Project Engineer Salary in Oman: Complete Compensation Guide 2026

Project Engineer Compensation in Oman

Oman offers project engineers a unique career landscape that blends the tax-free advantages of a GCC country with a diversifying economy, world-class energy infrastructure, and one of the most livable environments in the Arabian Peninsula. The Sultanate’s engineering sector is anchored by Petroleum Development Oman (PDO), the country’s largest oil and gas producer, alongside a growing portfolio of infrastructure, industrial, and special economic zone projects driven by Oman Vision 2040. For project engineers, Oman provides exposure to technically challenging energy projects (including enhanced oil recovery and solar-thermal hybrid operations), the massive Duqm Special Economic Zone and Refinery, expanding port and logistics infrastructure, and a growing construction sector focused on tourism and urban development.

Whether you are a fresh engineering graduate from Sultan Qaboos University considering your first role, a chartered engineer evaluating Oman’s energy sector opportunities, or a senior project director targeting executive positions at PDO, OQ Group, or one of the major EPC contractors operating in the Sultanate, understanding the full compensation picture is essential. Oman’s engineering market is characterized by strong Omanization requirements, a dominant energy sector, generous expatriate packages at major employers, and a quality of life that many engineers consider the best in the GCC.

Salary Overview by Experience Level

Project Engineer salaries in Oman are denominated in Omani Rial (OMR), one of the world’s highest-valued currencies (1 OMR = approximately 2.60 USD or 9.55 AED). The following ranges represent monthly base salaries.

Entry-Level (0–2 years): OMR 400–650 per month. Omani nationals from recognized engineering programs (Sultan Qaboos University, Caledonian College of Engineering, German University of Technology in Oman) start at the upper end due to Omanization requirements and government initiatives supporting national employment. Expatriate junior engineers start at OMR 400–520. Candidates with PDO internships or experience with international contractors command the upper end.

Mid-Level (3–7 years): OMR 700–1,200 per month. Project engineers managing work packages, coordinating subcontractors, and handling project controls. Oil and gas engineers (OMR 850–1,200) earn more than general construction counterparts (OMR 700–900). PMP certification adds OMR 70–150 per month. Engineers working on Duqm Refinery, Block 6 gas projects, or PDO EOR (enhanced oil recovery) projects command premium rates.

Senior Level (8–12 years): OMR 1,200–1,900 per month. Senior project engineers, project managers, and construction managers leading complex projects. PDO, OQ Group, and their EPC contractor partners offer the highest salaries at this level. Engineers managing projects in remote locations (interior oil fields, Duqm, Salalah) often receive additional location allowances.

Executive Level (12+ years): OMR 1,800–2,600 per month. Project directors and engineering VPs managing major capital programs. PDO’s ongoing capital expenditure program and OQ Group’s diversified industrial portfolio create demand for senior engineering leaders. International consultancies with Oman offices also offer competitive executive packages.

Key Factors Affecting Salary

Oil and Gas Dominance: Oman’s oil and gas sector, led by PDO (a joint venture between the Oman government and Shell), is the largest employer of project engineers and offers the highest compensation. PDO alone manages over 200 producing oil fields and employs thousands of engineers across upstream operations, facilities, and infrastructure. The technically demanding nature of Oman’s oil fields (many requiring enhanced oil recovery techniques including thermal, steam, and polymer flooding) creates demand for engineers with specialized skills that command premium compensation.

Omanization: Oman’s nationalization program is well-established, with oil and gas sector quotas exceeding 80% in many roles. PDO has one of the highest Omanization rates in the country, approaching 85%. Omani engineers earn 20–35% more than expatriate counterparts. Expatriate engineers must bring deep specialization—such as EOR technology expertise, offshore engineering, complex facility design, or mega-project delivery experience—to justify employment. The trend is clearly toward increasing localization, making specialized skills essential for long-term expatriate employment.

Professional Certifications: PMP adds 10–15% to compensation. Oman Society of Engineers membership is important for professional recognition and may be required for local practice. Chartered Engineer status from international institutions is valued, particularly at consultancies and for senior roles. Oil and gas specific certifications (NEBOSH, IOSH, API certifications) add value for safety and integrity engineering roles.

