OMAN

Sultanate of Oman

Saltanat 'Uman

CAPITAL: Muscat (Masqat)

FLAG: The flag is red with a broad stripe of white at the upper fly and green at the lower fly. In the upper left corner, white crossed swords overlay a ceremonial dagger.

ANTHEM: Nashid as-Salaam as-Sutani (Sultan's National Anthem).

MONETARY UNIT: The Omani riyal (ro), established in November 1972, is a paper currency of 1,000 baizas. There are coins of 2, 5, 10, 25, 50, 100, 250, and 500 baizas, and notes of 100, 250, and 500 baizas (the last two being replaced by coins) and 1, 5, 10, 20, and 50 riyals. ro1 = $2.56410 (or $1 = ro0.39) as of 2005.

WEIGHTS AND MEASURES: The metric system was adopted on 15 November 1974. The imperial and local system also are used.

HOLIDAYS: Accession of the Sultan, 23 July; National Day, 18 November; Sultan's Birthday, 19 November. Movable Muslim religious holidays include 'Id al-Fitr, 'Id al-'Adha', and Milad an-Nabi.

TIME: 4 pm = noon GMT. Solar time also is observed.

LOCATION, SIZE, AND EXTENT

The Sultanate of Oman is the second-largest country after Saudi Arabia on the Arabian Peninsula, with an area officially estimated at 212,460 sq km (82,031 sq mi). Comparatively, the area occupied by Oman is slightly smaller than the state of Kansas. Oman's territory includes the tip of the strategically important Ra's Musandam, which juts into the Strait of Hormuz. Oman's part of the peninsula is separated from the rest of the country by the territory of the United Arab Emirates (UAE). Oman proper extends 972 km (604 mi) ne–sw and 513 km (319 mi) se–nw. It is bordered on the n by the Strait of Hormuz, on the ne by the Gulf of Oman, on the e and s by the Arabian Sea, on the sw by the People's Democratic Republic of Yemen (PDRY), on the w by the Ar-Rub' al-Khali (Empty Quarter) and Saudi Arabia, and on the nw by the United Arab Emirates. The total estimated boundary length is 3,466 km (2,154 mi), of which 2,092 km (1,300 mi) is coastline.

TOPOGRAPHY

Physically, Oman, except for the Dhofar (Zufar) region, consists of three divisions: a coastal plain, a mountain range, and a plateau. The coastal plain varies in width from 16 km (10 mi) to practically nothing near Muscat, where the hills descend abruptly to the sea. The highest point, Jabal Shams, is at 2,980 meters (9,777 ft) in the Al Jabal range of the north. The plateau has an average height of about 300 m (1,000 ft) and is mostly stony and waterless, extending to the sands of the Ar-Rub' al-Khali. The coastline southward to Dhofar is barren and forbidding. From Salalah, a semicircular fertile plain extends to the foot of a steep line of hills, some 1,500 m (4,920 ft) high, and forms the edge of a stony plateau also extending to the sands of the Empty Quarter.

CLIMATE

Annual rainfall in Muscat averages 10 cm (4 in), falling mostly in January. Dhofar is subject to the southwest monsoon, and rainfall up to 64 cm (25 in) has been recorded in the rainy season from late June to October. While the mountain areas receive more plentiful rainfall, some parts of the coast, particularly near the island of Masirah, sometimes receive no rain at all within the course of a year. The climate generally is very hot, with temperatures reaching 54°c (129°f) in the hot season, from May to October.

FLORA AND FAUNA

Desert shrub and desert grass, common to southern Arabia, are found. Vegetation is sparse in the interior plateau, which is largely gravel desert. The greater rainfall in Dhofar and the mountains makes the growth there more luxuriant. Coconut palms grow plentifully in Dhofar and frankincense grows in the hills. Oleander and varieties of acacia abound.

Indigenous mammals include the cheetah, hyena, fox, wolf, and hare. Birds include the Arabian see-see partridge, redleg chukor partridge, and Muscat bee eater. As of 2002, there were at least 56 species of mammals, 109 species of birds, and over 1,200 species of plants throughout the country.

ENVIRONMENT

Maintaining an adequate supply of water for agricultural and domestic use is Oman's most pressing environmental problem. The nation has only one cubic kilometer of renewable water resources, with 94% of annual withdrawals used in farming and 2% for industrial activity. Both drought and limited rainfall contribute to shortages in the nation's water supply. The nation's soil has shown increased levels of salinity. Pollution of beaches and other coastal areas by oil tanker traffic through the Strait of Hormuz and Gulf of Oman is also a persistent problem.

In 2003, about 14% of the total land area was protected, According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 12 types of mammals, 14 species of birds, 4 types of reptiles, 18 species of fish, 1 species of invertebrate, and 6 species of plants. Decrees have been passed to protect endangered species, which include the South Arabian leopard, mountain gazelle, goitered gazelle, Arabian tahr, green sea turtle, hawksbill turtle, and olive turtle. The Arabian Oryx Sanctuary is a UNESCO World Heritage Site.

POPULATION

The population of Oman in 2005 was estimated by the United Nations (UN) at 2,436,000, which placed it at number 137 in population among the 193 nations of the world. In 2005, approximately 3% of the population was over 65 years of age, with another 33% of the population under 15 years of age. There were 128 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 1.8%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 2,984,000. The population density was 12 per sq km (30 per sq mi), with the greatest concentrations around Muscat and on the Batinah coast; together, these two regions have more than half the population.

The UN estimated that 76% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 3.27%. The capital city, Muscat (Masqat), had a population of 638,000 in that year. Salalah is the principal town of the south.

MIGRATION

There is frequent movement of workers between Oman and neighboring states. In 2000 there were 682,000 migrants living in Oman, primarily foreign laborers. In 2001, foreigners were nearly 25% of the labor force. Oman declared that, by the end of 2003, cashiers, drivers, security officers, and workers in retail stores and supermarkets must be Omanis. By 2007 restaurants catering mainly to tourists would also be Omanized.

In 2004, there were 7 refugees and 24 asylum seekers. The net migration rate was an estimated 0.31 migrants per 1,000 population in 2005.

ETHNIC GROUPS

The indigenous population is predominantly Arab except on the Batinah coast, where there is significant Baluchi, Iranian, and African representation, and in Muscat and Matrah, where there are Khojas and other Indians, Baluchis, and Pakistanis. Tribal groups are estimated to number over 200.

LANGUAGES

The official language is Arabic. Urdu, Baluchi, and several Indian dialects are also spoken, especially in the cities of Muscat and Matrah. English is taught as a second language.

RELIGIONS

The state religion is Islam, with most of the population adhering to the Ibadhi or Sunni sects. Tribes in the north are mainly Sunni Muslims of the Hanbali, Shafai, and Wahhabi rites. A minority of the population is Shia Muslim. There is a small community of Indian Hindu citizens and there is reportedly a very small number of Christians. Non-Muslims, the majority of whom are noncitizen immigrant workers from South Asia, are free to worship at churches and temples, some of which are built on land donated by the Sultan.

The Basic Statute of the State allows for the freedom to practice religious rites as long as these rites do not breach public order. In practice, the government has reserved the right to place some restrictions on non-Muslim faiths. Non-Muslims may not proselytize to Muslims and non-Muslim groups may not publish religious materials within the country. Certain Muslim holidays are celebrated as national holidays.

TRANSPORTATION

As of 2002, there were 32,800 km (20,382 mi) of roadways, of which only 9,840 km (6,115 mi) were paved, including 550 km (342 mi) of expressways. A major 800-km (500-mi) highway links Nazwa in the north to Thamarit and Salalah in the Dhofar region. A main coastal road has been laid from Muscat to Suhar, a distance of 240 km (150 mi), and the road from Muscat to Buraymi on the United Arab Emirates border has been completed. In 2003, there were 266,325 passenger cars and 113,370 commercial vehicles registered. There are no railways or waterways in Oman.

In 2004, there were an estimated 136 airports. As of 2005, a total of six had paved runways, and there was also one heliport. Seeb International Airport, 30 km (19 mi) northwest of Muscat, is served by numerous international carriers, including Gulf Air, in which Oman holds a 20% interest. A second modern airport, at Salalah in the south, serves domestic flights. In 2003, about 2.777 million passengers were carried on scheduled international and domestic airline flights.

Mina's Qabus, near Muscat, is the main port in the north, serving international and regional shipping. Port Salalah, 1000 km (621 mi) down the cost from Muscat is the main port for the south. Opened in 1998, Port Salalah is the only port between Europe and Singapore that can accommodate the S-class ships, the world's largest class of container vessel. It is now among the top 20 container ports in the world in terms of handling capacity, and among the top 10 in terms of efficiency. All Omani crude oil is exported from Mina's al-Fahl, west of Matrah. In 2005, Oman had one merchant vessel (a passenger ship) of 1,000 GRT or more, totaling 15,430 GRT.

HISTORY

Oman's history can be traced to very early times. In Genesis 10:26–30, the descendants of Joktan are said to have migrated as far as Sephar (now Dhofar). The area was already a commercial and seafaring center in Sumerian times, and Phoenicians probably visited the coastal region. Other groups that probably came to the area in ancient times include the Baida and Ariba, Semitic tribes from northern Arabia, now extinct; the first Himyar dynasty from Yemen, which fell to the Persians in the time of Cyrus, about 550 bc; ancient Greek navigators; and the Parthians (174–136 bc).

The entire population was converted to Islam during the lifetime of Muhammad, but Oman soon became—and remains today—the center of the Ibadhi sect, which maintained that any pious Muslim could become caliph or imam and that the imam should be elected. Omani tribes have elected their imams since the second half of the 8th century.

The first prolonged contact with Europe came in 1507–08, when the Portuguese overran Muscat. They maintained control until they were driven out with Persian aid in 1649. During the next 75 years, Oman conquered Mombasa, Mogadishu, the island of Zanzibar, and the Portuguese possessions in East Africa. Later it held parts of what are now Iran and Pakistan.

The first sultanate was established in Muscat about 1775. In 1798, Britain concluded its first treaty with Muscat. Sa'id bin Sultan (r.1804–56) became dependent on British support, and after his death his sons quarreled over his succession (the basic Ibadhi tenet having been rejected). Thus weakened by political division, Muscat lost control of the interior. In 1920, the Treaty of Seeb was signed between the sultan of Muscat and the imam of Oman, acknowledging the autonomy of the imamate of Oman under the sovereignty of the Sultan. From 1920 to 1954 there was comparative peace. On the death of the imam in 1954, Sultan Sa'id bin Taymur moved to succeed him.

That year, Sa'id concluded a new agreement with Petroleum Development (Oman) Ltd., a British-managed oil company that had the oil concession for Oman. By this agreement, the company maintained a small army, the Muscat and Oman Field Force (MOFF), raised and led by the British. In early 1955, it subdued the area up to and including the town of 'Ibri. When British troops took Buraymi, MOFF occupied the rest of Oman and expelled the rebellious new imam. By 1959 when the last of the insurgents supporting the imam were defeated, the sultan voided the office and declared the Treaty of Seeb terminated. The imam, exiled in Saudi Arabia, tried in vain to muster Arab support for his return.

Under the terms of the Anglo-French Declaration of 10 March 1962, the sultanate of Muscat was proclaimed an independent and sovereign state. Certain Arab states charged, however, that the United Kingdom was maintaining a colonial presence in the former imamate of Oman. In 1965 and repeatedly thereafter, the UN called unsuccessfully for the elimination of the British presence. Oman joined the UN late in 1971.

Meanwhile, as early as 1964, a tribal rebellion had been brewing in the Dhofar region. The rebel tribes, organized as the Dhofar Liberation Front and aided by South Yemen, later joined forces with the Marxist Popular Front for the Liberation of Oman and the Arab Gulf. The insurgency was suppressed in 1975 with direct military assistance from Jordan and Iran. A treaty with Yemen defining the border was ratified in 1992.

Qaboos bin Sa'id ousted his father, Sa'id bin Taymur, on 23 July 1970 and has ruled as sultan since that time. He immediately changed the name of the country from Muscat and Oman to the Sultanate of Oman and has presided over an extensive modernization program, easing his father's harsh restrictions and opening the country to the outside world, while preserving political and military ties with the British. Oman has been a proponent of cooperation among the Gulf States. A member of the Gulf Cooperation Council (GCC), it has also sought to keep good relations with Iran. Because Oman dominates the Strait of Hormuz, which links the Gulf of Oman with the Persian Gulf, its strategic importance drew it and the United States closer together with the start of the Iran–Iraq war in 1979. Under the terms of a pact signed in 1980, US military personnel and ships have been given access to Omani military and naval bases and are permitted to preposition military material for use in contingencies.

Oman pursues a moderate, independent foreign policy. Unlike most Arab states, it supported the Camp David accords and did not break relations with Egypt following its peace treaty with Israel. Similarly, during the Gulf War, Oman sent forces to Saudi Arabia and granted strategic facilities to the United States, but did not sever diplomatic relations with Iraq during the conflict.

In 1994 reports began appearing of arrests of critics of the Omani government. It was estimated that the Omani government detained nearly 500 such critics with points of view ranging from the Arab nationalist Ba'th movement to Islamists supporting the Sunni Muslim Brotherhood.

Through 1995 Oman was considered as having "graduated" from the ranks of under-developed nations needing World Bank loans. Its ambitious economic goals included a 10-year plan for cultivating tourism and plans to improve its infrastructure, including water desalinization. However, in 1998, the economy was adversely affected when the price of oil dropped below $10 per barrel, a 25-year low. Oman agreed with the Organization of Oil Exporting Countries (OPEC), of which Oman is not a member, to reduce global oil production by 2.1 million barrels of crude per day until April 2000 in the hope of raising oil prices to $18 per barrel. In October 1999, the Omani oil minister recommended extending oil production cuts beyond the date originally proposed. Meanwhile, Oman has sought to diversify its economic base and ease its dependence on oil. A gas liquefaction plant at Sur was slated for completion in 2000.

As of 1999, Oman held to a middle-of-the-road stance of conciliation and compromise in Middle Eastern politics. In January 1999, Oman's foreign minister met with his counterparts from Egypt, Saudi Arabia, Syria, and Yemen at a closed meeting in Cairo to forge a position on the question of Iraq. Also in 1999, Oman's sultan, Qaboos bin Sa'id, signed an agreement with the president of the United Arab Emirates defining the borders between Oman and the emirate of Abu Dhabi. In October 2001, extensive Omani-British military exercises in the Omani desert coincided with the launch of strikes against the Taliban in Afghanistan.

During 2002 and into 2003, Oman, along with the other countries of the Persian Gulf, was confronted with the situation of a potential US-led war with Iraq. On 8 November 2002, the UN Security Council unanimously passed Resolution 1441, calling on Iraq to immediately disarm itself of weapons of mass destruction (WMD) and WMD weapons capabilities, to allow the immediate return of International Atomic Energy Agency (IAEA) and UN weapons inspectors, and to comply with all previous UN resolutions regarding the country since the end of the Gulf War in 1991. If Iraq was found to be in "material breach" of the resolution, "serious consequences" were to result. The United States and the United Kingdom began amassing troops in the region, and by the end of February 2003, the number of troops in the Persian Gulf was approximately 200,000. As of 1 February, there were 3,600 US military personnel, 100 elite British special forces, and approximately 40 aircraft in Oman. As well, a new airbase was under construction, which would have a 14,000-ft. runway. However, Oman has said it would not act in a conflict with Iraq without UN approval.

Oman's borders with all its neighbors have been demarcated. A 2002 demarcation of the Oman-UAE border was ratified in 2003, including Oman's Musandam Peninsula and Al Madhah exclave, but details were not made public.

At an Arab League summit held at Sharm el-Sheik, Egypt, on 1 March 2003, sharp divisions between Arab leaders on the Iraq situation emerged, particularly between Libya and Saudi Arabia. However, the leaders issued a declaration expressing "complete rejection of any aggression on Iraq," and called for continuing UN weapons inspections. It also called upon Iraq to disarm itself of WMD and the missiles needed to deliver them. At the summit, some leaders argued war was inevitable and that the countries of the region should prepare for its aftermath; some argued that war could be avoided if Iraq were to comply with weapons inspections; and a third group argued that the summit should issue an unequivocal antiwar declaration.

Since 2000 the Omani government promoted an "Omanisation" campaign to ensure jobs for citizens, to promote self-reliance in human resources, and also to reduce dependence on expatriates. Expatriates with valid work permits in the private sector were replaced or left jobs, over 130,000 between January 2003 and July 2005. This policy also resulted in the massive repatriation of guest workers whose employment visas had expired.

In May 2005 two cargo ferries carrying 1,018 Pakistanis were deported from Oman, some 40,000 Pakistanis having been deported from Oman between 2003 and 2005. In August 2005 undocumented or overstaying Filipinos in Oman were urged to return to the Philippines because of the sultanate's impending crackdown on undesirable foreigners. In October 2005 special arrangements were made for 5,700 Indian overstayers to exit Oman.

In March 2004 the Sultan appointed Oman's first female minister with portfolio and added two more women to the cabinet by year's end. These appointments were a clear indication that the government was leading by example and that the participation of women in national life was a priority. In addition, the most capable people available filled government positions.

In January 2005, nearly 100 suspected Islamists were arrested. Thirty-one Omanis were subsequently convicted of trying to overthrow the government, but were pardoned in June. This group was neither Sunni followers of Osama bin Laden nor Shiites loyal to Iran or Iraq, but preachers, Islamic scholars, university professors and government figures from the Ibadi faith. It is the sect to which Sultan Qaboos and the majority of Omani belong. The dissidents wanted a return to a strict Islamic state, the imamate, contesting the pro-Western policies of the Sultan.

In October 2005, a free trade agreement with the United States was finalized.

GOVERNMENT

Oman's sultan is an absolute monarch. The sultanate has no constitution, legislature, or suffrage, until of late. In 1970, Sultan Qaboos appointed a cabinet of ministers responsible for various government departments and functions.

A state Consultative Council, established in 1981, consisted of 55 appointed representatives of government, the private sector, and regional interests. This body was replaced in 1991 by a Majlis Al-Shura, a 59-seat Consultative Council, which was seen as a first step toward popular participation in government. The Sultan expanded the membership to 80 seats after the country's first national census in 1993. The Council has no formal legislative powers but may question government ministers, and recommend changes to new laws on economic and social policy. These recommendations have led to amendments to proposed decrees.

On 6 November 1996 the Sultan decreed the country's first "basic law" which provides for citizens' basic rights in writing and a body known as the Majlis Oman (Council of Oman) that includes a new Council of State, Majlis Al-Dawla (upper chamber), and the Consultative Council, Majlis al-Shura (lower chamber). In 2000, the Consultative Council was expanded to 83 seats, and members were chosen by the vote of 175,000 government-selected electors. In January 2001, the sultan appointed 53 members of the Majlis Al-Dawla, including 5 women.

In November 2002, the sultan extended voting rights to all citizens over the age of 21, except for members of the military and security forces. Voters in Oman were previously chosen from among tribal leaders, intellectuals, and businessmen. The first elections to the Majlis al-Shura in which all citizens over the age of 21 (except for members of the military and security forces) were entitled to vote were held in October 2003. Members are elected for four-year term; the body has some limited power to propose legislation, but otherwise has only advisory powers. Little change in the political make-up of the lower house resulted from this election. The next Majlis al-Shura elections are scheduled for 2007.

POLITICAL PARTIES

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.

LOCAL GOVERNMENT

The nation is divided into five regions, three governates (Muscat, Musandam, Dhofar) and 59 wilayats (districts), governed by walis. Most wilayats are small in area, but can vary greatly in population. The walis is appointed by the Minister of Interior and answerable to them. The walis is responsible for local disputes, collecting taxes, and maintaining peace. The governors of Muscat, Musandam, Dhofar are appointed directly by the Sultan and hold Minister of State rank.

JUDICIAL SYSTEM

Shariah courts based on Islamic law administer justice, with the Central Magistrate Court at Muscat. There are four additional magistrate courts in Suhār, Şūr, Salalah, and Nizwa. Qadis, or religious judges, appointed by the sultan, function within each wilayat. Appeals from the Central Magistrate Court are made to the sultan, who exercises powers of clemency. The Shariah courts, adhering to Islamic law, equate the testimony of one man with that of two women. There is also a security court, rarely used, which handles internal security cases. A commercial dispute may be resolved at the Authority for Settlement of Commercial Disputes.

In 1996, the sultan promulgated a basic law providing for citizens' basic rights. The basic law affirms the independence of the judiciary. There are no jury trials.

ARMED FORCES

Oman's armed forces, including the Royal Household troops, had 41,700 foreign and domestic active personnel in 2005. The Army had 25,000 personnel equipped with 117 main battle tanks, 37 Scorpion light tanks, 145 reconnaissance vehicles, 191 armored personnel carriers, and 233 artillery pieces. The Air Force had 4,100 personnel, and was equipped with 48 combat capable aircraft, including 36 fighter ground attack aircraft, of which 12 were used in a training capacity. The Navy numbered 4,200 active members. Major naval units included two corvettes and eight patrol/coastal combatants. Paramilitary forces consisted of the 4,000man Tribal Home Guard (Firqats) and a police coast guard of 400, which included a small police air wing. The elite Royal Household brigade, naval unit, and air unit numbered 6,400, including 2 special forces regiments. An estimated 2,000 foreigners also served in Oman's armed forces. In 2005 Oman's defense budget totaled $3.02 billion.

INTERNATIONAL COOPERATION

On 7 October 1971, Oman gained membership in the United Nations; it belongs to ESCWA and several nonregional specialized agencies, such as the FAO, ILO, UNESCO, UNIDO, the World Bank, and the WHO. Oman also participates in the WTO, the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Arab Monetary Fund, the Organization of the Islamic Conference (OIC), G-77, the Gulf Cooperation Council, and the Arab League. Oman is a member of the Nonaligned Movement.

In environmental cooperation, is part of the Basel Convention, the Convention on Biological Diversity, the London Convention, the Kyoto Protocol, the Montréal Protocol, MARPOL, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Oman's location at the entrance to the Persian Gulf for centuries made it an entrepôt for trade, including a substantial traffic in arms and slaves. Its prosperity declined in the 19th century, when, as a result of Western dominance in Asia, traditional trade patterns and communications routes were radically changed. Oman's economy then became predominantly dependent on agriculture and fishing.

The situation changed with the discovery of oil in 1964. Production began in August 1967, and by the mid-1970s most of the economy revolved around oil. The hydrocarbons sector accounted for 77% of export earnings and government revenues in 2000. Despite diversification efforts, petroleum's share of GDP rose from 37% in 1994 to 38.2% in 1995 to 40% in 1999. In 2000, petroleum's share jumped to 49% of GDP as oil prices rose sharply from near-record lows in early 1999. As of January 2001, Oman's proven oil reserves were 5.5 billion barrels. At the estimated high production level of 959,816 barrels per day in 2001, the reserves would last another 15.7 years. The government's Oman 2020 program looks to a fundamental transformation of the economy by that time. The production of natural gas has become a significant factor of the economy. Gas reserves increased from 9.8 trillion cubic feet in 1990 to 29.3 trillion cubic feet 2001, and government predictions are that this will eventually expanded to some 40 trillion cubic feet in 1999 and are further increasing. Two major extensions of Oman's pipeline connections from gas deposits in the center of the country were completed in August 2002: a pipeline to the north coast at Sohar and a pipeline to the south coast at Salalah. With the recovery of gas prices from in the latter half of 1999, GDP grew at extraordinarily high rates of 15.6% in 1999 and 19.6% in 2000. Inflation was negligible at 0.4% in 1999 and 1.4% in 2000.

In 2004, the GDP growth rate was 0.7%, down from 2.3% in 2003, and 1.9% in 2002; in 2005, the economy expanded by an estimated 1.6%. The inflation rate has been fairly stable, and at 0.3% in 2004 it did not pose any problems to the economy, although it was not ideal for the export sector. The unemployment rate was tagged at 15%, but only a certain layer of society is affected by it. To respond to this problem, the government is trying to replace foreign expatriate workers with local workers. In 2005 work on a new liquefied gas facility progressed, but plans are made to diversify the economy for the days when Oman's natural resources will be exhausted.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Oman's gross domestic product (GDP) was estimated at $40.1 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $13,400. The annual growth rate of GDP was estimated at 1.9%. The average inflation rate in 2005 was 0.4%. It was estimated that agriculture accounted for 2.8% of GDP, industry 40%, and services 57.1%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $39 million or about $15 per capita and accounted for approximately 0.2% of GDP. Foreign aid receipts amounted to $45 million or about $17 per capita.

The World Bank reports that in 2003 household consumption in Oman totaled $8.75 billion or about $3,368 per capita based on a GDP of $21.7 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings.

In 2001 it was estimated that approximately 22% of household consumption was spent on food, 25% on fuel, 13% on health care, and 21% on education.

LABOR

The estimated workforce of Oman was 920,000 in 2002. As of 2000, the services sector accounted for 82.1% of the labor force, with industry accounting for 11.2%, agriculture 6.4%, and the remaining 0.4% in undefined occupations. As of 2004, the country's unemployment rate was estimated at 15%.

Omani law does not provide the right of union formation. The law forbids a strike for any reason. Collective bargaining is not permitted, however there exist labor-management committees in firms with more than 50 workers. These committees are not authorized to discuss conditions of employment, including hours and wages. The Labor Welfare Board provides a venue for grievances.

