The Omani Government has approved $1.83bn to fund the construction of the proposed passenger terminal at Muscat International Airport.
The contract has been awarded to a consortium of US-based Bechtel, BEC and Turkey's INCA, which will deliver the project.
The new terminal building will be designed to handle 12 million passengers a year.
The airport will also have a new northern runway, an air traffic control tower and a new air traffic management system, operational by March 2014.