Country Guides Country Guide: Oman

Date Published:

24/06/2008

One of the most pro-Western countries in the Gulf, the natural tourist hub of Oman is giving its glitzier cousin Dubai a run for its money in the freehold property race.

The Market

While the international spotlight seems perpetually trained on the City of Souks, the Shopping Mecca of the Middle East or whichever of the many epithets Dubai's spin doctors happen to be extolling, neighbouring Oman is quietly carving out its own share of the Gulf real estate pie.

Bordering the Indian Ocean on the eastern extremity of the Arabian Peninsula and flanked by Saudi Arabia, Yemen and the United Arab Emirates (UAE), visitors to the ancient kingdom are lapping up the country's sun-kissed conservatism- its long association with Britain having left a pro-Western legacy rooted in history and heritage with a purpose beyond black gold, Ferraris and designer malls.

Real estate is the country's latest "thrust area", with new ownership laws announced in 2004 and ratified by Royal Decree in February 2006. These rules now allow foreigners to purchase freehold properties in "designated tourist areas", developers opting for low-density projects with architectural styles sympathetic to the local heritage qualify for this.

"Oman is a world away from the 'can-do' bustle of Dubai," says Alex Upson of agency Cluttons, "but it's got all the essential ingredients; sunshine, sandy beaches, and plenty to do from sailing and diving to dolphin watching and off-roading."

Real estate fundamentals are also boosting overseas interest, off-plan investments having appreciated by over 40% since 2004, with the Omani Rial peg to the US dollar lending further confidence. The possibility of a single Gulf currency is proving a further draw, cushioning would-be investors from the adverse effects of dramatic currency fluctuations.

"Oman has never underestimated its tourism potential," says Marta Andreeva of the Shangri-La Group, "gearing itself from the outset towards a high net worth market. Three or four years ago hotel occupancy averaged around 30%. Now it's nearer 90%, with over one million visitors a year and growing."

The country's other undisputed asset is its geography, boasting over 1,700km of pristine coastline and a variety of landscapes beyond the archetypal wind-blown desert scrub. The nation is divided into three governates- Muscat embraces regal forts and shallow sandy beaches, Dhofar to the south verdant features woodland and freshwater creeks while the rugged northern tip of Musandam attracts expats who enjoy a spot of bayside fishing and camping. Head inland and the "interior's" apricot coloured mountains and steep canyons alternate with vast dunes, sabka (salt flats) and exotic wadis (riverbeds), while the glitz-free capital Muscat makes a pleasant change from Abu Dhabi or even Sharjah's formulaic skylines.

The architecture is best described as low-key and traditional, offering vistas of whitewashed mansions squeezed between the only true high-rise features, clusters of small, rocky mountains with razor-sharp summits. Flight time from the UK to the capital at around eight hours isn't bad either for long haul; BA and Gulf Air two of a growing number of airlines offering non-stop flights from Heathrow, with additional connecting flights via Dubai and Abu Dhabi.