A joint venture of Omani firm Sarooj Construction Company and Saudi Arabia's Al-Rawaf Contracting has secured a contract worth RO17.4m ($45m) covering the construction of infrastructure facilities for the first phase of Al-Mudhaibi Industrial City in the sultanate’s North Al-Sharqiyah Governorate.

The first phase of the infrastructure development covers an area of about 2.5 million square metres (sq m).

The scope includes the construction of road, water and sewerage networks; lighting; water tanks; security fences; surveillance devices; and several industrial units, each with an area of 500 sq m, in the development's Madayn complex.

The development will also have administrative offices with manufacturing workshops, private parking lots and truck entrances.

The contract was awarded by Oman’s Public Establishment for Industrial Estates (Madayn).

According to an official statement, the industrial city is expected to be a key enabler for the industrial sector in Oman’s North Al-Sharqiyah Governorate, which offers potential in mining, food and tourism, among other industries.

According to UK analytics firm GlobalData, the construction industry in Oman expanded by 2.1% in real terms in 2024, supported by rising foreign direct investment (FDI) in rail and road infrastructure, renewable energy and housing projects. According to the National Centre for Statistical Information, the total FDI in the country rose by 25.2% in 2023.

The Omani construction industry is expected to register an annual average growth rate of 4.2% in 2025-28, supported by investments as part of the Oman Vision 2040 plan.

The industrial construction sector was expected to grow by 2.8% in real terms in 2024, before rebounding at an annual average growth rate of 4.1% in 2025-28, supported by investments in the construction of manufacturing and mining facilities.