Zahran Alqasmi, who has published four novels and 10 poetry collections, is the first Omani winner of the prize, now in its 16th year.
Alqasmi, 49, will receive $50,000, and the prize committee will provide funding to translate the novel into English, organisers of the annual award said on their website.
"The Water Diviner" tells the story of Omani villager Salem Bin Abdullah, hired by his community to find groundwater reserves. It touches on issues of water scarcity and extreme weather events such as floods.
"'The Water Diviner' by Zahran Alqasmi explores a new subject in modern fiction: water and its impact on the natural environment and the lives of human beings in hostile regions," Mohammed Achaari, chairman of the judges' panel, said in a statement.
Alqasmi, who has published four novels and 10 poetry collections, is the first Omani winner of the prize, now in its 16th year.
He was announced this year's winner at a ceremony in the United Arab Emirates' capital of Abu Dhabi.
In an interview for the prize's website, Alqasmi said the book had an additional focus: "on how women also caused changes in the life of the main protagonist."
Five other shortlisted authors, from Algeria, Saudi Arabia, Iraq, Libya and Egypt, will each receive $10,000, the organisers said.
The award is supported by Abu Dhabi, which has taken steps to position itself as a cultural hub.
Set in a grand old Gothic manor in England, Emma Rous’ latest follows two girls from their teens to present day lives, and the web of suspense that envelopes them.
In “The Island of Sea Women,” she explores a unique culture where women go to the sea daily while men stay home to care for children.
Jenny Bayliss’ breezy rom-com follows near-perfect singleton Kate as she navigates the dating world in search of a partner just in time for the holidays.
'I do not have thoughts and feelings like humans do," Ai-Da said. "But the objects mean a lot to me if they succeed in their aim, which is helping the viewer question the role of new technologies in our lives.'
Holland stars in the psychological thriller 'The Crowded Room' as Danny Sullivan, who gets arrested for his involvement in a New York City shooting in 1979.
The dialogue has all the ums and ahs, botched sentences and awkward small talk one might expect from actual human beings, not slickly intelligent Aaron Sorkin creations. And it’s one of the most tense and exciting films of the year.