Muscat – Ministry of Housing and Urban Planning (MHUP) has announced plans to develop three agricultural cities, each with an investment of RO1bn, in a move aimed at boosting food security and economic diversification.

The initiative, launched by MHUP in collaboration with Ministry of Agriculture, Fisheries and Water Resources, will see the establishment of agricultural cities in Saham in North Batinah, Dhahirah and the Najd region of Dhofar. Each city will cover approximately 50sqkm, with construction on the Saham and Najd sites having begun in 2024 following finalisation of designs.

The cities are expected to benefit over 43,000 people annually, contribute 2% to Oman’s GDP and generate more than 10,000 jobs.

As part of efforts to support economic diversification, MHUP signed 1,592 usufruct contracts in 2024 through public auctions, generating RO56mn in investments and RO9.5mn in revenues, a 2% increase from the previous year. These contracts covered key sectors such as agriculture, industry, commerce, tourism and integrated residential neighbourhoods. The ministry granted land to 19,800 beneficiaries and resolved 16,000 ownership disputes with an approval rate of 82.3%.

Social housing remained a priority, with 1,242 families receiving housing assistance worth RO31mn and 200 modern housing units secured for social purposes at a cost of RO8.5mn.

Urban development projects are also progressing with seven integrated residential neighbourhoods under construction – Al Naseem in Barka, Al Luban in Nakhal, Hisn al Zain in Bidbid, Al Ahd in Amerat, Al Shurooq in Salalah, Nakheel Hills in Khasab, and Majd neighbourhood in Suhar.

The ministry is working on developing three more integrated residential neighbourhoods – Al Azm in Rustaq, Al Samou in Mudhaibi and Al Noor in Nizwa.

These projects, valued at RO500mn, have seen 70% of Phase 1 units sold, with 25% allocated to non-Omanis to encourage foreign investment.

Meanwhile, Sultan Haitham City is progressing steadily, with site preparation complete, 10% progress on five key bridges and 30% in its control centre. A central park and 2,569 housing units in Al Wafaa District have also been launched.

Looking ahead, Oman is preparing for future cities in Muscat and Salalah, with structural plans underway for Muscat, Nizwa, North Batinah and Salalah to ensure planned urban expansion.