeks to further enhance Salalah's attraction as a year-round sea and sun destination at the gateway between Asia, Europe and Africa, with the introduction of a new 6km-long public beach, he added.
The project is a key part of the Oman Vision 2040 to achieve a developed, diversified, and sustainable national economy, with fair distribution of development gains and protection of natural resources.
The nation is targeting RO51 billion in tourism investment by 2040, following a successful investment of RO 7.8 billion between 2021-23. Oman aims to double tourism's contribution to GDP to 5% by 2030 and again to 10% by 2040.
Romil Sheth, Prinicipal Designer at Sasaki Associates, said: "Salalah is blessed with incredible natural features and a deep history. Lush wadis, local agriculture embedded into the city, an extensive coastline with sandy beaches."
"To complement these significant assets, the Salalah New City plan adopts forward-looking urban design, place-making and planning practices that challenge status-quo urbanism and reflect
an aspirational lifestyle for Dhofaris," he stated.