Oman's Future in Copper: A Strategic Priority Under Vision 2040

Oman is diversifying its economy to reduce reliance on hydrocarbons, with a focus on the mining sector, particularly copper. The country has been working towards this goal since the mid-1990s and has seen progress with the redevelopment of the Lasail Mine, which has resumed copper mining after a 30-year hiatus. Oman's Vision 2040 aims to increase job opportunities, reskill, and develop a more attractive economic environment for foreign direct investment.

Oman is increasingly diversifying its economy to reduce its reliance on hydrocarbons, with a strong focus on the mining sector, particularly copper. The country has been working towards this goal since the mid-1990s, with notable progress in the redevelopment of the Lasail Mine, which resumed copper mining after a 30-year hiatus. Oman's Vision 2040 aims to increase job opportunities, reskill the workforce, and create a more attractive economic environment for foreign direct investment.

In a significant step towards this diversification, Oman and the TUI Group have signed a strategic agreement to develop a new tourism destination cluster in the Dhofar Governorate. This partnership underscores Oman’s commitment to positioning itself as a leading sun-and-beach destination, aligning with its Vision 2040. The agreement involves the construction and operation of five new hotels under leading TUI brands, expected to welcome guests as early as winter 2028.

The collaboration is part of a broader strategic plan to develop world-class tourism destinations and experiences, creating high-quality employment opportunities and driving economic growth. TUI Group CEO Sebastian Ebel explained, "TUI is developing vertically integrated destination clusters, which include hotels, experiences, and cruises. This approach has proven successful in other regions, and we are excited to bring this model to Oman."

OMRAN Group, the Sultanate of Oman’s Tourism Development Company, will contribute land and capital to a joint venture, holding 45% of the stake along with TUI Group. Another private investor will hold 10%. TUI will bring its comprehensive expertise in hotel operations, travel distribution, airlines, and local experiences. Additionally, OMRAN Group will become a 1.4% strategic shareholder in TUI Group, acquiring newly issued TUI shares at a price of €9.50 per share with a 3-year lock-up period.

The joint projects will be developed to the highest sustainability standards, integrating economic, social, cultural, and environmental priorities. These developments are expected to generate significant direct and indirect employment opportunities, boost SME participation, and solidify Oman’s position as a premier year-round tourism destination.

This strategic partnership is a significant milestone in Oman’s economic diversification strategy, leveraging its tourism potential to reduce reliance on hydrocarbons and create new economic opportunities. The collaboration between OMRAN Group and TUI Group is a testament to the country’s commitment to sustainable and inclusive growth, aligning with its Vision 2040.