The minimum working age is 13, but this provision is not enforced against the employment of children in family businesses or on family farms. The minimum wage for nonprofessional workers was $260 per month in 2002. However, many classes of workers (domestic servants, farmers, government employees) are not required to receive the minimum wage and the government is not consistent in its enforcement of the minimum wage law. The private sector workweek is 40 to 45 hours long, while government officials have a 35-hour workweek.

AGRICULTURE

Agriculture contributes only about 3% to GDP, but engages 37% of the economically active population, mostly at a subsistence level. The potential for expanding agriculture in Oman is good. Land use is determined primarily by the availability of water. There is extensive cultivation along the Batinah and Shumailiyah coasts; in the interior, however, cultivation is confined to areas near wadis, where water is taken off by a system of water channels (fallaj). The total area under cultivation is estimated to be about 80,000 hectares (198,000 acres).

The principal agricultural product is the date, at 238,000 tons in 2004. On the Baunah coast, groves containing some 10 million date palm trees form a strip 240-km (150-mi) long and 40-km (25-mi) wide. Fruits grown in Dhofar include bananas, mangoes, and coconuts. Citrus fruits (notably limes), nuts, melons, bananas, coconuts, alfalfa, and tobacco are also grown. Tomatoes, cabbages, eggplant, okra, and cucumbers are important winter crops. Frankincense is traditionally produced from about 8,000 trees growing wild in Dhofar. Along the Batinah coast, a wide variety of produce is grown, including fruits, wheat, rice, and durra. Agricultural exports were valued at $402 million in 2004, while agricultural imports amounted to $1.17 billion that year.

ANIMAL HUSBANDRY

Goats, sheep, donkeys, and camels are widely raised. In 2005 there were 1,070,000 goats, 375,000 sheep, 335,000 head of cattle, 123,000 camels, and 28,500 donkeys. There is a relatively large-scale cattle-raising industry in Dhofar. Total meat production in 2005 was 43,400 tons. Oman estimates that it is 53% self-sufficient in milk production, 46% in beef, 44% in eggs, and 23% in milk. The camels of Oman are famous for their fine riding qualities.

FISHING

The waters of the Gulf of Oman are rich in sardines, mackerel, shrimp, lobsters, crayfish, tuna, barracudas, groupers, and sharks. The annual catch in 2003 was 138,833 tons, mainly sardines. Fishing employs about 26,000 persons. Investment in onshore processing and refrigeration plants, harbors, and repair yards has facilitated commercial fishing development. Exports of fish products amounted to $79.9 million in 2003. The government subsidizes the cost of boats and engines to promote employment in fishing. Fish stocks and breeding patterns are studied at a research center south of Muscat. In 1996, three new fishing harbors were opened (at Bukha in Musandam, Quriyat, and Shinas), at a combined cost of ro10.3 million and with a capacity for about 1,000 small boats.

FORESTRY

Forest coverage is less than 1%. The use of wood as the sole fuel and overgrazing by goats have depleted the forests of Oman, but the interior of the country is fairly well wooded. Oman imported $74.1 million in forest products during 2004.

MINING

Petroleum and natural gas dominated Oman's economy. Although large deposits of copper have been discovered northwest of Muscat, with other deposits also discovered at Hajl al-Safiand at Rakah, in Ibri, there was no recorded production of mined copper in 2004. However, an estimated 224,000 metric tons of smelted copper was produced from copper ore imports. In 2003, only 4 kg of gold was produced, down from an estimated 188 kg in 2002 and 603 kg in 2001. There was no recorded gold production in 2004. Nor was there any recorded silver production in 2003 or 2004. In 2000, National Mining Co. of Oman explored for copper, gold, and silver near Sohar, and the Metal Mining Agency of Japan completed exploration for copper and gold in the South Batinaha area. Output of chromium (gross weight) in 2004 was 18,575 metric tons, up from 13,000 metric tons in 2003. Sand and gravel production in 2004 was estimated at 22 million metric tons, unchanged from 2003, while marble output in 2004 totaled an estimated 140,000 metric tons. Oman in 2004 also produced, gypsum, salt, sulfur and hydraulic cement.

ENERGY AND POWER

Oman's reserves of oil and natural gas are modest in size when compared to other countries in the Middle East. However, the country's importance to the world's oil markets lies in its geographic location overlooking the Strait of Hormuz. Oman is not a member of the Organization of the Petroleum Exporting Countries (OPEC), but is a leader in IPEC, the main independent petroleum exporter's organization.

As of 1 January 2005, Oman's proven oil reserves were estimated at 5.5 billion barrels, most of which are located in its central and northern regions. In 2003, oil production averaged an estimated 784,000 barrels per day, with crude oil accounting for 781,000 barrels per day. In that same year, domestic oil consumption was estimated at 59,000 barrels per day, allowing for net exports of 725,000 barrels per day. Oman's primary customers in 2003 were China, Japan, South Korea, India, Thailand, and Singapore. Oman's crude oil refining capacity, as of 1 January 2005, was estimated at 85,000 barrels per day.

Oman, as of 1 January 2005, had proven natural gas reserves estimated at 29.3 trillion cu ft. In 2002, natural gas production and domestic consumption were estimated at 530 billion cu ft and 231 billion cu ft, respectively.

Although more than 22 million tons of coal deposits have been found in Oman's Wadi Fisaw and Wadi Muswa areas, near the city of Sur, these deposits have yet to be developed commercially.

As of 1 January 2002, Oman's electric power capacity was estimated at 2.4 GW, which in 2002 was entirely dedicated to conventional thermal sources. Electric power output in 2002 was estimated at 9.8 billion kWh. Demand for power in 2002 came to 9.031 billion kWh.

INDUSTRY

Besides oil, industry in Oman still consists largely of small-scale food-processing enterprises. Many new industries were set up in the 1980s, including a cement plant with an annual capacity of 609,000 tons. In 1995, Oman's cement production totaled 1.4 million tons. The majority of these manufacture nonmetallic mineral products followed by wood and wood products, and fabricated metal products. The Rusail industrial estate had 81 working factories by 1996, with 15 more under construction. The $250 million Salalah Container Port opened in 1998 as a magnet for value-added manufacturing enterprises. Another $250 industrial port in the Sohar on which construction began in 1999 was expected to be operational in 2003. By the latest available estimate, industry comprised 40% of the GDP in 1999.

Industry accounted for 40% of economic output in 2005 (with oil and gas production carrying the lion share), and was bested by services with a 57.1% share. Agriculture continues to be the weakest economic sector, with just a 2.8% share in the GDP. The industrial production growth rate was only 0.9%, indicating that the sector is going through a recession period.

SCIENCE AND TECHNOLOGY

Most research conducted in Oman has been done at the behest of the government; agriculture, minerals, water resources, and marine sciences have drawn the most attention. Sultan Qaboos University, founded in 1985, has colleges of science, medicine, engineering, and agriculture. In 1987–97, science and engineering students accounted for 13% of college and university enrollments. The Institute of Health Sciences, under the Ministry of Health, was founded in 1982. Muscat Technical Industrial College, founded in 1984, has departments of computing and mathematics, laboratory science, and electrical, construction, and mechanical engineering. The Oman Natural History Museum, founded in 1983, includes the national herbarium and the national shell collection. All of these organizations are located in Muscat.

Oman's high technology exports in 2002 totaled $36 million, or 2% of the country's manufactured exports. For the period 1990 to 2001, Oman had four researchers for every one million people.

DOMESTIC TRADE

Though oil is the strongest basis for the Omani economy, agriculture and fishing are still very much a part of the traditional lifestyle. Most of the government's development plans are aimed at industry to support greater foreign trade, rather than to provide consumer products for the domestic market. Muscat and Matrah are the primary commercial centers. Much of the business is carried on by long-established and settled Khoja and Hindu merchants, but supermarkets and other larger retail establishments are beginning to take root.

Normal business hours are 8:30 am to 1:30 pm and 4 to 7 pm, Saturday–Wednesday; banking hours are generally 8 am to noon, though some banks reopen from 4 to 6 pm. Banks and businesses close at 11:30 am on Thursday and remain closed Friday. Business hours are reduced during the Ramadan fast.

FOREIGN TRADE

Oman runs a considerable trade surplus. Since 1967, oil has been the chief export. In 2000 Oman's major export commodities were crude petroleum (80%) and motor vehicles and parts (3.4%). Other exports included tobacco (1.2%) and apparel (1.1%). In 2000 Oman's imports were distributed among the following categories: consumer goods, 18.2%; food, 13.2%; fuels, 1.7%; industrial supplies, 20.2%; machinery, 18.4%; transportation, 25.7%; and other, 2.6%.

In 2005, exports reached $19 billion (FOB—Free on Board), while imports grew to $9 billion (FOB). The bulk of exports went to China (29.5%), South Korea (17.5%), Japan (11.5%), Thailand (10.6%), and the UAE (7.2%). Imports included machinery and transport equipment, manufactured goods, food and live animals, and mainly came from the UAE (21.2%), Japan (16.6%), the United Kingdom (8.4%), Italy (6%), Germany (5.1%), and the United States (4.7%).

BALANCE OF PAYMENTS

Oman's balance of payments account is dominated by crude oil export earnings, consumer and capital goods and services, imports payments, and by large outgoing remittances by foreign workers.

The US Central Intelligence Agency (CIA) reported that in 2001 the purchasing power parity of Oman's exports was $10.9 billion while imports totaled $5.4 billion resulting in a trade surplus of $5.5 billion.

The International Monetary Fund (IMF) reported that in 2001 Oman had exports of goods totaling $11.1 billion and imports totaling $5.31 billion. The services credit totaled $349 million and debit $1.68 billion.

Exports of goods totaled $13 billion in 2004, up from $12 billion in 2003. Imports grew from $6 billion in 2003, to $8 billion in 2004. The resource balance was consequently positive, but on a downward spiral—$6 billion in 2003, and $5 billion in 2004. A similar trend was registered for the current account balance, which deteriorated slightly from $880 million in 2003, to $443 million in 2004. Foreign exchange reserves (excluding gold) grew to almost $3.6 billion in 2004, covering more than five months of imports.

BANKING AND SECURITIES

The Central Bank of Oman, set up in April 1975, has powers to regulate credit and is authorized to make temporary advances to the government.

Banks in Oman are generally in good financial shape because of close regulation by the Central Bank of Oman. All commercial banks in the sultanate instructed to raise their paid-up capital to ro10 million for local banks and ro3 million for foreign banks. The Central Bank of Oman advised all banks which were unable to comply with these new requirements to merge with other commercial banks. The Central Bank has been encouraging banks to merge in order to cut down on the oversupply of banking services. Banks are required to maintain a 12% level of capital adequacy and restrict consumer lending to 30% of the loan portfolio. In 2002, there were 15 local and foreign commercial banks and four specialized banks. The largest local bank is Bank Muscat, created through a merger of the former Bank Muscat and the Commercial Bank of Oman. In 2002, it had assets of $3.4 billion, deposits of $2.4 billion, and was followed in size by the National Bank of Oman, Oman International Bank, Oman Arab Bank, and Bank Dhofar Al Omani Al Fransi.

The British Bank of the Middle East (BBME) was the first foreign bank to establish itself in Oman in 1948. Today, foreign banks, in descending order of local branch asset size, include British Bank, Standard Chartered Bank, The British Bank, Bank of Baroda, Bank Saderate Iran, Bank Melli Iran, Banque Banorabe, National Bank of Abu Dhabi, and Citibank. The banking sector has been under pressure to increase its proportion of Omani staff to 90%, but the deadline for such a move has been progressively delayed. Because of the proliferation of branches concentrated in coastal areas, commercial banks now have to open two branches in the interior for every branch opened along the coast. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $1.8 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $6.8 billion.

An Omani stock market, the Muscat Securities Market (MSM), was officially established in 1988, but trading did not begin until the following year. By 2001 there were 91 companies listed on the exchange with a combined capitalization of $2.6 billion. The MSM has now established a link with the Bahrain Stock Exchange (BSE) where shares can be cross-listed. A similar agreement with Kuwait is expected. The MSM Index showed a 25.4% loss in 2001 a mere four years after posting a spectacular 141% gain in 1997. The drop-off has been attributed to speculation, over-valued offerings, the impact of the Asian financial crises, and the drop in oil prices. As of 2004, a total of 96 companies were listed on the MSM, which had a market capitalization of $6.325 billion. In 2004, the MSM 30 Index rose 23.8% from the previous year to 3,375.1.

INSURANCE

By 1997, one national insurance firm, the Oman National Insurance Co. (SAOG), and around 17 foreign-owned firms were operating in Oman. In 2003, the value of all direct written insurance premiums totaled $257 million, of which nonlife premiums accounted for $221 million. In 1999 (the latest date for which data was available) Oman's top life insurer was Oman National Insurance Co., which had gross written life insurance premiums totaling $18.3 million. Data was not available for individual nonlife insurers.

PUBLIC FINANCE

Although Oman is a relatively small oil producer, oil revenues support 69% of government expenditures. The government owns 60% of Petroleum Development (Oman) Ltd. (PDO), the main oil company. Higher oil prices in 1997 and a 5% cut in capital spending produced a budget deficit of only $47 million, a substantial improvement over 1996. With the fall in global oil prices in 1998, however, the government's budget fell deeply into deficit, and had to be financed by loans and by drawing down the State General Reserve Fund. In anticipation of still further drops in the price of oil, the government increased a number of taxes and imposed spending cuts of between 5 and 10% on most government ministries.

The US Central Intelligence Agency (CIA) estimated that in 2005 Oman's central government took in revenues of approximately $14.3 billion and had expenditures of $10.6 billion. Revenues minus expenditures totaled approximately $3.7 million. Public debt in 2005 amounted to 7.5% of GDP. Total external debt was $4.586 billion.

The International Monetary Fund (IMF) reported that in 2001, the most recent year for which it had data, budgetary central government revenues were ro2,073,500 and expenditures were ro2,295,100. The value of revenues was us$5,393,000 and expenditures us$5,969,000, based on a official exchange rate for 2001 of us$1 = ro0.3845, as reported by the IMF. Government outlays by function were as follows: general public services, 13.3%; defense, 35.3%; public order and safety, 5.9%; economic affairs, 9.2%; housing and community amenities, 6.4%; health, 6.6%; recreation, culture, and religion, 1.8%; education, 15.9%; and social protection, 5.6%.

TAXATION

Introduced in 1971, a corporate income tax on commercial enterprises other than individual traders remains the only tax in the country. Resident companies and those resident in countries that are members of the Gulf Cooperation Council (GCC) are subject to a 0% tax rate on their initial ro30,000 of income, and a 12% rate on income over that amount. Foreign company branches are taxed at a rate starting at 0% up to 30% for each of seven income levels. Companies engaged in agriculture, fishing and any other essential activity deemed by the government are exempt from income taxes. Oman has a comprehensive double taxation treaty with France.

CUSTOMS AND DUTIES

General import duties are 5% ad valorem on the CIF (cost, insurance, and freight) value of the good. Some luxury items have a 20% duty, while alcohol, tobacco, limes and pork products have a 100% duty placed on them. There are a number of exempt goods, including many imports from GCC member states. Protective tariffs are levied seasonably on a number of fruits and vegetables.

FOREIGN INVESTMENT

The principal foreign investment is in the oil sector. Foreign private investment is officially encouraged in certain areas—such as industry, agriculture, and fishing—through an initial five-year tax exemption, which may be renewed for another five years. Foreign participation in a local company cannot exceed 65% (this also applies to the sharing of profits). Companies holding commercial agencies must also have at least 51% Omani participation. In 2002, the largest foreign investor was Royal Dutch Shell Oil, which holds a 34% of the shares of the state oil company, Petroleum Development Oman, and 30% of Oman Liquid Natural Gas. Other investors in the oil industry include Occidental Petroleum, Hapex, Amoco, and Elf Aquitaine. The Sultanate does not publish estimates of inbound and out-bound investment Foreign investment in the Muscat Securities Market (MSM) has averaged 15–16%, but has dropped in absolute terms. In December 1999, foreign investment in the MSM was $867.8 million. A year later this had fallen to $730.5 million, and at the end of May 2001, foreign investment in the SMS was $708.9 million.

No systematic information is available on foreign direct investment (FDI). However, it is known that Oman seeks to diversify its economic base, so it is actively seeking private foreign investors in information technology, tourism, and higher educational fields. In September 2004, total investment in listed Omani companies with foreign participation was estimated at $2.4 billion (with 9% of it being foreign investment).

ECONOMIC DEVELOPMENT

Oman's economic policy operates under five-year development plans. Oman's second five-year plan (1981–85) suffered to some extent from the impact of declining oil prices in the early 1980s. The objectives of the third development plan (1986–90) were to encourage the private sector to play a larger role in the economy and to expand such areas as agriculture, fishing, manufacturing, and mining. The fourth five-year development plan (1991–95), aimed to achieve average annual GDP growth rates of just over 6% and the diversification of the sources of national income in order to reduce the dependence on the oil sector. The declared aim of the fifth five-year plan (1996–2000) was to achieve a balanced budget. The fall in oil prices to near-record lows in 1998 subverted the goal of a zero budget deficit in 2000, but rising oil prices in 2000 allowed the government to cut the deficit to only 1.5% of GDP ($301 million) in 2000. Oman's sixth five-year development plan (2001–05) aims at lessening dependence on government spending and employment, and at making the private the engine of growth for the economy.

The government's long-run development strategy is the Sultan's "Oman Vision 2020," which is designed to see the economy through the depletion of oil reserves. The emphases are on processes of "Omanization," industrialization, and privatization. One of the most successful diversification projects has been the Salalah Container Port opened in November 1998. In 2000, it handled over 500,000 FEUs (40-foot equivalency unit) and ranked among the top 10 container ports in efficiency. A new industrial port is also being built at Sohar, to be operational in 2003. In terms of developing its natural gas potential, the government took a major step n October 2000 with the inauguration of the $2.64 billion liquefied natural gas project in Sur. Other gas development projects include plans for urea fertilizer plant in Sur, an aluminum smelter in Sohar, and petrochemical plant at Salalah. An emphasis on income diversification has opened the country to foreign participation in the form of joint ventures.

The economy has recovered slightly in 2005, as a result of strong domestic demand growth. However, economic expansion rates are expected to be sluggish as long as oil production will not pick up. As soon as oil prices will increase, and imports will decrease, the economy will likely experience a healthy boom.

SOCIAL DEVELOPMENT

Oman maintains a social security system that provides old-age pensions, disability and survivorship benefits to employed citizens ages 15–59 who are under a permanent work contract. This program is funded by 5% contributions from employees, 2% by the government, and 8% contribution by employers. Retirement is set at age 60 for men and age 55 for women. Work injury legislation provides disability and medical benefits for injured workers. Hospitalization and medical care are provided to workers.

Islamic precepts result in de facto discrimination against women in a number of areas, such as inheritance. Traditional views on the subordinate role of women in society lead most women to work exclusively inside the home. Land grants and housing loans are rarely given to females. Some progress is being made, however, and women have begun to enter professional areas such as medicine and communications in greater numbers. The government has made efforts to increase educational opportunities for women. Women comprise roughly half of the 5,000 students at Sultan Qaboos University, and 50% of the total student body in the public school system. Women are required to get permission from a male relative to leave the country. Domestic abuse remains within the confines of the family, and sexual abuse of domestic employees remains a problem. As of 2004, there were no governmental programs for abused women. The welfare of children is funded adequately by the government.

Human rights abuses include arbitrary arrest, prolonged detention and the mistreatment of prisoners. Human rights organizations are prohibited by law from operating in Oman, and international monitors are unable to inspect prisons.

HEALTH

As of 2004, there were an estimated 126 physicians, 297 nurses, 11 dentists, and 22 pharmacists per 100,000 people. It was estimated that 89% of the population had access to health care services, 39% of the population had access to safe drinking water and 92% had adequate sanitation.

Average life expectancy in 2005 was 73.13 years. Infant mortality that year was 19.51 per 1,000 live births. As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 37.8 and 4 per 1,000 people. About 24% of married women (ages 15 to 49) were using contraception. The fertility rate was 4.3 children per woman living through her childbearing years.

Children up to one year old were vaccinated against tuberculosis, 96%; diphtheria, pertussis, and tetanus, 99%; polio, 99%; measles, 98%; and hepatitis B, 99%. The rates for DPT and measles were, respectively, 86% and 99%. About 12% of children under five were malnourished and goiter was prevalent in 10% of school-age children.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 1,300 people living with HIV/AIDS in the country. There were an estimated 110 deaths from AIDS in 2003.

HOUSING

In May 1973, Sultan Qabus approved the Law of People's Housing to make housing loans to needy Omanis. By 1985, 5,300 low-income units had been built. At the 1993 census, there was a total of 344,846 housing units nationwide. At the 2003 census, the total was at 430,996 housing units. About 39.7% of all housing units were traditional Arabic houses, 23.6% were villas, 17.3% were apartments, and 4.8% were rural homes. About 13.6% of all housing units were improvised housing. The average household has eight members.

An Arabic house is a one-story, single-family detached structure consisting of several rooms with some type of central courtyard; there is generally a boundary wall surrounding the home. A villa is similar to an Arabic house in structure but contains two floors. Rural houses are also similar in shape to an Arabic house, but often without a specific courtyard or complete boundary wall and generally made of a mixture of local materials such as mud and wood. Improvised housing consists of structures made of wood, hay, palm leaves, or other such materials.

In 2003, about 98.1% of all traditional housing units had access to a public electricity network, 96.8% used gas for cooking, and 43.1% had piped drinking water. about 78.6% of all housing units were occupied. About 85.4% of all traditional units had an equipped kitchen, 91.3% had an equipped bath/shower room, and 88.5% had flush toilets. An equipped room was defined as one that is linked to piped water and a piped sewage system.

EDUCATION

Elementary school (primary) covers a six-year course of study, which is followed by three years of preparatory school and three years of general secondary school. Academic results of the preparatory exams determine the type of secondary education the student will receive, either focusing on arts or sciences. Islamic schools offer the same courses as preparatory schools, as well as religious and Arabic studies. At the secondary level, boys may choose to attend a technical school. The academic year runs from September to June.

In 2001, about 5% of children between the ages of four and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 72% of age-eligible students. The same year, secondary school enrollment was about 69% of age-eligible students. It is estimated that about 73% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 21:1 in 2003; the ratio for secondary school was about 17:1.

In 1993, there were 252 literacy centers and 176 adult education centers. Three teachers' colleges were functioning as of 1986. The Institute of Agriculture at Nazwa became a full college by 1985. Sultan Qaboos University opened in 1986. In 2001, about 8% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate for 2004 was estimated at about 74.4%, with 82% for men and 65.4% for women.

As of 2003, public expenditure on education was estimated at 4.6% of GDP.

LIBRARIES AND MUSEUMS

The library at Sultan Qaboos University has 145,000 volumes, and the Muscat Technical and Industrial College has 10,000 volumes. A British Council Library of almost 8,000 volumes was founded in 1973 in Matrah. The Library of Manuscripts and Documents (1976) contains the Sultanate's most extensive collection of rare manuscripts. The Ministry of National Heritage and Culture administers the National Museum, the Oman Museum, the Qurm Museum, and the Natural History Museum, which includes the National Herbarium of Oman (a botanical garden) and the National Shell Collection. An Oil and Gas Museum opened in 1995 to chronicle the history of the industry in the nation. There is also a Children's Museum.

MEDIA

Postal, telephone, and telex systems are supervised by the Ministry of Posts, Telegraphs, and Telephones. By the end of 1991, the entire country was connected to a 79,000-line telephone network. In 2003, there were an estimated 84 mainline telephones for every 1,000 people; about 2,100 people were on a waiting list for telephone service installation. The same year, there were approximately 229 mobile phones in use for every 1,000 people.

Radio and television facilities are government owned; color television was introduced in 1974. Satellite dish owners may receive programming from Saudi Arabia, the United Arab Emirates, and Yemen. As of 1999 there were 3 AM and 9 FM radio stations and 13 television broadcast stations, all controlled by the government. In 2003, there were an estimated 621 radios and 553 television sets for every 1,000 people. The same year, there were 35 personal computers for every 1,000 people and 71 of every 1,000 people had access to the Internet. There were six secure Internet servers in the country in 2004.

Newspapers and journals in Arabic include the daily Al-Wattan (2002 circulation, 32,500) and Oman Daily Newspaper (15,560) and weekly periodicals such as Al-Aquida and Al-Usra. There are two English-language newspapers: Oman Daily Observer (22,000) and Times of Oman (15,000).

A 1984 Press and Publication Law authorizes the state to censor domestic and imported foreign publications. Journalists are said to practice self-censorship to avoid harassment. Criticism of the sultan is explicitly illegal.

ORGANIZATIONS

There is a Chamber of Commerce and Industry in Muscat. There are some professional associations in the country, including the Oman Medical Association (est. 2001). Among the social and cultural organizations are the Oman Women's Association, the Oman Cultural Club (for university graduates), the Omani National Organization for Scouts and Guides, the National Union of Oman Students, and the Omani Historical Association (open to non-Omanis). There are sports associations representing such pastimes as squash, tennis, rugby, football (soccer), and track and field.

