Why REITs matter The global quest for a liquid version of physical real estate has been lengthy. It is littered with long-forgotten attempts that fell by the wayside, derailed mainly by the resolute refusal of numerous ministries of finance to grant them tax exemption.[1] Eventually a champion emerged, nurtured since 1961 in the United States: the Real Estate Investment Trust […]

The growth of Oman’s hospitality market rests on three key pillars. First, population growth: Oman’s population expanded by 4.5% in 2024, following 5% growth in 2023, and analysts expect this momentum to continue through the decade. Even without changes in spending patterns or additional boosts from tourism, such demographic growth alone ensures steady annual demand for new hotel keys. Second, economic expansion and rising domestic tourism. Overall domestic trips increased in line with population growth, from 12.9 million in 2023 to 13.6 million in 2024, but Omanis are also travelling differently. An 8% rise in reported hospitality days indicates they are taking longer trips and spending more per visit, reinforcing demand across the sector. Third, international tourism, where Government policy and investment can have the greatest impact. Gulf visitors still account for more than a quarter of arrivals, but Oman is increasingly attracting travellers from farther afield, including Europe, India, and China.

The Kingdom’s economy maintained its upward trajectory in the first half of 2025, with real GDP growing by 3.6%, driven by non-oil activities, which expanded by 4.8% compared to H1’2024. Reflecting these conditions, the International Monetary Fund (IMF) slightly revised its forecasts, projecting GDP growth of 3.6% in 2025 and 3.9% in 2026. The real estate sector, however, experienced a modest slowdown in transactional activity compared to H2’2024. Despite this, both sales volumes and values increased in Riyadh City and Jeddah relative to the same period last year, suggesting that while seasonal fluctuations and rising prices have slightly tempered activity, the overall market remains robust, supported by ongoing population growth and strong economic momentum.

To date, certain countries have attracted the lion’s share of overseas investment into their residential markets: Australia, Canada, the United Kingdom, the UAE and the United States. These countries are all characterised by remarkably lenient regulations for foreign nationals wishing to buy real estate in their domestic markets. In the UK, for example, there are virtually no restrictions at all, neither geographic, nor residency, not sectoral, nor value. Controls exist only to confirm identity and to prevent money laundering.1 The USA, Australia and Canada are somewhat more restrictive – Canada even imposed a freeze on overseas purchases of residential real estate altogether in 2023.2