Overview
Oman’s development strategy must address the significant divide between urban centres, particularly Muscat, and rural areas across the interior and southern regions. Balanced geographic development is an explicit goal of Vision 2040.
Urban Development in Oman
Urban areas, primarily Muscat and the Batinah coast, account for the majority of Oman’s economic activity and population. Muscat alone houses over 1.5 million residents and is the centre of government, finance, and services. Urban infrastructure includes modern healthcare facilities, universities, shopping centres, and entertainment venues. Urban areas offer better employment opportunities and higher wages, driving continued internal migration.
Rural Development in Oman
Rural areas across the Dakhiliyah, Sharqiyah, Dhofar, and Al Wusta governorates face challenges including limited employment, lower service quality, and population outmigration of young people. However, rural areas are essential for agriculture, fisheries, mining, and tourism. Government investments in roads, schools, and health centres have improved rural connectivity and services. Initiatives like the Duqm development aim to create new growth poles outside Muscat.
Key Differences
Urban areas offer economic agglomeration benefits, better services, and more diverse employment. Rural areas have lower costs of living, stronger cultural traditions, and untapped natural resource potential. The urban-rural divide in income and services risks creating two-tier development. Rural depopulation threatens cultural heritage and agricultural productivity.
Verdict / Bottom Line
Vision 2040’s emphasis on distributed development is appropriate. Creating economic opportunities in secondary cities like Salalah, Sohar, Nizwa, and Duqm is more realistic than dispersing investment across all rural areas. Improving digital connectivity can bring services and remote work opportunities to rural communities, reducing the pressure for physical migration to Muscat.