Oman: Dhofar sees sharp rise in investment activity

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The Directorate registered 1,204 new commercial licences during the second quarter of 2025 alone.

SALALAH: Dhofar Governorate is experiencing a period of remarkable economic dynamism, underpinned by strong growth in commercial and industrial activity and a notable influx of new investments. These developments reflect the growing national focus on empowering governorates to play a greater role in Oman’s economic diversification agenda and Oman Vision 2040 goals.

According to Mohammed bin Khalifa al Badrani, Director General of the Directorate General of Commerce, Industry and Investment Promotion in Dhofar Governorate, key indicators point to an impressive acceleration in development and investment activity during the first half of 2025. This trend demonstrates the success of government efforts to promote balanced growth across the Sultanate of Oman’s regions by enhancing the business environment, simplifying procedures and attracting quality investments.

Al Badrani revealed that the Directorate registered 1,204 new commercial licences during the second quarter of 2025 alone, bringing the total number of registered commercial entities in the governorate to 63,193 by the end of June. “These figures show the vitality of Dhofar’s economy and the growing confidence of investors in the region’s potential”, he noted.

One of the fastest-growing sectors was construction contracting, particularly residential and non-residential building construction, which recorded a staggering 452.5 per cent increase compared with the same period last year. A total of 757 new licences were issued in this category during the second quarter of 2025, compared to only 137 a year earlier.

Al Badrani said this surge reflects Dhofar’s expanding urban and infrastructure development projects, fuelled by rising demand for housing, tourism facilities and industrial infrastructure. “The governorate’s strategic location, modern logistics services and natural resources continue to make it a highly attractive destination for construction and investment projects”, he added.

The positive momentum has also extended to foreign investment, with Dhofar witnessing a significant rise in the number of international investors. During the first half of 2025, the number of new foreign investors reached 697, compared with 266 during the same period in 2024 — an increase of over 160 per cent. This brings the total number of registered foreign investors in the governorate to 8,813.

Al Badrani attributed this growth to the increasingly favourable investment climate in Dhofar, supported by digital transformation initiatives such as the Oman Business platform, which has streamlined registration and licensing processes. “Investors can now obtain licences efficiently and transparently without the need for direct review”, he said.

He also pointed to government incentives such as the Golden Residency Programme, which offers long-term residence permits and family benefits for investors, as key factors in attracting foreign capital. These measures, he said, provide investors with stability and confidence to establish long-term ventures in the Sultanate of Oman.

The industrial sector is also expanding rapidly. By the end of the second quarter of 2025, the number of industrial licences reached 1,156 new registrations, raising the cumulative total to 23,361 since records began. In addition, 63 new investment licences were granted, representing 1.54 per cent of the total registered investments, signalling the governorate’s growing appeal for value-added industrial and manufacturing projects.

The general commercial sector likewise continued to expand, with 10,357 new commercial licences issued during the first half of 2025, bringing the cumulative total to 135,118. Automatic licensing also saw significant growth, reaching 9,215 new licences, with a cumulative total of 147,851.

“These achievements reflect the Ministry’s success in simplifying procedures and fostering a competitive business environment”, said Al Badrani. “Dhofar is now well-positioned to attract more value-added investments, create jobs for citizens and enhance its role as a key contributor to Oman’s national economy”.

He emphasised that the Directorate continues to monitor economic performance indicators to ensure sustainable growth and to strengthen coordination between government entities and the private sector. “Our goal is to maintain Dhofar’s positive momentum by promoting innovation, supporting entrepreneurs and ensuring that development remains inclusive and sustainable”, he concluded. — ONA

Mohammed bin Khalifa al Badrani, Director General of the Directorate General of Commerce, Industry and Investment Promotion in Dhofar Governorate,