Oman (Sultanate of Oman)
General Data
Area: 309,550 km2
Population: approximately 2,845,000
Capital: Muscat
Sultan: Qaboos bin Said Al Said
Chancellor: Fahad bin Mahmood Al Said
Official language: Arabic
Religion: 95% Muslim
Government
Chief of state and government is the hereditary sultān, Qaboos bin Said Al Said who appoints a cabinet called the "Diwans" to assist him. In the early 1990s, the sultan instituted an elected advisory council, the Majlis ash-Shura, though few Omanis were eligible to vote. Universal suffrage for those over 21 was instituted on 4 October 2003. Over 190,000 people (74% of those registered) voted to elect the 84 seats.
Two women were elected to seats. The country today has three women ministers Rawiyah bint Saud al Busaidiyah -- Minister of Higher Education, Sharifa bint Khalfan al Yahya'eyah -- Minister of Social Development and Rajiha bint Abdulamir bin Ali al Lawati -- Minister of Tourism. There are no legal political parties nor, at present, any active opposition movement. As more and more young Omanis return from education abroad, it seems likely that the traditional, tribal-based political system will have to be adjusted. A State Consultative Council, established in 1981, consisted of 55 appointed representatives of government, the private sector, and regional interests.
Economy
Omani citizens enjoy good living standards, but the future is uncertain with Oman's limited oil reserves. Other sources of income, agriculture, local industries are small in comparison and count for less than 1% of the country's exports. The sales of imported products in markets provides income for people in Oman. Agriculture, often subsistence in its character, produces dates, limes, grains and vegetables. Less than 1% of the country is under cultivation but, in general, food has to be imported. Industries contribute only with 4%, but there are governmental plans to increase this.
Oil production is extracted and processed by Petroleum Development Oman. In recent years, proven oil reserves have been holding approximately steady, although oil production has been decreasing. Oman has other mineral resources including copper, asbestos and marble, but this is little exploited.
Oil and gas
Commercial export of oil began in 1967 and since Sultan Qaboos' accession to the throne in 1970, many more oil fields have been found and developed. In June 1999, PDO discovered a new oil field in southern Oman after drilling and testing three wells which demonstrated the commercial viability of the reservoir. This is the most significant find in five years.
Work is continuing on the RO 503.876 million (US$1.3 billion) oil refinery project in Sohar, which was due to go into operation in 2006 with a 116,400 barrels a day refining capacity. In 2004, Oman Oil Refinery was supplied with about 78,200 barrels a day for refining, while PDO began using steam injection technology in several wells to increase their productivity. Oman's future economy is expected to depend on Sohar, which is growing very fast.
Since the slump in oil prices in 1998, Oman has made active plans to diversify its economy and is placing a greater emphasis on other areas of industry, such as tourism and natural gas. Oman's Basic Statute of the State expresses in Article 11 that, "The National Economy is based on justice and the principles of a free economy."
Mineral resources
Oman's mineral resources include chromite, dolomite, zinc, limestone, gypsum, silicon, copper, gold, cobalt and iron. Several industries have grown up around them as part of the national development process which, in turn, have boosted the minerals sector’s contribution to the nation’s GDP as well as providing jobs for Omanis. Copper has been mined in Oman for thousands of years. The mineral sector’s operations include mining and quarrying. Several projects have recently been completed including: an economic feasibility study on silica ore in Wadi Buwa and Abutan in the Wusta Region, which confirmed that there were exploitable reserves of around 28 million tonnes at the two sites; a feasibility study on the production of magnesium metal from dolomite ore; a draft study on processing limestone derivatives; a project to produce geological maps of the Sharqiyah Region; economic feasibility studies on the exploitation of gold and copper ores in the Ghaizeen area; a study on raw materials in the wilayats of Duqm and Sur for use in the Sultanate’s cement industry; and a study on the construction of a new minerals laboratory in Ghala in the Governorate of Muscat.
Industry
The industrial sector is a cornerstone of the Sultanate’s long-term (1996-2020) development strategy. Industry is not only one of the main sectors involved in diversifying the sources of national income and reducing dependence on oil; it is also capable of helping to meet Oman’s social development needs and generate greater added value for national resources by processing them into manufactured products.
The Seventh Five-Year Development Plan creates the conditions for an attractive investment climate. Under its strategy for the industrial sector the government also aims to develop the information technology and telecommunications industries. The Knowledge Oasis Muscat complex has been set up and expanded, and Omani companies are developing their technological potential through collaboration with various Japanese and German institutions.
There is also an industrial estate in Sohar -- where the Sultanate’s heavy industries are based -- as well as other estates in Sur, Salalah, Nizwa and Buraimi. Natural gas is transported to the industrial estates in Sohar and Salalah, helping to promote expansion of those industries that depend on natural gas; the government grants these industries tax exemptions, as an incentive to encourage their expansion and development. By 2020 the industrial sector is expected to contribute 15% to the country’s GDP.
