CALMLY DOES IT
Unlike some of its neighbours, Oman has taken a softly, softly approach to development and retained its unique character
A gentle approach to development has ensured Oman’s capital has retained its character
Oman’s maritime history is woven throughout Muscat. Everywhere you look in the capital, from its roundabouts to the Royal Opera House, there are photos, paintings and murals depicting the country’s seafaring heritage.
It’s hardly surprising when you consider that the Sultanate anchors the Arabian Peninsula to the Indian Ocean, its 1,700km of rugged coastline extending from the border of Yemen to the rocky enclave of Musandam in the north. And this is the home of Sinbad, after all.
Twenty years ago, Dubai’s rising sun was all but eclipsing Oman’s ambitions as a tourist destination. Thanks largely to Sultan Qaboos bin Said Al Said, Muscat retained its identity and avoided the kind of
untethered development that saw its glitzy neighbour swamped by shopping malls and offshore projects.
The capital relied on a handful of international hotel chains that happily, if sleepily, plied their trade to expatriate engineers, oil and gas executives, teachers and nurses. Infrastructure outside of the city was practically non-existent, its coastal roads pot-holed and treacherous if one of the frequent typhoons had blown in.
Muscat’s patience has been admirable – it has been ripe for development for decades, the Sultanate’s GDP in 2000 being US$19.51 billion, compared with US$79.29 billion today. Some 51 per cent of this is down to Oman’s oil and natural gas extraction; however, according to a new report by the World Travel and Tourism Council, tourism is set to skyrocket, with its value predicted to reach US$8.67 billion alone over the next decade, making it 8.9 per cent of GDP by 2028.
All the same, the past 18 months have been less than smooth and the International Monetary Fund lowered the country’s forecast growth rate from 1.1 per cent to 0.3 per cent, largely down to a decline in oil prices.
A SENSE OF PLACE
To describe a city as quaint may seem trite, but not so with Muscat. It’s a place with its own distinct, almost village-like, aesthetic – a ten-storey limit is imposed on developments to keep the cityscape on a human scale. New roads that arc across the city have thankfully not diminished its character – it’s not quite the sleepy fishing port that it used to be, but neither is it Shanghai.
Ten years ago, the business traveller’s choice of five-star hotel within the city was limited to the Al Bustan Palace, the Intercontinental and the sleek, then newly built, Chedi, the precursor of things to come. The latest game-changer to hit the market is the Kempinski Muscat, which launched in 2017. The 310room property is located in the Wave district and has ten international restaurants and bars, an exceptional spa and a ballroom for 700 guests.
In June, the 279-room W Hotel Muscat opened in the beachfront Shatti Al Qurum district, giving a considerable boost to the capital’s bid to capture more of the luxury tourism market.
LAND OF OPPORTUNITY
Earlier this year, Minister of Tourism Ahmed bin Nasser Al Mahrizi signed 11 agreements for projects across the country that would include multiple hotel and resort developments, Omani heritage markets, souqs, commercial districts and harbours.
Mohammed bin Hammoud Al Zadjali, director-general of investor services and quality management at the Ministry of Tourism, says the signings are part of efforts to encourage investment. “These agreements are expected to increase tourism facilities and services to boost economic development and diversify sources of national income as part of an ongoing government strategy,” he says. “They will serve local communities by creating employment opportunities for Omani youth, while empowering the tourism sector as one of the five major sectors adopted in the national programme to promote economic diversification.” The other four are oil and gas, water resourcing, agriculture and fisheries, and banking. Amit Garg, director of operations and development at Al Nahda Hotels and Resorts, whose portfolio includes the luxury Dunes desert resort in Wadi Al Abyad sands, explains some of the other ways that the
The tax-free incomes enjoyed by expatriate workers continue to be a draw
country is trying to boost its appeal: “The implementation of electronic visa processing at the new Muscat International airport terminal, improvements at Port Sultan Qaboos, and the success of the Oman Convention and Exhibition Centre since it opened in 2016 mean tourism in Oman is now booming.” In this, he says, the country is aided by its “character, charm, natural attractions and legendary Omani hospitality”.
INVESTING FOR THE FUTURE
In March last year, Muscat International opened its new terminal, increasing passenger capacity from 14 million per year in 2017 to an anticipated 20 million this year (though it is still some way off reaching that figure), with future phases planned that will boost it still further to 48 million. The airport now features a 97-metre air traffic control tower and second runway (for more on the new airport terminal
see our next issue). National carrier Oman Air stables a modern fleet of 53 aircraft here, including five Boeing Dreamliners.
The country’s MICE offering is relatively small, but the Oman Convention and Exhibition Centre is expected to show significant returns over the next few years as it draws from the over-subscribed UAE and Saudi Arabia markets. A short hop from the airport, it boasts 22,000 sqm of exhibition space and a 3,200-seat theatre.
While investment in tourism remains strong in Oman, it is dwarfed by the mega developments of its neighbours, especially Doha and Dubai. Still, government investment e-portal Omanuna is keen to point out its location overlooking international and regional sea lanes, and ports that “open new horizons for investment and free trading”. It has four free zones, including Salalah in the south and Musandam in the north, while the tax-free incomes enjoyed by expatriate workers continue to be a draw.
Muscat is an attractive proposition to those willing to invest long-term and accept this ancient, culturerich part of Arabia which has a tendency to move at a more leisurely pace. That said, Oman has been trading internationally for centuries. One of the world’s most valuable commodities, Frankincense, once emanated from this country. The trading mentality is firmly hardwired into the Omani DNA.