Muscat is the capital and largest city of Oman. The city of Muscat is the combination of three smaller towns that have blended together over time. There are three distinct sections of the city because of this. What used to be the smaller town of Muscat, referred to as “the walled city”, was home to the royal palaces. Matrah was a fishing village. Ruwi was and still is the commercial and diplomatic center of the city.