TOURISM, TRAVEL, AND RECREATION

Oman is cautiously developing tourism, which was discouraged by previous rulers. The visa is valid for one month after entry. Most large hotels have clubs that offer various recreational activities; water sports are popular, but spear fishing has been prohibited as a conservation measure.

In 2003, about 630,000 foreign visitors arrived in Oman, of whom 26% came from Europe. There were 6,473 hotel rooms with 9,809 beds and an occupancy rate of 39%. Tourism expenditure receipts totaled $372 million that year. All travelers must have a valid passport and a visa. Visas are issued upon arrival at all entry points and can be used at anytime within six months of the issue date.

The US Department of State estimated the daily cost of staying in Muscat at $240 in 2004.

FAMOUS OMANIS

Oman's great Islamic religious leader, whose followers are called Ibadhis, was 'Abdallah bin Ibad (fl.8th century); many of his teachings are still followed in Oman. Ahmad ibn Sa'id (r.1741–83), founder of the present dynasty, freed Muscat from Persian rule. Sultan Qabus bin Sa'id (b.1940) has ruled Oman since his removal of Sa'id bin Taymur (1910–72), his father, in 1970.

DEPENDENCIES

Oman has no territories or colonies.

BIBLIOGRAPHY

Casey-Vine, Paula. (ed.) Oman in History. London: Immel Publishers, 1995.

Chatty, Dawn. Mobile Pastoralists: Development Planning and Social Change in Oman. New York: Columbia University Press, 1996.

Clements, Frank. Oman. (rev. ed.) Santa Barbara, Calif.: Clio, 1994.

Oman and the United Arab Emirates. London: Lonely Planet, 2000.

Rabi, Uzi. The Emergence of States in a Tribal Society: Oman under Sa'id bin Taymur, 1932–1970. Portland, Ore.: Sussex Academic Press, 2006.

Seddon, David (ed.). A Political and Economic Dictionary of the Middle East. Philadelphia: Routledge/Taylor and Francis, 2004.

Skeet, Ian. Oman: Politics and Development. New York: St. Martin's, 1992.

Stannard, Dorothy. (ed.) Oman and the United Arab Emirates. Singapore: APA Publications, 1998.

OMAN

Compiled from the September 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Sultanate of Oman

PROFILE

Geography

Area: About 212,460 sq. km. (about the size of Kansas). It is bordered on the north by the United Arab Emirates (U.A.E.), on the northwest by Saudi Arabia, and on the southwest by the Republic of Yemen. The Omani coastline stretches 2,092 km.

Cities: Capital—Muscat. Other cities—Salalah Nizwa, Sohar, Sur.

Terrain: Mountains, plains, and arid plateau.

Climate: Hot, humid along the coast; hot, dry in the interior; summer monsoon in far south.

People

Nationality: Noun—Oman. Adjective—Omani.

Population: (2003 census figures.) 2.33 million.

Annual growth rate: (2003 est.) 1.9%.

Ethnic groups: Arab, Baluchi, East African (Zanzabari), South Asian (Indian, Pakistani, Bangladeshi).

Religions: Ibadhi, 65%; Sunni Muslim, Shia Muslim, Hindu, Christian.

Languages: Arabic (official), English, Baluchi, Urdu, Swahili, Hindi and Indian dialects.

Education: Literacy—approx. 80% (total population).

Health: (2003) Infant mortality rate—20.26/1,000. Life expectancy—72.85.

Work force: (920,000) Agriculture and fishing—50%.

Government

Type: Monarchy.

Constitution: On November 6, 1996, Sultan Qaboos issued a royal decree promulgating the Basic Statute which clarifies the royal succession, provides for a prime minister, bars ministers from holding interests in companies doing business with the government, establishes a bicameral parliament, and guarantees basic civil liberties for Omani citizens.

Branches: Executive—Sultan. Legislative—Majlis Al-Shura (Consultative Council). Judicial—Magistrate courts handle criminal cases; Shari'a (Islamic law) courts oversee family law.

Political parties: None.

Suffrage: Universal adult.

Administrative subdivisions: Eight administrative regions—Muscat, Al Batinah, Musandam, A'Dhahirah, A'Dakhliya, A'Shariqiya, Al Wusta, Dhofar Governorate. There are 59 districts (wilayats).

Economy

GDP: (2004) $21.58 billion (8.3 billion Omani rials).

Per capita GDP: $9,261.

Natural resources: Oil, natural gas, copper, marble, limestone, gypsum, chromium.

Agriculture and fisheries: (2.1% of GDP).

Agriculture: Products—dates, limes, bananas, mangoes, alfalfa, other fruits and vegetables. Fisheries—Kingfish, tuna, other fish, shrimp, lobster, abalone.

Industry: Types—crude petroleum (not including gas liquids) about 800,000 barrels per day; construction, petroleum refinery, copper mines and smelter, cement and various light industries.

Trade: (2002) Exports—$11.7 billion. Major markets—Japan (22.1%), China (15.2%), Thailand (12.6%), South Korea (19.9%), U.A.E. (9.4%). Imports—$5.7 billion: machinery, transportation equipment, manufactured goods, food, livestock, lubricants. Major suppliers—U.A.E. 27.6%, Japan 16.7%, U.K. 7.4%, U.S. 6.9%, Germany 5%.

PEOPLE

About 50% of the population lives in Muscat and the Batinah coastal plain northwest of the capital; about 200,000 live in the Dhofar (southern) region, and about 30,000 live in the remote Musandam Peninsula on the Strait of Hormuz. Some 600,000 expatriates live in Oman, most of whom are guest workers from South Asia, Egypt, Jordan, and the Philippines.

Since 1970, the government has given high priority to education to develop a domestic work force, which the government considers a vital factor in the country's economic and social progress. In 1986, Oman's first university, Sultan Qaboos University, opened. Other post secondary institutions include a law school, technical college, banking institute, teachers training college, and health sciences institute. Some 200 scholarships are awarded each year for study abroad.

Nine private colleges exist, providing 2-year post secondary diplomas. Since 1999, the government has embarked on reforms in higher education designed to meet the needs of a growing population, only a small percentage of which are currently admitted to higher education institutions. Under the reformed system, four public regional universities will be created, and incentives are provided by the government to promote the upgrading of the existing nine private colleges and the creation of other degree-granting private colleges.

HISTORY

Oman adopted Islam in the seventh century A.D., during the lifetime of the Prophet Muhammad. Ibadhism, a form of Islam distinct from Shiaism and the "Orthodox" schools of Sunnism, became the dominant religious sect in Oman by the eighth century A.D. Oman is the only country in the Islamic world with a majority Ibadhi population. Ibadhism is known for its "moderate conservatism." One distinguishing feature of Ibadhism is the choice of ruler by communal consensus and consent.

Contact with Europe was established in 1508, when the Portuguese conquered parts of Oman's coastal region. Portugal's influence predominated for more than a century. Fortifications built during the Portuguese occupation can still be seen at Muscat.

Except for a period when Persia conquered parts of Oman, Oman has been an independent nation. After the Portuguese were expelled in 1650 and while resisting Persian attempts to establish hegemony, the Sultan of Oman extended his conquests to Zanzibar, other parts of the eastern coast of Africa, and portions of the southern Arabian Peninsula. During this period, political leadership shifted from the Ibadhi imams, who were elected religious leaders, to hereditary sultans who established their capital in Muscat. The Muscat rulers established trading posts on the Persian coast and also exercised a measure of control over the Makran coast (now Pakistan). By the early 19th century, Oman was the most powerful state in Arabia and on the East African coast.

Oman was the object of Franco-British rivalry throughout the 18th century. During the 19th century, Oman and the United Kingdom concluded several treaties of friendship and commerce. In 1908, the British entered into an agreement of friendship. Their traditional association was confirmed in 1951 through a new treaty of friendship, commerce, and navigation by which the United Kingdom recognized the Sultanate of Oman as a fully independent state.

When Sultan Sa'id bin Sultan Al-Busaid died in 1856, his sons quarreled over his succession. As a result of this struggle, the empire—through the mediation of the British Government under the "Canning Award"—was divided in 1861 into two separate principalities—Zanzibar, with its East African dependencies, and Muscat and Oman. Zanzibar paid an annual subsidy to Muscat and Oman until its independence in early 1964.

During the late 19th and early 20th centuries, the sultan in Muscat faced rebellion by members of the Ibadhi sect residing in the interior of Oman, centered around the town of Nizwa, who wanted to be ruled exclusively by their religious leader, the Imam of Oman.

This conflict was resolved temporarily by the Treaty of Seeb in 1920, which granted the imam autonomous rule in the interior, while recognizing the sovereignty of the sultan elsewhere.

Following the discovery of oil in the interior, the conflict flared up again in 1954, when the new imam led a sporadic 5-year rebellion against the sultan's efforts to extend government control into the interior. The insurgents were defeated in 1959 with British help. The sultan then terminated the Treaty of Seeb and eliminated the office of the imam. In the early 1960s, the imam, exiled to Saudi Arabia, obtained support from his hosts and other Arab governments, but this support ended in the 1980s.

In 1964, a separatist revolt began in Dhofar Province. Aided by communist and leftist governments such as the former South Yemen (People's Democratic Republic of Yemen), the rebels formed the Dhofar Liberation Front, which later merged with the Marxist-dominated Popular Front for the Liberation of Oman and the Arab Gulf (PFLOAG). The PFLOAG's declared intention was to overthrow all traditional Arab Gulf regimes. In mid-1974, PFLOAG shortened its name to the Popular Front for the Liberation of Oman (PFLO) and embarked on a political rather than a military approach to gain power in the other Gulf states, while continuing the guerrilla war in Dhofar.

With the help of British advisors, Sultan Qaboos bin Sa'id assumed power on July 23, 1970, in a palace coup directed against his father, Sa'id bin Taymur, who later died in exile in London. The new sultan was confronted with insurgency in a country plagued by endemic disease, illiteracy, and poverty. One of the new sultan's first measures was to abolish many of his father's harsh restrictions, which had caused thousands of Omanis to leave the country, and to offer amnesty to opponents of the previous regime, many of whom returned to Oman. He also established a modern government structure and launched a major development program to upgrade educational and health facilities, build a modern infrastructure, and develop the country's natural resources.

In an effort to curb the Dhofar insurgency, Sultan Qaboos expanded and re-equipped the armed forces and granted amnesty to all surrendered rebels while vigorously prosecuting the war in Dhofar. He obtained direct military support from the U.K., Iran, and Jordan. By early 1975, the guerrillas were confined to a 50 square kilometer (20-sq. mi.) area near the Yemen border and shortly thereafter were defeated. As the war drew to a close, civil action programs were given priority throughout Dhofar and helped win the allegiance of the people. The PFLO threat diminished further with the establishment of diplomatic relations in October 1983 between South Yemen and Oman, and South Yemen subsequently lessened propaganda and subversive activities against Oman. In late-1987, Oman opened an embassy in Aden, South Yemen, and appointed its first resident ambassador to the country.

Since his accession in 1970, Sultan Qaboos has balanced tribal, regional, and ethnic interests in composing the national administration. The Council of Ministers, which functions as a cabinet, consists of 27 ministers, all directly appointed by Qaboos. The Majlis Al-Shura's (Consultative Council) mandate is to review legislation pertaining to economic development and social services prior to its becoming law. The Majlis Al-Shura may request ministers to appear before it. In early 2003, Sultan Qaboos declared universal suffrage for the October 2003 Majlis al-Shura elections. Two women were elected to sit with 81 male colleagues in those elections, which were observed to be free and fair. Roughly 194,000 Omani men and women, or 74 percent of eligible voters, participated in the elections. In 2003, Sultan Qaboos also expanded the Majlis Al-Dowla, or State Council, to 57 members from 53, including eight women. The State Council acts as the upper chamber in Oman's bicameral representative body.

In November 1996, Sultan Qaboos presented his people with the "Basic Statute of the State," Oman's first written "constitution." It guarantees various rights within the framework of Quranic and customary law. It partially resuscitated long dormant conflict-of-interest measures by banning cabinet ministers from being officers of public shareholding firms. Perhaps most importantly, the Basic Statute provides rules for setting Sultan Qaboos' succession.

Oman is strategically located on the Strait of Hormuz, the entrance to the Gulf, 35 miles directly opposite Iran. Oman is concerned with regional stability and security, given tensions in the region, the proximity of Iran and Iraq, and the potential threat of political Islam. Oman maintained its diplomatic relations with Iraq throughout the Gulf War while supporting the UN allies by sending a contingent of troops to join coalition forces and by opening up to prepositioning of weapons and supplies. In addition, since 1980 Oman and the U.S. have been parties to a military cooperation agreement, which was revised and renewed in 2000. Oman also has long been an active participant in efforts to achieve Middle East peace.

Following the terrorist attacks on the United States in September 2001, the Omani Government at all levels pledged and provided impressive support to the U.S.-led coalition against terrorism. Oman is a signatory of most UN-sponsored anti-terrorism treaties.

GOVERNMENT AND POLITICAL CONDITIONS

Sultan Qaboos bin Sa'id rules with the aid of his ministers. His dynasty, the Al Sa'id, was founded about 250 years ago by Imam Ahmed bin Sa'id. The sultan is a direct descendant of the 19th century ruler, Sa'id bin Sultan, who first opened relations with the United States in 1833. The Sultanate has neither political parties nor legislature, although the bicameral representative bodies provide the government with advice.

Oman's judicial system traditionally has been based on the Shari'a—the Quranic laws and the oral teachings of the Islamic Prophet Muhammad. Traditionally, Shari'a courts fell under the jurisdiction of the Ministry of Justice, Awqaf, and Islamic Affairs. Oman's first criminal code was not enacted until 1974.

In 1999, royal decrees placed the entire court system—magistrates, commercial, shari'a and civil courts—under the control of the Ministry of Justice. An independent Office of the Public Prosecutor also has been created (formerly a part of the Royal Oman Police), and a supreme court is under formation. Regional court complexes are envisioned to house the various courts, including the courts of first instance for criminal cases and Shari'ah cases (family law and inheritance).

Administratively, the populated regions are divided into 59 districts (wilayats), presided over by governors (walis) responsible for settling local disputes, collecting taxes, and maintaining peace. Most wilayats are small; an exception is the wilayat of Dhofar, which comprises the whole province. The wali of Dhofar is an important government figure, holding cabinet rank, while other walis operate under the guidance of the Ministry of Interior.

In November 1991, Sultan Qaboos established the Majlis al-Shura (Consultative Council), which replaced the 10-year-old State Consultative Council, in an effort to systematize and broaden public participation in government. Representatives were chosen in the following manner: Local caucuses in each of the 59 districts sent forward the names of three nominees, whose credentials were reviewed by a cabinet committee. These names were then forwarded to the Sultan, who made the final selection. The Consultative Council serves as a conduit of information between the people and the government ministries. It is empowered to review drafts of economic and social legislation prepared by service ministries, such as communications and housing, and to provide recommendations. Service ministers also may be summoned before the Majlis to respond to representatives' questions. It has no authority in the areas of foreign affairs, defense, security, and finances.

Although Oman enjoys a high degree of internal stability, regional tensions in the aftermath of the Persian Gulf war, the Iran-Iraq war, and Operations Enduring Freedom and Iraqi Freedom continue to necessitate large defense expenditures. In 2004, Oman allocated $2.53 billion for defense—about 28.4% of its total budget. Oman maintains a small but professional and effective military, supplied mainly with British equipment in addition to items from the United States, France, and other countries. British officers, on loan or on contract to the Sultanate, help staff the armed forces, although a program of "Omanization" has steadily increased the proportion of Omani officers over the past several years.

After North and South Yemen merged in May 1990, Oman settled its border disputes with the new Republic of Yemen on October 1, 1992. The two neighbors have cooperative bilateral relations. Oman's borders with all neighbors are demarcated, including a 2002 demarcation of the Oman-UAE border that was ratified in 2003.

Principal Government Officials

Last Updated: 11/19/04

Sultan: Said , QABOOS bin Said Al
Special Representative for His Majesty the Sultan: Said , THUWAYNI bin Shihab Al
Prime Minister: Said , QABOOS bin Said Al
Dep. Prime Min. for Cabinet Affairs: Said , FAHD bin Mahmud Al
Min. of the Royal Office: Mamari , Ali bin Majid bin Musabagh al-, Gen.
Min. of Agriculture & Fisheries: Khalili , Salim bin Hilal bin Ali al-
Min. of Awqaf & Religious Affairs: Salimi , Abdallah bin Muhammad bin Abdallah al-
Min. of Civil Services: Miwali , Hili bin Khalid al-
Min. of Commerce, Industry, & Minerals: bin Sultan , Maqbul bin Ali bin
Min. of Communications: Shamas , Suhail bin Mustahail
Min. of Defense: Said , QABOOS bin Said Al
Min. of Diwan of Royal Court: Busaidi , SAYF bin Hamad Al
Min. of Education & Teaching: Salimi , Yahya bin Saud al-
Min. of Finance: Said , QABOOS bin Said Al
Min. of Health: bin Musa , Ali bin Muhammad bin, Dr.
Min. of Higher Education: Busaidi , Rawya bint Saud Al, Dr.
Min. of Housing, Electricity, & Water: Alawi , Khamis bin Mubarak bin Isa al-, Dr.
Min. of Information: Rashidi , Hamad bin Muhammad al-
Min. of Interior: Busaidi , Saud bin Brahim Al
Min. of Justice: Hinai , Muhammad bin Abdallah bin Zahir al-
Min. of Labor: bin Juma , Juma bin Ali
Min. of Legal Affairs: Alawi , Muhammad bin Ali bin Nasir al-
Min. of National Economy: Makki , Ahmad bin Abd al-Nabi al-
Min. of National Heritage & Culture: Said , Haythim bin Tariq Al
Min. of Oil & Gas: Rumhi , Muhammad bin Hamad bin Sayf al-
Min. of Palace Affairs: Busaidi , Ali bin Hamud bin Ali Al
Min. of Regional Municipalities, Environment, & Water Resources: Ruwas , Abddallah bin Muhammad bin Abdallah al-
Min. of Social Development: Husni , Amir bin Shuwayn al-
Min. of Tourism: bin Ali , Rajiha bint Abd al-Amir bin Ali
Min. of Transport & Telecommunications: Harthi , Muhammad bin Abdallah al-
Min. Responsible for Defense Affairs: Busaidi Badr bin Saud bin Harib al-
Min. Responsible for Foreign Affairs: Alawi bin Abdallah , Yusuf bin
Special Adv. to His Majesty: Ghazali , Salim bin Abdallah al-
Special Adv. to His Majesty for Culture: Ruwas , Abd al-Aziz bin Muhammad al-
Special Adv. to His Majesty for Economic Planning Affairs: Zubayr , Muhammad bin
Special Adv. to His Majesty for Environmental Affairs: Said , SHABIB bin Taymur Al
Special Adv. to His Majesty for External Liaison: Zawawi , Umar bin Abd al-Munim al-
Pres. Majlis al-Dawlah (Council of State) (Upper House): Manthiri , Yahya bin Mahfudh al-
Pres. Majlis al-Shura (Advisory Council) (Lower House): Qutaybi , Abdallah Ali al-
Governor, Central Bank: Said , QABOOS bin Said Al
Executive Pres., Central Bank: Zadjali , Hamud bin Sangur Hashim
Ambassador to the US: Khussaiby , Muhammad bin Ali bin Thani al-
Permanent Representative to the UN, New York: Hinai , Fuad bin Mubarak al-

Oman maintains an embassy in the United States at 2535 Belmont Rd. NW, Washington, DC 20008 (tel. 202/387-1980)

ECONOMY

When Oman declined as an entrepot for arms and slaves in the mid-19th century, much of its former prosperity was lost, and the economy turned almost exclusively to agriculture, camel and goat herding, fishing, and traditional handicrafts. Today, oil fuels the economy and revenues from petroleum products have enabled Oman's dramatic development over the past 34 years.

Oil was first discovered in the interior near Fahud in the western desert in 1964. Petroleum Development (Oman) Ltd. (PDO) began production in August 1967. The Omani Government owns 60% of PDO, and foreign interests own 40% (Royal Dutch Shell owns 34%; the remaining 6% is owned by Compagnie Francaise des Petroles [Total] and Partex). In 1976, Oman's oil production rose to 366,000 barrels per day (b/d) but declined gradually to about 285,000 b/d in late 1980 due to the depletion of recoverable reserves. From 1981 to 1986, Oman compensated for declining oil prices by increasing production levels to 600,000 b/d. With the collapse of oil prices in 1986, however, revenues dropped dramatically. Production was cut back temporarily in coordination with the Organization of Petroleum Exporting Countries (OPEC), and production levels again reached 600,000 b/d by mid-1987, which helped increase revenues. By 2000, production had climbed to more than 900,000 b/d, however it declined to roughly 800,000 b/d in 2003. Oman is not a member of OPEC.

Natural gas reserves, which will increasingly provide the fuel for power generation and desalination, stand at 30 trillion cubic feet. An LNG processing plant located in Sur was opened in 2000, with production capacity of 6.6 million tons/yr, as well as unsubstantial gas liquids, including condensates. This plant is scheduled for expansion by the end of 2005, when total production capacity will reach 9.9 million tons/yr.

Oman does not have the immense oil resources of some of its neighbors. Total proven reserves are about 5.5 billion barrels. Oman's complex geology makes exploration and production an expensive challenge. Recent improvements in technology, however, have enhanced recovery.

Agriculture and fishing are the traditional way of life in Oman. Dates and limes, grown extensively in the Batinah coastal plain and the highlands, make up most of the country's agricultural exports. Coconut palms, wheat, and bananas also are grown, and cattle are raised in Dhofar. Other areas grow cereals and forage crops. Poultry production is steadily rising. Fish and shellfish exports totaled $78 million in 2003.

The government is undertaking many development projects to modernize the economy, improve the standard of living, and become a more active player in the global marketplace. Oman became a member of the World Trade Organization in October 2000, and continues to amend its financial and commercial practices to conform to international standards. Increases in agriculture and especially fish production are believed possible with the application of modern technology. The Muscat capital area has both an international airport at Seeb and a deepwater port at Mina Qaboos. The large-scale modern container port at Salalah, capital of the Dhofar Governate, continues to operate at near-capacity levels, and the government in early 2004 approved a project worth over $250 million to add two berths and extend the breakwater at the port. A national road network includes a $400 million highway linking the northern and southern regions. In an effort to diversify the economy, in the early 1980s, the government built a $200-million copper mining and refining plant at Sohar. Other large industrial projects underway or being considered include an 80,000 b/d oil refinery, a large petrochemical complex, fertilizer and methanol plants, an aluminum smelter, and two cement factories. Industrial zones at Rusayl, Sohar, and several other locations showcase the country's modest light industries. Marble, limestone, and gypsum may prove commercially viable in the future.

The Omani Government is implementing its sixth 5-year plan, launched in 2000, to reduce its dependence on oil and expatriate labor. The plan focuses on income diversification, job creation for Omanis in the private sector, and development of Oman's interior. Government programs offer soft loans and propose the building of new industrial estates in population centers outside the capital area. The government is giving greater emphasis to "Omanization" of the labor force, particularly in banking, hotels, and municipally sponsored shops benefiting from government subsidies. Currently, efforts are underway to liberalize investment opportunities in order to attract foreign capital.

Some of the largest budgetary outlays are in the areas of health services and basic education. The number of schools, hospitals, and clinics has risen exponentially since the accession of Sultan Qaboos in 1970.

U.S. firms face a small and highly competitive market dominated by trade with Japan and Britain and reexports from the United Arab Emirates. The sale of U.S. products also is hampered by higher transportation costs and the lack of familiarity with Oman on the part of U.S. exporters. However, the traditional U.S. market in Oman, oil field supplies and services, should grow as the country's major oil producer continues a major expansion of fields and wells.

FOREIGN RELATIONS

When Sultan Qaboos assumed power in 1970, Oman had limited contacts with the outside world, including neighboring Arab states. Only two countries, the United Kingdom and India, maintained a diplomatic presence in the country. A special treaty relationship permitted the United Kingdom close involvement in Oman's civil and military affairs. Ties with the United Kingdom have remained very close under Sultan Qaboos.

Since 1970, Oman has pursued a moderate foreign policy and expanded its diplomatic relations dramatically. It supported the 1979 Camp David accords and was one of three Arab League states, along with Somalia and Sudan, which did not break relations with Egypt after the signing of the Egyptian-Israeli Peace Treaty in 1979. During the Persian Gulf crisis, Oman assisted the UN coalition effort. Oman has developed close ties to its neighbors; it joined the six-member Gulf Cooperation Council when it was established in 1980.

Oman has traditionally supported Middle East peace initiatives, as it did those in 1983. In April 1994, Oman hosted the plenary meeting of the Water Working Group of the peace process, the first Gulf state to do so. From 1996-2000, Oman and Israel exchanged trade offices. Oman closed the Israeli Trade Office in October 2000 in the wake of public demonstrations against Israel during the intifada.

During the Cold War period, Oman avoided relations with communist countries because of the communist support for the insurgency in Dhofar. In recent years, Oman has undertaken diplomatic initiatives in the Central Asian republics, particularly in Kazakhstan, where it is involved in a joint oil pipeline project. In addition, Oman maintains good relations with Iran, its northern neighbor, and the two countries regularly exchange delegations. Oman is an active member in international and regional organizations, notably the Arab League and the GCC.

