Oman has signed new investment agreements under the Oman Muscat Airport City development project, with a total value of $130 million, to develop a mixed-use district around Muscat International Airport. The initiative is part of efforts to expand non-aeronautical revenue and strengthen the airport’s role in the national economy.
Project scope and investment details
The $130 million Muscat Airport City project will be developed as an integrated zone surrounding the airport, combining logistics, commercial, residential, and hospitality components. The plan also includes a free zone area of around 2 million square metres, aimed at attracting businesses linked to aviation and trade.
Officials confirmed that more than 10 investment agreements have been signed as part of the project, marking an early phase of development. The focus is on building infrastructure that supports business activity directly connected to airport operations.
Aviation growth and infrastructure focus
The Oman Muscat Airport City development project comes as passenger traffic at Muscat International Airport continues to grow, reaching about 15.2 million travellers in 2025. The increase reflects steady recovery and expansion in Oman’s aviation sector, supported by additional international connectivity.
The airport city model is designed to extend economic activity beyond traditional airport services by creating a business ecosystem around the airport. This includes facilities for logistics, offices, hotels, and support services linked to air travel.
Strengthening Oman’s logistics hub strategy
The development supports Oman’s broader goal of positioning itself as an Oman logistics hub, connecting air transport with trade and tourism. By integrating logistics and commercial infrastructure within the airport zone, the project is expected to improve efficiency for cargo handling and business operations.
Authorities are also focusing on increasing private sector participation in aviation-related developments, with airport city projects seen as a key part of this strategy.
Investment outlook
The $130 million Muscat Airport City project represents a significant step in Oman’s aviation infrastructure expansion, with a clear focus on attracting investment and supporting long-term economic diversification.
As development progresses, the Oman Muscat Airport City development project is expected to contribute to increased business activity around Muscat International Airport, while reinforcing the country’s position in regional aviation and logistics networks.
