The Ministry of Housing and Urban Planning of Oman has announced a masterplan for Salalah, the sultanate’s second-largest city, as part of the Oman Vision 2040 initiative. Covering 7.3 square kilometres, the New City Salalah project is set to enhance the city’s appeal as a premier year-round coastal destination, strategically positioned at the crossroads of Asia, Europe, and Africa.

Designed by renowned international design studio Sasaki, the masterplan will introduce a 6 km-long public beach, over 12,000 residential units, and a range of mixed-use developments, reinforcing Salalah’s status as a vibrant economic and tourism hub.

The project will feature over 12,000 homes, accommodating up to 60,000 residents across four walkable neighbourhoods. It will offer 3.5 million square metres of green spaces and parks, alongside 200,000 square metres of retail and hospitality space. Additionally, the development will include 100,000 square metres dedicated to cultural attractions and amenities, as well as a new pedestrianized marina with retail, tourism, and hospitality offerings. The plan also includes two new hospitals and integrated multimodal transport infrastructure to enhance connectivity and accessibility.

As part of Oman’s RO33 billion ($85.4 billion) development pipeline, the New City Salalah waterfront development will break ground later this year. The first phase will deliver 5,827 residential units, with the entire project expected to generate developer returns of 10.2%.

With climate resilience as a key priority, the New City Salalah masterplan integrates flood mitigation and sustainable urban planning strategies. The design incorporates a wetland park, natural revetments, and green infrastructure to protect against rising sea levels and extreme weather—particularly during the khareef monsoon season.

According to Dr Khalfan Al Shueili, Oman’s Minister of Housing and Urban Planning, the masterplan embodies the Oman Vision 2040 strategy to drive economic diversification and sustainable urban development.

“Our plans for the evolution of Salalah epitomise Oman Vision 2040, designed to deliver a sustainable and prosperous future for our people. This project demonstrates how integrating tourism and urban development is opening new opportunities for international investors,” Al Shueili stated.

Salalah, already home to Oman’s largest logistics port, has witnessed a surge in tourism, attracting over 1 million visitors in 2024. With tourism investment targeted at RO51 billion by 2040, Oman aims to double the sector’s GDP contribution to 5% by 2030 and 10% by 2040.

Romil Sheth, Principal Designer at Sasaki, added, “Salalah is blessed with incredible natural beauty, lush wadis, and an extensive coastline. The New City Salalah plan challenges traditional urbanism, adopting forward-looking design principles that reflect an aspirational lifestyle for Dhofaris. This project will serve as Oman’s living laboratory for urban innovation and a benchmark for sustainable city planning in the region.”