The Al Khuwair Muscat Downtown and Waterfront project continues to advance as Oman progresses phased implementation of the landmark urban development. Notably, the $1.3bn mixed-use project in Muscat remains under active planning and early construction packages. Moreover, authorities have moved forward with marine infrastructure works and consultancy tenders, reflecting steady execution toward transforming the capital’s waterfront into a modern urban hub.
Meanwhile, this progress aligns with broader tourism and infrastructure expansion efforts, including the recently tendered Jabal Akhdar adventure tourism project, which targets mountain-based eco-tourism development.
Al Khuwair Muscat Downtown and Waterfront project Current Status (2026)
The Al Khuwair Muscat Downtown and Waterfront project is currently in phased development with key packages advancing. Additionally, marina infrastructure works, including breakwater construction, are underway under Package 1.
Furthermore, procurement activities have progressed, with financial bids submitted and contractors shortlisted for major works packages. Meanwhile, Package 2, which covers larger marine and infrastructure works, is expected to extend beyond December 2026.
Importantly, the project has transitioned from design into early execution stages following earlier confirmations of construction commencement timelines. Consequently, site activity is expected to intensify as contracts are awarded and mobilization increases.
Development Scope of the Al Khuwair Muscat Downtown and Waterfront project
The Al Khuwair Muscat Downtown and Waterfront project spans approximately 3.3–3.6 million square metres in Muscat. Additionally, the masterplan integrates residential, commercial, and recreational components within a waterfront setting. Moreover, the development includes a marina, canal waterfront, beaches, and public spaces. High-rise buildings, cultural districts, and transport-oriented infrastructure also form key elements.
Furthermore, the project incorporates sustainable design strategies such as climate-responsive architecture and green mobility systems. Consequently, it aims to create a resilient and walkable urban environment aligned with Oman Vision 2040.
Economic and Strategic Importance of the Al Khuwair Muscat Downtown and Waterfront project
The Al Khuwair Muscat Downtown and Waterfront project plays a central role in Oman’s urban transformation strategy. Additionally, it supports economic diversification by expanding real estate, tourism, and service sectors.
Moreover, the development is expected to accommodate tens of thousands of residents and businesses. Consequently, it will generate employment opportunities across construction, engineering, and hospitality industries. However, project delivery depends on coordinated execution across multiple infrastructure packages. Therefore, phased construction and strong project management remain critical to maintaining timelines.
The Al Khuwair Muscat Downtown and Waterfront project designer
Paolo Zilli is an architect at Zaha Hadid Architects (ZHA). He spent about one year refining his proposed design for Oman’s Ministry of Housing and Urban Planning.
At its core, Zilli’s architectural vision aims to enhance accessibility to public transit options. He envisions an environment free from personal vehicles and physical barriers like fences. This would transform the ministerial campus into a multifunctional space designed to attract families and appeal to future generations through its inclusive and dynamic nature.
ZHA wants people to walk more. They will have shade and passive cooling. Bike riding will be safer with special paths. They will use solar energy well. They want to keep and grow Oman’s plants.
Oil was very important to Oman before, but now they want to invest in real estate. The goal is to get money from outside Oman. This goes along with their National Vision 2040 plan. Muscat will grow from 1.5 million to 2.7 million people by 2040.
Zaha Hadid Architects, located in the UK, carries the renowned founder’s name, Zaha Hadid. She made history in 2004 as architecture’s first female Pritzker Prize laureate. Hadid sadly passed in 2016, but her legacy lives through iconic structures like China’s Guangzhou Opera House and Germany’s Phaeno Science Centre.
Since then, ZHA has designed notable works: BEEAH Headquarters in Sharjah, UAE, partially powered by Tesla battery packs; and in 2022, they conceived a virtual city in the metaverse, envisioned as a cyber libertarian utopia. Their buildings are complex yet simple, innovative yet functional, a fitting tribute to Hadid’s groundbreaking vision.
When will the construction of the Al Khuwair Muscat Downtown and Waterfront project start?
Construction work will begin before year’s end. It aims for a 10% net gain in biodiversity by preserving local plants. The Al Khuwair plans include protection of flora species.
This project ties into Oman’s Vision 2040 which seeks a diversified economy with sustainable growth. Natural resource preservation and equal development are priorities. Minister of housing and urban planning Khalfan Al Shueili said:
“This visionary project will bring us another step closer to realising the Oman Vision 2040 and delivering a sustainable and prosperous future for the people of Oman.”
“It will help shape the future of both Muscat and Oman more broadly, creating a new destination to welcome visitors from across the globe to our capital city.”
Other projects that will form part of the vision 2040 include a mixed-use district in the Jaban Al Akhdar mountains and a city for 100,000 people that London studio Skidmore, Owings & Merrill is designing in Oman.
Project Fact Sheet
Project Name: Al Khuwair Muscat Downtown and Waterfront Project
Location: Muscat, Oman
Project Value: $1.3 billion
Developer / Owner: Ministry of Housing and Urban Planning (MoHUP), Oman
Project Type: Mixed-use urban and waterfront development
Site Area: Approximately 3.3–3.6 million sqm
Key Components: Marina, canal waterfront, residential towers, commercial zones, cultural district
Current Status (2026): Early construction and marine infrastructure works underway
- Key Packages:
- Package 1: Marina and breakwater infrastructure (in progress)
- Package 2: Major marine and infrastructure works (extending beyond 2026)
Sustainability Features: Climate-resilient design, green corridors, public transport integration
Project Team
Project Owner: Ministry of Housing and Urban Planning (MoHUP), Oman
Sponsor: Government of Oman (Vision 2040 urban development program)
Masterplanner / Lead Architect: Zaha Hadid Architects
Engineering Consultant: Buro Happold (infrastructure and sustainability advisory)
Landscape Consultant: LAND SRL and associated partners
Marine Works Contractors:
- Shafa Al Nahdah Building Contracting (lowest bidder – Package works)
- Archirodon Group
- EDECS El Dawlia
- Van Oord Middle East
Project Management: MoHUP-appointed delivery and supervision teams
Procurement Method: Competitive tendering (multi-package delivery model)
Specialist Consultants: Environmental, geotechnical, and transport planning advisors (various packages)