The incredible new £2bn mega city where 100k will move from ‘overcrowded’ capital

Oman is building a smart city to accommodate its growing population (Image: Getty)

is embarking on a new chapter in its urban development with the construction of , a smart city of $2.6 billion (£2 billion) designed to accommodate the .

As Muscat, the nation’s capital, faces increasing overcrowding, this massive project aims to provide a modern yet culturally sensitive solution for future generations.

Unlike the towering skyscrapers of Dubai, Muscat is known for its low-rise architecture and rich history.

However, with Oman’s population projected to rise from 5.2 million to 7.7 million by 2040, the country is investing in large-scale projects to ensure sustainable urban expansion.

Sultan Haitham City is at the heart of this strategy, designed to house 100,000 residents while maintaining Oman’s traditional urban identity.

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Breathtaking View of Muscat, capital city of Oman at Sunset

The smart city will be located in Muscat (Image: Getty)

Compared to the region’s other mega-developments, such as Saudi Arabia’s $100 billion “The Line” and Egypt’s $58 billion new capital city, Oman’s approach is more modest.

Authorities aim to strike a balance between modernization and cultural preservation, ensuring that native Omanis continue to play a central role in the country’s development.

Professor Yasser Elsheshtawy, an architecture expert at Columbia University, noted that Oman is determined to avoid “Dubaization”, a term describing cities transformed by high-rise buildings and tourism-centric economies.

The government’s goal is to foster sustainable growth without sacrificing national identity.

Oman has one of the highest homeownership rates in the world, with 89% of citizens owning their homes. However, many residents live in low-density areas, and government-issued land grants often take years to be allocated.

Sultan Haitham City aims to promote compact, well-planned neighbourhoods while preserving Omanis’ preference for private villas.

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Additionally, the government is planning a mass transit system to connect the new city with Muscat, potentially easing traffic congestion and improving daily commutes.

Beyond solving overcrowding, Oman hopes Sultan Haitham City will boost its tourism industry, which has yet to match the success of neighbouring Gulf nations.

While projects like the £1.3bn Al Khuwair Waterfront development signal a shift towards modern urbanization, officials remain cautious about over-commercializing the country’s historic charm.

While construction of Sultan Haitham City is expected to continue until 2045, questions remain about whether Omanis will embrace the new development.

Experts also warn that rising inequality could become a pressing issue as oil revenues decline, echoing concerns across the Middle East.

For now, Oman’s carefully curated approach to urban expansion stands in contrast to the rapid transformations seen in Dubai and Riyadh.

Sultan Haitham City represents a deliberate and culturally mindful step forward, shaping the future of Oman while preserving its past.

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