Location: Engineers working in Oman’s interior oil field areas (Fahud, Lekhwair, Marmul) or in the developing Duqm Special Economic Zone receive location premiums of 10–20% above Muscat rates, plus accommodation and rotation benefits that reflect the remote nature of these postings. Salalah-based roles in the Dhofar region also occasionally include location benefits.

Benefits That Boost Total Compensation

Housing Allowance: Typically 25–35% of base salary. For a mid-level engineer earning OMR 900, housing adds OMR 225–315 monthly. PDO provides company housing in designated residential areas (including the well-known Ras Al Hamra complex in Muscat), which eliminates housing costs entirely. In Muscat, a two-bedroom apartment in Qurum, Al Khuwair, or Bousher ranges from OMR 250–450 per month—significantly less than comparable areas in Dubai or Doha.

Transport Allowance: OMR 50–150 monthly, with company vehicles common for engineers requiring site access. PDO provides vehicles for engineers working in field locations. Muscat’s relatively uncongested roads make driving practical.

Medical Insurance: Employer-provided coverage is standard. PDO provides comprehensive healthcare through dedicated medical facilities. The expanding Dhamani health insurance scheme is increasing coverage requirements across the private sector. Value: OMR 200–700 per year for individual coverage.

Education Allowance: International schools in Muscat charge OMR 1,500–5,000 per year, among the most affordable in the GCC. Employers provide OMR 1,200–3,500 per child annually. PDO schools offer excellent education for employees’ children.

Annual Flights: Return flights for employee and dependents, valued at OMR 200–600 per year. PDO provides generous travel allowances for field-based engineers.

Rotation and Field Allowances: Engineers on rotational schedules at remote field locations receive additional allowances that can add 15–25% to base compensation. Typical rotation patterns are 28 days on/28 days off or 35/35 for interior field positions.

End-of-Service Gratuity: 15 days of basic salary per year for the first three years, one month for each subsequent year. Omani nationals receive pension through PASI (Public Authority for Social Insurance).

Tax Implications

Oman has no personal income tax and no social security contributions for expatriates. The 5% VAT (introduced April 2021) applies to goods and services but does not affect employment income. Discussions about potential personal income tax on high earners have occurred but no implementation has taken place as of 2026. Your gross salary and allowances are your full take-home pay as an expatriate.

Top Employers for Project Engineers in Oman

• Petroleum Development Oman (PDO): Oman’s largest oil and gas producer, jointly owned by the Oman government and Shell. Manages over 200 producing fields with annual capital expenditure exceeding USD 5 billion. Offers project engineers unmatched exposure to enhanced oil recovery, gas processing, water flooding, solar-thermal operations, and field development. Comprehensive benefits including company housing, schools, healthcare, and generous rotation benefits for field positions. PDO is widely considered the best engineering employer in Oman.
• OQ Group (formerly Oman Oil Company and Orpic): Oman’s integrated energy company operating across the value chain from exploration to petrochemicals and marketing. Manages the Duqm Refinery, Sohar Refinery, and various petrochemical plants. Offers engineers exposure to downstream processing, industrial plant management, and greenfield industrial development. Competitive benefits aligned with the energy sector.
• Duqm Refinery and Petrochemical Industries Company (DRPIC): Operating the new 230,000 barrels-per-day refinery in the Duqm Special Economic Zone. Offers project engineers exposure to one of the newest and most modern refineries in the Middle East, with ongoing optimization and expansion projects.
• Oman LNG: Operates three LNG liquefaction trains at Qalhat in Sur, producing approximately 10.4 million tonnes of LNG annually. Offers engineers exposure to LNG facility operations, maintenance, and optimization. Known for safety excellence and comprehensive employee benefits.
• ASYAD Group: Oman’s logistics conglomerate managing major ports (Sohar, Duqm, Salalah), dry docks, and shipping operations. Offers project engineers exposure to port expansion, marine engineering, and logistics infrastructure development. The Duqm port development is a key ongoing project.
• Oman Electricity Transmission Company (OETC): Manages Oman’s national electricity transmission grid. Offers engineers exposure to power systems engineering, grid expansion, and renewable energy integration projects.
• Petrofac Oman: A major EPC contractor with deep roots in Oman, operating across PDO and OQ Group contracts. Offers competitive packages with project-based employment that provides exposure to diverse oil and gas projects.
• Worley Oman: Provides engineering, procurement, and construction management services for the energy sector. Active on PDO and OQ Group projects with structured career development.
• Saipem Oman: Italian engineering company active in offshore and onshore oil and gas projects. Offers competitive packages for offshore platform construction and pipeline engineering.
• Larsen & Toubro (L&T) Oman: Indian engineering conglomerate active in infrastructure, industrial, and oil and gas projects across Oman. Offers competitive packages with exposure to diverse project types.

