Muscat’s considered approach to its development has reaped rewards, says Ian McCurrach
Many column inches have been devoted to the economic problems of the once booming Dubai. It may now be home to the world’s tallest building, the mighty Burj Khalifa, which opened in January, but the emirate’s reputation as the regional hub of commerce has taken a direct hit.
Not so Oman. In sharp contrast to its neighbour, it has steered clear of the high-rise building frenzy and glitzy tourism. Instead, the savvy sultanate has concentrated on educating its young population, utilising its natural resources of oil and gas, and focusing tourism on its heritage. As a result, its economy is stable and business is flourishing.
Oman’s strategic position at the mouth of the Gulf and the narrow Strait of Hormuz gives it a major stake in controlling one of the world’s most crucial chokepoints. Some 40 per cent of the world’s exported oil passes through Omani-controlled waters, making it a major global player and a force to be reckoned with.
Muscat, the capital, has a population of just over a million multi-ethnic residents. The city has experienced rapid development since Sultan Qaboos Bin Said Al-Said came to power, after overthrowing his father in 1970. He opened up and transformed what was an introverted and isolated country with no infrastructure, and it is thanks to his vision that Muscat is now known as an international capital of commerce.
There is healthcare for the entire population, schooling is free and there are numerous technical colleges and universities. Dual carriageways have been built throughout the country, providing a comprehensive road network, and there is about 85 per cent mobile phone coverage in populated areas.
Wedged into a narrow corridor of land spanning two to three kilometres between sea and mountains, Muscat’s suburbs sprawl for about 50km from the airport to Al Bustan, linked by a dual carriageway that snakes its way through the centre. Strict building policies dictate a traditional nod, so even the most functional construction is required to have an arabesque window or a dome.
The city is imposing, punctuated by ancient forts on rocky outcrops, and sparkles with pristine cleanliness. Significant amounts of money are spent on keeping the plentiful green spaces lush. Houses are large by European standards and there are few high-rise buildings, save for a handful of hotels.
Martin van Kan, general manager of the Al Bustan Palace hotel, one of the city’s most prestigious five-star properties, says: “Muscat is a delightfully vibrant city to visit and to do business in. Oman offers an authentic Arabian experience that’s not easily available elsewhere in the region, and its people are regarded as some of the most friendly, inquisitive and hospitable in the Middle East.
“Muscat has the added advantage of being a safe, family-friendly location, and you have freedom unlike in Saudi Arabia or Kuwait. Business visitors are attracted by its cosmopolitan feel and world-class facilities. You also have the opportunity to get out of the city and experience the true Gulf, which you don’t have in other countries.”
Keeping your cool is imperative when doing business. In summer, the temperature hovers between 30?C and 38?C during the day and drops to the low 20s from October through April. Business is generally conducted in English, with similar business attire to that worn at home.
Peter Hutchinson, finance manager at liquefied natural gas company Oman LNG, says: “If you are in a top-level meeting, a jacket would be expected and major oil managers will be suited and booted. Bankers, accountants and lawyers are always formally dressed. For ladies, trouser suits or skirts below knee length are appropriate and they must be covered from shoulder to elbow.”
Relationship building is important, Hutchinson says. “Much time is spent on greetings at meetings. After very formal introductions, expect to chat about family affairs and other niceties. Spend time on building up a good relationship with the Omani you are dealing with and in most organisations expect a dual head. There will be an Omani senior manager who was university educated in the West working alongside a foreign national.
“When dealing with women personnel, many traditional Omani men would not shake hands but some forward-thinking men would. As a general rule, don’t offer a hand to an Omani businesswoman unless she comes forward and offers hers first.”
Punctuality is expected but, in general, the pace of life is slower than in other developed countries. Processing business can take more time than expected, though, so factor in a third longer than normal to get through the various systems in place. Hutchinson says: “The strongest players with regard to government are British nationals. There is a very strong relationship between Oman and the UK – the sultan went to Sandhurst and enjoys a close relationship with the Queen.
