Nation at a Glance - Oman

History

The inhabitants of the area of Oman have long prospered from Indian Ocean trade. In the late 18th century, the nascent sultanate in Muscat signed the first in a series of friendship treaties with Britain. Over time, Oman's dependence on British political and military advisors increased, although the Sultanate never became a British colony. In 1970, QABOOS bin Said Al-Said overthrew his father, and has since ruled as sultan, but he has not designated a successor. His extensive modernization program has opened the country to the outside world, while preserving the longstanding close ties with the UK and US. Oman's moderate, independent foreign policy has sought to maintain good relations with its neighbors and to avoid external entanglements. Inspired by the popular uprisings that swept the Middle East and North Africa beginning in January 2011, some Omanis staged demonstrations, calling for more jobs and economic benefits and an end to corruption. In response to those protester demands, QABOOS in 2011 pledged to implement economic and political reforms, such as granting legislative and regulatory powers to the Majlis al-Shura and increasing unemployment benefits. Additionally, in August 2012, the Sultan announced a royal directive mandating the speedy implementation of a national job creation plan for thousands of public and private sector Omani jobs. As part of the government's efforts to decentralize authority and allow greater citizen participation in local governance, Oman successfully conducted its first municipal council elections in December 2012. Announced by the Sultan in 2011, the municipal councils have the power to advise the Royal Court on the needs of local districts across Oman's 11 governorates. The Sultan returned to Oman in March 2015 after eight months in Germany, where he received medical treatment. He has since appeared publicly on a few occasions.

Location: Middle East, bordering the Arabian Sea, Gulf of Oman, and Persian Gulf, between Yemen and the UAE

Border Countries: Saudi Arabia 658 km, UAE 609 km, Yemen 294 km

Total Area: 309,500 sq km Land: 309,500 sq km Water: 0 sq km

Climate: Dry desert; hot, humid along coast; hot, dry interior; strong southwest summer monsoon (May to September) in far south

Terrain: Central desert plain, rugged mountains in north and south

Natural resources: Petroleum, copper, asbestos, some marble, limestone, chromium, gypsum, natural gas

Land use: Agricultural land: 4.7% arable land 0.1%; permanent crops 0.1%; permanent pasture 4.5% Forest: 0% Other: 95.3% (2011 est.)

Ethnic groups: Arab, Baluchi, South Asian (Indian, Pakistani, Sri Lankan, Bangladeshi), African

Languages: Arabic (official), English, Baluchi, Urdu, Indian dialects

Religions: Muslim (official; majority are Ibadhi, lesser numbers of Sunni and Shia) 85.9%, Christian 6.5%, Hindu 5.5%, Buddhist 0.8%, Jewish <0.1%, Other 1%, Unaffiliated 0.2% (2010 est.)

Population: 3,355,262 (July 2016 est.)

Literacy: 91.1%; Male: 93.6%; Female: 85.6% (2015 est.)

Administrative divisions: 11 governorates (muhafazat, singular - muhafazat); Ad Dakhiliyah, Al Buraymi, Al Wusta, Az Zahirah, Janub al Batinah (Al Batinah South), Janub ash Sharqiyah (Ash Sharqiyah South), Masqat (Muscat), Musandam, Shamal al Batinah (Al Batinah North), Shamal ash Sharqiyah (Ash Sharqiyah North), Zufar (Dhofar)

Economy: Oman is heavily dependent on oil and gas resources, which can generate between and 68% and 85% of government revenue, depending on fluctuations in commodity prices. In 2016, low global oil prices drove Oman’s budget deficit to $13.8 billion, or approximately 20% of GDP, but the budget deficit is estimated to have reduced to 12% of GDP in 2017 as Oman reduced government subsidies. As of January 2018, Oman has sufficient foreign assets to support its currency’s fixed exchange rates. It is issuing debt to cover its deficit. Oman is using enhanced oil recovery techniques to boost production, but it has simultaneously pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP. The key components of the government's diversification strategy are tourism, shipping and logistics, mining, manufacturing, and aquaculture. Muscat also has notably focused on creating more Omani jobs to employ the rising number of nationals entering the workforce. However, high social welfare benefits - that had increased in the wake of the 2011 Arab Spring - have made it impossible for the government to balance its budget in light of current oil prices. In response, Omani officials imposed austerity measures on its gasoline and diesel subsidies in 2016. These spending cuts have had only a moderate effect on the government’s budget, which is projected to again face a deficit of $7.8 billion in 2018.

Agriculture - products: Dates, limes, bananas, alfalfa, vegetables; camels, cattle; fish

Industries: Crude oil production and refining, natural and liquefied natural gas (LNG) production; construction, cement, copper, steel, chemicals, optic fiber