Vision 2040 Impact on Project Engineer Careers

Oman Vision 2040 is driving significant infrastructure investment that creates diverse opportunities for project engineers beyond the traditional oil and gas sector. Key developments include the Duqm Special Economic Zone (a massive 2,000-sq-km industrial zone being developed as a logistics, industrial, and energy hub), the expansion of tourism infrastructure (particularly in Muscat, Salalah, and the Al Hajar mountains), renewable energy projects (the massive Ibri II solar plant and planned wind farms), the development of the national railway network, and the expansion of port and airport infrastructure. Each of these areas requires project engineers for design, construction management, and commissioning, creating a diversifying job market that reduces the traditional reliance on oil and gas employment alone.

Salary Negotiation Tips

• Highlight PDO or Shell experience: Experience with PDO or Shell Group companies is the strongest differentiator in Oman’s engineering market. If you have this background, emphasize it prominently in negotiations.
• Negotiate rotation terms carefully: For field positions, rotation schedules, rotation allowances, and accommodation quality significantly impact quality of life and effective compensation. Standard rotations are 28/28 or 35/35 for remote locations.
• Factor in Oman’s cost of living advantage: Oman’s lower cost of living compared to UAE or Qatar means your effective purchasing power is higher than nominal salary comparisons suggest. Use this understanding to evaluate offers holistically.
• Understand Omanization dynamics: If you are an Omani national, your nationality is extremely valuable in a market with 80%+ Omanization targets. Expatriates must demonstrate specialized skills that complement local talent.
• Negotiate the full package: PDO and OQ Group packages include housing, schooling, healthcare, and leave travel that add 40–70% to base salary. When comparing with non-PDO offers, ensure you account for these benefits.

Key Takeaways

• Project Engineer salaries in Oman range from OMR 400 per month at entry level to OMR 2,600+ at executive level, all tax-free for expatriates
• OMR is one of the world’s highest-valued currencies (1 OMR = ~2.60 USD), providing strong purchasing power
• PDO is widely considered the best engineering employer in Oman, offering comprehensive benefits that add 40–70% above base salary
• Oil and gas project engineers earn 20–30% more than general construction counterparts
• Omanization targets exceed 80% in the oil and gas sector; specialized expertise is essential for expatriate engineers
• The Duqm Special Economic Zone is creating diverse new engineering opportunities outside traditional oil and gas
• Oman offers the best quality of life in the GCC according to many expatriate engineers, combining competitive compensation with natural beauty and a welcoming community

Detailed Employer Salary Benchmarks

Access exact salary ranges at 12+ top Oman employers for project engineers, including PDO (field and office roles), OQ Group, DRPIC, Oman LNG, ASYAD Group, major EPC contractors (Petrofac, Worley, Saipem, L&T), and consultancies operating in Oman. Data covers base salary, housing (company-provided vs. allowance), transport, rotation allowances, field premiums, project bonuses, and total compensation by engineering discipline and career level.

Oman Oil & Gas Engineering Career Guide

Get a detailed roadmap for building a project engineering career in Oman’s oil and gas sector. Covers PDO recruitment processes and contractor qualification, OQ Group career paths, enhanced oil recovery specialization strategies, Duqm Special Economic Zone opportunities, Omanization navigation for expatriate engineers, and pathways for leveraging Oman energy experience for broader international career advancement. Includes salary progression benchmarks for 5, 10, and 15-year career trajectories in Oman’s engineering sector.