Construction

A range of construction projects lies at the heart of Oman’s growing economic development. The construction sector contributed more than OR307m ($800m) to the economy during the first quarter of 2012, showing growth of almost 4% when compared to the same period in 2011. While many projects in Muscat are focused on increasing the city’s tourism appeal, construction related to industrial and transport expansion is growing substantially in cities such as Sohar, Salalah and Duqm. The development of new road networks and upgrades to existing routes is also planned, and other infrastructure projects involve upgrading the seaports. However, as the construction sector expands, challenges remain. Perhaps foremost of these is the relatively high level of competition of both local and foreign bidders. This chapter includes an interview with Sultan bin Hamdoon Al Harthi, Chairman of the Muscat Municipality.