Top Cities in Oman for Expats and Investors in 2025

Muscat – Capital of Opportunity

Muscat leads the list of top cities in Oman. In fact, being the capital, it’s considered the political and economic heart of the country. The World Population Review states that Muscat’s population is 1,7 million in 2025, which makes it more than 3 times larger than any other Omani city. Another study shows that over 60% of Muscat’s residents are expats. Additionally, Muscat has been recognized as one of the safest cities. It’s in the 7th spot out of 382 cities in the 2025 Numbeo Safety Index. 

Muscat is also one of the most popular property hubs in Oman. In fact, according to Mordor Intelligence, Muscat accounted for 47.9 % of residential real‑estate revenue in Oman in 2024. 

ITC projects like Al Mouj Muscat (The Wave) and Muscat Bay have many waterfront villas, marinas, and golf courses. A price per square meter in high-end neighbourhoods like Al Khuwair, Ghubrah, and Bousher is OMR 800-1000 (≈ $2,080-2,600). You can read more about the Muscat real estate market in our guide. In addition, Muscat is a well-known business hub. Foreign investors benefit from Oman’s friendly investment laws. Under the Foreign Capital Investment Law (2019), foreigners can own 100% of a company and repatriate capital freely.

Muscat is a city where you can combine modern comforts with Omani aesthetics. The Sultan Qaboos Grand Mosque is popular for its colorful mosaics and Swarovski‑crystal chandelier. Visiting the Royal Opera House, you can enjoy global performances. Walking along the Mutrah Corniche, you’ll see white houses, blue-domed mosques, and traditional fishing boats.

Compared to Dubai, Muscat has a more affordable cost of living. In fact, LivingCost states that the cost of living in Dubai is 133% more expensive than in Muscat.

Salalah – Nature, Tourism, and Trade

Salalah is also included in the top cities in Oman. It’s located in Oman’s Dhofar governorate and, with its population of 461,680 people, is the second biggest city in Oman. Salalah has a unique monsoon season known as Khareef. The Khareef season runs from June to September. During the season, the coastal mountains turn emerald green, and waterfalls and lakes appear across the region. 

Salalah is known as a tourism and logistics hub. In the Khareef season, more than 800,000 tourists visit Salalah. Tourist flow results in a strong demand for apartments, villas, and short-term vacation rentals. Additionally, the city has a high potential to receive logistic investments, as it has a free zone and adjacent port (with more than 2,500 hectares of developed land), decent infrastructure developments, and a strategic location (the city is near the Port of Salalah, which is one of the busiest transshipment hubs in the region). The zone focuses on chemical industries, pharmaceuticals, logistics, and export‑oriented manufacturing. Companies can benefit from tax exemptions of up to 30 years, 100 % foreign ownership, and a fast registration process, which allows operations to begin within 2 weeks.

Salalah is even more affordable than Muscat. It has a lower entry point and, therefore, is more accessible for investors.

Some of the most popular areas in Salalah are Hawana Salalah (by Muriya), a beachfront development in the south, Alila Hinu Bay, a resort area, and Central Salalah & Dahariz. You can read more about the Salalah real estate overview in our article.

Sohar – Oman’s Industrial Powerhouse

Sohar is located halfway between Muscat and Dubai. According to rumors, besides being one of the top cities in Oman, it’s also the hometown of the legendary sailor Sinbad. Sohar is an important trading port and gateway between the Gulf and the Indian Ocean. The city is well-known for its diversified activities, including shopping in malls, relaxing on beaches, visiting souqs, and living in skyscrapers. 

Modern Sohar is known as an industrial hub. Its strategic location and growing industrial sector make it attractive for real estate investors. Next to the Port of Sohar, the Sohar Free Zone spreads out over an area of more than 45 square kilometres. It offers long‑term tax exemptions, 100% foreign ownership, customs-free import/export, and fast company registration. Icons Oman states that it’s scheduled to open a OMR 520 million polysilicon factory in the Sohar Free Zone. 

For lifestyle seekers, Sohar offers attractive beaches, parks, and a family‑friendly environment.

It is about three hours by road from Dubai and 250 km from Muscat, making it a convenient base for cross‑border commuters. The city has a growing property market and upcoming mall and marina projects.