U.S.-OMANI RELATIONS

The United States has maintained relations with the Sultanate since the early years of American independence. A treaty of friendship and navigation, one of the first agreements of its kind with an Arab state, was concluded between the United States and Muscat in 1833. This treaty was replaced by the Treaty of Amity, Economic Relations, and Consular Rights signed at Salalah on December 20, 1958.

A U.S. consulate was maintained in Muscat from 1880 until 1915. Thereafter, U.S. interests in Oman were handled by U.S. diplomats resident in other countries. In 1972, the U.S. ambassador in Kuwait was accredited also as the first U.S. ambassador to Oman, and the U.S. embassy, headed by a resident charge d'affaires, was opened. The first resident U.S. ambassador took up his post in July 1974. The Oman embassy was opened in Washington, DC, in 1973.

U.S.-Omani relations were deepened in 1980 by the conclusion of two important agreements. One provided access to Omani military facilities by U.S. forces under agreed-upon conditions. The other agreement established a Joint Commission for Economic and Technical Cooperation, located in Muscat, to provide U.S. economic assistance to Oman. The Joint Commission continued in existence until the mid-1990s. A Peace Corps program, which assisted Oman mainly in the fields of health and education, was initiated in 1973 and phased out in 1983. A team from the Federal Aviation Administration worked with Oman's Civil Aviation Department on a reimbursable basis but was phased out in 1992.

In 1974 and April 1983, Sultan Qaboos made state visits to the United States. Vice President George H. Bush visited Oman in 1984 and 1986, and President Clinton visited briefly in March 2000.

Principal U.S. Embassy Officials

MUSCAT (E) Address: APO/FPO: APO AE 09890-3000; Phone: [968] 698-989; Fax: [968] 696-928; Workweek: SAT-WED/0800-1630; Website: www.usa.gov.om

TRAVEL

Consular Information Sheet

August 6, 2004

Country Description: The Sultanate of Oman has a long and proud heritage, and is a country of great natural beauty on the southeast corner of the Arabian Peninsula. With a population of 2.33 million, it is a country that has seen rapid economic and social development in the past three decades. While Oman is traditionally Islamic and Islam is the state religion, Omanis have for centuries lived with people of other faiths. Non-Muslims are free to worship at churches and temples built on land donated by the Sultan. The economy is largely dependent on the production and export of oil and, increasingly, natural gas. Excellent tourist facilities are available in the Capital area of Muscat, as well as in Salalah, Sohar, and Nizwa and are increasingly found elsewhere in the country. Travelers may wish to visit the Directorate General of Tourism's website at http://www.omantourism.gov.om for more information.

Entry/Exit Requirements: A valid passport and visa are required for entry into Oman. Omani embassies and consulates issue two-year, multiple-entry tourist and/or business visas to qualified U.S. citizens. Optionally, U.S. citizens may obtain a 30-day visa by presenting their U.S. passports on arrival at all Oman land, sea and air entry points. (Note: The validity period of the applicant's passport should not be less than six months.) Adequate funds and proof of an onward/return ticket are required. The fee is Rial Omani 6.000 (approximately USD 16.00). This visa can only be extended for an extra 30 days. A completed extension application form and a fee of Rial Omani 6.000 (USD 16.00) should be submitted to the Directorate General of Passports and Residence, or to its branches at regional Royal Oman Police offices.

Other categories of short-term visit/business/work contract visas are available, but these must be arranged in advance through an Omani sponsor. To obtain a visa or for details on entry and travel requirements, please contact the Embassy of the Sultanate of Oman, 2535 Belmont Road N.W., Washington, D.C. 20008, telephone (202) 387-1980/2. Evidence of yellow fever immunization is required if the traveler enters from an infected area.

In an effort to prevent international child abduction, many governments have initiated procedures at border points. These often include requiring documentary evidence of the relationship and permission for the child's travel from the parent(s) or legal guardian if not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

Dual Nationality: The Omani Government does not recognize dual nationality. Omani authorities can confiscate the U.S. passports of U.S./Omani dual nationals. Should this occur, it should be reported to the U.S. Embassy in Muscat. For additional information, see the Consular Affairs homepage on the Internet at http://travel.state.gov/travel/dualnationality.html for our Dual Nationality flyer.

Safety and Security: There have been no instances in which U.S. citizens or facilities in Oman have been subject to terrorist attacks. However, the Department of State remains concerned about the possibility of terrorist attacks against United States citizens and interests throughout the region. American citizens in Oman are urged to maintain a high level of security awareness. The State Department suggests that all Americans in Oman maintain an unpredictable schedule and vary travel routes whenever possible. Americans are also urged to treat mail or packages from unfamiliar sources with suspicion. Unusual mail or packages should be left unopened and reported to local authorities. U.S. citizens with security concerns are encouraged to contact local authorities and the Consular Section of the U.S. Embassy in Muscat.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current Worldwide Caution Public Announcement, Middle East and North Africa Public Announcement, and other Travel Warnings and Public Announcements can be found.

Up-to-date information on security can also be obtained by calling 1-888-407-4747 toll free in the United States, or, for callers outside the United States and Canada, a regular toll line at 1-317-472-2328. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: Although the incidence of crime is low in Oman, travelers to Oman should take normal precautions. Travelers should also protect personal property from theft. In particular, valuables and currency should not be left unsecured in hotel rooms. Common sense and caution are the best crime prevention. While violent crime is relatively rare in Oman, it does occur.

The loss or theft of a U.S. passport abroad should be reported immediately to local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and to explain the process for transferring funds. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

U.S. citizens may refer to the Department of State's pamphlets A Safe Trip Abroad and Tips for Travelers to the Middle East and North Africa for ways to promote a trouble-free journey. The pamphlets are available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, via the Internet at http://www.gpoaccess.gov/index.html, or via the Bureau of Consular Affairs home page at http://travel.state.gov/travel/abroad_pub_safetrip.html.

Medical Facilities: There are a number of medical facilities utilized by Westerners in Oman. Many (but by no means all) Western pharmaceuticals can be found in Oman. Local medical treatment varies from quite good to inadequate, depending in large part on location. While hospital emergency treatment is available, ambulance service has only begun in certain urban locations in Oman (see Traffic Safety and Road Conditions section below). Doctors and hospitals often expect cash payment for health services.

Medical Insurance: U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policies apply overseas and whether insurance companies will cover emergency expenses including medical evacuation. Further, U.S. Medicare and Medicaid programs are inapplicable outside the United States. Many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including medical evacuations.

When choosing health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or if you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page or autofax: (202) 647-3000.

Other Health Information: Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via CDC's Internet site at http://www.cdc.gov/travel.

For information about outbreaks of infectious diseases abroa d consult the World Health Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Oman is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Safety of Public Transportation: Good
Urban Road Conditions/Maintenance: Good
Rural Road Conditions/Maintenance: Poor
Availability of Roadside/Ambulance Assistance: Poor

(Ambulance service has only begun in certain urban locations in Oman. A modern ambulance service using U.S. equipment and staff trained in the U.S. was instituted in 2004 and is eventually expected to provide coverage for motor accident victims throughout the entire Sultanate. That service is assessed as very good.)

Road conditions, lighting, and traffic safety in cities and on major highways are good. Travel between cities, especially at night, may be dangerous due to poor or no lighting, wandering livestock, and speeding drivers.

Local Traffic Laws: Traffic laws in Oman are strictly enforced. Seat belt use is required, and the use of cellular telephones while driving and driving while under the influence of alcohol are prohibited. There are stringent penalties for violation of these laws, particularly for driving under the influence of alcohol. In the event of a traffic violation and fine, drivers should pay the fine as directed and should not attempt to pay the fine or negotiate payment at the time of the traffic stop.

In the event of an accident, the driver should not move the vehicle from the location of the accident until police grant permission; moving a vehicle is equivalent to an admission of guilt. The Royal Oman Police may be contacted at telephone 968-560-099.

Driving: Visitors should not drive without a valid license. Short-term visitors in possession of a valid U.S. driver's license may drive rental vehicles, but residents must have an Omani driver's license. To obtain an Omani license, a U.S. citizen must have a U.S. license that has been valid for at least one year or must take a driving test.

Insurance: Visitors hiring rental cars should insure the vehicles adequately against death, injury and loss or damage. Residents may insure their vehicles outside the Sultanate; however, third party liability insurance must be purchased locally.

Local Traffic Customs: The use of European-style traffic circles is prevalent in Oman. However, unlike European traffic practice, the driver on the inside lane always has priority. A driver flashing his/her high beams is generally asking for a chance to pass. Turning right on a red light is prohibited.

For additional general information about road safety, including links to foreign government sites, see the Department of State, Bureau of Consular Affairs home page road safety overseas feature at http://travel.state.gov/travel/abroad_roadsafety.html. For specific information concerning Omani driving permits, vehicle inspection, road tax and mandatory insurance, please contact the Omani Office of Tourism of the Ministry of Commerce and Industry via the Internet at http://www.omanet.com.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Oman's civil aviation authority as category 1—in compliance with international aviation safety. For further information, travelers may contact the Department of Transportation within the United States at telephone 1-800-322-7873, or visit the FAA's Internet website at http://www.faa.gov/avr/iasa/index.cfm.

As a result of the August 23, 2000 crash of a Gulf Air flight in the Persian Gulf, DOD has recommended that military commands use air carriers other than Gulf Air for DOD official travel.

Customs Regulations: Travelers entering Oman may not carry with them, or bring into the country in accompanied baggage, firearms, ammunition, or pornography; all are subject to seizure. Unaccompanied baggage and shipments of household goods are also subject to inspection. Books, videotapes, and audiotapes may be reviewed prior to being released to the owner. A copy of the packing list is required to clear effects through customs. Travelers carrying prescription drugs should be in possession of the original prescription and a letter from their doctor detailing the use of the medicine. It is advisable to contact the Embassy of the Sultanate of Oman in Washington for specific information regarding customs requirements. A maximum of one bottle of liquor is permitted per non-Muslim adult.

Pets (dogs and cats) entering Oman require an import permit from the Ministry of Agriculture and Fisheries, Department of Animal Health, before shipment. Application forms may be obtained from the Ministry by one's sponsor and must be submitted with a copy of the pet's rabies vaccination record and a veterinary health certificate. Vaccination certificates must be dated between one month and six months prior to arrival in Oman. Dogs and cats must be at least four months old to be allowed into Oman. Further, a second veterinary health certificate dated no more than one week prior to arrival of the pet into Oman is required. The original rabies vaccination record and the veterinary health certificate must accompany the pet. Pets may be subjected to a six-month quarantine, if veterinary authorities are not satisfied with the health condition of the pet and/or certifications. Pets must be manifested as cargo on an airway bill when transported by air. Note: For importation of other pets (birds, fish, reptiles, etc.), please contact the Directorate of Animal Health at telephone: 968-696-300, ext. 1510/1513 or by fax at 968-694-465/696-271 for current information.

In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines. A current list of those countries with serious problems in this regard can be found at http://www.ustr.gov/reports/2003/special301.htm.

Criminal Penalties: While in a foreign country, U.S. citizens are subject to that country's laws and regulations, which can differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Omani laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs are strict, and convicted offenders can expect jail sentences and heavy fines. Death sentences are possible for violators of Oman's drug laws. Visitors are additionally cautioned that it is illegal to use aggressive, obscene or abusive language or gestures in public. In accordance with Omani law, penalties for these offenses can range from deportation or fines to imprisonment. Civil charges may also be filed.

Under the PROTECT Act of April 2003, it is a crime, prosecutable in the United States, for a U.S. citizen or permanent resident alien, to engage in illicit sexual conduct in a foreign country with a person under the age of 18, whether or not the U.S. citizen or lawful permanent resident alien intended to engage in such illicit sexual conduct prior to going abroad. For purposes of the PROTECT Act, illicit sexual conduct includes any commercial sex act in a foreign country with a person under the age of 18. The law defines a commercial sex act as any sex act, on account of which anything of value is given to or received by a person under the age of 18.

Under the Protection of Children from Sexual Predators Act of 1998, it is a crime to use the mail or any facility of interstate or foreign commerce, including the Internet, to transmit information about a minor under the age of 16 for criminal sexual purposes that include, among other things, the production of child pornography. This same law makes it a crime to use any facility of interstate or foreign commerce, including the Internet, to transport obscene materials to minors under the age of 16.

Special Circumstances: Omani employers often ask that expatriate employees deposit their passports with the company as a condition of employment. Although customary, this practice is not required by Omani law. The U.S. Embassy in Muscat advises Americans to exercise caution on the issue of permitting an employer to withhold their passports, since this can operate as a restraint on travel and could give undue leverage to the employer in a dispute. U.S. passports are the property of the U.S. government.

Islamic ideals provide the conservative foundation of Oman's customs, laws and practices. Foreign visitors are expected to be sensitive to the Islamic culture, and not dress in a revealing or provocative style, including the wearing of sleeveless shirts and blouses, halter tops and shorts. Athletic clothing is worn in public only when the wearer is obviously engaged in athletic activity. Western bathing attire, however, is the norm at hotel pools and beaches.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/family/index.html or telephone Overseas Citizens Services at 1-888-407-4747. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Registration/Embassy Location: Americans living or traveling in Oman are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within Oman. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, you'll make it easier for the Embassy or Consulate to contact you in case of emergency.

The workweek in Oman is Saturday through Wednesday. The U.S. Embassy in Oman is located on Jameat A"Duwal Al Arabiya Street, Al Khuwair Area (Shatti al-Qurum), in the capital city of Muscat. The mailing address is P.O. Box 202, Medinat Al Sultan Qaboos 115, Sultanate of Oman, telephone (968) 698-989, fax: (968) 699-189. The Embassy's e-mail address is aemctcns@omantel.net.om, and its website is http://www.usa.gov.om.

International Adoption

January 2005

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family

Disclaimer: The information in this circular relating to the legal requirements of specific foreign countries is provided for general information only. Questions involving interpretation of specific foreign laws should be addressed to foreign legal counsel.

Please Note: Omani nationals who are Muslims must adopt Oman children.

Availability of Children for Adoption: To date, no Omani children have been adopted by American citizens.

Omani Adoption Authority: The government office responsible for adoptions in Oman is the Ministry of Social Affairs. Please contact Ms. Batool Hassan, Deputy Director of the Office of Children's and Women's Affairs (968) 601-598.

Age and Civil Status Requirements: The Omani Government requires that individuals who wish to adopt Omani children must have Omani nationality and must be of the Muslim faith. Married couples are preferred but single women may also be eligible to adopt under special circumstances.

Adoption Agencies and Attorneys: All adoptions are processed by the Government of Oman.

Doctors: The U.S. Embassy maintains current lists of doctors and sources for medicines, should either you or your child experience health problems while in Oman.

U.S. Immigration Requirements: A Oman child adopted by an American citizen must obtain an immigrant visa before he or she can enter the U.S. as a lawful permanent resident. Please see the International Adoption section of this book for more details and review current reports online at travel.state.gov/family

Omani Embassy in the United States: 2535 Belmont Road, NW, Washington, DC 20008.; Tel. (202) 387-1980.

U.S. Embassy in Oman: P.O. Box 202; Code 115 Madinat Al-Sultan Qaboos; Muscat, Sultanate of Oman; Tel. (968) 698-989 X 216, 294, or 435.; Fax (968) 699-189; E-mail: aemctcns@omantel.net.om

Questions: Specific questions regarding adoption in Oman may be addressed to the Consular Section of the U.S. Embassy Muscat, Oman. You may also contact the Office of Children's Issues, SA-29, 2201 C Street, NW, U.S. Department of State, Washington, DC 20520-2818, Tel: 1-888-407-4747 with specific questions.

International Parental Child Abduction

January 2005

The information below has been edited from the report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Parental Child Abduction section of this book and review current reports online at travel.state.gov

Disclaimer: The information in this circular relating to the legal requirements of a specific foreign country is provided for general information only. Questions involving interpretation of specific foreign laws should be addressed to competent legal counsel.

General Information: Oman is not a party to the Hague Convention on the Civil Aspects of International Child Abduction, nor are there any international or bilateral treaties in force between Oman and the United States dealing with international parental child abduction. American citizens who travel to Oman are subject to the jurisdiction of Omani courts, as well as to the country's laws and regulations. American citizens planning a trip to Oman with dual national children should bear this in mind.

Custody Disputes: When child custody disputes arise between parents of any religion, the custody decisions by Omani courts are based on Islamic (Shari'a) law. Custody cases can be very complex and are usually determined on a case-by-case basis. When making decisions regarding child custody matters, Omani courts consider the parents' religion(s), place(s) of permanent residence, income, and the parents' marital status.

(Note: Omani law differentiates between custodianship and guardianship. Generally speaking, a custodian has been awarded custody of the child and is responsible for his/her upbringing including education and care. A guardian is responsible for the child's financial support.)

Omani courts do not, as a general rule, award custody of "dual national" (U.S./Omani) children to an American mother or father, even one who is Muslim. A fundamental consideration of awarding custody is the parent's place(s) of permanent residence and degree of access to the children. Custody of very young children is generally granted to the mother as long as certain restrictive conditions are met. Once the children come of age (for males completion of their seventh year of age, for females the onset of puberty), the father can appeal for, and will usually be awarded, full custody provided certain restrictive conditions are met. If a father were unable or unfit to be custodian of his children, the court may give custody to another family member. Shari'a court judges have broad discretion in custody cases and often make exceptions to these general guidelines, particularly in cases in which a parent is from an influential family or has powerful connections in Oman.

Even when a mother is granted custody, the non-custodial father maintains a great deal of influence on the rearing of the children. In many cases, the father has been able to acquire legal custody of children against the wishes of the mother when she is unable or unwilling to meet certain conditions set by law for her to maintain her custodial rights. For example, if a mother refuses to give the father access to his child or attempts to leave Oman with the children without the court's permission, a mother's custody rights can be severed.

The Omani court can sever a mother's custody if it determines that the mother is incapable of safeguarding the child or of bringing the child up in accordance with the appropriate religious standards. Either parent can lose custody by re-marrying a party considered "unmarriageable," or by residing in a home with people that might be "strangers." However, the final decision is left to the discretion of the Shari'a court.

Shari'a law forbids the removal of children from Oman without first obtaining permission from the court. The U.S. Embassy cannot prevent the Omani government from arresting and either deporting or prosecuting an American citizen who violates Omani law.

Persons who wish to pursue a child custody claim in an Omani court should retain an attorney in Oman. The State Department and the U.S. Embassy in Oman maintain a list of attorneys willing to represent American clients.

U.S. Department of State
Office of Overseas Citizen Services
Washington, DC 20520
Phone: (202) 647-5225

U.S. Embassy Muscat Consular Section
P.O. Box 202
Madinat al Sultan Qaboos 115
Sultanate of Oman
Telephone: [968] 698-989; Fax: [968] 699-189
Website: http://www.usa.gov.om
Consular Section:
aemctcns@omantel.net.om

The workweek for the Embassy is Saturday through Wednesday from 8:00 AM to 4:30 PM.

Specific questions regarding child custody in Oman should be addressed to an Omani attorney or to the Embassy of Oman at:

Embassy of the Sultanate of Oman
2535 Belmont Road, NW
Washington, DC 20008
Telephone: (202) 387-1980;
Fax: (202) 745-4933

Enforcement of Foreign Judgments: Custody orders and judgments of foreign courts are not enforceable in Oman if they potentially contradict or violate local laws and practices. For example, an order from a U.S. court granting custody to an American parent will not be honored in Oman if the parent intends to take the child to live outside Oman. Nor will Omani courts enforce U.S. court decrees ordering a parent in Oman to pay child support.

Visitation Rights: Non-custodial parents are generally entitled to visitation rights as determined by the Shari'ah judge.

Dual Nationality: Dual nationality is not recognized by the Sultanate of Oman. Children of Omani fathers automatically acquire Omani citizenship at birth and must enter and leave the country on Omani passports even if they are entitled to hold the passport of another country. Omani women cannot transmit citizenship to their children.

Travel Restrictions: When a custody case is pending with the Shari'a court, children, regardless of their nationality, are generally subject to court-imposed travel restrictions. Either parent can request the court to restrict the travel of his/her minor children.

Criminal Remedies: For information on possible criminal remedies, please contact your local law enforcement authorities or the nearest office of the Federal Bureau of Investigation (FBI). Information is also available on the Internet at the web site of the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention (OJJDP) at http://www.ojjdp.ncjrs.org.

Oman

PROFILE
PEOPLE
HISTORY
GOVERNMENT AND POLITICAL CONDITIONS
ECONOMY
FOREIGN RELATIONS
U.S.-OMANI RELATIONS
TRAVEL

Compiled from the June 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Sultanate of Oman

PROFILE

Geography

Area: About 309,500 sq. km. (approximately the size of the State of New Mexico). It is bordered on the north by the United Arab Emirates (U.A.E.), on the northwest by Saudi Arabia, and on the southwest by the Republic of Yemen. The Omani coastline stretches 3,165 km.

Cities: Capital—Muscat. Other cities—Salalah, Nizwa, Sohar, Sur.

Terrain: Mountains, plains, and arid plateau.

Climate: Hot and humid along the coast; hot and dry in the interior; summer monsoon in the far south.

People

Nationality: Noun—Oman. Adjective—Omani(s).

Population: (2006 est.) 3.20 million (includes 577,000 non-nationals).

Annual growth rate: (2006 est.) 3.2%.

Ethnic groups: Arab, Baluchi, East African (Zanzabari), South Asian (Indian, Pakistani, Bangladeshi).

Religions: Ibadhi; Sunni Muslim, Shia Muslim, Hindu, Christian.

Languages: Arabic (official), English, Baluchi, Urdu, Swahili, Hindi and Indian dialects.

Education: Literacy—approx. 80% (total population).

Health: (2006 est.) Infant mortality rate—18.28 deaths/1,000 live births. Life expectancy—73.62 years.

Work force: 920,000 total; Agriculture and fishing—approx. 50%.

Government

Type: Monarchy.

Constitution: None. On November 6, 1996, Sultan Qaboos issued a royal decree promulgating the Basic Statute which clarifies the royal succession, provides for a prime minister, bars ministers from holding interests in companies doing business with the government, establishes a bicameral parliament, and guarantees basic rights and responsibilities for Omani citizens.

Government branches: Executive—Sultan. Legislative—Majlis Oman (bicameral: State Council and Consultative Council). Judicial—Civil courts are divided into four departments: Criminal courts handle cases under the penal code; Shari'a (Islamic law) courts oversee personal status and family law issues; Commercial courts adjudicate business and commercial matters; Labor courts oversee labor and employment cases.

Political parties: None.

Suffrage: Universal adult.

Political subdivisions: Eight administrative regions—Muscat Governorate, Dhofar Governorate, Musandam Governorate, Al-Buraimi Governorate, Al Batinah, Al Dhahirah, Al Dakhliya, Al Shariqiya, Al Wusta. There are 61 districts (wilayats).

Economy

GDP: (2006 est.) $39.50 billion.

Per capita GDP: (2006 est.) $13,845.

Real GDP growth rate: (2006 est.) 6.6%.

Natural resources: Oil, natural gas, copper, marble, limestone, gypsum, chromium.

Agriculture and fisheries: (2.1% of GDP). Products—dates, bananas, mangoes, alfalfa, other fruits and vegetables. Fisheries—kingfish, tuna, other fish, shrimp, lobster, abalone.

Industry: Types—crude petroleum (not including gas liquids) about 750,000 barrels per day; construction, petroleum refinery, copper mines and smelter, cement and various light industries.

Trade: (2006 est.) Exports—$18.69 billion. Major markets—Japan (22.1%), China (15.2%), Thailand (12.6%), South Korea (19.9%), U.A.E. (9.4%). Imports—$8.83 billion: machinery, transportation equipment, manufactured goods, food, livestock, lubricants. Major suppliers—U.A.E. 27.6%, Japan 16.7%, U.K. 7.4%, U.S. 6.9%, Germany 5%.

PEOPLE

About 55% of the population lives in Muscat and the Batinah coastal plain northwest of the capital; about 215,000 live in the Dhofar (southern) region, and about 30,000 live in the remote Musandam Peninsula on the Strait of Hormuz. Some 660,000 expatriates live in Oman, most of whom are guest workers from South Asia, Egypt, Jordan, and the Philippines.

Since 1970, the government has given high priority to education in order to develop a domestic work force, which the government considers a vital factor in the country's economic and social progress. In 1986, Oman's first university, Sultan Qaboos University, opened. It has continued to expand, recently adding a law college, and remains the country's only major public university. In total, there are about 20 public post-secondary education institutions in Oman, including technical colleges, teacher training colleges, and health institutes. More than 300 full and partial scholarships are awarded each year for study abroad.

There are three private universities and 20 private post-secondary education institutions in Oman, including a banking college, a fire and safety college, a dentistry college, and business and management colleges. Most of these public and private post-secondary education institutions offer four-year degrees, while the remainder provide two-year post-secondary diplomas. Since 1999, the government has embarked on reforms in higher education designed to meet the needs of a growing population. Approximately 40% of Omani high school graduates pursue some type of post-secondary education.

HISTORY

Oman adopted Islam in the seventh century A.D., during the lifetime of the Prophet Muhammad. Ibadhism, a form of Islam distinct from Shiaism and the “Orthodox” schools of Sunnism, became the dominant religious sect in Oman by the eighth century A.D. Oman is the only country in the Islamic world with a majority Ibadhi population. Ibadhism is known for its “moderate conservatism.”One distinguishing feature of Ibadhism is the choice of ruler by communal consensus and consent.