Development plans
The Omani economy has been radically transformed over a series of development plans beginning with the First Five-year Plan (1976-1980). At Sultan Qaboos's instruction, a vision of Oman's economic future up to the year 2020 was set out at the end of the first phase of the country's development 1970-1995. Vision 2020, outlined the country's economic and social goals over the 25 years of the second phase of the development process (1996-2020).
Oman 2020, held in June 1995, has developed the following aims with regard to securing Oman's future prosperity and growth:
- To have economic and financial stability
- To reshape the role of the Government in the economy and to broaden private sector participation
- To diversify the economic base and sources of national income
- To globalize the Omani economy
- To upgrade the skills of the Omani workforce and develop human resources
A free-trade agreement with the United States took effect 1 January 2009, eliminating tariff barriers on all consumer and industrial products. It also provides strong protections for foreign businesses investing in Oman.
Tourism
Oman is known for its popular tourist attractions. Wadis, deserts, beaches, and mountains are areas which make Oman unique to its neighboring GCC nations (Wadis in particular). With a coastline of 1700 km, Oman offers some of the cleanest, most stunning beaches a visitor could hope to see. Few beaches are private, except some attached to the beach resort hotels, or those adjoining military or official property. Wadis are green, lush oases of palm trees, grasses, and flowering. Some wadis have year-round running water, with deep, cool pools in which it is quite safe to swim if the currents are slow. Falaj (pl. aflaaj) means a system for the distribution of water and is commonly used to describe the irrigation channel system downstream of the water's source.Some aflaaj in Oman were built more than 1,500 years ago, whilst others were built at the beginning of the 20th century. In many cases, the only water has had to be attained by drilling into the ground to a depth of dozens of meters.
Numerous forts and castles are included among Oman's cultural landmarks and, together with its towers and city walls, they have historically been used as defensive bastions or look-out points. Forts were often the seats of administrative and judicial authority. There are over 500 forts, castles and towers in Oman which has a coastline of 1,700 km, so they were needed to protect it from potential invaders. The architectural styles vary, being determined by the architects who built them or the periods in which they were built.
The traditional Arabic marketplace is called the souq and these are found in many of the towns throughout the country. One of the oldest preserved souqs in Oman is in Muttrah, on the Corniche. Gold and silver jewellery is found in abundance as well as numerous wooden carvings, ornaments and spices and traditional implements. Muttrah souq is a maze of pathways leading in and out of each other. Household goods make up the bulk of the souq, but browsing through some of the smaller shops may result in a lucky find. Today,the Capital area has a number of shopping malls, mainly situated in Qurum, but in recent times, spreading to the Al Khuwair area, which house a variety of shops, ranging from boutiques to chain stores. The largest mall in the country is the Muscat City Centre which includes Carrefour.
Other popular tourist activities include sand skiing in the desert, scuba diving, rock climbing, trekking, surfing & sailing, cave exploration, bull fighting and camel races. The Muscat Festival, usually held during the months of Jan - Feb , is an even similar to the Dubai Shopping Festival but smaller in scale where traditional dances are held, temporary theme parks open, and concerts take place. Another popular event is The Khareef Festival held in Salalah, Dhofar which is 1200 km from the capital city of Muscat place during the monsoon season (August) and is similar to Muscat Festival. During this latter event, mountains are packed as a result of the cool breeze weather and lush greenery during that period of time rarely found anywhere else in Oman.
Geography
A vast gravel desert plain covers most of central Oman, with mountain ranges along the north (Al Hajar Mountains) and southeast coast, where the country's main cities are also located: the capital city Muscat, Sohar and Sur in the north, and Salalah in the south. Oman's climate is hot and dry in the interior and humid along the coast. During past epochs Oman was covered by ocean. Fossilized shells exist in great numbers in areas of the desert away from the modern coastline.
The peninsula of Musandam (Musandem), which has a strategic location on the Strait of Hormuz, is separated from the rest of Oman by the United Arab Emirates and is thus an exclave. The series of small towns known collectively as Dibba are the gateway to the Musandam peninsula on land and the fishing villages of Musandam by sea. Boats may be hired at Khasab for trips into the Musandam peninsula by sea.
Oman has another exclave, inside UAE territory, known as Madha. It is located halfway between the Musandam Peninsula and the rest of Oman. Belonging to Musandam governorate, it covers approximately 75 km2 (29 sq mi). The boundary was settled in 1969. The north-east corner of Madha is closest to the Fujairah road, barely 10 m (32.8 ft) away. Within the exclave is a UAE enclave called Nahwa, belonging to the Emirate of Sharjah. It is about 8 km (5 mi) on a dirt track west of the town of New Madha. It consists of about forty houses with its own clinic and telephone exchange.
Reference: Wikipedia