“The next big players are the Americans, then French and Dutch. The US has recently developed a series of air bases for the Omani air force. A good way of looking at the expat population is in terms of the schools – there is one major British school in Muscat and one American/British academy along with a smaller American school and a French school.”
Expats have played a key role in developing industry. John Solosy, business partner of Hud Hud Travels, a company offering adventure excursions across the sultanate, says: “Oman is a relatively new country, and to gain an understanding of the expertise that is required in the core business areas, experienced individuals from the West and subcontinent have been relied on to help develop it. You have Indians, Filipinos, Europeans, Americans and Eastern Europeans all living next door to each other and getting along very well.”
Still, a staggering 70 per cent of the Omani population are below the age of 25 and a government scheme promoting “Omanisation” is in force. The programme encourages Omanis to replace functions previously performed by expats (over time as roles become available, within a given period). There are also strict stipulations regarding the number of Omanis to be employed by each industry sector.
Oman is governed by the monarchy and, in theory, the sultan is the sole decision maker. However, he is assisted by the Council of Oman and the State Council, which create short- and long-term plans for the country such as Vision Oman 2020. This aims to double the current per-capita income in the next decade, while maintaining economic stability.
Solosy says: “Nothing has been officially written on the subject but some high-level sources tell me that the two chambers act as equivalents to the House of Commons and the House of Lords. The sultan aims to empower these bodies to take more control and he has been trialling this over various summers, when he leaves Oman for three or four months, with the equivalent of a prime minister in charge. His long-term aim is to bring the country towards being a democracy.”
The airport is easily accessible at about a 30-minute drive from the central business district, which is sandwiched between the neighbourhoods of Ruwi and Bait Al Falaj. The service at the airport is noted as being particularly slick and there are excellent international flight connections. Erika Gusti Anggreini, marketing communications manager for Intercontinental Hotels Group Oman, says: “The best way of getting around the city is by taxi or hiring a car and driver. These are easily booked through your hotel and you should expect to pay approximately 110 rials (£190) per day.”
If you’re looking to start a new business venture in Oman, Hutchinson’s advice is to create good partnerships. “Businesses focusing on the younger generation are attracting a lot of funding so this is a good target market on which to concentrate,” he says. “Oman is also just coming on board with sustainable and environmental projects, so areas such as solar power are set to become big business.”
Oil is the largest industry, with Petroleum Development Oman, a joint venture between the Omani Government and Shell, the largest exporter. Some 80 per cent of the country’s GDP is based on oil, and the next is gas, the major players being Oman LNG and BP.
Some smaller subcontractors such as Oxy and British Gas also have a presence. Hutchinson says: “The recession has affected Oman slightly less than other countries thanks to oil being such a large revenue. The budget was previously based on US$60 a barrel so when it was running at up to US$130 or US$140 dollars there was a huge excess. As a result, government-generated business and projects that were created to diversify the basic industries away from oil were still receiving money invested in them, which kept the economy flowing.”
There is plenty of infrastructure in terms of four- and five-star hotels, shopping centres and restaurants, the latter of which tend to be found in the hotels. Anggreini says: “The Sheraton, the most central property for the business district, is currently closed for major redevelopment and is slated to open again in October. And the Intercontinental will close this summer for extensive refurbishment.”
The Wave urban development recently opened and is spread over 6km of beachfront near the airport. “Construction began five years ago and it is the first of its kind in that non-residents can purchase property here,” Anggreini says. “The development comprises a massive marina, shopping malls, urban villages, a golf course and Fairmont and Kempinski hotel properties.
“There is much going on in terms of property development in the sultanate,” she adds. “In central Muscat, a new development in Ras Al Hamra, on traditional Petroleum Development Oman land, will have a beachfront, residences and two hotels. Yeti and Sifah just outside the city will have hotels and residential components along with marinas and golf courses.” The first phase of all three developments is due to open in 2012.