Contact with Europe was established in 1508, when the Portuguese conquered parts of Oman's coastal region. Portugal's influence predominated for more than a century. Fortifications built during the Portuguese occupation can still be seen at Muscat.

Except for a period when Persia conquered parts of Oman, Oman has been an independent nation. After the Portuguese were expelled in 1650 and while resisting Persian attempts to establish hegemony, the Sultan of Oman extended his conquests to Zanzibar, other parts of the eastern coast of Africa, and portions of the southern Arabian Peninsula. During this period, political leadership shifted from the Ibadhi imams, who were elected religious leaders, to hereditary sultans who established their capital in Muscat. The Muscat rulers established trading posts on the Persian coast and also exercised a measure of control over the Makran coast (now Pakistan). By the early 19th century, Oman was the most powerful state in Arabia and had a major presence on the East African coast.

Oman was the object of Franco-British rivalry throughout the 18th century. During the 19th century, Oman and the United Kingdom concluded several treaties of friendship and commerce. In 1908, the British entered into an agreement of friendship. Their traditional association was confirmed in 1951 through a new treaty of friendship, commerce, and navigation by which the United Kingdom recognized the Sultanate of Oman as a fully independent state.

When Sultan Sa'id bin Sultan Al-Busaid died in 1856, his sons quarreled over his succession. As a result of this struggle, the Omani empire—through the mediation of the British Government under the “Canning Award”—was divided in 1861 into two separate principalities—Zanzibar, with its East African dependencies, and Muscat and Oman. Zanzibar paid an annual subsidy to Muscat and Oman until its independence in early 1964.

During the late 19th and early to mid-20th centuries, the sultan in Muscat faced a rebellion by members of the Ibadhi sect residing in the interior of Oman, centered around the town of Nizwa, who wanted to be ruled exclusively by their religious leader, the Imam of Oman. This conflict was resolved temporarily by the Treaty of Seeb in 1920, which granted the imam autonomous rule in the interior, while recognizing the sovereignty of the sultan elsewhere.

Following the discovery of oil in the interior, the conflict flared up again in 1954, when the new imam led a sporadic 5-year rebellion against the sultan's efforts to extend government control into the interior. The insurgents were defeated in 1959 with British help. The sultan then terminated the Treaty of Seeb and eliminated the office of the imam. In the early 1960s, the imam, exiled to Saudi Arabia, obtained support from his hosts and other Arab governments, but this support ended in the 1980s.

In 1964, a separatist revolt began in Dhofar Province. Aided by communist and leftist governments such as the former South Yemen (People's Democratic Republic of Yemen), the rebels formed the Dhofar Liberation Front, which later merged with the Marxist-dominated Popular Front for the Liberation of Oman and the Arab Gulf (PFLOAG). The PFLOAG's declared intention was to overthrow all traditional Arab Gulf regimes. In mid-1974, PFLOAG shortened its name to the Popular Front for the Liberation of Oman (PFLO) and embarked on a political rather than a military approach to gain power in the other Gulf states, while continuing the guerrilla war in Dhofar.

With the help of British advisors, Sultan Qaboos bin Sa'id assumed power on July 23, 1970, in a palace coup

directed against his father, Sa'id bin Taymur, who later died in exile in London. The new sultan was confronted with insurgency in a country plagued by endemic disease, illiteracy, and poverty. One of the new sultan's first measures was to abolish many of his father's harsh restrictions, which had caused thousands of Omanis to leave the country, and to offer amnesty to opponents of the previous regime, many of whom returned to Oman. He also established a modern government structure and launched a major development program to upgrade educational and health facilities, build a modern infrastructure, and develop the country's natural resources.

In an effort to end the Dhofar insurgency, Sultan Qaboos expanded and re-equipped the armed forces and granted amnesty to all surrendered rebels while vigorously prosecuting the war in Dhofar. He obtained direct military support from the U.K., Iran, and Jordan. By early 1975, the guerrillas were confined to a 50-square kilometer (20-sq. mi.) area near the Yemen border and shortly thereafter were defeated. As the war drew to a close, civil action programs were given priority throughout Dhofar and helped win the allegiance of the people. The PFLO threat diminished further with the establishment of diplomatic relations in October 1983 between South Yemen and Oman, and South Yemen subsequently lessened propaganda and subversive activities against Oman. In late-1987, Oman opened an embassy in Aden, South Yemen, and appointed its first resident ambassador to the country.

Since his accession in 1970, Sultan Qaboos has balanced tribal, regional, and ethnic interests in composing the national administration. The Council of Ministers, which functions as a cabinet, consists of 30 ministers (but only 28 ministries), all directly appointed by Qaboos. The bicameral Majlis Oman's mandate is to review legislation pertaining to economic development and social services prior to its becoming law. The elected Maj-lis al-Shura (Consultative Council) may request ministers to appear before it. In early 2003, Sultan Qaboos declared universal suffrage for the October 2003 Majlis al-Shura elections. Two women were elected to sit with 81 male colleagues in those elections, which were observed to be free and fair. Roughly 194,000 Omani men and women, or 74% of registered voters, participated in the elections. Since 2003, Sultan Qaboos has also expanded the Majlis al-Dawla, or State Council, to 59 members from 53, including nine women. The State Council acts as the upper chamber in Oman's bicameral representative body.

In November 1996, Sultan Qaboos presented his people with the “Basic Statute of the State,” Oman's first written “constitution.” It guarantees various rights within the framework of Shariah and customary law. It partially resuscitated long dormant conflict-of-interest measures by banning cabinet ministers from being officers of public shareholding firms. Perhaps most importantly, the Basic Statute provides rules for the royal succession.

The northern tip of Oman, called the Musandam Peninsula, is strategically located on the Strait of Hormuz, the entrance to the Gulf, 35 miles directly opposite Iran. Oman is concerned with regional stability and security, given tensions in the region, the proximity of Iran and Iraq, and the potential threat of political Islam. Oman maintained its diplomatic relations with Iraq throughout the Gulf War while supporting the UN allies by sending a contingent of troops to join coalition forces and by opening up to prepositioning of weapons and supplies. In addition, since 1980 Oman and the U.S. have been parties to a military cooperation agreement, which was revised and renewed in 2000. Oman also has long been an active participant in efforts to achieve Middle East peace.

Following the terrorist attacks on the United States in September 2001, the Omani Government at all levels pledged and provided impressive support to the U.S.-led coalition against terrorism. Oman is a signatory of most UN-sponsored anti-terrorism treaties.

GOVERNMENT AND POLITICAL CONDITIONS

Sultan Qaboos bin Sa'id rules with the aid of his ministers. His dynasty, the Al Sa'id, was founded about 250 years ago by Imam Ahmed bin Sa'id Al Bu Said. Sultan Qaboos is a direct descendant of the 19th century ruler, Sa'id bin Sultan, who first opened relations with the United States in 1833. The Sultanate has neither political parties nor legislature, although the bicameral representative bodies provide the government with advice.

Oman's judicial system traditionally has been based on the Shari'a—the Quranic laws and the oral teachings of the Islamic Prophet Muhammad. Traditionally, Shari'a courts fell under the jurisdiction of the Ministry of Justice, Awqaf, and Islamic Affairs (since divided into the Ministry of Justice and the Ministry of Endowments and Religious Affairs). Oman'sfirst criminal code was not enacted until 1974.

In 1999, royal decrees placed the entire court system under the financial supervision of the Ministry of Justice, though the 1996 Basic Law ensures the independence of the judiciary. An independent Office of the Public Prosecutor also has been created (formerly a part of the Royal Oman Police), as has a supreme court. Regional court complexes are envisioned to house the various courts, including the courts of first instance for criminal cases and Sha-riah cases (family law and inheritance).

The country is divided into 61 administrative districts (wilayats), presided over by appointed executives (walis) responsible for settling local disputes, collecting taxes, and maintaining peace. Most wilayats are small in area, but can vary considerably in population. The 61 wilayats are divided into eight regions. Four of those regions (Muscat, Dhofar, Musandam, and Buraimi) have been accorded a special status as governorates. The governors of those four regions are appointed directly by the Sultan and hold Minister of State or Under Secretary rank. Walis, however, are appointed by the Minister of Interior.

In November 1991, Sultan Qaboos established the Majlis al-Shura (Consultative Council), which replaced the 10-year-old State Consultative Council, in an effort to systematize and broaden public participation in government. Representatives were chosen in the following manner: Local caucuses in each of the 59 districts sent forward the names of three nominees, whose credentials were reviewed by a cabinet committee. These names were then forwarded to the Sultan, who made the final selection. Since then, reforms have permitted Omanis to freely run for office in contested elections featuring universal adult suffrage. The Consultative Council serves as a conduit of information between the people and the government ministries. It is empowered to review drafts of and provide recommendations on economic and social legislation prepared by service ministries, such as communications and housing, and to approve state financial plans. Service ministers also may be summoned before the Majlis to respond to representatives' questions. It has no authority in the areas of foreign affairs, defense, security, and finance.

Although Oman enjoys a high degree of internal stability, regional tensions in the aftermath of the Persian Gulf war, the Iran-Iraq war, and Operations Enduring Freedom and Iraqi Freedom continue to necessitate large defense expenditures. In 2006, Oman spent roughly $3.84 billion for defense and national security—over 33% of its public expenditures. Oman maintains a small but professional and effective military, supplied mainly with British equipment in addition to items from the United States, France, and other countries. British officers, on loan or on contract to the Sultanate, help staff the armed forces, although a program of “Oman-ization” has steadily increased the proportion of Omani officers over the past several years.

After North and South Yemen merged in May 1990, Oman settled its border disputes with the new Republic of Yemen on October 1, 1992. The two neighbors have cooperative bilateral relations. Oman's borders with all neighbors are demarcated, including a 2002 demarcation of the Oman-U.A.E. border that was ratified in 2003.

Principal Government Officials

Last Updated: 2/1/2008

Sultan: QABOOS bin Said al-Said

Special Representative for His Majesty the Sultan: THUWAYNI bin Shihab al-Said

Prime Min.: QABOOS bin Said al-Said

Dep. Prime Min. for Cabinet Affairs: FAHD bin Mahmud al-Said

Min. of Agriculture: Salim bin Hilal bin Ali al-KHALILI

Min. of Awqaf & Religious Affairs: Abdallah bin Muhammad bin Abdallah al-SALIMI

Min. of Civil Services: Muhammad bin Abdallah bin Isa al-HARTHI

Min. of Commerce, Industry, & Minerals: MAQBUL bin Ali Sultan

Min. of Defense: QABOOS bin Said al-Said

Min. of Diwan of the Royal Court: SAYF bin Hamad al-Busaidi

Min. of Education & Teaching: Yahya bin Saud al-SALIMI

Chmn., Electricity & Water Ministry: Abdallah bin Muhammad al-MAHRUQI

Min. of Environment & Climate Change: HAMAD bin Faysal al-Busaidi

Min. of Finance: QABOOS bin Said al-Said

Min. of Fisheries: Muhammad bin Ali al-QATABI

Min. of Foreign Affairs: QABOOS bin Said al-Said

Min. of Health: Ali bin Muhammad bin MUSA, Dr.

Min. of Higher Education: RAWYA bint Saud al-Busaidi

Min. of Housing: Muhammad bin Saif al SHABI

Min. of Information: Hamad bin Muhammad al-RASHIDI

Min. of Interior: SAUD bin Ibrahim al-Busaidi

Min. of Justice: Muhammad bin Abdallah bin Zahir al-HINAI

Min. of Labor: Juma bin Ali bin JUMA

Min. of Legal Affairs: Muhammad bin Ali bin Nasir al-ALAWI

Min. of National Economy: Ahmad bin Abd al-Nabi al-MAKKI

Min. of National Heritage & Culture: HAYTHIM bin Tariq al-Said

Min. of Oil & Gas: Muhammad bin Hamad bin Sayf al-RUMHI

Min. of Palace Affairs: ALI bin Hamud bin Ali al-Busaidi

Min. of Regional Municipalities & Water Resources: Abdallah bin Muhammad bin Abdallah al-RUWAS

Min. of the Royal Office: ALI MAJID bin Mussabagh al-Mamari, Gen.

Min. of Social Development: SHARIFA bint Khalfan bin Nasser al-Yahya

Min. of Sports: Ali bin Masud bin Ali al-SUNAIDI

Min. of Tourism: Rajiha bint Abd al-Amir bin ALI

Min. of Transport & Communication: KHAMIS bin Mubarak al-Alawi

Min. of State & Governor, Muscat: SAYID al-Mutasim bin Hamud al-Busaidi

Min. of State & Governor, Dhofar: MUHAMMAD bin Marhun bin Ali al-MAMARI

Min. Responsible for Defense Affairs: BADR bin Saud bin Harib al-Busaidi

Min. Responsible for Foreign Affairs: Yusuf bin ALAWI bin Abdallah

Special Adviser to His Majesty: Salim bin Abdallah al-GHAZALI

Special Adviser to His Majesty for Culture: Abd al-Aziz bin Muhammad al-RUWAS

Special Adviser to His Majesty for Economic Planning Affairs: Muhammad bin ZUBAYR

Special Adviser to His Majesty for Environmental Affairs: SHABIB bin Taymur al-Said

Special Adviser to His Majesty for External Liaison: Umar bin Abd al-Munim al-ZAWAWI

Governor, Central Bank of Oman: QABOOS bin Said al-Said

Executive Pres., Central Bank of Oman: Hamud bin Sangur bin Hashim al-ZADJALI

Ambassador to the US: Hunaina bint Sultan bin Ahmad al-MUGHAIRI

Permanent Representative to the UN, New York: Fuad bin Mubarak al-HINAI

Oman maintains an embassy in the United States at 2535 Belmont Rd. NW, Washington, DC 20008 (tel. 202/387-1980).

ECONOMY

When Oman declined as an entrepot for arms and slaves in the mid-19th century, much of its former prosperity was lost, and the economy turned almost exclusively to agriculture, camel and goat herding, fishing, and traditional handicrafts. Today, oil and gas fuel the economy, and revenues from petroleum products have enabled Oman's dramatic development over the past 36 years.

Oil was first discovered in the interior near Fahud in the western desert in 1964. Petroleum Development (Oman) Ltd. (PDO) began production in August 1967. The Omani Government owns 60% of PDO, and foreign interests own 40% (Royal Dutch Shell owns 34%; the remaining 6% is owned by Compagnie Francaise des Petroles [Total] and Partex). In 1976, Oman's oil production rose to 366,000 barrels per day (b/d) but declined gradually to about 285,000 b/d in late 1980 due to the depletion of recoverable reserves. From 1981 to 1986, Oman compensated for declining oil prices by increasing production levels to 600,000 b/d. With the collapse of oil prices in 1986, however, revenues dropped dramatically. Production was cut back temporarily in coordination with the Organization of Petroleum Exporting Countries (OPEC)—of which Oman is not a member—and production levels again reached 600,000 b/d by mid-1987, which helped increase revenues. By 2000, production had climbed to more than 900,000 b/d; however, it declined to roughly 750,000 b/d for 2006.

Natural gas reserves, which will increasingly provide the fuel for industrial projects in Sohar and power generation and desalination plants throughout the Sultanate, stand at 24 trillion cubic feet. A liquefied natural gas (LNG) processing plant located in Sur was opened in 2000, with production capacity of 6.6 million tons per year (tons/yr), as well as unsubstantial gas liquids, including condensates. The completion of the plant's expansion in December 2005 has increased capacity to 10.3 million tons/yr.

Oman does not have the immense oil resources of some of its neighbors. Total proven reserves are about 4.8 billion barrels. Oman's complex geology makes exploration and production an expensive challenge. Recent improvements in technology, however, have enhanced recovery.

Agriculture and fishing are the traditional way of life in Oman. Dates, grown extensively in the Batinah coastal plain and the highlands, make up most of the country's agricultural exports. Coconut palms, wheat, and bananas also are grown, and cattle are raised in Dhofar. Other areas grow cereals and forage crops. Poultry production is steadily rising. Fish and shellfish exports totaled $104.7 million in 2006.

The government is undertaking many development projects to modernize the economy, improve the standard of living, and become a more active player in the global market-place. Oman became a member of the World Trade Organization in October 2000, and continues to amend its financial and commercial practices to conform to international standards. Oman signed a Free Trade Agreement with the United States in January 2006, and continues to pursue, through the Gulf Cooperation Council, free trade agreements with a number of other key trading partners, including the EU and India.

Increases in agriculture and especially fish production are believed possible with the application of modern technology. The Muscat capital area has both an international airport at Seeb and a deepwater port at Mina Qaboos. The large-scale modern container port at Salalah, capital of the Dhofar Governorate, continues to operate at near-capacity levels. The government in early 2004 approved a project worth over $250 million to add two berths and extend the break-water at the port. Port expansion is underway at Mina Qaboos, and a large industrial and container port is under construction in Sohar. A national road network includes a $400 million highway linking the northern and southern regions. The government will also expand passenger and cargo capacity at its main international airports at Seeb (Muscat) and Salalah, and will construct new airports at Sohar, Ras al-Hadd, and Duqm. In an effort to diversify the economy, in the early 1980s, the government built a $200-million copper mining and refining plant at Sohar. Other large industrial projects underway or being considered include an 80,000 b/d oil refinery, a large petrochemical complex, fertilizer and methanol plants, an aluminum smelter, and two cement factories. Industrial zones at Rusayl, Sohar, and several other locations showcase the country's modest light industries. Marble, limestone, and gypsum may prove commercially viable in the future.

The Omani Government embarked on its seventh 5-year plan in 2006. In its efforts to reduce its dependence on oil and expatriate labor, the government projects significant increases in spending on industrial and tourism-related projects to foster income diversification, job creation for Omanis in the private sector, and development of Oman's interior. Government programs offer soft loans and propose the building of new industrial estates in population centers outside the capital area. The government is giving greater emphasis to “Omanization” of the labor force, particularly in banking, hotels, and municipally sponsored shops benefiting from government subsidies. Currently, efforts are underway to liberalize investment opportunities in order to attract foreign capital.

Some of the largest budgetary outlays are in the areas of health services and basic education. The number of schools, hospitals, and clinics has risen exponentially since the accession of Sultan Qaboos in 1970.

U.S. firms face a small and highly competitive market dominated by trade with Japan and Britain and re-exports from the United Arab Emirates. The sale of U.S. products also is hampered by higher transportation costs and the lack of familiarity with Oman on the part of U.S. exporters. However, the traditional U.S. market in Oman, oil field supplies and services, should grow as the country's major oil producer continues a major expansion of fields and wells. Major new U.S. investments in oil production, industry, and tourism projects in 2005 totaled several billion dollars. Moreover, negotiations on the U.S.-Oman Free Trade Agreement (FTA) were successfully concluded in October 2005; the FTA was ratified by the U.S. Congress and signed by President Bush in 2006 and is currently awaiting implementation. Once implemented, the FTA should provide further impetus to bilateral trade and investment.

FOREIGN RELATIONS

When Sultan Qaboos assumed power in 1970, Oman had limited contacts with the outside world, including neighboring Arab states. Only two countries, the United Kingdom and India, maintained a diplomatic presence in the country. A special treaty relationship permitted the United Kingdom close involvement in Oman's civil and military affairs. Ties with the United Kingdom have remained very close under Sultan Qaboos.

Since 1970, Oman has pursued a moderate foreign policy and expanded its diplomatic relations dramatically. It supported the 1979 Camp David accords and was one of three Arab League states, along with Somalia and Sudan, which did not break relations with Egypt after the signing of the Egyptian-Israeli Peace Treaty in 1979. During the Iran-Iraq war, Oman maintained diplomatic relations with both sides while strongly backing UN Security Council resolutions calling for an end to the war. Oman has developed close ties to its neighbors; it joined the six-member Gulf Cooperation Council when it was established in 1981.

Oman has traditionally supported Middle East peace initiatives, as it did those in 1983. In April 1994, Oman hosted the plenary meeting of the Water Working Group of the peace process, the first Gulf state to do so. From 1996-2000, Oman and Israel exchanged trade offices. Oman closed the Israeli Trade Office in October 2000 in the wake of public demonstrations against Israel at the start of the second intifada.

During the Cold War period, Oman avoided relations with communist countries because of the communist support for the insurgency in Dhofar. In recent years, Oman has undertaken diplomatic initiatives in the Central Asian republics, particularly in Kazakhstan, where it is involved in a joint oil pipeline project. In addition, Oman maintains good relations with Iran, and the two countries regularly exchange delegations. Oman is an active member in international and regional organizations, notably the Arab League and the GCC.

U.S.-OMANI RELATIONS

The United States has maintained relations with the Sultanate since the early years of American independence. A treaty of friendship and navigation, one of the first agreements of its kind with an Arab state, was concluded between the United States and Muscat in 1833. This treaty was replaced by the Treaty of Amity, Economic Relations, and Consular Rights signed at Salalah on December 20, 1958.

A U.S. consulate was maintained in Muscat from 1880 until 1915. Thereafter, U.S. interests in Oman were handled by U.S. diplomats resident in other countries. In 1972, the U.S. ambassador in Kuwait was accredited also as the first U.S. ambassador to Oman, and the U.S. embassy, headed by a resident charge d'affaires, was opened. The first resident U.S. ambassador took up his post in July 1974. The Oman embassy was opened in Washington, DC, in 1973.

U.S.-Omani relations were deepened in 1980 by the conclusion of two important agreements. One provided access to Omani military facilities by U.S. forces under agreed-upon conditions. The other agreement established a Joint Commission for Economic and Technical Cooperation, located in Muscat, to provide U.S. economic assistance to Oman. The Joint Commission continued in existence until the mid-1990s. A Peace Corps program, which assisted Oman mainly in the fields of health and education, was initiated in 1973 and phased out in 1983. A team from the Federal Aviation Administration worked with Oman's Civil Aviation Department on a reimbursable basis but was phased out in 1992.

In March 2005, the U.S. and Oman launched negotiations on a Free Trade Agreement that were successfully concluded in October 2005. The FTA was signed on January 19, 2006, and is pending implementation.

In 1974 and April 1983, Sultan Qaboos made state visits to the United States. Vice President George H. Bush visited Oman in 1984 and 1986, and President Clinton visited briefly in March 2000. Vice President Cheney visited Oman in 2002, 2005, and 2006.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

MUSCAT (E), APO/FPO APO/AE 09890-3000, [968] 2464-3400, Fax [968] 2464-3434, Workweek: SAT-WED/0800-1630, Website: http://oman.usembassy.gov.

TRAVEL

Consular Information Sheet

December 3, 2007

Country Description: The Sultanate of Oman, a land of great natural beauty on the southeast corner of the Arabian Peninsula, has a long and proud heritage. With a population of 2.6 million, Oman has seen rapid economic and social development in the past three decades. A monarchy governed by Sultan Qaboos bin Said, the country does not have political parties or a legislature, although a bicameral representative body (the lower house of which is directly elected) provides the government with advice and reviews draft legislation. While Oman is traditionally Islamic and Islam is the state religion, Omanis have for centuries lived with people of other faiths. Non-Muslims are free to worship at churches and temples built on land donated by the Sultan. The economy is largely dependent on the production and export of oil and natural gas, but is becoming increasingly more diversified. Excellent tourist facilities are available in the major cities of Muscat, Salalah, Sohar, and Nizwa and can increasingly be found elsewhere in the country. Travelers may wish to visit the Sultanate's tourism web site at http://www.omantourism.gov.om/ for more information.

Entry Requirements: A valid passport and visa are required for entry into Oman. Omani embassies and consulates issue multiple-entry tourist and/or business visas valid for up to two years. Omani immigration officials at the port of entry determine the length of stay in Oman, which varies according to the purpose of travel. Alternatively, U.S. citizens may obtain a 30-day visa by presenting their U.S. passports on arrival at all Oman land, sea, and air entry points. Note: The validity period of the applicant's passport should not be less than six months. Adequate funds and proof of an onward/return ticket, though not required, are strongly recommended. The fee is Rials Omani 6.00 (approximately USD 16.00). This visa can only be extended for an extra 30 days; a completed extension application form and the fee of Rials Omani 6.00 (USD 16.00) should be submitted to the Directorate General of Passports and Residence or to its branches at regional Royal Omani Police offices. Other categories of short-term visit/business/work contract visas are available, but these must be arranged in advance through an Omani sponsor. To obtain a visa or for details on entry and travel requirements, please contact the Embassy of the Sultanate of Oman, 2535 Belmont Road NW, Washington, DC 20008, telephone (202) 387-1980/ 2. Evidence of yellow fever immunization is required if the traveler enters from an infected area. Visit the Embassy of Oman web site at www.omani.info for the most current visa information.

Forbidden items: The Sultanate prohibits pornographic materials and firearms from entering Oman. Local law limits each traveler to two bottles of alcohol. Items subject to confiscation at the airport due to content considered culturally inappropriate include, but are not limited, to compact discs, digital video discs, and video and audiocassettes.

