Salalah Airport City on the Move: Oman Airports Opens Investment Gateway

Oman Airports recently unveiled an inspiring master plan for Salalah Airport City, signalling a strategic move to transform the region around Salalah International Airport into a thriving mixed-use hub. Designed to support tourism, logistics, commerce and light industry, the initiative was introduced at a high-level workshop attended by public and private stakeholders.

Overview of the Concept

• The master plan sets the foundation for an integrated airport-city ecosystem, promoting economic diversification in Dhofar.

• Key sectors targeted include aviation support services, cargo handling, hospitality, retail, light manufacturing and regional logistics.

• The scale is substantial: the airport currently handles around 1.4 million passengers annually, with capacity for 2 million and potential expansion to 6 million in future phases.

• Initial land-use concepts include cargo terminals, aviation trade zones, hotels, industrial parks and commercial areas—all anchored by the terminal.

Risk and Viability Assessment

Planning and Coordination Risks

Integrating airport operations with diverse land uses means managing complex regulatory requirements and aligning infrastructure across agencies and developers.

Commercial Viability Risks

Investment in hospitality, logistics and commercial assets hinges on predictable demand in tourism, cargo and regional trade. Detailed feasibility models and tenant commitments are essential.

Infrastructure Delivery Risks

Road connectivity, utilities, seaport linkage and digital infrastructure must be delivered in tandem to unlock development value. Delays could derail momentum.

Impact Evaluation

Economic Impact

– The project promises to generate jobs across construction, hospitality, logistics and aviation support

– It creates new regional trade infrastructure, reinforcing Salalah as a strategic Southern gateway

Social Impact

– Provides attractive employment opportunities outside Muscat

– Enhances local amenities and community infrastructure

Operational Impact

– Builds Salalah into a multi-functional aviation port, combining passenger, cargo and commercial activities

– Strengthens connectivity and integration with Salalah Port, creating a multimodal economic cluster

Potential Delivery Partners

• Government entities: Dhofar Governorate, Ministry of Transport, Customs

• Private developers: Logistics operators, hospitality brands, industrial park developers

• Consultants and engineering firms: Airport planning, urban design, utilities and infrastructure specialists

• Investors and financiers: Regional banks, sovereign investment funds, and private capital for anchor tenants

• Airport and airline stakeholders: Terminal operators, Oman Air, SalamAir, cargo carriers

Outlook and Strategic Benefits

Salalah Airport City aligns with a global trend of airport-led development and supports Oman’s Vision 2040 goal of economic diversification. With a phased delivery model—starting with a cargo and aviation support precinct, followed by hotel, retail and industrial zones—the project offers a clear path to deliver value and attract private-sector investment. Robust governance, infrastructure planning and early tenant commitments will be critical to success.