OMRAN Group, TUI Group Sign
Term Sheet for Strategic Alliance

Muscat, 18 Sep (ONA) — Oman Tourism Development Company (OMRAN
Group), the executive arm of the Government of Oman for tourism development, today
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.

The term sheet sets out 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 negotiations and regulatory
procedures.

Under the term sheet, both parties have expressed their intention
to jointly develop an initial package of 5 hotels and resorts in Dhofar
Governorate, scheduled to receive 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.

The step underscores the central 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 at the same
time ensuring long-term socio-economic impact.

Salim Mohammad Al Mahrouqi, Minister of Heritage and
Tourism, said, “This term sheet represents a milestone in reinforcing Oman’s
position on the global tourism map. In strategic collaboration with OMRAN Group
and TUI, we are committed to develop world-class tourism destinations and
experiences that would, not only attract a greater number of visitors, but also
generate 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.”

“By combining international expertise with our local vision, we are
taking the first step toward unlocking the country’s full potential as a year-long
tourism destination, driving sustainable economic growth, in line with Oman
Vision 2040,” he added.

For his part, Sebastian Ebel, Chief Executive Officer of TUI Group,
said that the signing of this term sheet represents an important step in portraying
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 develop a
destination that stands out for quality, sustainability, and uniqueness”, he explained.

Meanwhile, Peter Krueger, Chief
Strategy Officer and CEO of Holiday Experiences at TUI Group, affirmed the strong
demand from international travellers to visit Oman. He pointed out this
alliance will pave the way for new tourism opportunities in the Sultanate.

The signing of the term sheet
initiates a 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,” he added.

Both parties have reaffirmed their
shared commitment to sustainability and pledged to develop the planned projects
in line with the highest international standards and in accordance with OMRAN
Group’s strategy that focuses on economy, society, culture and environment.

The projects are expected to
generate direct and indirect employment opportunities, motive the participation
of small and medium enterprises (SMEs) and further enhance the appeal of Oman —
notably Dhofar Governorate — as a competitive year-long tourism destination.

— Ends/Bishara/AG