Oman has taken a major step toward solving its affordable housing challenge. A leading regional investment firm has partnered with global finance institutions to scale Shariah-compliant housing projects.
The initiative aims to develop low-cost homes for families across Oman and the broader Gulf Cooperation Council (GCC). The total funding allocated under this partnership stands at $5 billion.
According to sources close to the deal, this investment will focus on housing aligned with Islamic financing principles. That includes zero-interest structures and compliance with Shariah standards.
The new partnership brings together capital from international development funds, regional investors, and banks. The goal is to make quality housing more accessible for middle- and low-income families.
In Oman, the housing shortage has become more pressing due to urban growth. Rising land prices and high building costs continue to strain the real estate market.
With Shariah housing in Oman, developers will have better access to capital for building affordable units. This will help reduce costs for buyers while maintaining Shariah-compliant financing options.
Additionally, the initiative will create jobs in construction, engineering, and building materials. That supports Oman’s wider vision for economic diversification and local workforce development.
The regional investment firm driving the project plans to focus first on major cities like Muscat. Then, expansion will target underserved communities across the GCC.
A senior executive said the strategy aligns with national housing agendas. It also meets growing demand for ethical, interest-free financial models in real estate.
Industry experts believe this model could become a blueprint for other countries seeking to combine affordability with religious compliance. Especially as urban populations across the Gulf continue rising.
The funding structure involves both equity and Islamic bonds (Sukuk), ensuring compliance with Islamic banking rules. This allows more financial institutions to participate without violating religious restrictions.
The first projects are expected to launch by early 2026. Land acquisition and design work are already underway, according to project officials.
In summary, the $5 billion initiative for Shariah housing in Oman signals a major move toward affordable, ethical housing in the GCC.
