From Lusail to Muscat, new future-focused urban districts are attracting international capital and opening fresh business opportunities
A new wave of modern cities is redefining the Gulf’s economic landscape, positioning the region as one of the most appealing destinations for global investment. New analysis from Sovereign PPG – the GCC’s leading provider of corporate structuring and business establishment services – highlights how next-generation cities including Lusail and Muscat are drawing international investors, unlocking diversification opportunities, and reshaping the Gulf’s influence within the global economy.
In 2023, the GCC recorded 1,889 foreign direct investment projects worth a combined $47 billion, spanning high-growth sectors such as renewable energy, logistics, fintech, tourism, and healthcare. Alongside established economic centres like Dubai, Abu Dhabi and Riyadh, emerging cities such as Lusail in Qatar, AlUla in Saudi Arabia, Muscat and Salalah in Oman, Manama’s innovation districts in Bahrain, and Shuwaikh in Kuwait are advancing major development plans centred on smart infrastructure, sectoral growth and global business connectivity – attracting investors eager to engage with the Gulf’s expanding economic ecosystem.
“While Dubai, Abu Dhabi, and Riyadh are well-known economic powerhouses, we are now seeing a new generation of GCC cities emerge as dynamic hubs for global business and investment,” said Neil Wilson, Managing Director at Sovereign PPG Qatar. “From smart infrastructure to sector-specific growth initiatives, these urban centres are transforming the Gulf’s investment landscape. That’s where we come in, helping clients navigate these markets, connect with the right opportunities, and achieve sustainable, long-term growth.”
- Qatar – Lusail: Smart infrastructure and sustainable mixed-use districts are opening new corridors for investment beyond Doha’s traditional business core, with strong interest from technology, real estate, and logistics investors.
- Saudi Arabia – AlUla & emerging Vision 2030 cities: Integrating technology, culture, and sustainability, these hubs are attracting capital into tourism, renewable energy, and advanced logistics.
- Oman – Muscat & Salalah: Strategic ports, tourism development, and smart city initiatives are creating opportunities for foreign investment in logistics, hospitality and renewable energy.
- Bahrain – Manama & Muharraq innovation districts: Anchored by fintech, startups, and knowledge-based industries, these zones are expanding Bahrain’s diversified investment ecosystem.
- Kuwait – Shuwaikh & emerging commercial corridors: Infrastructure upgrades and business-friendly regulatory reforms are generating new investment in trade, manufacturing, and logistics.