Oman’s $2.6B ‘Smart City’ Megaproject Is Disrupting the Dubai Archetype | WSJ Breaking Ground

Summary

The video explores Oman's efforts to modernize its capital, Muscat, without losing its traditional character, as part of its post-oil future. Key projects, such as Sultan Haitham City, aim to balance development with the country's local atmosphere, contrasting the 'Dubai model' of skyscrapers and transience. The city is designed for denser housing but preserves individual privacy, with a focus on expats, tourists, and locals. However, challenges remain, including balancing urban growth with social equity and maintaining Oman's unique identity amidst regional pressures to adopt flashy, large-scale developments.

Takeaways

• 🏙️ Muscat is described as the anti-Dubai due to its low buildings and deep history, but Oman is modernizing its capital with projects like Sultan Haitham City.
• 💰 Oman is investing billions of dollars in new developments as it plans for a future without oil, aiming to modernize while retaining its local atmosphere.
• 🏘️ Sultan Haitham City is designed to house 100,000 people, with a mix of homes for locals, expats, and tourists, featuring low-rise buildings and practical urban planning.
• 🌍 Compared to mega-projects in the region like Saudi Arabia's The Line and Egypt's New Administrative Capital, Oman's ambitions are smaller but more focused on maintaining a local, sustainable feel.
• 🚶‍♂️ Oman values its local culture, with a high homeownership rate (89%), and seeks to avoid the transience seen in cities like Dubai, where only 15% of residents are locals.
• 🏗️ Housing remains a significant issue in Oman, with many citizens waiting years for lots of land, contributing to urban sprawl and traffic problems in Muscat.
• 🏡 Sultan Haitham City aims to encourage denser living while preserving privacy for families, with a planned metro system connecting the new and old parts of Muscat.
• 🛫 Tourism is a major focus of Oman's future economy, with the government betting on the country's rich history, stability, and picturesque setting to attract visitors.
• 🏢 Muscat's skyline is expected to change with new developments, like the $1.3 billion waterfront project, which includes high-rise towers geared toward high-end clientele.
• ⚖️ Experts caution that while flashy projects may attract investment and tourism, they risk widening wealth inequality, potentially leading to long-term social issues.

Q & A

What distinguishes Muscat from cities like Dubai?

Muscat is characterized by its low buildings, long history, and a large local population. Unlike Dubai, Muscat maintains a more traditional and modest urban landscape, emphasizing local culture over international investment.

What is Sultan Haitham City, and why is it significant?

Sultan Haitham City is a new development in Oman designed to house 100,000 people across multiple neighborhoods. It represents a model for modern urban development in the Middle East, with a focus on practicality rather than grandiosity.

How does Sultan Haitham City differ from other ambitious projects in the region?

Unlike large-scale projects like The Line in Saudi Arabia or Egypt's New Administrative Capital, Sultan Haitham City is more modest in scope and budget. This reflects Oman's smaller population, financial resources, and commitment to maintaining local traditions.

What are some of the key features planned for Sultan Haitham City?

The city will include more than a dozen neighborhoods, 25 mosques, 39 schools, and housing for both locals and expatriates. The buildings will mostly be six stories or less, focusing on a more human-scale urban environment.

What challenges is Oman facing with its housing policies?

Oman has a high homeownership rate (89%), but its citizens typically live in low-density areas. A housing lottery provides free land, but it can take years for recipients to receive lots far from developed areas, leading to sprawl and traffic issues in Muscat.

How does Oman's approach to urban development differ from the 'dubaization' model?

Oman aims to preserve its local character and resist the 'dubaization' trend of building from scratch with flashy skyscrapers. Instead, it focuses on practical, human-scaled developments that serve both locals and expatriates, rather than purely international investors.

What role does tourism play in Oman's development plans?

Tourism is a key part of Oman's strategy to diversify its economy. The country aims to attract visitors with its historical sites, picturesque setting, and political stability, while avoiding the need for large-scale, flashy developments seen in neighboring countries.

What potential problems might Oman face with its future urban development?

As Oman develops projects like Sultan Haitham City and waterfront developments, there is a risk of increasing wealth disparity. This could lead to social unrest if inequality grows, as seen in other regions during the Arab Spring.

How is Oman's new mass transit system expected to impact Muscat?

The planned mass transit system will connect Sultan Haitham City to the older parts of Muscat. It aims to reduce traffic and improve accessibility, but similar projects in the region have faced high costs and lengthy development times.

What are the long-term goals of Oman's urban development strategy?

Oman seeks to modernize while maintaining its local character and avoiding over-reliance on oil. The government wants to balance practical housing solutions for its citizens with tourism and international investment, ensuring sustainable growth without losing its identity.