Oman’s heritage is at stake as it seeks investors for ‘lavish’ city

The growth of Muscat must be handled with sensitivity

December 10, 2024, 2:04 PM

Muscat expansion plan — Muscat's heritage and low-rise skyline could be compromised by an ambitious $25 billion city expansion plan

Oman has approved plans to expand its capital, Muscat, into surrounding desert areas at a cost of $25 billion. This ambitious endeavour will lean heavily on investor funding to bring the vision to life.

The Greater Muscat Structure Plan, approved by the cabinet of ministers last month, will boost the city’s connectivity. Road congestion in many parts currently creates havoc for drivers entering and leaving their offices during working hours. It also causes problems at weekends when city dwellers go out with their families for leisure pursuits.

Currently, Muscat lies on a narrow strip of land, flanked by desert sands. The new plan will widen the city and incorporate new houses, commercial buildings, shops, parks, hotels, road networks, bridges, and cable cars.

A metro system is also planned to link Muscat’s old and new areas.

Additionally, the scheme has weather protection benefits. Muscat has a longstanding issue with flooding. Almost half of the city is at risk from floods caused by wadis – dry riverbeds – which crisscross the city. Under the new plan, bridges will be built over these areas to stop traffic disruption during the wet season.

Something old, something new

A tender will be issued in January 2025 for contractors to bid on the Muscat expansion, which some government circles have already dubbed the “lavish city”.

According to plans, the government will complete the project within five years. The expansion will be divided into five phases, each costing $5 billion, making the scheme more feasible and attractive to individual investors.

Sources in the Omani government say some investors have already been identified and negotiations have started with positive results. These potential investors hail from the UAE, Saudi Arabia, Qatar, China, Turkey, Belgium, the UK and the US, as well as local companies.

But however ambitious Oman wants to be, it should remain mindful of its heritage. In 1983, the government passed a law requiring buildings in any part of the country to be no higher than five floors.

This approach ensures that Oman’s natural beauty and cultural heritage are preserved – a principle the sultanate has successfully upheld.

Still, the question remains: will investors align with this vision, especially when billions of dollars are at stake for this ambitious city expansion?

The five-storey building limit, as well as Muscat’s historic villages, ancient water canals and landmarks could pose significant challenges for developers. While central to Oman’s identity, these unique features may complicate large-scale investment and urban development plans.

On the other hand, Oman is facing economic challenges where its income still heavily depends on oil and gas production, so expansion of its capital may well be the boost that the country needs.

The city will have new roads where drivers will pay tolls, cable cars on mountains, restaurants, accommodation, and tourist attractions. Muscat has the country’s fastest-growing population, and investors can also solve the problem of a housing squeeze by building thousands of residential units.

All these privately funded projects will save the government money and help reduce its annual fiscal deficits. They should also earn government revenues from VAT and corporate tax.

The new blueprint will undoubtedly be a national boost. But will Oman compromise on its heritage by making concessions in expanding Muscat for a more prosperous future?

Saleh Al-Shaibany is a journalist and lecturer, and CEO of AlSafa Press & Publishing