Building Dignity: Why Decent Accommodation and Climate-Responsive Infrastructure Matter for Business Sustainability in Oman
Oman Vision 2040 sets out the country’s path toward a diversified and sustainable economy. As part of this shift, the government aims to reduce oil revenues to 16% of GDP by 2030 and just 8.4% by 2040, increasing the non-oil sector’s share of GDP to 91.6% (in 2024, oil accounted for around 32% of GDP, while the non-oil sector contributed approximately 68%).
As part of IHRB’s Gulf Sustain initiative, I recently spoke with stakeholders across Oman about the opportunities and challenges surrounding this economic shift and business sustainability, particularly the role of migrant workers, who contribute significantly to the country's development goals. Within this broader transformation, ensuring workers have access to decent accommodation and climate-responsive infrastructure is becoming essential—not only to strengthen worker welfare, but also to support long-term business sustainability.
Oman’s sustainable development efforts are visible in Duqm, a once-quiet fishing village on the country’s southeastern coast that is rapidly transforming into the nation’s largest ‘special economic zone (SEZ)’ - a flagship logistics, industrial and port hub, anchored by the Port of Duqm and designed to attract investment in renewable energy, green hydrogen, and downstream manufacturing. Located approximately 600 km south of Muscat on the Arabian Sea, Duqm has direct access to the Indian Ocean and is positioned as a vital node for global trade and transit, reinforcing its role as one of Oman’s key strategic infrastructure assets.
Backed by a joint venture between Oman’s logistics group ASYAD and the Port of Antwerp, Duqm’s model is part of Oman’s Vision 2040 goals to decarbonise its economy and draw in diversified, long-term capital. As large-scale construction, port operations, and energy projects expand, thousands of migrant workers are expected to support this growth. These ambitions bring a new imperative: the infrastructure for workers must match the scale and sustainability of the industries they enable. Duqm offers a chance to demonstrate that a green transition can also mean dignified living conditions and socially responsible business conduct.
Companies operating in Duqm have a critical opportunity to go beyond baseline compliance and invest in safe, dignified, and climate-responsive accommodation that aligns with national legislation and international standards. By the end of 2023, over 2,300 projects had been registered in Duqm’s Special Economic Zone, with investors including the Omani government alongside companies from China, GCC countries, Europe, and South Asia. The workforce remains primarily composed of migrant blue‑collar workers, while technical and managerial roles are primarily filled by both Omanis (in accordance with Omanisation targets) and migrant workers.
Across Gulf Cooperation Council (GCC) countries, examples of high-standard workforce accommodation are helping establish emerging benchmarks for the region. These include Saudi Arabia’s Alfanar, which won the Ideal Housing Prize at the Labor Award 2022 ceremony; Laam, MAWREF’s dedicated company for workforce accommodation in Saudi Arabia; Taj Resorts Labour camps in Abu Dhabi; and integrated housing initiatives in special economic zones such as the Renaissance Village Duqm.
Oman’s Regulatory Landscape: Aligning National and International Standards
In Oman, key national regulations such as the Ministerial Decision 286/2008 and zone-specific frameworks provide clear standards for worker housing, including on floor space, hygiene, ventilation, safety, and the sense of community. Petroleum Development Oman (PDO) has also developed a set of internal worker welfare principles, which are increasingly referenced by public and private actors aiming to embed decent living and working conditions. The Oman Society for Petroleum Services (OPAL) has helped advance these standards nationally, making them a point of reference for responsible contractors and facility operators across the country.
These national frameworks increasingly align with international standards. The Dhaka Principles for Migration with Dignity stress that migrant worker accommodation must not undermine dignity or restrict mobility. ILO Recommendation No. 115 outlines practical housing criteria such as structural safety, sanitation, freedom of movement and privacy protections. Operational guidance from the IFC and EBRD further reinforces best practices in worker housing design, risk management, and service provision. Finally, the right to adequate housing is recognised in Article 25 of the Universal Declaration of Human Rights and affirmed in Article 11(1) of the International Covenant on Economic, Social and Cultural Rights, with UN-Habitat further outlining seven key elements that define adequate housing standards.
Ensuring decent living conditions for workers is not just a moral imperative—it’s a strategic business decision. Our research at IHRB shows that substandard accommodation undermines morale, productivity, and retention. In contrast, dignified, climate-responsive housing that supports privacy and well-being enhances long-term business sustainability by supporting worker welfare, and aligning with international standards. However, ensuring housing meets workers’ needs also requires their input. Without consulting workers, even well-intentioned improvements such as new fittings or amenities can fail to serve their purpose. For workers far from home, accommodation is more than shelter; it plays a vital role in enabling rest, and recovery and creating a sense of community.
Turning Worker Welfare into a Competitive Advantage
To better understand the current landscape of worker accommodation in Duqm, I spoke with Stephen R. Thomas, CEO of Renaissance Services, and Sami Al Shaikh, Business Development Director. Renaissance Services has played a central role in developing Duqm’s Integrated Workers’ Facility, one of the most comprehensive worker housing models in the region, designed to meet both operational and social needs and designed to be fully compliant with International Labour Organization (ILO) standards. These standards include not only safe and dignified accommodation but also high-quality meals and recreational opportunities that support a decent lifestyle for workers. While Duqm sets an encouraging benchmark, the broader task now lies in translating existing international and national legislation into consistent practice, ensuring that decent accommodation becomes the norm rather than the exception across all projects and locations.
