Across Oman, many struggle with unemployment (40% of the population), employer underpayment and limited economic diversity. As a result, countless low-income families in Oman need financial assistance. Without help, these issues often lead to the inability to afford basic necessities which results in issues such as learning poverty, currently impacting more than 40% of children in Oman.

Reason For More Affordable Housing

Oman is located in Southwest Asia on the coast of the Arabian Peninsula. Immigrants and expatriates make up approximately 46% of Oman’s population due to the region’s close proximity to numerous countries. Therefore, the country’s financial markets rely heavily on foreign investments.

As of May 2024, Oman’s capital market has seen a 19% increase in foreign investment. This growth is in response to additional policies favoring foreign investments, which the government hopes will decrease the public debt and encourage investments in essential services.

With the increase in foreign investments comes an increase in population. Consequently, Oman’s population is nine times larger than it was in 1964, previously sitting at just half a million people. As the population rises, so does the demand for housing and housing prices. This limits the number of available homes while also pricing out those who previously qualified for housing assistance. These factors directly contribute to the lack of affordable housing in Oman.

The lack of affordable housing in Oman is a longstanding issue and is the reason the Omani Government created Social Housing Policy in 1973 and, more recently, began a housing assistance program.

Steps Taken to Address Housing Insecurity

In 2020, the Ministry of Housing and Urban Planning (MHUP) began its social housing assistance program. The program’s goal is to improve the living standards of those with limited income by providing adequate housing. The program constructs housing units to support modern living, thereby providing essential tools to support these standards.

In 2022, the MHUP spent 35 million Omani Rial, approximately 90.5 million U.S. dollars, on the construction of affordable housing for Omani citizens. The following year, the MHUP spent 40 million Omani Rial and in 2024, it set aside 70 million Omani Rial for affordable housing efforts. From 2022 to 2024, the MHUP delivered 747 homes to Omani citizens and as of September 2024, there were 478 housing units under construction. The MHUP’s latest housing report also details the future construction of 109 housing units across Oman, along with efforts to ensure the equitable distribution of services.

Building Homes of Various Sizes

During this time, the MHUP also reconsidered how it takes diverse family makeups into account during construction. In the future, the MHUP intends to build homes of various sizes. This will allow the MHUP to better aid more families by more strategically distributing funding.

However, the Ministry’s social housing assistance program does more than construct homes. The MHUP also provides grants and loans. Those in need of affordable housing can then qualify for government financial assistance with the help of the MHUP so they can build or repair their homes.

The MHUP strives to address the lack of affordable housing in Oman through each of these components as a part of its program and represents the government’s goal of achieving a secure and successful future for all citizens.

– Nivea Walker

Nivea is based in Elon, NC, USA and focuses on Good News and Global Health for The Borgen Project.

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