Spending five days in Muscat, Oman, showed just how actively the country is pushing beyond its oil-based image, embracing sustainability, smart cities, and a strong desire to grow its tourism industry. My visit was enriched by engaging discussions with Tilman Enders, Deputy Head of Mission at the German Embassy, and an inspiring visit to the Modern College of Business and Science (MCBS). These encounters provided me with a deeper understanding of Oman’s transition away from oil dependency and its ambitious plans for a greener future.

Expectations vs. Reality

Before arriving in Muscat, I had a few expectations: primarily that Oman, as a Gulf nation, would be heavily focused on oil and gas, and that most discussions would revolve around these industries. I was also unsure about the level of hospitality I would experience. However, my visit completely shattered these expectations. The friendliness and warmth of the people in Muscat were remarkable.

One of the most fascinating cultural aspects I observed was the importance of family. Unlike in many parts of Europe, Omanis maintain strong ties even with their third and fourth-degree cousins. Another aspect that stood out to me was Oman’s architectural philosophy: rather than competing to build towering skyscrapers like in Dubai or Doha, the country has chosen to stay true to its natural landscape. Buildings are designed to harmonize with their surroundings, preserving Oman’s environmental integrity and offering a more grounded and sustainable urban aesthetic. This thoughtful approach to architecture reflects the country’s broader philosophy of life, one that prioritizes well-being, family, and community over the pressures of a work-driven, high-stress lifestyle focused solely on material gain.

Insights from the German Embassy

I would like to express my sincere gratitude to Tilman Enders, Deputy Head of Mission at the German Embassy, for his time, expertise, and invaluable insights into Oman’s economic and sustainability strategies. His perspective provided a deeper understanding of the country’s shift towards renewable energy and its broader vision for the future.

One of the key takeaways from my discussions at the German Embassy was that Oman’s oil reserves are expected to decline by 2040, leading the country to invest heavily in renewable energy and sustainable urban projects. The government is proactively seeking international partnerships and funding to accelerate its transition towards clean energy, with a particular focus on green hydrogen, solar, and wind power.

This commitment to sustainability has also made Oman an attractive destination for international investment. Oman attracts substantial foreign capital, with the United Kingdom leading at 52%, making it the country’s most significant investor. This is largely due to the strong presence of British multinational companies such as BP, which has made major investments in Oman’s energy sector, particularly in projects like the Khazzan gas field. China has also been expanding its presence, strategically investing in infrastructure and energy, further diversifying Oman’s international partnerships. Meanwhile, Germany’s involvement remains smaller, presenting a significant opportunity for deeper collaboration in areas such as renewable energy, smart infrastructure, and sustainability projects.

Siemens Energy’s Role in Oman’s Renewable Future

Siemens Energy is playing a crucial role in supporting Oman’s sustainability transition. The company has been involved in projects such as:

• SQU Microgrid Project – A renewable energy microgrid at Sultan Qaboos University designed to enhance energy efficiency by integrating solar, wind, and battery storage for reliable and sustainable power. The project, costing approximately $10 million, serves as a model for future decentralized energy systems in Oman.
• Ibri II Solar Plant (500 MW) – A major solar power project with a total investment of $417 million, contributing to Oman’s goal of sourcing 30% of its energy from renewables by 2030.
• Green Hydrogen Initiatives – Siemens Energy has signed multiple agreements with Omani government entities (Hydrom, OIA, and EDO) to develop local electrolyzer production and scale up green hydrogen projects. The initiative, with an estimated investment of $3 billion, is part of a long-term strategy to establish Oman as a global leader in green hydrogen, with phased developments continuing beyond 2027.

Smart Cities: Building a Sustainable Muscat

Muscat is undergoing an urban transformation through smart city initiatives, aligning with Oman Vision 2040. The Sultan Haitham City project aims to accommodate 100,000 residents while integrating solar power, waste-to-energy systems, and smart infrastructure like air quality monitoring, smart lighting, and micro-mobility solutions.