The interview below is an edited transcript of our conversation.
Sarah Mostafa-Kamel (SMK): How would you describe Renaissance Services’ overall approach to worker welfare, and what has influenced it over time?
Stephen R. Thomas (SRT): We're in the service industry - we're catering for people, feeding them, operating in camps, hospitals, and more. We’ve always believed that service is an honourable thing to do, not something menial. Many years ago, just after I became CEO, we proposed to a major company here that instead of having multiple old and substandard camps, we consolidate into one high-standard, permanent facility. The result was better for the workers—more hygienic, better food, safer conditions—and cheaper for the client due to economies of scale. We used ILO ratios for space, built clinics with 24/7 doctors, and provided proper recreation.
From that point on, we began to think of worker welfare as a service. We actually built a business model around it. We are a publicly listed company, and many shareholders benefit from our performance. But we believe—and we’ve proven—that looking after people properly, safely, and with proper ILO standards is good business. Not just for us, but for the companies who choose to house their people with us. “Looking after your people,” that’s the motto printed on our supply trucks. That message works both ways—we take care of your people, but by choosing us, you're also taking care of your people.
SMK: What standards do you apply in your Duqm facility?
SRT: In Duqm, we apply ILO standards around living space—square meterage per person, ratio of bathrooms, hygiene, and safety. But we go further. We have a clinic on site with 24/7 medical staff, nutritious food, recreation rooms, gyms, sports facilities. It’s not about luxury, but about respect and dignity. The idea is to provide workers with an environment that supports their well-being and helps them perform better. We follow CP-244 principles for worker welfare, including Principle 2 (living conditions) and Principle 9 (working conditions). These principles guide everything from accommodation design to how people are treated day-to-day.
SMK: How does Renaissance Services integrate mental health and wellbeing into its approach to worker welfare?
SRT: We realised that even if you get the physical conditions right—housing, food, safety—that’s not enough. People are human beings. They face grief, stress, financial trouble, and loneliness. So we added a third layer: mental health and well-being. We train staff to recognise when someone is in distress—what I call “souls in pain.” We’ve also set up a 24/7 helpline staffed by independent mental health professionals. Workers can call anonymously and get help without fear of judgment or job loss. The only consequence of speaking up is that you’ll be supported. This isn’t just compliance—it’s care.
SMK: In what ways is the Duqm facility climate-responsive and sustainable?
SRT: When we first built the facility, solar wasn’t cost-effective for us. But now, we have a tender out to retrofit solar. We're also working with the Ministry of Electricity to make sure we can eventually feed back into the grid. Sustainability is not a one-off; it's a journey. We've already taken steps: LED lighting, inverter ACs, water conservation, sewage treatment plants, and more. We track utility use per building and use non-invasive tech to identify inefficiencies. We've landscaped with recycled water—not just for aesthetics, but because it signals dignity. Workers relax on the grass, outside the mosque—it’s part of how we show respect.
SMK: Does investing in welfare improve business performance?
SRT: Absolutely. We don’t have a formal impact report, but the benefits are clear: better retention, fewer safety incidents, lower energy costs, and stronger performance. We had a large company conduct a post-implementation audit when we first introduced these standards—they found improved safety, less attrition, and better productivity. During COVID, we proved that we could keep infection rates lower than national levels by having better infrastructure. The IFC visited Duqm before financing the refinery and ticked off our accommodation as compliant. So yes, we see it as an investment—not a cost.
SMK: Could this Duqm model be replicated elsewhere in the region?
SRT: Yes, but not as a copy-paste job. Every project is different. The key is not the physical buildings, but the principles behind them—dignity, safety, and respect. Duqm works because everything is integrated: housing, medical care, food, recreation, even mental health. In places like the UAE or Qatar, some of these services may exist outside the fence in the surrounding ecosystem. But the ethos can travel. Whether you’re building in a remote zone or an urban one, these values should be embedded.
SMK: How did Duqm evolve into a regional benchmark?
SRT: Duqm is a strategic bet. We believed in Oman’s Vision 2040, which positioned Duqm as a future-facing hub—with industrial growth, green energy, and smart logistics. We built the facility before major projects arrived—like throwing a party before guests show up. But it worked. Duqm is set to host new projects in green steel, hydrogen, and petrochemicals, and our facility will play a central role in that. We’ve worked closely with the Public Authority for Special Economic Zones and Free Zones (OPAZ), SEZAD, the Royal Oman Police, and others. When some employers housed workers in substandard conditions, the authorities intervened to enforce the standard. They agreed: that sub-standard worker living conditions are not acceptable. They’ve since pointed others to us—not to favour us, but because they want Duqm to reflect national values. We don’t see it as our facility. It belongs to the country. It’s a tool for attracting international investment. And it sets a standard—not just for Duqm, but potentially for the wider region.