UAE’s next holiday hotspot? Abu Dhabi invests big in Oman’s Salalah coast

Dubai: Picture this: white-sand beaches, lush mountain backdrops, and a luxury coastal resort backed by one of the UAE’s biggest development funds. That’s what’s now under way in Dhofar, Oman, thanks to a major new investment by the Abu Dhabi Fund for Development (ADFD).

But this isn’t just about one resort. It’s part of a wider story — a growing economic and tourism partnership between the UAE and Oman that’s quietly reshaping travel, trade, and job creation across the region.

The ADFD recently broke ground on a massive Dh764.5 million (OMR 80 million) Integrated Tourism Complex in Salalah, one of Oman’s most scenic and increasingly popular destinations. The first phase of this mega-development will stretch across 604,000 square metres and feature:

When complete, the entire project will cover 2.5 million square metres, transforming Salalah’s coastline into a fully integrated tourism zone — a move that fits squarely within Oman Vision 2040, the country’s national roadmap to economic diversification.

For residents of the UAE, Oman has long been an easy escape — with its cool summer climate in Salalah, mountain hikes, and stunning drives just a few hours away. But this investment signals a new chapter.

By helping build luxury tourism hubs just across the border, Abu Dhabi is making it easier — and more appealing — for UAE travellers to explore Oman through familiar, high-quality experiences.

Think staycations with a twist: road-trippable resorts, homegrown hospitality, and smoother cross-border tourism.

While this Salalah resort project is eye-catching, it’s only part of the growing economic story between the UAE and Oman. In the past year alone:

This momentum shows that the UAE isn’t just helping Oman build resorts — it’s partnering on long-term infrastructure, energy, logistics, and talent development.

For Oman, the Salalah resort isn’t just about attracting tourists. It’s expected to:

For the UAE, this is a strategic win too. By supporting tourism and logistics infrastructure across the border, it strengthens regional trade, opens up new tourism routes, and helps diversify economic returns in a post-oil era.

With the first phase of Salalah’s luxury coastal resort now under way, UAE travellers can expect to see a new level of integrated tourism experience in Oman over the next few years.

From luxury retreats to scenic marinas and adventure activities, Salalah is set to become a key stop for GCC travellers — not just for its natural beauty, but for the growing ease of travel and shared tourism development led by the UAE and Oman.

Bottom line? Abu Dhabi’s latest investment in Salalah is more than a construction site — it’s a symbol of a broader UAE-Oman vision. For UAE travellers, that means more exciting, accessible, and high-quality getaways close to home.