Safety and Security: There have been no instances in which U.S. citizens or facilities in Oman have been subject to terrorist attacks. However, the Department of State remains concerned about the possibility of terrorist attacks against United States citizens and interests throughout the region. American citizens in Oman are urged to maintain a high level of security awareness. The State Department suggests that all Americans in Oman maintain an unpredictable schedule and vary travel routes whenever possible. Americans are also urged to treat mail or packages from unfamiliar sources with suspicion. Unusual mail or packages should be left unopened and reported to local authorities. U.S. citizens with security concerns are encouraged to contact local authorities and the Consular Section of the U.S. Embassy in Muscat.

For the latest security information, Americans traveling abroad should regularly monitor the Department's web site, where the current World-wide Caution Travel Alert, Middle East and North Africa Travel Alert, Travel Warnings and other Travel Alerts can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or, for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: The incidence of street crime is low in Oman; violent crime is rare by U.S. standards, but can occur. Crimes of opportunity remain the most likely to affect visitors. Visitors to Oman should, therefore, take normal precautions, such as avoiding travel in deserted or unfamiliar areas and after dark. Visitors should also protect personal property from theft. In particular, valuables and currency should not be left unsecured in hotel rooms. Common sense and caution are always the best methods for crime prevention.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: There are a number of modern medical facilities in Oman. Local medical treatment varies from quite good to inadequate, depending in large part on location. Many Western pharmaceuticals can be found in Oman. Hospital emergency treatment is available. Doctors and hospitals often expect cash payment for health services.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/en.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Oman is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Road Conditions and Hazards: Road conditions, lighting, and traffic safety in cities and on major highways are good. The condition of rural roads varies from good to poor. Travel between cities, especially at night, may be dangerous due to poor or no lighting, wandering livestock, and speeding drivers. The safety of public transportation is generally good. Taxis, minivans, and small buses may swerve to the side of the road to pick up passengers with little notice or regard for other vehicles.

Local Laws and Practices: Traffic laws in Oman are strictly enforced.

Driving while under the influence of alcohol is prohibited, and there are stringent penalties for violating this law. Seat belt use is required, and the use of non-hands-free cellular telephones while driving is prohibited. In the event of a traffic violation and fine, drivers should pay the fine as directed and should not attempt to pay or negotiate payment at the time of the traffic stop.

Effective June 1, 2007, the Royal Oman Police (ROP) introduced new procedures for minor Road Traffic Accidents (RTA) to reduce traffic jams. According to the ROP, the new procedure is currently in force in the Governorate of Muscat area and will eventually be implemented in the other governorates and regions of the Sultanate. American citizens considering driving in Oman are advised to familiarize themselves with the new procedures available on the ROP web site at http://www.rop.gov.om/english/index.asp under “Minor Road Traffic Accidents.”Note: Minor RTA are accidents causing minor damage to one or more vehicles that does not result in injuries, deaths, or material damage to public/private properties. Parties involved in such accidents should immediately move their vehicles to the side of the road.

American citizens involved in accidents outside of the Muscat area are advised not to move their vehicles from the accident location until the ROP gives them permission; moving a vehicle may be interpreted as an admission of guilt.

The use of European-style traffic circles is prevalent in Oman. However, unlike European traffic practice, the driver on the inside lane always has priority. A driver flashing his/her high beams is generally asking for a chance to pass. Turning right on a red traffic signal is prohibited.

Visitors should not drive without a valid license. Short-term visitors in possession of a valid U.S. driver's license may drive rental vehicles, but residents must have an Omani driver's license. To obtain an Omani license, a U.S. citizen must have a U.S. license that has been valid for at least one year or must take a driving test. Visitors hiring rental cars should insure the vehicles adequately against death, injury and loss or damage. Residents may insure their vehicles outside the Sultanate; however, third party liability insurance must be purchased locally.

Emergency Services: A modern ambulance service using American equipment and staff trained in the U.S. was instituted in 2004 and has been assessed as very good. The service currently serves only certain urban locations in Oman, including the capital area, but is eventually expected to provide coverage for motor vehicle accident victims throughout the entire Sultanate. For all traffic-related emergencies, the Royal Omani Police can be contacted by dialing "9999."

Visit the website of Oman's national tourist office and national authority responsible for road safety at http://www.omantourism.gov.om.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Oman's Civil Aviation Authority as being in compliance with International Civil Aviation Organization (ICAO) aviation safety standards for oversight of Oman's air carrier operations. For more information, travelers may visit the FAA's web site at http://www.faa.gov.

Special Circumstances: By Omani custom and law, expressing frustration either verbally or through otherwise innocuous hand gestures is considered insulting and abusive. Doing so could result in police action that may lead to a jail term and a fine. Confrontations of this nature occur mostly on Oman's roads, and visitors should exercise caution when dealing with difficult drivers.

Omani employers often ask that expatriate employees deposit their passports with the company as a condition of employment. While to an extent still customary, this practice is contrary to Omani law. The U.S. Embassy in Muscat advises Americans to exercise caution on the issue of permitting an employer to hold their passports, since this can operate as a restraint on travel and could give undue leverage to the employer in a dispute. U.S. passports are the property of the U.S. government.

Islamic ideals provide the conservative foundation of Oman's customs, laws, and practices. Foreign visitors are expected to be sensitive to Islamic culture and not dress in a revealing or provocative style, including the wearing of sleeveless shirts and blouses, halter-tops and shorts. Athletic clothing is worn in public only when the wearer is obviously engaged in athletic activity. Western bathing attire, however, is the norm at hotel pools and beaches.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Omani laws, even unknowingly, may be expelled, arrested, or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Oman are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: Americans living or traveling in Oman are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration web site and to obtain updated information on travel and security within Oman. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy is located on Jamiat A'Duwal Al Arabiya Street, Al Khuwair Area (Shatti Al-Qurum), in the capital city of Muscat. The mailing address is: PO Box 202, Medinat Al Sultan Qaboos 115, Sultanate of Oman, telephone: (968) 24-643-400, fax: (968) 24-643-535. The Embassy's Consular e-mail address is Consular-Muscat@state.gov and the web site is http://oman.usembassy.gov.

International Adoption

February 2008

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Please Note: Omani nationals who are Muslims must adopt Oman children.

Availability of Children for Adoption: To date, no Omani children have been adopted by American citizens.

Adoption Authority: The government office responsible for adoptions in Oman is the Ministry of Social Affairs. Please contact Ms. Batool Hassan, Deputy Director of the Office of Children's and Women's Affairs (968) 601-598.

Age and Civil Status Requirements: The Omani Government requires that individuals who wish to adopt Omani children must have Omani nationality and must be of the Muslim faith. Married couples are preferred but single women may also be eligible to adopt under special circumstances.

Adoption Agencies and Attorneys: All adoptions are processed by the Government of Oman.

Doctors: The U.S. Embassy maintains current lists of doctors and sources for medicines, should either you or your child experience health problems while in Oman.

U.S. Immigration Requirements: A Oman child adopted by an American citizen must obtain an immigrant visa before he or she can enter the U.S. as a lawful permanent resident. Prospective adopting parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions.

Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

Omani Embassy in the United States
2535 Belmont Road, NW,
Washington, DC 20008
Tel. (202) 387-1980

U.S. Embassy
P.O. Box 202
Code 115 Madinat Al-Sultan Qaboos
Muscat, Sultanate of Oman
Tel. (968) 698-989 X 216, 294, or 435.
Fax (968) 699-189
E-mail: aemctcns@omantel.net.om

Questions: Specific questions regarding adoption in Oman may be addressed to the Consular Section of the U.S. Embassy Muscat, Oman. You may also contact the Office of Children's Issues, SA-29, 2201 C Street, NW, U.S. Department of State, Washington, DC 20520-2818, Tel: 1-888-407-4747 with specific questions.

International Parental Child Abduction

February 2008

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Parental Child Abduction section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is provided for general information only. Questions involving interpretation of specific foreign laws should be addressed to foreign legal counsel.

General Information: Oman is not a party to the Hague Convention on the Civil Aspects of International Child Abduction, nor are there any international or bilateral treaties in force between Oman and the United States dealing with international parental child abduction. American citizens who travel to Oman are subject to the jurisdiction of Omani courts, as well as to the country'slaws and regulations. American citizens planning a trip to Oman with dual national children should bear this in mind.

Custody Disputes: When child custody disputes arise between parents of any religion, the custody decisions by Omani courts are based on Islamic (Sharia) law. Custody cases can be very complex and are usually determined on a case-by-case basis. When making decisions regarding child custody matters, Omani courts consider the parents” religion(s), place(s) of permanent residence, income, and the parents” marital status. Omani law differentiates between custodianship and guardianship. Generally speaking, a custodian has been awarded custody of the child and is responsible for his/her upbringing including education and care. A guardian is responsible for the child's financial support.

Omani courts do not, as a general rule, award custody of “dual national” (U.S./Omani) children to an American mother or father, even one who is Muslim. A fundamental consideration of awarding custody is the parent's place(s) of permanent residence and degree of access to the children. Custody of very young children is generally granted to the mother as long as certain restrictive conditions are met. Once the children come of age (for males completion of their seventh year of age, for females the onset of puberty), the father can appeal for, and will usually be awarded, full custody provided certain restrictive conditions are met. If a father were unable or unfit to be custodian of his children, the court may give custody to another family member. Sharia court judges have broad discretion in custody cases and often make exceptions to these general guidelines, particularly in cases in which a parent is from an influential family or has powerful connections in Oman.

Even when a mother is granted custody, the non-custodial father maintains a great deal of influence on the rearing of the children. In many cases, the father has been able to acquire legal custody of children against the wishes of the mother when she is unable or unwilling to meet certain conditions set by law for her to maintain her custodial rights. For example, if a mother refuses to give the father access to his child or attempts to leave Oman with the children without the court's permission, a mother's custody rights can be severed. The Omani court can sever a mother's custody if it determines that the mother is incapable of safeguarding the child or of bringing the child up in accordance with the appropriate religious standards. Either parent can lose custody by re-marrying a party considered “unmarriageable,” or by residing in a home with people that might be “strangers.” However, the final decision is left to the discretion of the Sharia court.

Sharia law forbids the removal of children from Oman without first obtaining permission from the court. The U.S. Embassy cannot prevent the Omani government from arresting and either deporting or prosecuting an American citizen who violates Omani law.

Persons who wish to pursue a child custody claim in an Omani court should retain an attorney in Oman. The State Department and the U.S. Embassy in Oman maintain a list of attorneys willing to represent American clients. A copy of this list may be obtained by contacting either office. It is the responsibility of the prospective client to assess the capabilities of an attorney. The Embassy cannot recommend any specific attorney, and makes no claim as to the ability or the integrity of the attorneys on the list. The Embassy cannot pay for any legal expenses incurred.

U.S. Embassy Muscat
Consular Section
P.O. Box 202
Madinat al Sultan Qaboos 115
Sultanate of Oman
Telephone: [968] 698-989
Fax: [968] 699-189
Website: http://www.usa.gov.om
Consular Section:
aemctcns@omantel.net.om

The workweek for the Embassy is Saturday through Wednesday from 8:00 AM to 4:30 PM.

Specific questions regarding child custody in Oman should be addressed to an Omani attorney or to the Embassy of Oman at:

Embassy of the Sultanate of
Oman
2535 Belmont Road, NW
Washington, DC 20008
Telephone: (202) 387-1980
Fax: (202) 745-4933

Enforcement of Foreign Judgments: Custody orders and judgments of foreign courts are not enforceable in Oman if they potentially contradict or violate local laws and practices. For example, an order from a U.S. court granting custody to an American parent will not be honored in Oman if the parent intends to take the child to live outside Oman. Nor will Omani courts enforce U.S. court decrees ordering a parent in Oman to pay child support.

Visitation Rights: Non-custodial parents are generally entitled to visitation rights as determined by the Sharia judge.

Dual Nationality: Dual nationality is not recognized by the Sultanate of Oman. Children of Omani fathers automatically acquire Omani citizenship at birth and must enter and leave the country on Omani passports even if they are entitled to hold the passport of another country. Omani women cannot transmit citizenship to their children.

Travel Restrictions: When a custody case is pending with the Sharia court, children, regardless of their nationality, are generally subject to court-imposed travel restrictions. Either parent can request the court to restrict the travel of his/her minor children.

Criminal Remedies: For information on possible criminal remedies, please contact your local law enforcement authorities or the nearest office of the Federal Bureau of Investigation (FBI). Information is also available on the Internet at the web site of the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention (OJJDP) at http://www.ojjdp.ncjrs.org.

For further information on international parental child abduction, contact the Office of Children's Issues, U.S. Department of State at 1-888-407-4747 or visit its web site on the Internet at http://travel.state.gov/family. You may also direct inquiries to: Office of Children's Issues, U.S. Department of State, Washington, DC 20520-4811; Phone: (202) 736-9090; Fax: (202) 312-9743.

OMAN

Sultanate of Oman

Saltanat 'Uman

COUNTRY OVERVIEW

LOCATION AND SIZE.

The Sultanate of Oman borders the Arabian Sea, the Gulf of Oman, and the Persian Gulf and shares borders with Yemen, the United Arab Emi-rates, and Saudi Arabia. Oman has an area of 212,460 square kilometers (82,030 square miles) and a coastline that totals 2,092 kilometers (1,299 miles). Comparatively, Oman occupies an area slightly smaller than Kansas. Muscat, Oman's capital, is located on the country's northeastern coastline.

POPULATION.

In July 2000 the population of Oman was estimated at 2,533,389, of whom 2,006,311 were Omani and 527,078 were non-Omani. Large expatriate communities (communities of foreigners who have left their own country to live and work abroad) are very common in the Gulf countries on account of the oil and services industries. In Oman many unskilled expatriates from Asia are employed to carry out menial jobs, although this community has been declining slowly since 1996. The Omani population increases on average by 2.7 percent a year and, as a result, the country has a very young population.

Some 47 percent of Omanis are under the age of 20 compared to only 4 percent who are over the age of 60. In 2000 the birth rate stood at 38.08 births per 1,000 population, while the death rate stood at 4.16 per 1,000. With a projected annual population growth rate of 3.46 percent, the population is expected to reach 3,848,217 by the year 2015.

The majority of the Omani population is Sunni Muslim, but a substantial number of people—including the ruling family—follow Ibahism, an offshoot of Shia Islam. Given Oman's long trading history, its population is a mixture of different races and even one of its most prominent mercantile families is of Hindu descent. Oman was a hub for the slave trade in the 18th and 19th century and although this practice was abolished in the 20th century, many continue to work for the families that previously owned their ancestors.

Employment in Oman is largely dependent on nationality. In the public sector , Omanis held 70 percent of the jobs in 1999, while in the private sector —which contains most of the lower-paying jobs—90 percent of the employees were from foreign countries. Rising unemployment in Oman has forced the government to realize that it can no longer pursue its policy of guaranteeing jobs to young Omanis entering the labor market and it is now focusing on increasing employment opportunities for Omanis in the private sector. Oman has seen a dramatic migration of people to the cities in search of better jobs; the largest proportion of the population is found in the capital city Muscat and in the larger northern towns of Suhar, Nizwa, and Sur.

OVERVIEW OF ECONOMY

Historically, Oman has been a gateway for trade between Asia and the Middle East. Its capital, Muscat, is the country's most developed city as well as the center of economic activity, thanks to its coastal location. The strategic Musandam peninsula gives Oman control over the land adjacent to the vital Strait of Hormuz, through which a majority of the world's oil passes. Oil is the most important factor in the Omani economy and it is the oil industry that is the catalyst for growth in gross domestic product (GDP). GDP growth averaged 4.4 percent between 1993 and 1996, reached 6.2 percent in 1997, and fell to 2.9 percent in 1998 due to the crash in global oil prices. Crude oil has accounted for over 30 percent of Oman's GDP since 1980. Oman differs from other Gulf countries such as Saudi Arabia and the United Arab Emi-rates in that its reserves of oil are difficult to extract from the ground, limited in quantity, and predicted to run out in 17 years. Given that the oil industry is not labor intensive, the population in the Sultanate is growing rapidly, and the public sector is over-staffed, there is a serious unemployment problem in the country. However, the government has never released any unemployment statistics and no credible estimates have been made since 1995 due to international skepticism about the official population figures.

Oman is a free market economy, but the government is at present the most important factor in the economy, both as an employer and as a purchaser of goods and services. The Omani economy has been growing steadily over the last 25 years and considerable development has taken place. However, with the fluctuations in the global price of oil, an oil industry that will soon be negligible, massive investments made in infrastructure , and hence shrinking foreign exchange reserves , there is a pressing need to diversify the economy. It is especially important to expand the sources of export earnings as well as to provide jobs for a growing population. These 2 goals form the basis of Oman's policy initiatives. The government has encouraged private domestic and foreign investors to take the lead in promoting these initiatives, and a period of structural transformation from primary to manufactured exports has begun. In the late 1980s the government's commitment to economic diversification coincided with the discovery of abundant natural gas and since this time, drilling sites for both gas and oil are to be found all over the country. The Omani government has announced that it intends to implement a 5-year plan (2001-2006) in order to address these important challenges. In addition, policymakers will also have to focus on Oman's membership in the World Trade Organization (WTO). This will expose the country to even more foreign competition.

Political parties in Oman are not legal, but the major trading families who control the bulk of the country's trade and industry are very powerful groups and are represented in the government. In 1998 Oman received US$509,100,000 in official development assistance, the largest portion of which came from the United Kingdom, a country with which Oman enjoys strong ties. Oman also has a good relationship with the European Union and much improved relations with the United States; its main trading partners are Japan and China. The economy's main exports are oil, live animals, animal products, textiles, base metals, and mineral products. Before the discovery of oil in the 1960s, the Omani economy was dependent on agriculture, however, in 1999 this sector accounted for 2 percent of GDP due to the lack of water supply. Nevertheless, it still employs a large number of people along the northern coast and in the south.

POLITICS, GOVERNMENT, AND TAXATION

Oman has been ruled by the Royal Al Bu Sa'id family since the 18th century. Political parties are not allowed in the country and there are no directly elected representatives. The current sultan, Qaboos Bin Sa'id Al Sa'id, overthrew his father in a palace coup in 1970 and seized the throne. Although the family has traditionally ruled over all state affairs, the new sultan has been careful to balance tribal, ethnic, and regional interests and as a result he has placed several tribal leaders in the government. In 1991 the sultan established the 59-seat Consultative Council, or Majlis Ash-Shura, to act as a consultative body, thus allowing a limited form of political expression. The government selects council members from lists of nominees proposed by each of the 59 wilayats (regions). Nevertheless, the country is an absolute hereditary monarchy and the sultan still rules by royal decree. He can appoint and fire all council ministers as well as ministers in the defense department, the department of foreign affairs, and the department of finance.

Oman did not have a constitution until 1996, when the sultan promulgated (proclaimed) the "Basic Law" by decree. This basic law clarifies the royal succession, provides for a prime minister, bars ministers from holding interests in companies doing business with the government, establishes a bicameral legislature, and guarantees basic civil liberties for Omani citizens. The legislature has no power to overturn the sultan's wishes. Its role has been purposefully ill-defined so as to render it a fairly ineffective body. The state promises to provide health care and education for all citizens as well as maintain security through the use of the army. Basic freedoms such as freedom of the press are touched upon, however, they are not clearly defined and are still very restricted. The Omani legal system is based both on English common law and Islamic law. The ultimate authority in law remains the sultan and he has not yet accepted compulsory jurisdiction of the International Court of Justice (this institution has its seat in The Hague and is the principal judicial organ of the United Nations).

The major source of government revenue does not come from taxation but from oil revenues. The only direct taxes in Oman are income tax (which ranges from 15 to 45 percent) and some regional taxes; the only indirect tax is customs duty . There are 5 percent taxes on hotel and restaurant bills, a 2 percent tax on electricity bills exceeding OR50. Oman makes no distinction between resident and non-resident companies. If a company has income from Oman that requires occasional visits to the Sultanate, the income will be considered taxable. Tax rates on non-petroleum, foreign-owned firms were lowered in October 1996 for all except those firms with greater than 90 percent foreign ownership. The nature of the relationship between the petroleum companies and the government will often govern taxation and royalties on petroleum producers. Labor law and the Oman tax law also affects a foreigner's ability to do business in Oman. There is no complete body of regulations codifying these laws and many government decisions are made on an ad hoc basis.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Due to the large-scale program of road construction carried out by the Ministry of Communications over the past 3 decades, there are now approximately 6,000 kilometers (3,720 miles) of paved roads and 24,000 kilometers (14,880 miles) of unpaved roads in Oman. In 1970 there were only 10 kilometers (6 miles) of paved roads and about 1,700 kilometers (1,054 miles) of unpaved road in the entire country. The number of licensed automobiles on the road increased from 261,627 in 1992 to 404,375 in 1998 and this increase in traffic also led to an increase in the number of road deaths from 218 in 1992 to 478 in 1998. Oman does not have a rail system.

The country's main airport, Muscat Seeb International, has a capacity of 1.3 million passengers. The

airport has been fully modernized and boasts duty-free shopping areas, impressive lounges, and large transit areas. The main runway has been extended to 3,585 meters (11,760 feet) and the passenger terminals have been expanded to handle 3,000 passengers an hour. In 1995 the total number of passengers passing through Seeb International airport amounted to 2,176,033. Salalah, the country's second airport, which was built initially as a military installation, began operating a passenger terminal in 1986 and the main runway was extended in 1992. Oman now has 6 civil airports in total at Seeb, Salalah, Sur, Masirah, Khasab, and Diba in Musandam. The country's main port is Mina Sultan Qaboos, which was completed in 1974 with a capacity to handle 2.2 million tons annually. Many improvements have since been made, including dredging the harbor entrance to a depth of 13 meters (42 feet). The second-largest port is called Mina Raysut and it is this port that serves Salalah and the Governorate of Dhofar. The construction of a third port in Suhar started in 1999 and the project is expected to cost US$250 million.

Electrical power in Oman is supplied both by the public sector and by the private sector. In 1999 the total national production amounted to 5.2 billion kilowatt hours (kWh) with consumption reaching 4.9 billion kWh. In 1999 there were 31 power stations with a total installed capacity of 1,662 megawatts. The government-owned General Telecommunications Organization (GTO) was established in 1980 and was responsible for setting up the modern telephone system throughout the country. Thirty years ago there were only 500 lines in and around the capital and international telephone calls could be made only through radio channels. As of 1998, all the telephone exchanges became digital and one can now telephone all over the world. Oman has an overall telephone capacity of 420,000 lines, both fixed and mobile, and given the widespread use of the telephone, it is estimated that Oman will need about 500,000 telephone lines by the year 2020, which will require massive investment.

ECONOMIC SECTORS

The Omani economy is a diverse one with services contributing 57 percent of GDP and industry contributing approximately 40 percent. However, over the past 40 years there has been a major shift in the structure of the economy. In the 1950s and 1960s, when the oil fields had not yet been discovered, the agricultural sector drove the economy. This sector has diminished in importance since the early 1970s, representing only 3 percent of GDP in 1999, whereas the export of oil and petroleum-related products and the manufacturing of goods such as textiles has increased. The sector's output is heavily dependent upon the weather, and accurate figures on employment in agriculture remain unknown.

AGRICULTURE

Prior to the discovery of oil in the 1960s, the agricultural sector was central in the Omani economy. However, in 1999 the sector contributed only 3 percent to GDP and was heavily subsidized by the government. Oman is not self-sufficient in food and in 1995 the country spent US$572 million on food and live animals. This figure rose to US$650 million in 1999. There are efforts underway to develop self-sufficiency in staple foods. The main crops grown in Oman are tomatoes, eggplant, dates, bananas, limes, and carrots. The principal agricultural area is found along the Batinah coast, in the northeast between Muscat and Diba al-Hisn, which accounts for about half the total crop area of approximately 101,000 acres. In the south, agriculture is centered on a small coastal plain that is fed by monsoon rain coming from the Indian Ocean. In spite of its small contribution to GDP, the agricultural sector is still a major employer. In 1994, the World Bank estimated that over half the Omani labor force was working in the agricultural sector. The Omani government reports that a total of 140,000 people are employed permanently in this sector and that 47,000 of these people are unpaid family workers. Agricultural employees are primarily of Omani descent.

Oman is famed for producing very high quality agricultural goods and the highest quality products are usually exported to the neighboring Gulf Cooperation Council (GCC) countries. (On 26 May 1981 an agreement was signed between the 6 conservative monarchies of the Gulf: Saudi Arabia, Bahrain, United Arab Emirates, Kuwait, Oman, and Qatar to coordinate their economic, political, cultural, and security policy.) However, the agricultural farm is threatened by many problems, including outdated technology and an increase in the salinity of the water. The government has responded to these issues by investing more into the sector. Its goal is to obtain self-sufficiency in food production by improving agricultural conditions. In working to make the agricultural sector internationally competitive, the government has introduced incentives for foreign investors. These exemptions include tax reductions, utilities discounts, loans, and tariff protection. The government has also helped Omani firms in exporting their products.

FISHING.

With 2,092 kilometers (1,297 miles) of coastline running from the mouth of the Gulf in the north to the border with Yemen in the south, Oman has very rich fishing potential which has yet to be fully developed. There is a 200-mile exclusive economic zone which extends from Oman out to sea and over 150 species of fish and crustaceans have been identified in Omani waters ranging from tuna and crayfish to lobster and shrimp. Large amounts of lobsters are caught off the Masirah islands and off the coast of Dhofar, and they are exported to Saudi Arabia and the United Arab Emirates where they are in great demand. In 1998, approximately 26,940 Omanis were employed in the fishing industry and a total of 116,780 tons of fish were caught. The number of fish caught per annum has been slowly declining over the past 20 years due to pollution and the depletion of fish stocks. In response to this, the Omani government has put restrictions on the amount of fish catches. Lobster may now be harvested only twice a year. The annual fish catch remains at over 100,000 tons per year, and efforts to produce value-added , manufactured fish products are underway. Processing and packaging for export are key concerns, as is the use of better technology at sea.

