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Abu Dhabi's Investment Turns Salalah into Oman's Top Holiday Destination

Exploring The Enchanting Salalah Coast of Oman

Omanโ€™s Salalah is located on the southern shores of Oman and its coastline has always been regarded as a pristine place, with white-sand beaches, mists covered valleys, and green mountains. It offers a sharp but fresh contrast to the scorching heat that is being experienced throughout the Gulf region. The city of Salalah in the Dhofar province is a popular tourist destination in the region with thousands of visitors arriving annually during the monsoonal season (Khareef) when the region turns into a tropical paradise.

Today, this coastal treasure is the focus of a developmental project that is transforming its future as a prominent luxury tourism destination in the GCC, through a huge influx of capital and vision by Abu Dhabi investment.

The Salalah Project: A Transformative Vision for Oman

The ground breaking ceremony of the Dh764.5 million Integrated Tourism Complex in Salalah, Oman was made possible by the Abu Dhabi Fund for Development (ADFD). This mega-project is a tourism ecosystem that covers a total area of 2.5 million square meters.

The first phase of 604,000 square meters will consist of:

  • Luxury Resort: A five star beach resort with more than 120 rooms and chalets
  • Marina & Entertainment: A state of the art marina and waterfront entertainment amenities
  • Eco-Friendly Coastlines: Remodeled coastlines and environment-friendly coastal areas
  • Infrastructure: Full infrastructure such as roads, utilities and support services

This mega-project is in line with Oman Vision 2040, which is the long-term strategy to diversify the economy of the country, create sustainable revenues beyond oil, support local entrepreneurs, and advance the hospitality sector.

Why Salalah is a Must-Visit for UAE Travellers ?

The people of UAE have long been taking a trip to Omanโ€™s Salalah as an easy escape away, a place that is cooler, where they can hike in the mountains, or drive along the coast. This natural retreat is now being transformed to meet the luxury standards under the strategic investment of Abu Dhabi without losing the natural charm.

This implies that UAE travellers can anticipate the following:

  • Easier Access: The simple vacations that can be easily covered by road with an improvement in infrastructure
  • Trusted Hospitality: Known, quality hospitality experiences in a neighboring nation
  • Simplified Travel: Combined tourism packages and an easier cross-border entry

The trend also points to the increased popularity among GCC residents to travel domestically and regionally instead of long-haul flights, which are likely to be avoided in a post-pandemic world. The emergence of Salalah tourism is representative of how regional destinations are being developed to accommodate luxury, culture, and convenience.

How UAE-Oman Alliance Partnership Fuels Economic Growth ?

Other than tourism, the UAE-Oman partnership is fast emerging as a regional economic powerhouse. The Salalah project is just one of the many elements of a bigger picture:

  • Investment Volume: Last year, UAE-Oman joint investments have been announced to the tune of Dh129 billion
  • Sustainable Projects: Among them, there is a Dh117 billion industrial and energy project that includes hydrogen, solar, wind and sustainable metal production.
  • Diplomatic Drive: This quick collaboration came after Sultan Haitham of Oman made an official visit to the UAE in 2024 where several strategic agreements were signed

The result? The alliance is wide in scope and is not only limited to tourism but also in energy, trade, logistics and creation of jobs. Such projects demonstrate the benefits of cross border cooperation to meet the needs of economic diversification of the two countries as well as strengthening cultural and political relations.

What is the Abu Dhabi Fund for Developmentโ€™s Role in the Salalah Project?

This is not just a financial investment by the ADFD in Salalah, it is a strategic statement. The fund is contributing to the development of hospitality infrastructure in Oman and thereby:

  • Job Creation: Creation of employment to Omanis via direct and indirect employment
  • SME Inclusion: The development of SMEs through the inclusion of local businesses into tourism supply chains
  • Youth Development: Hospitality training and skills development of young people
  • Sustainable Partnerships: Partnerships between the state and the business world that generate long term sustainable returns

In the case of Abu Dhabi, the sponsorship of this development will help stabilize the economy of the region by opening up new tourism avenues and investment in one another. In the case of Oman, it is a step in the right direction in meeting its national goals and capturing the new world and regional tourists.

Conclusion

Salalah is no longer a seasonal getaway destination to people in the Gulf, it is an emerging strategic center of tourism, economic activity and regional collaboration. The Dh764 million investment by Abu Dhabi is a game changer as it sets the stage to a fully integrated tourism model that supplements the natural beauty of Salalah with world-class infrastructures and amenities.

As this vision materializes, UAE travellers will have more than just a beautiful place to visit, they will have enhanced hospitality, easier travel and stronger regional ties that define the future of Gulf tourism.

Frequently Asked Questions

The proposed project will generate hundreds of jobs, local SMEs and non-oil GDP to diversify the sources of income of Oman through tourism.

The UAE residents will have access to high quality resorts and easy travel options across the border which will provide them with a perfect short term escape with luxury and natural beauty.

Salalah has a unique monsoon climate, cool weather, beautiful mountains, and with its new world-class infrastructure, this is a unique destination in the GCC.

Further Reads

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