Circular economy (CE) is a sustainable substitute for the current linear model of economy, and its adoption within the Omani built environment is increasing due to resource depletion and increased waste generation. The construction industry in Oman is one of the first among countries in the Arab states to pursue sustainable development. However, understanding the implementation challenges associated with CE is important to this region, as it attempts to diversify its economies beyond oil and gas, which is vital to the success of the country. The main challenges identified within the literature in relation to CE include a lack of knowledge of the concept, unclear financial implications, misaligned regulations and a lack of transparent technical data. The aim of this study was to explore such challenges within the context of Oman, and an exploratory study consisting of ten interviews and 80 survey responses was undertaken. Factor analysis results revealed that the critical challenges of CE ultimately begin with government barriers such as the absence of a clear vision and legislation supporting CE. This was followed by a lack of government funding for research, innovation and investment, as well as technical barriers such as a lack of qualified professionals in the field.