IRRIGATION.

Oman's position in a semi-arid climatic zone results in the serious problem of water scarcity. The government has been pursuing programs of improved water efficiency and water resource development and some far-reaching legislation has been passed through the government. In 1999 there were 48 dams all over the country that collect rainwater as well as a major project underway to decrease water consumption through the use of water-saving devices on taps. The government has also initiated a plan for the supply of water to Muscat up until 2010 that involves extending the existing pipelines. Two additional reservoirs have been built around Muscat at a cost of US$3 million.

INDUSTRY

OIL.

Similar to many of the Gulf countries, the Omani industrial sector makes up a large proportion of GDP, accounting for 40 percent of it in 1999. However, Oman is not a typical Persian Gulf oil producer due to its small, scattered oil fields and, as a result, production costs are much higher per barrel than those in other GCC countries. The average Omani oil field produces one-tenth the volume per well that Saudi Arabia or Iran produce. Oil was not discovered in commercial amounts until 1962, much later than most oil-producing Gulf states. Oman is not a member of the Organization of Petroleum Exporting Countries (OPEC). (OPEC is an international organization of 11 developing countries which are heavily reliant on oil revenues as their main source of income. The current members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.) However, in the past Oman has cut production in co-operation with OPEC in an attempt to raise prices. Oman's oil production has wavered between 910,000 barrels a day (b/d) and 890,000 b/d since April 1999. The Omani government has announced a new 5-year plan which is to run from 2001 to 2005 and which aims to increase production to 1 million b/d. The bulk of Oman's 5.28 billion barrels in proven reserves is situated in the north and in the center of the country. In the north the largest fields are Yibal, Natih, Fahud, al-Huwaisah, and Lekhwair. The largest field is Yibal, producing 180,000 b/d and, together, these fields produce half of the total Omani oil production. The crude oil produced in the north is mainly light or medium crude and is found alongside natural gas. The oil fields further south tend to produce heavier crude and are usually not associated with natural gas.

With oil reserves amounting to 5.28 billion barrels, Oman has a further 17-year supply of oil if it continues to produce at 910,000 b/d. Since the discovery of oil, the oil and gas industry has been the catalyst of growth for the Omani economy, contributing approximately 37 percent to GDP each year and as much as 55 percent of GDP up until the early 1980s. In addition, oil provides 75.3 percent of state revenues. The oil industry is largely run by Petroleum Development Oman (PDO) which has a government majority ownership. PDO controls 90 percent of the country's output. Shell owns 34 percent of the company and operates the majority of Oman's large fields. In 1999, Oman exported 95.8 million barrels of oil to Japan, 65.6 million barrels to Thailand, 55.9 million barrels to South Korea, and 39.4 million barrels to China.

GAS.

The gas sector in Oman is considered to be the cornerstone of the government's economic growth strategy and great efforts have been made to turn natural gas into a thriving export industry. There are abundant gas reserves in Oman and 1999 estimates put the proven reserves at 29.28 trillion cubic feet (tcf). The government has projected that by the year 2002 natural gas will contribute 15 percent of GDP. Most of the gas reserves are located in areas that are controlled by PDO. Oman has entered into a number of projects with overseas companies such as Gulfstream resources of Canada and Neste Oy ofFinland to develop, explore, and produce natural gas in the northern part of the country.

MANUFACTURING.

Following the discovery of large gas deposits, attention moved away from the manufacturing industry and in 1999, manufacturing contributed 5 percent to GDP. Most of the country's industrial enterprises are involved in light industry. Existing companies manufacture soft drinks, textiles, perfume, and cement. The sector grew by 3 percent between 1994 and 1998, but it relies heavily on skilled expatriate labor and therefore does not contribute much to the creation of local jobs.

SERVICES

TOURISM.

Evidence of Oman's rich cultural and architectural heritage can be seen in its hundreds of historic sites and its many beautiful beaches. The country's varied geography and range of climatic conditions give it enormous potential in the tourism industry, a sector which is still very undeveloped. Given Oman's current unemployment problem, combined with the thousands of young Omanis entering the workforce every year, the expansion of the tourism sector could create much-needed jobs. The government initiated a 15-year tourism plan in 1990, easing visa restrictions in order to open up the country to more tourists, and very quickly the number of visitors rose from 290,000 in 1994 to 503,000 in 1999.

In 2000, tourism represented less than 1 percent of GDP even though there was an 11 percent increase in the number of visitors between 1988 and 1992. In 1994 there were only 37 hotels in Oman and in 2000 there were 89. The government has made an attempt to attract visitors from the Gulf region, signing an agreement with Dubai whereby nationals of both countries can easily obtain visas. However, the government's plan is to attract affluent European visitors to the country who are happy to take supervised coach tours instead of exploring the country on their own. Government concerns about local sensitivities as well as the continuing high tax on alcohol serve as major constraints to the growth of this potentially lucrative industry.

FINANCIAL SERVICES.

The Omani government has made serious attempts to ensure the stability of the banking sector and in 2000 there were 16 commercial banks in the country, of which 9 were branches of foreign banks. In addition to the commercial banks, the government has set up 2 credit institutions that provide small loans for Omani citizens. The Omani Housing Bank provides loans to finance the construction of homes and the Oman Development Bank provides general microcredit . The Central Bank of Oman places restrictions on the amount of foreign exchange that banks are allowed to lend and invest and in addition sets the total amount of capital to be held by local banks at US$26 million and by foreign banks at US$9 million.

Oman's stock exchange was established in 1989 and is called the Muscat Securities Market (MSM). There are over 100 banks and companies listed on the exchange with a current capitalization of over US$2 billion. In 1999 Oman was included in the International Finance Corporation's emerging market index and the government has made concerted efforts to make the stock market more transparent and more regulated. Electronic trading was introduced in 1999 as well as a regulatory agency called the Capital Markets Authority (CMA).

INTERNATIONAL TRADE

In 1999, Oman's exports amounted to US$7.2 billion and its imports were valued at US$5.4 billion. The country's principal export is oil and in 1999 the commodity accounted for 76 percent of all exports. In the 1980s, however, oil accounted for over 90 percent but its share has declined due to the falling price of crude oil. The second major export in Oman is re-exports which totaled US$1.3 billion in 1999. Given that the Omani economy is not very diversified, the smallest proportion of exports is non-oil exports such as foodstuffs and animal products. These accounted for 35 percent of total non-oil Omani exports in 1999. In 1999 the principle importer of Omani crude oil was Japan. Japan imported a total of 95.8 million barrels followed by Thailand, which imported 65.6 million barrels.

Oman has slowly increased its production of crude oil and as a result the country has enjoyed trade surpluses throughout the last decade even though it has increased its imports. Nevertheless, the size of these surpluses varies considerably from year to year due to the world prices of crude oil. When Iraq invaded Kuwait in 1990 the price of oil increased substantially and that year Oman's trade surplus amounted to US$2.9 billion. However, when world oil prices fell drastically in 1998, Oman's surplus fell to just US$291 million. In 1993 the

surplus stood at US$1.3 billion and in 1996 the rise in the price of crude oil pushed it up to US$3 billion.

Over the past 30 years, Oman has come to rely more and more on imports because it has a very small industrial sector and an agricultural sector that is unable to meet the demand for the variety and quantity of food that the middle-and upper-class Omanis desire. Imports of food amounted to 14 percent of the total value of imports in 1999. The bulk of imports come from the United Arab Emirates and Japan, representing 26.3 percent and 15.8 percent of all imports, respectively. Major Omani imports include food and live animals, beverages and tobacco, crude materials, and minerals. In 1999, Oman's imports totaled US$4.67 billion. Oman's main trading partners are Japan, China, Thailand, South Korea, the United Arab Emirates, and the United States.

In October 2000 the General Council of the World Trade Organization approved Omani membership and in November Oman became the 139th member. Prior to its accession, Oman had to make several changes in order to conform to WTO's membership rules. Not only did the authorities have to agree upon a custom duty ceiling, allow foreign firms with under 70 percent foreign ownership to be taxed the same rates as Omani firms, but also it had to establish intellectual property rights. The consequence of this new membership will open up the Omani markets further and expose local companies to increased competition. By 2003, Oman is required to allow fully foreign-owned computer companies, banks, and insurance companies to operate within the country.

MONEY

Due to the small size of the Omani economy, the country's monetary policy is quite straightforward. The goal of the Omani Central Bank is to maintain a stable riyal so that the economy can function competitively abroad. The riyal has been pegged to the dollar since 1973. In 1986 the riyal was devalued by 10.2 percent and since then it has been stable at about US$2.60 to 1 riyal.

All the money flowing into the economy is regulated by the Central Bank of Oman. The central bank also regulates the commercial banks through a variety of measures.

POVERTY AND WEALTH

In 1970 Oman initiated a comprehensive sustainable development program and it was among one of the first developing countries to place a real emphasis on the social sector. The program was called Oman 2020 and, since its inception, it has achieved some of the fastest-ever recorded growth in the history of human development. In 1970 there was no formal education system in place apart from 3 primary schools in Muscat that had a maximum capacity of 900 boys. By the end of 1994, 920 schools had opened all over the country and approximately 450,000 students were enrolled in formal education of whom about 50 percent were girls. In 1999, 70 percent of all Omani children attended primary school. In addition to the improvements in education, there have been far-reaching improvements in life expectancy and infant mortality. Life expectancy has increased by 24 years from 47 in 1970 to 71 in 1997, and infant mortality has been reduced 10 times over from more than 215 per 1,000 live births to less than 18 in 1997.

Before the development program began, there were many health problems that were prevalent in Oman due to the poverty and the lack of education. One of the most serious diseases that afflicted more than half of all Omani school children was trachoma, a disease that leads to blindness. This disease is spread through the bite of a blackfly, which breeds in fast-flowing rivers and streams. When the fly bites, it deposits the larvae of a parasitic worm which moves rapidly through the body, causing severe eyesight damage and possible blindness when it enters the eyes. This disease has now been totally wiped out. Additional gains in social and health conditions have led to improvements in the sanitation system; almost three-quarters of all houses have clean running water and toilets that flush. The vast majority of homes have electric light, electricity, and gas with which to cook. The government provides pensions for the elderly and the disabled as well as widows, orphans,

and divorced women. This massive investment in human capital was made possible by the revenues that the state collected from the oil industry. Without this income it is unlikely that Oman would have made such ground-breaking progress in achieving better standards of living for a large part of its population.

Although Oman serves as a good example for other less-developed countries, there is still much room for improvement due to the high income inequality. The female literacy rate is still less than half that of the male literacy rate, and the total fertility rate (the number of children the average woman will have in her lifetime) is 6.9, one of the highest in the world.

WORKING CONDITIONS

Oman is heavily dependent on expatriate labor with an expatriate community of 527,078 and a total labor force of 650,000. Expatriate workers send large amounts of their wages back home, and in 1997 these earnings amounted to US$1.5 billion or 9.5 percent of GDP. Foreign labor mostly comes from India, Bangladesh, Pakistan, and Sri Lanka, and in most cases these expatriates perform menial and physical jobs. In some cases they have managerial jobs. There are an estimated 30,000 young Omanis entering the workforce every year, and the government has realized that it can no longer provide jobs for the entire workforce. To this end, it has been pursuing a policy of "Omanization" whereby expatriate labor is slowly replaced by Omani labor. Foreigners are not allowed to work in agriculture or public relations, nor are they allowed to be Arabic typists, guards, or technical assistants unless the employer can show that no Omanis are capable of filling the position. Taxi drivers and fishermen must be Omani. In 1994 Oman joined the International Labor Organization (ILO). (This is a UN agency that seeks the promotion of social justice and human and labor rights.) As a consequence, Oman must follow international standards covering a wide range of issues in the world of work, including certain basic human rights, the abolition of forced labor, the elimination of discrimination in employment, the employment of women, and the employment of children.

Oman's labor code lays out basic workers' rights and in 1998 the minimum wage was raised by the government and set at US$260 (100 riyals) per month plus US$52 (20 riyals) for transport costs and housing costs. However, the minimum wage does not apply to all occupations such as small businesses that employ fewer than 5 people, domestic servants, dependent family members working in a family business, and some manual labor jobs. The government has been reluctant to enforce the minimum wage for foreign workers employed in menial jobs. In contrast, the foreign workers who are highly skilled and in managerial positions are often paid much more than their Omani counterparts. The working week is 5 days in the public sector and 5 and a half days in the private sector. Non-Omanis working in construction, retail , in the personal service outlets, or in the petroleum fields usually work a 7-day week.

Foreign men and women employed in manual labor or as domestic servants have made official complaints in the past about employers withholding salaries and inhumane treatment. In many cases the government has been unhelpful or undertaken investigative procedures that have been detrimental to the employee concerned, which clearly goes directly against the principles of the International Labor Organization. Employers who mistreat their foreign domestic servants are not always held accountable for their actions and several foreign women working in Oman have been forced to contact their governments' embassies to seek shelter and escape from abuse.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1921. Treaty of Sib is signed, which marks the British takeover of the government of Oman. A council of Ministers governs with British advisers and the British take control of customs revenue. Also during this time, new Western strategic interests develop in Oman in the form of air routes and oil prospecting.

1951. British recognize Oman as an independent state.

1962. Oil is discovered.

1967. Oil production starts.

1970. Sultan Sa'id is overthrown by his own son, Qa-boos Bin Sa'id, in a palace coup. Sultan Qaboos liberalizes the political system, and starts many development projects. Oman is plagued by civil war.

1980. Military agreement signed with the United States which reflects the Western strategic interest in Oman for the planning of rapid deployment force capabilities to secure Western access to gulf oil.

1981. Oman forms the Gulf Cooperation. This agreement is signed between the 6 conservative monarchies of the Gulf: Saudi Arabia, Bahrain, United Arab Emi-rates, Kuwait, Oman, and Qatar to coordinate their economic, political, cultural, and security policy.

1991. Sultan Qaboos expands and restructures Oman's consultative council.

1994. Oman joins the International Labor Organization (ILO).

1999. Oman is included in the International Finance Corporation's emerging market index. Electronic trading is introduced.

2000. Oman becomes a member of the World Trade Organization.

FUTURE TRENDS

Oman looks to the future with both pessimism and optimism. The pessimism comes from the certainty that the country's major source of revenue—oil—will run out before the year 2020. Oil accounted for the great majority of Oman's exports and GDP ever since it was discovered in the early 1960s. The oil boom had a widespread impact on the economy: it allowed Oman to provide jobs for many of its people in the public sector, it allowed the country to import labor to perform the least wanted jobs in the economy, and it allowed Oman to avoid developing other industries. With the coming decline of the oil economy, Oman must seek alternative means for economic development.

Fortunately, Oman's government has taken a number of steps to ease the country into new economic patterns. The government plans to develop the production of its natural gas and other non-oil energy-based industries. Its 4 previous 5-year plans have been successful and the current 5-year plan focuses on the private sector as the catalyst for non-petroleum economic growth. The government is moving ahead with privatization of its utilities, the development of a body of commercial law to facilitate foreign investment, and increased budgetary outlays. However, Oman will have to continue to liberalize its markets in conjunction with its accession to the World Trade Organization (WTO).

Managing the transition from an oil-based to a more diversified economy will not be easy. Even though Oman has a reputation for stability and cooperation, the country's future success is likely to depend on the wisdom and political will of the country's leaders.

DEPENDENCIES

Oman has no territories or colonies.

BIBLIOGRAPHY

Chatty, Dawn. Mobile Pastoralists: Development Planning and Social Change in Oman. New York: Columbia University Press, 1996.

Economist Intelligence Unit. Country Profile: Oman, 2000. London: Economist Intelligence Unit, 2000.

International Monetary Fund. International Financial Statistics Yearbook 1999. Washington, D.C.: International Monetary Fund, 1999.

Skeet, Ian. Oman: Politics and Development. London: Macmillan, 1992.

U.S. Central Intelligence Agency. World Factbook 2000: Oman. <http://www.cia.gov/cia/publications/factbook/geos/mu.html>. Accessed February 2001.

U.S Department of State. FY 2000 Country Commercial Guide: Oman. <http://www.state.gov/www/about_state/business/com_ guides/2000/nea/index.html>. Accessed February 2001.

World Bank. World Development Report 2000/2001: Attacking Poverty. <http://www.worldbank.org/poverty/wdrpoverty/report/index.htm>. Accessed February 2001.

—Salamander Davoudi

CAPITAL:

Muscat.

MONETARY UNIT:

Omani riyal (OR). One OR equals 1,000 baiza. Coins are in denominations of 500, 250, 200, 100, 50, 25, 10, and 5 baiza. Paper currency comes in denominations of OR50, 20, 10, 5, and 1, as well as 500, 250, 200, and 100 baiza.

CHIEF EXPORTS:

Petroleum, re-exports, fish, metals, and textiles.

CHIEF IMPORTS:

Machinery and transport equipment, manufactured goods, food, livestock, and lubricants.

GROSS DOMESTIC PRODUCT:

US$19.6 billion (purchasing power parity, 1999 est.).

BALANCE OF TRADE:

Exports: US$7.63 billion (f.o.b., 1997 est.). Imports: US$5.682 billion (f.o.b., 1997 est.).

Oman

Compiled from the October 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Sultanate of Oman

PROFILE

PEOPLE

HISTORY

GOVERNMENT AND POLITICAL CONDITIONS

ECONOMY

FOREIGN RELATIONS

U.S.-OMANI RELATIONS

TRAVEL

PROFILE

Geography

Area: About 309,500 sq. km. (about the size of New Mexico). It is bordered on the north by the United Arab Emirates (U.A.E.), on the northwest by Saudi Arabia, and on the southwest by the Republic of Yemen. The Omani coastline stretches 3,165 km.

Cities: Capital—Muscat. Other cities—Salalah, Nizwa, Sohar, Sur.

Terrain: Mountains, plains, and arid plateau.

Climate: Hot, humid along the coast; hot, dry in the interior; summer monsoon in far south.

People

Nationality: Noun—Oman. Adjective—Omani.

Population: (2005 est.) 2.51 million.

Annual growth rate: (2005 est.) 2.5%.

Ethnic groups: Arab, Baluchi, East African (Zanzabari), South Asian (Indian, Pakistani, Bangladeshi).

Religions: Ibadhi; Sunni Muslim, Shia Muslim, Hindu, Christian.

Languages: Arabic (official), English, Baluchi, Urdu, Swahili, Hindi and Indian dialects.

Education: Literacy—approx. 80% (total population).

Health: (2005 est.) Infant mortality rate—10.28/1,000. Life expectancy—74.28.

Work force: (920,000) Agriculture and fishing—approx. 50%.

Government

Type: Monarchy.

Constitution: On November 6, 1996, Sultan Qaboos issued a royal decree promulgating the Basic Statute which clarifies the royal succession, provides for a prime minister, bars ministers from holding interests in companies doing business with the government, establishes a bicameral parliament, and guarantees basic rights and responsibilities for Omani citizens.

Government branches: Executive—Sultan. Legislative—Majlis Oman (bicameral: State Council and Consultative Council). Judicial—Civil courts are divided into four departments: Criminal courts handle cases under the penal code; Shari’a (Islamic law) courts oversee personal status and family law issues; Commercial courts adjudicate business and commercial matters; Labor courts oversee labor and employment cases.

Political parties: None.

Suffrage: Universal adult.

Political subdivisions: Eight administrative regions—Muscat Governorate, Al Batinah, Musandam Governorate, Al Dhahirah, Al Dakhliya, Al Shariqiya, Al Wusta, Dhofar Governorate. There are 60 districts (wilayats).

Economy

GDP: (2005 est.) $30.73 billion

Per capita GDP: (2005 est.) $12,663.

Natural resources: Oil, natural gas, copper, marble, limestone, gypsum, chromium.

Agriculture and fisheries: (2.1% of GDP).

Agriculture: Products—dates, bananas, mangoes, alfalfa, other fruits and vegetables. Fisheries—Kingfish, tuna, other fish, shrimp, lobster, abalone.

Industry: Types—crude petroleum (not including gas liquids) about 750,000 barrels per day; construction, petroleum refinery, copper mines and smelter, cement and various light industries.

Trade: (2005 est.) Exports—$18.69 billion. Major markets—Japan (22.1%), China (15.2%), Thailand (12.6%), South Korea (19.9%), U.A.E. (9.4%). Imports—$8.83 billion: machinery, transportation equipment, manufactured goods, food, livestock, lubricants. Major suppliers—U.A.E. 27.6%, Japan 16.7%, U.K. 7.4%, U.S. 6.9%, Germany 5%.

PEOPLE

About 55% of the population lives in Muscat and the Batinah coastal plain northwest of the capital; about 215,000 live in the Dhofar (southern) region, and about 30,000 live in the remote Musandam Peninsula on the Strait of Hormuz. Some 660,000 expatriates live in Oman, most of whom are guest workers from South Asia, Egypt, Jordan, and the Philippines.

Since 1970, the government has given high priority to education to develop a domestic work force, which the government considers a vital factor in the country’s economic and social progress. In 1986, Oman’s first university, Sultan Qaboos University, opened. It has continued to expand, recently adding a law college, and remains the country’s only major public university. More than 300 full and partial scholarships are awarded each year for study abroad.

There are three private universities and twenty post-secondary education institutions in Oman, including a technical college, banking institute, teacher’s training college, and health sciences institute. A select few of these institutions offer four-year degrees, while the remainder provide two-year post-secondary diplomas. Since 1999, the government has embarked on reforms in higher education designed to meet the needs of a growing population. Approximately 40% of Omani high school graduates pursue some type of post-secondary education.

HISTORY

Oman adopted Islam in the seventh century A.D., during the lifetime of the Prophet Muhammad. Ibadhism, a form of Islam distinct from Shiaism and the “Orthodox” schools of Sunnism, became the dominant religious sect in Oman by the eighth century A.D. Oman is the only country in the Islamic world with a majority Ibadhi population. Ibadhism is known for its “moderate conservatism.” One distinguishing feature of Ibadhism is the choice of ruler by communal consensus and consent. Contact with Europe was established in 1508, when the Portuguese conquered parts of Oman’s coastal region. Portugal’s influence predominated for more than a century. Fortifications built during the Portuguese occupation can still be seen at Muscat.

Except for a period when Persia conquered parts of Oman, Oman has been an independent nation. After the Portuguese were expelled in 1650 and while resisting Persian attempts to establish hegemony, the Sultan of Oman extended his conquests to Zanzibar, other parts of the eastern coast of Africa, and portions of the southern Arabian Peninsula. During this period, political leadership shifted from the Ibadhi imams, who were elected religious leaders, to hereditary sultans who established their capital in Muscat. The Muscat rulers established trading posts on the Persian coast and also exercised a measure of control over the Makran coast (now Pakistan). By the early 19th century, Oman was the most powerful state in Arabia and had a major presence on the East African coast.

Oman was the object of Franco-British rivalry throughout the 18th century. During the 19th century, Oman and the United Kingdom concluded several treaties of friendship and commerce. In 1908, the British entered into an agreement of friendship. Their traditional association was confirmed in 1951 through a new treaty of friendship, commerce, and navigation by which the United Kingdom recognized the Sultanate of Oman as a fully independent state.

When Sultan Sa’id bin Sultan Al-Busaid died in 1856, his sons quarreled over his succession. As a result of this struggle, the Omani empire—through the mediation of the British Government under the “Canning Award”—was divided in 1861 into two separate principalities—Zanzibar, with its East African dependencies, and Muscat and Oman. Zanzibar paid an annual subsidy to Muscat and Oman until its independence in early 1964.

During the late 19th and early to mid-20th centuries, the sultan in Muscat faced a rebellion by members of the Ibadhi sect residing in the interior of Oman, centered around the town of Nizwa, who wanted to be ruled exclusively by their religious leader, the Imam of Oman. This conflict was resolved temporarily by the Treaty of Seeb in 1920, which granted the imam autonomous rule in the interior, while recognizing the sovereignty of the sultan elsewhere.

Following the discovery of oil in the interior, the conflict flared up again in 1954, when the new imam led a sporadic 5-year rebellion against the sultan’s efforts to extend government control into the interior. The insurgents were defeated in 1959 with British help. The sultan then terminated the Treaty of Seeb and eliminated the office of the imam. In the early 1960s, the imam, exiled to Saudi Arabia, obtained support from his hosts and other Arab governments, but this support ended in the 1980s.

In 1964, a separatist revolt began in Dhofar Province. Aided by communist and leftist governments such as the former South Yemen (People’s Democratic Republic of Yemen), the rebels formed the Dhofar Liberation Front, which later merged with the Marxist-dominated Popular Front for the Liberation of Oman and the Arab Gulf (PFLOAG). The PFLOAG’s declared intention was to overthrow all traditional Arab Gulf regimes. In mid-1974, PFLOAG shortened its name to the Popular Front for the Liberation of Oman (PFLO) and embarked on a political rather than a military approach to gain power in the other Gulf states, while continuing the guerrilla war in Dhofar.

