Why Oman’s $5B Smart Cities Are Different

The United Arab Emirates built the world's tallest skyscraper in Dubai. The world's tallest building. Burj Khalifa. Qatar constructed a state-of-the-art capital and hosted the most expensive FIFA World Cup in history. Champions! And Saudi Arabia is building a megacity that would probably cost over a trillion dollars if it ever got completed. These countries have rapidly developed, driven by immense oil wealth and ambitious megaprojects. But what is neighboring Oman doing? Do they have their own megaprojects? The answer is yes. But they're going for a completely different approach. They're building carefully planned districts with a focus on renewable energy and not a single skyscraper in sight. Hey, I'm your host Regis, and today we're exploring Oman's own race against time. A race shaped by limited oil revenue and the pressures of a growing population. This is one of Oman's visions of the future. A new district in the capital Muscat. Comparing it to cities like Dubai or Doha, you're probably wondering why does it look so small? Well, that's all part of the country's design philosophy. Today, the tallest building in Muscat is just 16 stories high. And that's a hotel that wasn't even built until 2016. To put that into perspective, Dubai had taller buildings back in the 1970s. This isn't because Oman can't build higher. They just don't want to, at least in most cases. To understand why, we have to hop way back to 1970, when a sultan named Qabos took the throne of what was then one of the most isolated countries in the world. Imagine a country with just 10 kilometers of paved roads, a place where most people lived without electricity, and even finding clean water was a challenge. That was Oman in 1970. But Sultan Qabos had a different vision for his country. While his neighbors rushed to take inspiration from Western-style development, he took a more traditional path. He didn't want to adapt to the Western style, and instead decided that every building in Muscat should blend with the coastal cliffs and mountains. Some visitors say it feels more like Switzerland than the Middle East. And that's exactly how Oman wants it. Instead of building shiny skyscrapers, they first focused on basic infrastructure and improving the quality of life. Today, the country's facing a new challenge. Oil and gas makes up 50% of the country's GDP and accounts for about 70% of government revenue because of the way the country's regulations and profits work. Relying so heavily on a single sector is, of course, a huge risk, especially with the world shifting away from fossil fuels. Compared to its neighbors, Oman's resources are also much smaller, and the clock is ticking faster than expected. The International Energy Agency has already predicted that global oil demand could peak as soon as 2030, so they have to find ways to diversify their economy. On top of that, Oman's population is set to explode from around 4.5 million to 8.5 million by 2040. And all those people are gonna need homes. And that's where Oman's Vision 2040 comes in. Oman spent years talking to everyone, from business leaders in Muscat's marketplaces to fishermen in coastal villages. The message was clear. The people wanted progress, but not at the cost of their traditional values. The plan to achieve this is pretty ambitious, like completely rebuilding the economy type of ambitious. For the last half century, they've relied on oil. Now, they're planning special economic zones to attract international business, massive infrastructure projects to make Oman a regional transportation hub, and something they call the National Program for Enhancing Economic Diversification. And they're rebuilding their entire school program, too, training the next generation of Omanis for future skills. That means upgrading their education, with a focus on creativity, problem-solving, and modern tech like AI, blockchain, and robotics. At the same time, they're restructuring government services, promoting sustainable resource management, and even working to create a circular economy, where waste becomes a resource. Besides that, working on infrastructure and housing is crucial. One important development of Oman's Vision 2040 is Sultan Haytham City. Forget everything you know about Persian Gulf megaprojects. There are no artificial islands, robot police, or flying taxis here. Instead, you're looking at 19 neighborhoods spread across an area three times the size of Central Park. These neighborhoods might look traditional, but they're packed with cutting-edge technology. Muscat has already proven this concept works. They're installing over 13,000 smart LED streetlights that can reduce energy usage by up to 85%. Sultan Haytham City is taking this idea even further with a city-wide network of sensors monitoring everything from air quality to traffic flow. Instead of cramming everyone into high-rises, they're creating 20,000 new homes of different sizes and styles, but in buildings that don't block the mountain views. Each one is positioned to create natural shade and even catch a breeze. Now, on top of that, they're turning a seven and a half kilometer riverbed into a massive Central Park, 1.6 million square meters that's being transformed into what they're calling a central green spine. During the dry season, it's a massive park with walking trails and recreation areas. When the rains come, this same space acts as a natural flood management system, protecting the surrounding neighborhoods while helping to conserve water. The university campus sits next to innovation centers, and the 39 schools are spread so that every kid can walk to class. Even the 25 mosques are positioned so they're just the right distance for daily prayers. There's a 1,200 bed hospital, sports facilities, and commercial areas designed to support local businesses. They're building networks of pedestrian paths and bicycle lanes, and even planning a mass transit system to connect it all to Old Muscat. It's a huge four-phase plan, and they're taking their time to make sure they get it right. Now, the