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Oman Invests in $2.6 Billion ‘Smart’ City to Diversify Economy and Preserve Local Culture

Oman is embarking on a transformative journey with its $2.6 billion ‘smart’ city project, Sultan Qaboos City, signaling a significant departure from the high-rise dominated skylines typical of cities like Dubai. This initiative aims to modernize Muscat while preserving its unique character, offering a blend of housing for locals, expatriates, and tourists within a more sustainable, low-rise urban environment. The development is part of Oman’s broader strategy to diversify its economy away from oil, addressing housing needs for its growing population, and enhancing its appeal as a tourist destination. However, there are concerns about maintaining the balance between development and retaining the city’s cultural identity.
  • Oman is investing billions into modernizing Muscat with projects like Sultan Qaboos City as it seeks an economic future beyond oil.
  • The development aims to offer a practical model for Middle Eastern cities, featuring low-rise buildings and providing thousands of homes for both locals and expatriates.
  • With a projection to house 100,000 people, the city plans include over a dozen neighborhoods, 25 mosques, and 39 schools, aiming for completion by 2045.
  • Oman’s approach contrasts with more grandiose projects in the region, such as The Line in Saudi Arabia or Egypt’s new administrative capital, due to its smaller budget and population.
  • The country values its local atmosphere and is cautious about becoming another Dubai, focusing on maintaining the community feel and service-oriented job market for Omani citizens.
  • Oman faces challenges in convincing its population to embrace denser living conditions, with current preferences leaning towards single-family homes in low-density areas.
  • The government is planning a mass transit system to connect Sultan Qaboos City with the old city, aiming to reduce traffic and improve the urban environment.
  • The mega project also plays a key role in Oman’s tourism strategy, hoping to attract visitors with its historical sites and political stability without resorting to the flashy projects characteristic of Dubai.
  • Concerns remain about the potential for new developments, like the $1.3 billion waterfront project, to disrupt Muscat’s skyline and local character with high-rise buildings.
  • While aiming to attract investment and tourists, there is an ongoing debate about balancing spectacular developments with the needs and values of the local population.

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