Oman launches $249 million real estate fund to boost property development

Oman has established the Oman Real Estate Development Fund, a new investment vehicle targeting at least $249.4 million to support property development projects throughout the Sultanate. The fund is a strategic partnership between Oman National Investments Development Co. (TANMIA) and FIM Partners Muscat, designed to provide developers with alternative financing and attract long-term institutional capital. This initiative aligns with the Oman Vision 2040 economic diversification strategy, addressing rising demand for residential, commercial, and hospitality assets driven by increased infrastructure and tourism activity.

The Oman Real Estate Development Fund aims to capitalize on the country's growing property sector by investing in commercially viable projects using preferred equity and other structured investment solutions. According to the Oman News Agency (ONA), the fund will implement rigorous governance standards, investment discipline, and project oversight to ensure project delivery and generate sustainable value for stakeholders. This move is expected to provide developers with innovative financing options beyond traditional methods, facilitating the expansion of residential, commercial, hospitality, and mixed-use developments across the country.

Khalid Awadh Al-Balushi, CEO of TANMIA, emphasized that the fund is a key component of the company’s strategy to build institutional investment platforms for the local market. Fares Bou-Atme, Head of Real Estate Investments at FIM Partners Muscat, noted that the Omani market offers significant opportunities that can be unlocked through structured financing, enabling developers to meet current market demand. The partnership leverages FIM Partners Muscat’s existing expertise in the region, as the firm already manages Oman REIT, the nation’s first diversified real estate investment trust which was listed on the Muscat Stock Exchange in 2021.

The launch comes amid a period of robust growth for Oman’s real estate market, which saw property transactions increase by 18.4% year-on-year to reach $1.76 billion during the first quarter of 2026. This growth is supported by broader economic reforms, higher infrastructure spending, and expanding logistics and tourism sectors intended to attract foreign investment. By providing a dedicated platform for property investment, the fund supports Oman’s goal of diversifying its economy away from oil and gas while enhancing the country's urban planning and infrastructure capabilities.