Sohar is an ideal option for foreign investors in manufacturing or logistics and for families who want a quieter coastal town with easy access to Dubai.

Duqm – The Rising Mega Zone

Duqm isn’t like other traditional Oman cities. It’s more like a special economic zone. Covering more than 2,000 square kilometers, the Duqm Special Economic Zone (SEZAD) is one of the key drivers of Oman’s Vision 2040 diversification strategy.

The SEZAD integrates a deep‑sea port, a new international airport, a shipyard, modern roads, an energy zone, and dedicated districts for industry, commerce, residential living, and tourism. Here, investors receive long‑term tax exemptions, 100 % foreign ownership, customs duty exemptions, and a quick registration process.

Duqm’s industrial focus is on heavy industry, petrochemicals, renewable energy, logistics, construction, fisheries, and tourism. The biggest projects in this zone include the Duqm Refinery, a large shipyard, and a green hydrogen plant. As it’s still under development, early investors can have access to much lower land costs.

Currently, Duqm has a low resident population. It’s an attractive option for project managers, engineers, and early‑stage investors, rather than families who are looking for a place to establish themselves. Corporations, infrastructure developers, and green‑energy investors who want to take part in Oman’s industrial future are more than welcome here. However, it has plans to build a city with all the comforts for people, including residential districts, schools, hospitals, and tourist resorts. In the future, it’s more likely that it’ll become one of the best places in Oman with beaches, hotels, and entertainment zones.

Nizwa – Culture and Heritage with Modern Comforts

Nizwa, one of the top cities in Oman, was the capital of the country in the 6th and 7th centuries. It’s 2 hours away from Oman’s current capital, Muscat. With its round tower and high walls, Nizwa Fort once protected the town and is now a popular place to visit. Nearby, the Nizwa Souq sells silver jewellery, coffee pots, saffron, dates, and spices. Additionally, the Falaj Daris palm oasis is a UNESCO World Heritage site that shows how people used clever water-management techniques in the past.

Nizwa offers a quiet lifestyle with an affordable cost of living. The city is close to mountains like Jebel Akhdar, and has an authentic old souq.

Because of its cultural heritage, growing tourism and hospitality sector, Nizwa is one of Oman investor destinations. The city is ideal for retirees, culture lovers, and investors in heritage‑based tourism.

Choosing the Right City for Your Goals

In this article, we’ve covered the five best cities in Oman for expats and investors. However, each of these cities provides a different lifestyle. Depending on what you want to achieve (establishing a business, enjoying a peaceful retirement, buying property, or relocating with your family), the city that aligns with your goals may be different. Below you will find a detailed breakdown to help you find which top cities in Oman are the best for you.

If your goal is to have business growth or make a foreign investment:

• Muscat is an ideal option for entrepreneurs, professionals, and service-based businesses. It has the highest concentration of skilled talent, corporate headquarters, embassies, and international schools. The city offers stability, strong infrastructure, and quick access to banking, legal, consulting, and government services that are essential for investors.
• Sohar is one of the big cities in Oman and is a perfect option for those whose focus is on manufacturing, logistics, or industrial operations. It has the region’s most important ports, one of Oman free zones, and supply chain corridors that serve Oman, the UAE, and the wider GCC. Many investors choose Sohar because of its large-scale productions and projects that focus on trading.
• Duqm is the best for long-term investors looking for growth potential. It has several multi-billion-dollar development projects and is one of Oman’s economic hubs. Duqm is highly preferred by investors looking for early-stage opportunities in logistics, heavy industry, tourism, and real estate.

If you want a calm lifestyle and a place close to nature:

• Salalah is one of the top cities in Oman, known for its slower pace of life, cooler weather during the Khareef monsoon season, beautiful beaches, and a more affordable cost of living. It can be an ideal option for retirees, families, and professionals in tourism or logistics.
• Nizwa is preferred by those who want to combine cultural heritage with beautiful nature. It’s a quieter alternative to Muscat that still has good healthcare, education, and housing.

If you still hesitate in finding the best option for you, book a free consultation with our experts, who are ready to help.