first phase isn't small. It covers about 5 million square meters and includes six modern neighborhoods. There'll be around 6,700 homes, ranging from detached villas to apartments. This phase kicked off last year, and it's expected to finish by 2030. The remaining phases are supposed to be finished by 2045 and make room for around 100,000 people. So Sultan Haytham City is just one piece of the puzzle. While this new community takes shape on the outskirts of Muscat, something very different is happening in the heart of the capital. To diversify its economy, Oman aims to boost tourism. And while most of its projects are completely different, this one might've taken a little bit more inspiration from its neighbors, though on a much smaller scale. The next part of Oman's vision is Al Kuwair downtown. This $1.3 billion waterfront project was designed by the legendary Zaha Hadid architects to create a statement landmark. Even though Muscat has strict height restrictions, this project is an exception, allowing buildings with a height of up to 150 meters. Still, that's tiny compared to Dubai, where skyscrapers stretch over 800 meters tall. The entire development spans 3.6 million square meters. It's an innovative solution to a challenging problem. How do you balance the ancient wadis, those natural desert waterways, with modern canals and waterfront development? The answer is something they're calling green and blue infrastructure. The natural wadis feed into a network of waterways, while the highway is transformed into a green corridor. From there, the development flows right to the coast, where carefully designed beaches and dunes protect the natural shoreline. Instead of wall-to-wall luxury towers, they're creating five distinct districts that work together like a living ecosystem. But instead of starting from scratch, they're taking a sustainable approach to the ministry campus. The existing government buildings will be retrofitted and refurbished, prioritizing material reuse and recycled construction materials. They're looking to turn it into a home for 64 and a half thousand people. Getting around will be different too. They're building a network of light rail, water taxis, and cycling paths. And the whole development is designed to be walkable, even in Muscat's intense heat. Construction began at the end of 2024, starting with the key infrastructure, like healthcare and education. The first phase is actually part of the bigger plan, connecting back to Sultan Haytham City. And further along the Gulf of Oman's coast, another ambitious project is taking shape, one that pushes sustainability even further. The Yidi Development Master Plan. Yidi is supposed to be the biggest sustainable community in the Middle East, a city that produces as much clean energy as it uses. 93% of the infrastructure is already in place, and the first wave of homes sold out immediately. The whole community will be up and running by 2026, making it the largest sustainable development in the region, and possibly the most ambitious. Every building will run on renewable energy. Rather than ending up in landfills, waste will get turned into energy instead. Probably the most amazing thing, I mean, it is a desert after all, is that 80% of the food people eat in Yidi will actually be grown right there in the city. Yeah, they're building a community that can actually feed itself. On top of that, electric buggies and shared e-bikes will replace cars on most streets. Urban farms will use advanced technology to grow food year round. The ultimate goal is to cut residents' carbon footprints by 78% compared to normal Omani housing. And it's all happening right now. So what's driving all these developments? With Oman's oil revenues projected to decline over the next 20 years, the country's rapidly diversifying its economy. Tourism has become one of the main focal points. The country kept its traditional markets thriving and preserved its cultural heritage while building the new facilities and infrastructure needed to welcome visitors from around the world. In 2023, over 3 million tourists visited the country, a 41% jump from the year before. They're coming for the mountains, ancient ports and traditions that stretch back centuries. By 2040, tourism alone should contribute 10% to the economy backed by $51 billion in new investment. Projects like the $2.4 billion mountain tourism development at Jabal al-Akhtar show that they're serious about actually making this happen. At 2,400 meters above sea level, it'll be a complete mountain community with its own wellness village perched higher than anywhere else in Oman. And it'll have space for 8,000 residents and welcome over 4,000 visitors every day. But tourism is just one piece of a much bigger transformation. Oman is also looking to open up new roles for women in the workplace. They're even changing how the government works, giving local communities more control over their future. As the plan comes together, investment is flowing in. There's $33 billion worth of new construction projects in the pipeline. And it's not just about the big showcase projects either. Across the country, smaller developments are taking shape too. New roads are connecting remote communities. Ports are being modernized. Even traditional industries like fishing and agriculture are being updated with new technology. To make this huge countrywide development work, Oman knows that it can't just rely on natural resources. It needs to use everything, including the most important resource of all, the Omani people themselves. And that could be the most important factor because at the end of the day, the measure of a country's success isn't how fast it grows or how much money it makes. It's whether it works for the people who actually live there. Oman is taking a completely different path from its neighbors. But will it work? We're curious to read your opinion on this one in the comments down below. And if you enjoyed this video, make sure to subscribe to Megabuilds. As always, thank you so much for watching and we'll see you in the next video.