A signing ceremony was held between Shaza's CEO Simon Coombs and Taameer Investment's CEO Sulaiman al Harthy.
Construction on the beach resort will begin later this year.
Located on the beach, Shaza Salalah will feature a presidential villa, 80 luxury villas with private pools, 80 furnished hotel apartments, and 130 hotel rooms facing the Indian Ocean, many of which will have their own private 'sky pool'.
The property will also unveil the largest luxury ballroom in Salalah, as well as retail outlets and two speciality restaurants.
Shaza's CEO, Simon Coombs said ''We are proud to announce the signing of Shaza Salalah, and bringing Shaza's vision to the Sultanate of Oman. Shaza Salalah will be a resort that is married with nature and will be a window for the world to experience the best of Salalah.''
Shaza Salalah is a development by Taameer Investment, an Omani investment company with interests in real estate, industrial, financial and service sectors.
Harthy said, ''We are delighted to bring the bespoke Shaza experience to Salalah.”
Shaza Salalah is the first beach resort development to be announced by Shaza Hotels. The group currently has hotels in Medina and Sarajevo, while developments in Marrakesh and Karbala are in construction.