I just did a day-trip driving from Dubai to Khasab, Oman, and would like to share my experience. When I did the research, it would seem to be very expensive to do a day trip and I found plenty of conflicting info. It was easy to do. I rented a car for a day from Sixt at Dubai Airport upon arrival, and drove it along Musandam Peninsula to Khasab, Oman and back in 7 hours total. Although some car rental agencies (such as AutoEurope) demanded 250 AED (Arab Emirate Dirham) or about US $75 extra for expanding insurance coverage for a trip to Oman, Sixt arranged an official letter authorizing me to take their car into Oman (thus implying their insurance would cover it). This was sufficient for Oman border control folks - and it was free from Sixt! Sixt one day rental for a small car cost me US$88 total, including full insurance. Also, since I got into UAE via Dubai, the entry visa to Oman only cost 50 AED, I think. The border crossing is open 24/7 and very smooth (maybe it took 10 minutes?), and has clean restrooms (bring your own toilet paper!) Along the Musandam Peninsula vendors take AED money so there is no need (and indeed nowhere) to exchange money. The trip was nice, but not until you get into Oman (AED portion is very dusty with multiple cement factories, and many road construction/repair sections). On the Oman side, the water is a beautiful dark green, with beaches and gorges and no tourists in sight. The drive to Khasab reminded me of Highway 1 north of San Francisco, California, but not as winding and easy to drive. There are few places to stop and rest along the way, since most towns are no more than few houses. I stopped at a tiny cafe in a tiny village called Jerry Beach and had coffee and chatted with the owner (in English). Khasab is a big town in comparison with several streets and restaurants, but I didn't stay to explore - it's not particularly scenic there. I stopped many times to take pictures on the outbound (4 hours), and drove straight back on the return (3 hours). It was enjoyable - highly recommended if you want to have a break from Dubai's Las-Vegas-on-steroid scene.