These contracts are part of a broader drive by the Omani government to accelerate economic diversification, boost local food production and attract private investment. They are structured under the usufruct arrangement, which grants investors use rights over state-owned land for defined periods under specific terms.
At the signing ceremony, Dr Khalfan Al Shueili, Minister of Housing and Urban Planning, emphasised that the strategy reflects the state’s efforts to optimise the productive use of lands and stimulate sectoral growth. Dr Saud Hamoud Al Habsi, Minister of Agriculture, Fisheries and Water Resources, described the contracts as essential to strengthening food security and reducing import reliance. Officials from both governorates attended, along with private sector investors.
The investment projects span different scales and include cultivation, aquaculture, and related support infrastructure. While specific project names are not publicly detailed, the overarching objectives cover sustainable farming practices, value-add facilities, and ecosystem enhancement in the governorates.
Oman has been steadily expanding use of usufruct contracts in recent years, especially in the first half of 2025 where more than 590 such deals were signed across sectors. In Dhofar province alone, the Housing Ministry signed 239 contracts worth over OMR 37 million earlier this year, covering more than 9,000 acres across agricultural lands. These figures underscore the significance of land-leasing models in state policy.
The Tatwir platform, through which many of these opportunities are facilitated, allows corporate bidders to compete on government land assignments for ventures such as food security projects, private health institutions and schools. Bidders must meet technical and financial criteria, and Omani or GCC citizen participation is mandated in many cases.
Analysts see the latest set of contracts in A’Dakhiliyah and South Al Batinah as an indicator of the government’s intent to deepen agricultural capacity beyond traditional centres. The two governorates share varied terrain — from mountainous zones in A’Dakhiliyah to more fertile plains in South Al Batinah — offering complementary opportunities for crop diversification and integrated value chains.
Investors, in interviews with regional media, acknowledge that usufruct contracts reduce upfront capital burden and land acquisition complexity. But some caution that clear water and irrigation access, regulatory stability, and market linkages will determine project success.
Topics
Oman