Salalah – An automotive hub bringing car showrooms, workshops, spare parts, insurance and financing under one roof is taking shape in Salalah, with the first phase of the RO6mn Car City project now 45% complete.

Spread across 53,000sqm, the development is designed as a specialised destination for Dhofar’s growing automotive market, allowing customers to buy, maintain, finance and insure vehicles within a single complex.

The project is being developed by Al Amal Al Daem International Company in partnership with Dhofar Municipality. Its first phase is expected to be completed in May 2027.

Faisal bin Alawi Al Dheeb, Managing Director of Al Amal Al Daem International Company, said the concept was built around bringing together services that motorists would otherwise have to seek at different locations.

“The project aims to build an integrated destination that serves the automotive sector and brings together the activities that customers need in one location,” he said.

Besides vehicle showrooms and dealerships, Car City will accommodate maintenance centres, tyre and battery outlets, spare parts businesses and car care services. Banks, finance, insurance companies and other supporting businesses will also form part of the mix.

Al Dheeb said the project is being developed around a long-term leasing model, with the first phase focusing on securing tenants and brands that can strengthen the commercial appeal of the development.

Initial bookings have now opened to local and international companies, allowing prospective tenants to select locations and configure spaces at an early stage. This is particularly important for businesses requiring specialised entrances, façades, workshops or technical infrastructure.

The choice of Salalah reflects a combination of population growth, expanding commercial activity and tourism, according to Al Dheeb.

Demand for automotive services rises particularly during khareef, when the governorate sees a sharp increase in visitors and vehicles from elsewhere in Oman and across the Gulf.

Beyond the automotive trade itself, developers expect Car City to generate business for contractors, suppliers and technical service companies during construction.

Once operational, its impact is expected to extend to employment, logistics, hospitality and marketing, while increasing competition among automotive businesses and giving customers a wider choice of services.

For Salalah, the project represents an attempt to organise a fragmented industry around a purpose-built destination creating, in effect, a dedicated address for the automobile economy in southern Oman.