Financially, the city represents a $2.6 billion investment, structured as a public-private partnership (PPP), ensuring both innovation and economic sustainability. Another promising development is The Sustainable City – Yiti, which focuses on solar energy, water conservation, and smart waste management systems.

Additionally, Muscat is investing in urban rejuvenation projects, such as the Al Khuwair Downtown Project, to enhance public transportation and smart city infrastructure.

The Role of Youth & Education

My visit to the Modern College of Business and Science (MCBS) was a highlight of the trip. The college welcomed us with open arms, and we had the opportunity to meet with student club leaders and discuss collaborative projects between Omani and European youth—particularly in sustainability initiatives. One particularly inspiring encounter was with @Sadiya Al Bakri, founder of EFP Oman, who is helping advance recycling habits in the country through a dedicated app. This engagement underlined the importance Oman places on empowering its youth to drive forward the country’s sustainability agenda. Inspired by this experience, my goal now is to help build a meaningful bridge between EU youth and Omani youth, fostering mutual learning and collaboration through shared sustainable initiatives and long-term partnerships.

Tourism & Economic Diversification

Oman is looking beyond its traditional revenue sources and focusing on tourism as a key sector for economic growth. Unlike Dubai and Qatar, which emphasize luxury skyscrapers and high-end experiences, Oman offers a more authentic, nature-oriented tourism model with traditional architecture and preserved landscapes. The country’s tourism sector has seen steady growth, with a 348% increase in international visitors in 2022 compared to the previous year. By 2040, Oman aims to attract 11 million international tourists annually, supported by major investments in eco-tourism, adventure tourism, and cultural heritage sites. Additionally, Oman’s hospitality sector is expanding, with new luxury resorts and sustainable tourism projects being developed along the coastline. The people are extremely welcoming to tourists, making it an attractive destination for those who want to explore a new country and connect directly with its people, who are eager to share stories about their heritage, culture, and way of life.

Challenges & Opportunities

While Oman is making significant progress, some economic challenges remain. The official unemployment rate is 2-3%, but in reality, estimates suggest it could be as high as 40%. The country’s work culture is noticeably different from Germany’s: life in Oman is more relaxed and family-oriented, whereas in Germany, work and career advancement are prioritized. Additionally, capitalism and loans are generally viewed negatively, reinforcing a more community-based approach to economic life.

Oman is also a relatively young country in terms of urban development. An “old” house in Oman typically dates back to the 1970s, whereas in Europe, it’s not uncommon to see buildings from the 1800s still in use. This youthfulness translates into vast opportunities: there is plenty of land, clean air, and space for new business and development initiatives. However, it’s important to note that Oman cannot be directly compared to Dubai in terms of business dynamics. The intensity of capitalism present in other Gulf states is much more subtle here, reflecting Oman’s emphasis on sustainable growth, social cohesion, and quality of life over aggressive economic competition.

Final Thoughts

My experience in Muscat left a lasting impression. Oman is on a clear path towards sustainability, with major investments in renewable energy, smart cities, and youth empowerment. With its commitment to green hydrogen and sustainable urban planning, the country is shaping a future that balances economic growth with environmental responsibility.

I look forward to seeing how Young European Leadership (YEL) can collaborate with Omani youth in future sustainability projects, fostering connections between European and Omani young professionals to drive a more sustainable and innovative future together.

Thanks for taking the time to read through my reflections. I hope it gives you a fresh look at a country that’s often overlooked but full of potential, perspective, and people worth getting to know.

P.S.

A big thank you @Qais Almaskari, who generously showed us around Muscat and shared insightful stories about Oman’s culture, history, and everyday life.
I’d also like to thank the following people from the MCBS who welcomed us so kindly and made our visit even more meaningful:

Maryam Al Subhi, Zainab Al-Harthi, Salma Khamis Suleiman, Hamda Bait Ishaq, Noor AlBalushi, Jokha Al Alawi, Naima Alkaff, Aya Mohammed Al Hadidi , Sheikha Al Mahrooqi, Nawra Al Jamalani, Badriya Al Balushi, Shaima Al Balushi.