Kuwaiti Developer UREC to Build Island Tourism Complex on Masirah, Oman
- Michael Ghobrial
- Jun 13, 2025
- 2 min read
Kuwait-listed United Real Estate Company (UREC), through its subsidiary UREC Oman, has signed a 50-year agreement with the South Al-Sharqiyah governorate to develop an integrated tourism complex on Masirah Island off Oman’s east coast. The agreement marks a strategic step in Oman’s push to diversify through tourism development.
Project Overview
Location: Masirah Island, South Al-Sharqiyah
Size: Around 60,000 m²
Components: Hotel units, residential and commercial spaces
Contract Terms: 50-year term with annual contractual value of 12,000 OMR (approx USD 31,000).
UREC is already involved in other Omani projects like Junoot Eco Resort and the Salalah Gardens Mall & Residences, underlining its expanding footprint in the Omani tourism market.
Risk & Viability Analysis
Regulatory and Approvals
Working within South Al-Sharqiyah requires navigating environmental rules, particularly for sensitive island ecosystems.
Commercial Risk
Success depends on attracting tourists to this relatively remote destination; connectivity and marketing will be vital.
Infrastructure and Logistics
Masirah Island needs robust transport links, utilities, and waste systems. Coordination is required with initiatives like Oman Electric Transmission Company's $187 million interconnection to the main grid.
Economic & Societal Impact
Local Economic Uplift
The project will create jobs in construction, hospitality, and services, supporting Oman Vision 2040 objectives.
Diversification Goals
This development supports Oman’s strategy to grow tourism revenue to more than 6% of GDP and reach 7 million annual tourists by 2040.
Region-wide Stimulus
URA’s presence on Masirah may lead to further investment in hard and soft infrastructure—hotels, leisure activities, excursions and community services.
Delivery Partner Landscape
Developer: UREC Oman – overall project delivery and local engagement trial
South Al-Sharqiyah Governorate: Land lease, approvals, and regional coordination
Infrastructure Providers: OETC for power, plus planned ferry or air links
Hospitality Operators: Potential partners for hotels and resorts
Service Suppliers: Construction firms, utilities, and environmental specialists
Strategic Outlook
With this agreement, UREC signals its intent to expand tourism offerings beyond mainland Oman. The Masirah development, albeit relatively small, serves as a strategic gateway project. Its success could pave the way for broader developer interest and integrated resort projects on lesser-known islands, reinforcing Oman’s tourism diversification plans.
