Oman seeks billions from private investors for aviation

• $2.6bn of capital wanted
• Part of 2040 aviation strategy
• Caution over ‘bankable projects’

Oman is trying to attract private capital into its aviation sector as part of a 15-year strategy to improve connectivity and modernise infrastructure.

It is seeking more than OR1 billion ($2.6 billion) in cumulative private-sector investments under the country’s National Aviation Strategy 2040, but industry analysts caution that turning investor interest into bankable projects will be “operationally demanding”.

Its 2040 targets include handling more than 40 million passengers, transporting about 1 million tonnes of air cargo and raising the sector’s contribution to gross domestic product to more than 3.5 percent, according to the state-run Oman News Agency.

“Aviation can be a powerful enabler of tourism, logistics and broader foreign direct investment, yet capital will flow only if ambitions are translated into bankable projects with clear risk/return profiles, not policy intent alone,” said Linus Bauer, founder of Bauer Aviation Advisory.

Several of Oman’s peers in the GCC have their own aviation hubs, as does Turkey. Airports in the UAE, Saudi Arabia and Qatar benefit from dense networks, strong home carriers and sustained government backing. 

“Oman lacks that natural gravity,” said Bauer.

Dubai International, for example, recorded more than 70 million passengers in the first nine months of 2025. The total for the full year is expected to surpass 95 million. 

Oman’s airports – including Muscat International, Salalah, Sohar and Duqm – reported a total of 15.2 million passengers in 2025, according to Saleh Abdullah Al Harthy, director general of air navigation at Oman’s Civil Aviation Authority.

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John Grant, partner at Midas Aviation and an AGBI columnist, also suggested that Oman might struggle to attract investors.

“Enviously looking over the garden fence and trying to copy your neighbours isn’t always a good idea and as such investment confidence is going to be low,” he said.

Naif Ali Al Abri, chairman of Oman’s Civil Aviation Authority, said the strategy was split into three phases with a total of 39 initiatives.

The first phase, focused on preparation and readiness, is scheduled for 2026-27, followed by an expansion period from 2027 to 2030. The final stage, described as the “soaring phase”, will run from 2030 to 2040.

Saj Ahmad, chief analyst at StrategicAero Research, said Oman’s biggest draw for investors was its “trade and political links to powerhouses like the US, UK and much of Europe – these countries aren’t afraid to invest abroad”.

He added: “There’s no question that investing in Omani aviation has far more appeal than, say, investing in Kuwaiti or Bahraini aviation.”

Oman is home to flag carrier Oman Air and low-cost SalamAir.

In May 2024 the Civil Aviation Authority announced plans to launch another low-cost airline in Oman. However, it said this month that the proposal had not attracted enough interest, according to the Oman Daily Observer.

“Oman has a buoyant airline sector based on strong intra-regional flows, worker traffic to and from South Asia and growing tourism,” said John Strickland, director of JLS Consulting.

“With a clear focus on a clearly defined network and fleet strategy at Oman Air, improved product and the broad experience of its leadership, it can carve out a profitable niche for itself.”