Today, Oman has gained international attention as both a business and tourist destination. Al Bustan Palace’s van Kan says: “Muscat is a very moderate and understanding Muslim capital. The sultan has created a population that listens and isn’t judgmental of different cultures. As a result, there is good interaction between expat residents who live as they would in their own countries without too much adjustment.”
And whether you are wadi bashing on sand dunes in an SUV at sunset or pitching for a major new project with a partner, Hutchinson says: “Oman provides a uniquely safe Middle Eastern environment, and it is all the more attractive because of that.”
WHAT TO SEE
? Gain an insight into the local way of life at the Omani Heritage Village, situated at the Shangri-La’s Barr Al Jissah resort and spa. In keeping with the sultan’s determination to ensure that tourism is both educational and sustainable, visitors can learn everything from how to play local instruments such as ouds and drums to how to write their names in Arabic. Open daily 9am-10pm; entry is free.
? A trip to the Sultan Qaboos Grand Mosque, located in Al-Ghubrah suburb on the road to the airport, will reward visitors with a glimpse of the world’s second-largest hand-woven carpet in one of the world’s largest mosques. Accommodating up to 20,000 worshippers, this is one of the few mosques open to non-Muslims
(8am-11am only, except Fridays). Don’t miss the glittering, giant Swarovski crystal chandelier and the dome with its striking stained-glass triangles.
? Pay an early morning visit to the Muttrah fish market. Prepare to marvel as the fishermen unload their catch from their dhows, in a timeless scene that has changed little over the centuries. Everything from lobster to prawns is up for grabs for next to nothing. Afterwards, visit Muttrah souk, a labyrinth of delights where black-clad Omani women bargain for textiles, jewels, antiques and spices. Open daily 6.30am-8am.
? Drop by the Bait Al Zubair Museum in central Muscat for an instant immersion into all things Omani. Along with colourful displays of jewellery, handicrafts and model boats, there are collections of household artefacts, firearms and traditional clothing. Open Sat-Thurs 9.30am-1pm, 4pm-7pm; entry is 1 rial (£2); visit baitalzubairmuseum.com
WHERE TO STAY
Muscat has a good supply of major global chains and those who have set up camp here are large scale, super-luxurious and pricey. All have excellent business facilities.
Al Bustan Palace
The recently reopened and refurbished Al Bustan bills itself as the Sultanate’s first six-star resort (the Shangri-La also claims to have six stars). Set over a lush, 80-hectare beachfront estate, the property regularly hosts prestigious events such as the GCC summit. There are 200 spacious rooms and 50 suites. In-room wired/wifi internet access costs 10 rials (£17) for 24 hours.
? Rooms from 105 rials (£180)
? 14 Muttrah; tel +968 2479 9666; ichotelsgroup.com
Grand Hyatt Muscat
A 280-room, five-star property situated in the embassy and government district. Marble and gold leaf predominate in the grand public areas, while the John Barry bar and Sirj tea lounge are popular networking spots for both expats and locals. Wired internet access costs 17 rials (£29) for 24 hours.
? Rooms from 141 rials (£241)
? Shatti Al Qurum;
tel +968 2464 1234; muscat.grand.hyatt.com
SHANGRI-LA barr al jissah resort and spa
Stretching along one of the finest beaches in Muscat, this huge resort comprises two five-star properties and one swanky six-star. There are eight restaurants and myriad bars. Business travellers are well catered for at Al Bandar, which has 198 sea-facing rooms and plenty of meeting venues. Wired and wifi access is free. Chi the Spa at Shangri-La has 12 treatment villas for relaxing massages.
? Rooms from 176 rials (£301)
? Qantab; tel +968 2477 6666; shangri-la.com
Radisson Blu
Situated in the central business district, the hotel has 156 decent-sized rooms and suites. Dining facilities include the award-winning Al Tajin Grill and Grind Floor Italian café. For after-work networking pull up a bar stool at the lively Cellar bar. Wired internet access is free in the rooms and wifi in the public areas.
? Rooms from 97 rials (£166)
? Al Kuleiah Street; tel +968 2448 7777; radissonblu.com
