OMRAN Group and TUI Group Sign Term Sheet for Strategic Alliance

A Key Milestone Towards Strengthening Oman’s Position as a Global Tourism Destination and Advancing Oman Vision 2040

Oman Tourism Development Company (OMRAN Group), the executive arm of the Government of Oman for tourism development, has signed a term sheet for a strategic alliance with TUI Group, one of the world’s leading tourism and travel companies, to strengthen Oman’s position as a year-round global tourism destination.

This term sheet sets out the key terms and conditions under which OMRAN Group and TUI Group intend to collaborate to strengthen Oman’s position as a year-round global tourism destination. It serves as the blueprint for a comprehensive partnership agreement that will follow after detailed negotiations and due diligence.

Under the term sheet, both parties have expressed their intention to jointly develop an initial package of five hotels and resorts in Dhofar Governorate, scheduled to welcome guests from around the world starting in 2028. These properties are planned to be operated under TUI’s internationally recognized brands – including ROBINSON, TUI Blue, RIU, Jaz, and The Mora – offering diverse hospitality experiences that will enrich Dhofar’s tourism offering and strengthen its position as a competitive year-round destination.

This step underscores the pivotal role of tourism in Oman Vision 2040 and aligns with OMRAN Group’s mission to drive tourism growth, attract foreign direct investment, and empower local communities while ensuring long-term socio-economic impact.

His Excellency Salem Mohammed Al Mahruqi, Minister of Heritage and Tourism, stated: “This term sheet represents a pivotal milestone in reinforcing Oman’s position on the global tourism map. In strategic collaboration with OMRAN Group and TUI, we are committed to developing world-class tourism destinations and experiences that not only attract a greater number of visitors, but also create high-quality employment opportunities and draw impactful, value-driven investments. These initiatives support the Ministry’s comprehensive tourism development plan across all governorates, raising the level of competitiveness through exceptional services and diverse experiences that cater to the evolving preferences of international travellers.”

His Excellency Azzan Qassim Al Busaidi, Undersecretary for Tourism, Ministry of Heritage and Tourism, and Chairman of OMRAN Group said, “This milestone reflects OMRAN Group’s commitment to developing distinctive tourism destinations that elevate Oman’s global standing. By combining international expertise with our local vision, we are taking the first step toward unlocking the country’s full potential as a year-round destination, driving sustainable economic growth, and creating meaningful opportunities for our people and businesses in alignment with Oman Vision 2040.”

Sebastian Ebel, Chief Executive Officer of TUI Group, said: “With the signing of this term sheet, we are taking an important step in establishing Oman as a promising tourism destination. As in other parts of the world, TUI develops integrated destinations – with examples in West Africa, Central America, and Asia. Together with our partners in Oman, we aim to create a destination that stands out for quality, sustainability, and uniqueness.”

Peter Krueger, Chief Strategy Officer and CEO of Holiday Experiences at TUI Group, added: “There is strong demand from international travellers to visit Oman. This alliance will pave the way for new tourism offerings in the Sultanate. Our TUI hotel brands — including ROBINSON, TUI Blue, RIU, Jaz, and The Mora — will bring their loyal customer base to Oman. We view this as a major growth opportunity.”

The signing of the term sheet initiates the process for establishing a joint venture structure under which OMRAN Group and TUI Group are expected to each hold 45% equity, with a private investor taking the remaining 10% stake. It also outlines OMRAN Group’s intention to become a strategic shareholder in TUI Group with a 1.4% equity stake, subject to final agreements and regulatory approvals.

Both parties have reaffirmed their shared commitment to sustainability, pledging to develop the planned projects in line with the highest international standards and in accordance with OMRAN Group’s sustainability compass, which focuses on economy, society, culture, and environment. The projects are expected to generate direct and indirect employment opportunities, stimulate SME participation, and further enhance the appeal of Oman — particularly Dhofar Governorate — as a competitive year-round tourism destination.