With the help of British advisors, Sultan Qaboos bin Sa’id assumed power on July 23, 1970, in a palace coup directed against his father, Sa’id bin Taymur, who later died in exile in London. The new sultan was confronted with insurgency in a country plagued by endemic disease, illiteracy, and poverty. One of the new sultan’s first measures was to abolish many of his father’s harsh restrictions, which had caused thousands of Omanis to leave the country, and to offer amnesty to opponents of the previous regime, many of whom returned to Oman. He also established a modern government structure and launched a major development program to upgrade educational and health facilities, build a modern infrastructure, and develop the country’s natural resources.

In an effort to end the Dhofar insurgency, Sultan Qaboos expanded and re-equipped the armed forces and granted amnesty to all surrendered rebels while vigorously prosecuting the war in Dhofar. He obtained direct military support from the U.K., Iran, and Jordan. By early 1975, the guerrillas were confined to a 50-square kilometer (20-sq. mi.) area near the Yemen border and shortly thereafter were defeated. As the war drew to a close, civil action programs were given priority throughout Dhofar and helped win the allegiance of the people. The PFLO threat diminished further with the establishment of diplomatic relations in October 1983 between South Yemen and Oman, and South Yemen subsequently lessened propaganda and subversive activities against Oman. In late-1987, Oman opened an embassy in Aden, South Yemen, and appointed its first resident ambassador to the country.

Since his accession in 1970, Sultan Qaboos has balanced tribal, regional, and ethnic interests in composing the national administration. The Council of Ministers, which functions as a cabinet, consists of 30 ministers (but only 28 ministries), all directly appointed by Qaboos. The bicameral Majlis Oman’s mandate is to review legislation pertaining to economic development and social services prior to its becoming law. The elected Majlis al-Shura (Consultative Council) may request ministers to appear before it. In early 2003, Sultan Qaboos declared universal suffrage for the October 2003 Majlis al-Shura elections. Two women were elected to sit with 81 male colleagues in those elections, which were observed to be free and fair. Roughly 194,000 Omani men and women, or 74% of registered voters, participated in the elections. Since 2003, Sultan Qaboos has also expanded the Majlis al-Dawla, or State Council, to 59 members from 53, including nine women. The State Council acts as the upper chamber in Oman’s bicameral representative body.

In November 1996, Sultan Qaboos presented his people with the “Basic Statute of the State,” Oman’s first written “constitution.” It guarantees various rights within the framework of Shariah and customary law. It partially resuscitated long dormant conflict-of-interest measures by banning cabinet ministers from being officers of public shareholding firms. Perhaps most importantly, the Basic Statute provides rules for the royal succession.

The northern tip of Oman, called the Musandam Peninsula, is strategically located on the Strait of Hormuz, the entrance to the Gulf, 35 miles directly opposite Iran. Oman is concerned with regional stability and security, given tensions in the region, the proximity of Iran and Iraq, and the potential threat of political Islam. Oman maintained its diplomatic relations with Iraq throughout the Gulf War while supporting the UN allies by sending a contingent of troops to join coalition forces and by opening up to prepositioning of weapons and supplies. In addition, since 1980 Oman and the U.S. have been parties to a military cooperation agreement, which was revised and renewed in 2000. Oman also has long been an active participant in efforts to achieve Middle East peace.

Following the terrorist attacks on the United States in September 2001, the Omani Government at all levels pledged and provided impressive support to the U.S.-led coalition against terrorism. Oman is a signatory of most UN-sponsored anti-terrorism treaties.

GOVERNMENT AND POLITICAL CONDITIONS

Sultan Qaboos bin Sa’id rules with the aid of his ministers. His dynasty, the Al Sa’id, was founded about 250 years ago by Imam Ahmed bin Sa’id Al Bu Said. Sultan Qaboos is a direct descendant of the 19th century ruler, Sa’id bin Sultan, who first opened relations with the United States in 1833. The Sultanate has neither political parties nor legislature, although the bicameral representative bodies provide the government with advice. Oman’s judicial system traditionally has been based on the Shari’a—the Quranic laws and the oral teachings of the Islamic Prophet Muhammad. Traditionally, Shari’a courts fell under the jurisdiction of the Ministry of Justice, Awqaf, and Islamic Affairs (since divided into the Ministry of Justice and the Ministry of Endowments and Religious Affairs). Oman’s first criminal code was not enacted until 1974.

In 1999, royal decrees placed the entire court system under the financial supervision of the Ministry of Justice, though the 1996 Basic Law ensures the independence of the judiciary. An independent Office of the Public Prosecutor also has been created (formerly a part of the Royal Oman Police), as has a supreme court. Regional court complexes are envisioned to house the various courts, including the courts of first instance for criminal cases and Shariah cases (family law and inheritance).

Administratively, the country is divided into 60 districts (wilayats), presided over by appointed executives (walis) responsible for settling local disputes, collecting taxes, and maintaining peace. Most wilayats are small in area, but can vary considerably in population. The 60 wilayats are divided into eight regions. Three of those regions (Muscat, Dhofar, and Musandam) have been accorded a special status as governorates. The governors of those three regions are appointed directly by the Sultan and hold Minister of State rank. Walis, however, are appointed by the Minister of Interior.

In November 1991, Sultan Qaboos established the Majlis al-Shura (Consultative Council), which replaced the 10-year-old State Consultative Council, in an effort to systematize and broaden public participation in government. Representatives were chosen in the following manner: Local caucuses in each of the 59 districts sent forward the names of three nominees, whose credentials were reviewed by a cabinet committee.

These names were then forwarded to the Sultan, who made the final selection. Since then, reforms have permitted Omanis to freely run for office in contested elections featuring universal adult suffrage. The Consultative Council serves as a conduit of information between the people and the government ministries. It is empowered to review drafts of and provide recommendations on economic and social legislation prepared by service ministries, such as communications and housing, and to approve state financial plans. Service ministers also may be summoned before the Majlis to respond to representatives’ questions. It has no authority in the areas of foreign affairs, defense, security, and finance.

Although Oman enjoys a high degree of internal stability, regional tensions in the aftermath of the Persian Gulf war, the Iran-Iraq war, and Operations Enduring Freedom and Iraqi Freedom continue to necessitate large defense expenditures. In 2005, Oman spent roughly $3.65 billion for defense and national security—about 33.4% of its public expenditures. Oman maintains a small but professional and effective military, supplied mainly with British equipment in addition to items from the United States, France, and other countries. British officers, on loan or on contract to the Sultanate, help staff the armed forces, although a program of “Omanization” has steadily increased the proportion of Omani officers over the past several years. After North and South Yemen merged in May 1990, Oman settled its border disputes with the new Republic of Yemen on October 1, 1992. The two neighbors have cooperative bilateral relations. Oman’s borders with all neighbors are demarcated, including a 2002 demarcation of the Oman-U.A.E. border that was ratified in 2003.

Principal Government Officials

Last Updated: 1/11/2007

Sultan: QABOOS bin Said al-Said

Special Representative for His Majesty the Sultan: THUWAYNI bin Shihab al-Said

Prime Minister: QABOOS bin Said al-Said

Dep. Prime Min. for Cabinet Affairs: FAHD bin Mahmud al-Said

Min. of the Royal Office: Ali Majid bin Mussabagh al-MAMARI, Gen.

Min. of Agriculture & Fisheries: Salim bin Hilal bin Ali al-KHALILI

Min. of Awqaf & Religious Affairs: Abdallah bin Muhammad bin Abdallah al-SALIMI

Min. of Civil Services: Hilal bin Khalid al-MIWALI

Min. of Commerce, Industry, & Minerals: MAQBUL bin Ali Sultan

Min. of Communications: Suhail bin Mustahail al-SHAMAS

Min. of Defense: QABOOS bin Said al-Said

Min. of Diwan of Royal Court: SAYF bin Hamad al-Busaidi

Min. of Education & Teaching: Yahya bin Saud al-SALIMI

Min. of Finance: QABOOS bin Said al-Said

Min. of Foreign Affairs: QABOOS bin Said al-Said

Min. of Health: Ali bin Muhammad bin MUSA, Dr.

Min. of Higher Education: RAWYA bint Saud al-Busaidi

Min. of Housing, Electricity, & Water: Khamis bin Mubarak bin Isa al-ALAWI

Min. of Information: Hamad bin Muhammad al-RASHIDI

Min. of Interior: SAUD bin Ibrahim al-Busaidi

Min. of Justice: Muhammad bin Abdallah bin Zahir al-HINAI

Min. of Labor: Juma bin Ali bin JUMA

Min. of Legal Affairs: Muhammad bin Ali bin Nasir al-ALAWI

Min. of National Economy: Ahmad bin Abd al-Nabi al-MAKKI

Min. of National Heritage & Culture: HAYTHIM bin Tariq al-Said

Min. of Oil & Gas: Muhammad bin Hamad bin Sayf al-RUMHI

Min. of Palace Affairs: ALI bin Hamud bin Ali al-Busaidi

Min. of Regional Municipalities, Environment, & Water Resources: Abdallah bin Muhammad bin Abdallah al-RUWAS

Min. of Social Development: SHARIFA bint Khalfan bin Nasser al-Yahya

Min. of Sports: Ali bin Masud bin Ali al-SUNAIDI

Min. of Tourism: Rajiha bint Abd al-Amir bin ALI

Min. of Transport & Telecommunications: Muhammad bin Abdallah bin Isa alHARTHI

Min. of State & Governor, Muscat: SAYID al-Mutasim bin Hamud al-Busaidi

Min. Responsible for Defense Affairs: BADR bin Saud bin Harib al-Busaidi

Min. Responsible for Foreign Affairs: Yusuf bin ALAWI bin Abdallah

Special Adviser to His Majesty: Salim bin Abdallah al-GHAZALI

Special Adviser to His Majesty for Culture: Abd al-Aziz bin Muhammad al-RUWAS

Special Adviser to His Majesty for Economic Planning Affairs: Muhammad bin ZUBAYR

Special Adviser to His Majesty for Environmental Affairs: SHABIB bin Taymur al-Said

Special Adviser to His Majesty for External Liaison: Umar bin Abd al-Munim alZAWAWI

Governor, Central Bank of Oman: QABOOS bin Said al-Said

Executive Pres., Central Bank of Oman: Hamud bin Sangur bin Hashim al-ZADJALI

Ambassador to the US: Hunaina bint Sultan bin Ahmad al-MUGHAIRI

Permanent Representative to the UN, New York: Fuad bin Mubarak al-HINAI

Oman maintains an embassy in the United States at 2535 Belmont Rd. NW, Washington, DC 20008 (tel. 202/387-1980)

ECONOMY

When Oman declined as an entrepot for arms and slaves in the mid-19th century, much of its former prosperity was lost, and the economy turned almost exclusively to agriculture, camel and goat herding, fishing, and traditional handicrafts. Today, oil and gas fuel the economy, and revenues from petroleum products have enabled Oman’s dramatic development over the past 35 years.

Oil was first discovered in the interior near Fahud in the western desert in 1964. Petroleum Development (Oman) Ltd. (PDO) began production in August 1967. The Omani Government owns 60% of PDO, and foreign interests own 40% (Royal Dutch Shell owns 34%; the remaining 6% is owned by Compagnie Francaise des Petroles [Total] and Partex). In 1976, Oman’s oil production rose to 366,000 barrels per day (b/d) but declined gradually to about 285,000 b/d in late 1980 due to the depletion of recoverable reserves. From 1981 to 1986, Oman compensated for declining oil prices by increasing production levels to 600,000 b/d. With the collapse of oil prices in 1986, however, revenues dropped dramatically. Production was cut back temporarily in coordination with the Organization of Petroleum Exporting Countries (OPEC)—of which Oman is not a member—and production levels again reached 600,000 b/d by mid-1987, which helped increase revenues. By 2000, production had climbed to more than 900,000 b/d; however, it has declined to roughly 750,000 b/d for 2006.

Natural gas reserves, which will increasingly provide the fuel for industrial projects in Sohar and power generation and desalination plants throughout the Sultanate, stand at 24 trillion cubic feet. A liquefied natural gas (LNG) processing plant located in Sur was opened in 2000, with production capacity of 6.6 million tons per year (tons/yr), as well as unsubstantial gas liquids, including condensates. The completion of the plant’s expansion in December 2005 has increased capacity to 10.3 million tons/yr.

Oman does not have the immense oil resources of some of its neighbors. Total proven reserves are about 4.8 billion barrels. Oman’s complex geology makes exploration and production an expensive challenge. Recent improvements in technology, however, have enhanced recovery.

Agriculture and fishing are the traditional way of life in Oman. Dates, grown extensively in the Batinah coastal plain and the highlands, make up most of the country’s agricultural exports. Coconut palms, wheat, and bananas also are grown, and cattle are raised in Dhofar. Other areas grow cereals and forage crops. Poultry production is steadily rising. Fish and shellfish exports totaled $104.7 million in 2004.

The government is undertaking many development projects to modernize the economy, improve the standard of living, and become a more active player in the global marketplace. Oman became a member of the World Trade Organization in October 2000, and continues to amend its financial and commercial practices to conform to international standards. Oman signed a Free Trade Agreement with the United States in January, 2006, and continues to pursue, through the Gulf Cooperation Council, free trade agreements with a number of other key trading partners, including the E.U. and India.

Increases in agriculture and especially fish production are believed possible with the application of modern technology. The Muscat capital area has both an international airport at Seeb and a deepwater port at Mina Qaboos. The large-scale modern container port at Salalah, capital of the Dhofar Governorate, continues to operate at near-capacity levels. The government in early 2004 approved a project worth over $250 million to add two berths and extend the breakwater at the port. Port expansion is underway at Mina Qaboos, and a large industrial and container port is under construction in Sohar. A national road network includes a $400 million highway linking the northern and southern regions. The government will also expand passenger and cargo capacity at its main international airports at Seeb (Muscat) and Salalah, and will construct new airports at Sohar, Ras al-Hadd, and Duqm. In an effort to diversify the economy, in the early 1980s, the government built a $200-million copper mining and refining plant at Sohar. Other large industrial projects underway or being considered include an 80,000 b/d oil refinery, a large petrochemical complex, fertilizer and methanol plants, an aluminum smelter, and two cement factories. Industrial zones at Rusayl, Sohar, and several other locations showcase the country’s modest light industries. Marble, limestone, and gypsum may prove commercially viable in the future.

The Omani government embarked on its seventh 5-year plan in 2006. In its efforts to reduce its dependence on oil and expatriate labor, the government projects significant increases in spending on industrial and tourism-related projects to foster income diversification, job creation for Omanis in the private sector, and development of Oman’s interior. Government programs offer soft loans and propose the building of new industrial estates in population centers outside the capital area. The government is giving greater emphasis to “Omanization” of the labor force, particularly in banking, hotels, and municipally sponsored shops benefiting from government subsidies. Currently, efforts are underway to liberalize investment opportunities in order to attract foreign capital.

Some of the largest budgetary outlays are in the areas of health services and basic education. The number of schools, hospitals, and clinics has risen exponentially since the accession of Sultan Qaboos in 1970.

U.S. firms face a small and highly competitive market dominated by trade with Japan and Britain and re-exports from the United Arab Emirates. The sale of U.S. products also is hampered by higher transportation costs and the lack of familiarity with Oman on the part of U.S. exporters. However, the traditional U.S. market in Oman, oil field supplies and services, should grow as the country’s major oil producer continues a major expansion of fields and wells. Major new U.S. investments in oil production, industry and tourism projects in 2005 totaled several billion dollars. Moreover, negotiations on the U.S.-Oman Free Trade Agreement (FTA) were successfully concluded in October 2005; the FTA was signed in January 2006 and awaits implementation. Once implemented, the FTA should provide further impetus to bilateral trade and investment.

FOREIGN RELATIONS

When Sultan Qaboos assumed power in 1970, Oman had limited contacts with the outside world, including neighboring Arab states. Only two countries, the United Kingdom and India, maintained a diplomatic presence in the country. A special treaty relationship permitted the United Kingdom close involvement in Oman’s civil and military affairs. Ties with the United Kingdom have remained very close under Sultan Qaboos.

Since 1970, Oman has pursued a moderate foreign policy and expanded its diplomatic relations dramatically. It supported the 1979 Camp David accords and was one of three Arab League states, along with Somalia and Sudan, which did not break relations with Egypt after the signing of the Egyptian-Israeli Peace Treaty in 1979. During the Iran-Iraq war, Oman maintained diplomatic relations with both sides while strongly backing UN Security Council resolutions calling for an end to the war. Oman has developed close ties to its neighbors; it joined the six-member Gulf Cooperation Council when it was established in 1981.

Oman has traditionally supported Middle East peace initiatives, as it did those in 1983. In April 1994, Oman hosted the plenary meeting of the Water Working Group of the peace process, the first Gulf state to do so. From 1996-2000, Oman and Israel exchanged trade offices. Oman closed the Israeli Trade Office in October 2000 in the wake of public demonstrations against Israel at the start of the second intifada.

During the Cold War period, Oman avoided relations with communist countries because of the communist support for the insurgency in Dhofar. In recent years, Oman has undertaken diplomatic initiatives in the Central Asian republics, particularly in Kazakhstan, where it is involved in a joint oil pipeline project. In addition, Oman maintains good relations with Iran, and the two countries regularly exchange delegations. Oman is an active member in international and regional organizations, notably the Arab League and the GCC.

U.S.-OMANI RELATIONS

The United States has maintained relations with the Sultanate since the early years of American independence. A treaty of friendship and navigation, one of the first agreements of its kind with an Arab state, was concluded between the United States and Muscat in 1833. This treaty was replaced by the Treaty of Amity, Economic Relations, and Consular Rights signed at Salalah on December 20, 1958.

A U.S. consulate was maintained in Muscat from 1880 until 1915. Thereafter, U.S. interests in Oman were handled by U.S. diplomats resident in other countries. In 1972, the U.S. ambassador in Kuwait was accredited also as the first U.S. ambassador to Oman, and the U.S. embassy, headed by a resident charge d’affaires, was opened. The first resident U.S. ambassador took up his post in July 1974. The Oman embassy was opened in Washington, DC, in 1973.

U.S.-Omani relations were deepened in 1980 by the conclusion of two important agreements. One provided access to Omani military facilities by U.S. forces under agreed-upon conditions. The other agreement established a Joint Commission for Economic and Technical Cooperation, located in Muscat, to provide U.S. economic assistance to Oman. The Joint Commission continued in existence until the mid-1990s. A Peace Corps program, which assisted Oman mainly in the fields of health and education, was initiated in 1973 and phased out in 1983. A team from the Federal Aviation Administration worked with Oman’s Civil Aviation Department on a reimbursable basis but was phased out in 1992.

In March 2005, the U.S. and Oman launched negotiations on a Free Trade Agreement that were successfully concluded in October, 2005. The FTA was signed on January 19, 2006, and is pending implementation.

In 1974 and April 1983, Sultan Qaboos made state visits to the United States. Vice President George H. Bush visited Oman in 1984 and 1986, and President Clinton visited briefly in March 2000. Vice President Cheney visited Oman in 2002 and 2005.

Principal U.S. Embassy Officials

MUSCAT (E) Address:; APO/FPO: APO AE 09890-3000; Phone: [968] 24-698-989; Fax: [968] 24-601-473; Workweek: SAT-WED/0800-1630; Website: www.usa.gov.om

Last Updated: 10/2/2006

TRAVEL

Consular Information Sheet : November 3, 2006

Country Description: The Sultanate of Oman has a long and proud heritage, and is a land of great natural beauty on the southeast corner of the Arabian Peninsula. With a population of 2.5 million, Oman has seen rapid economic and social development in the past three decades. As a monarchy governed by Sultan Qaboos bin Said, the country does not have political parties or a legislature, although a bicameral representative body provides the government with advice and reviews draft legislation. While Oman is traditionally Islamic and Islam is the state religion, Omanis have for centuries lived with people of other faiths. Non-Muslims are free to worship at churches and temples built on land donated by the Sultan. The economy is largely dependent on the production and export of oil and, increasingly, natural gas. Excellent tourist facilities are available in the major cities of Muscat, Salalah, Sohar, and Nizwa, and can increasingly be found elsewhere in the country. Travelers may wish to visit the Sultanate’s tourism website at: http://www.omantourism.gov.om for more information.

Entry/Exit Requirements: A valid passport and visa are required for entry into Oman. Omani embassies and consulates issue multiple-entry tourist and/or business visas valid for up to two years. Omani immigration officials at the port of entry determine the length of stay in Oman, which varies according to the purpose of travel. Alternatively, U.S. citizens may obtain a 30-day visa by presenting their U.S. passports on arrival at all Oman land, sea and air entry points. Note: The validity period of the applicant’s passport should not be less than six months. Adequate funds and proof of an onward/return ticket, though not required, are strongly recommended. The fee is Rial Omani 6.00 (approximately USD 16.00). This visa can only be extended for an extra 30 days; a completed extension application form and the fee of Rial Omani 6.00 (USD 16.00) should be submitted to the Directorate General of Passports and Residence, or to its branches at regional Royal Omani Police offices. Other categories of short-term visit/business/work contract visas are available, but these must be arranged in advance through an Omani sponsor. To obtain a visa or for details on entry and travel requirements, please contact the Embassy of the Sultanate of Oman, 2535 Belmont Road N.W., Washington, D.C. 20008, telephone (202) 387-1980/2. Evidence of yellow fever immunization is required if the traveler enters from an infected area. Visit the Embassy of Oman web site at: www.omani.info for the most current visa information.

Safety and Security: There have been no instances in which U.S. citizens or facilities in Oman have been subject to terrorist attacks. However, the Department of State remains concerned about the possibility of terrorist attacks against United States citizens and interests throughout the region. American citizens in Oman are urged to maintain a high level of security awareness. The State Department suggests that all Americans in Oman maintain an unpredictable schedule and vary travel routes whenever possible. Americans are also urged to treat mail or packages from unfamiliar sources with suspicion. Unusual mail or packages should be left unopened and reported to local authorities. U.S. citizens with security concerns are encouraged to contact local authorities and the Consular Section of the U.S. Embassy in Muscat. For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site, where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: The incidence of street crime is low in Oman; violent crime is rare by U.S. standards, but can occur. Crimes of opportunity remain the most likely to affect visitors. Visitors to Oman should, therefore, take normal precautions, such as avoiding travel in deserted or unfamiliar areas and after dark. Visitors should also protect personal property from theft. In particular, valuables and currency should not be left unsecured in hotel rooms. Common sense and caution are always the best methods for crime prevention.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: There are a number of modern medical facilities in Oman. Local medical treatment varies from quite good to inadequate, depending in large part on location. Many Western pharmaceuticals can be found in Oman. Hospital emergency treatment is available. Doctors and hospitals often expect cash payment for health services.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Oman is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Road Conditions and Hazards: Road conditions, lighting, and traffic safety in cities and on major highways are good. The condition of rural roads varies from good to poor. Travel between cities, especially at night, may be dangerous due to poor or no lighting, wandering livestock, and speeding drivers. The safety of public transportation is generally good. Taxis, minivans, and small buses may swerve to the side of the road to pick up passengers with little notice or regard for other vehicles.

Local Laws and Practices: Traffic laws in Oman are strictly enforced. Driving while under the influence of alcohol is prohibited, and there are stringent penalties for violating this law. Seat belt use is required, and the use of non-hands-free cellular telephones while driving is prohibited. In the event of a traffic violation and fine, drivers should pay the fine as directed and should not attempt to pay or negotiate payment at the time of the traffic stop. In the event of an accident, the driver should not move the vehicle from the location of the accident until police grant permission; moving a vehicle may be interpreted as an admission of guilt.

The use of European-style traffic circles is prevalent in Oman. However, unlike European traffic practice, the driver on the inside lane always has priority. A driver flashing his/her high beams is generally asking for a chance to pass. Turning right on a red traffic signal is prohibited.

Visitors should not drive without a valid license. Short-term visitors in possession of a valid U.S. driver’s license may drive rental vehicles, but residents must have an Omani driver’s license. To obtain an Omani license, a U.S. citizen must have a U.S. license that has been valid for at least one year or must take a driving test. Visitors hiring rental cars should insure the vehicles adequately against death, injury and loss or damage. Residents may insure their vehicles outside the Sultanate; however, third party liability insurance must be purchased locally.

Emergency Services: A modern ambulance service using American equipment and staff trained in the U.S. was instituted in 2004, and has been assessed as very good. The service currently serves only certain urban locations in Oman, including the capital area, but is eventually expected to provide coverage for motor vehicle accident victims throughout the entire Sultanate. For all traffic-related emergencies, the Royal Omani Police can be contacted by dialing “9999.”

Visit the website of Oman’s national tourist office and national authority responsible for road safety at http://www.omantourism.gov.om/.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Oman as being in compliance with the International Civil Aviation Organization (ICAO) aviation safety standards for oversight of Oman’s air carrier operations. For more information, travelers may visit the FAA’s web site at http://www.faa.gov.

Special Circumstances: Omani employers often ask that expatriate employees deposit their passports with the company as a condition of employment. Although customary, this practice is not required by Omani law. The U.S. Embassy in Muscat advises Americans to exercise caution on the issue of permitting an employer to hold their passports, since this can operate as a restraint on travel and could give undue leverage to the employer in a dispute. U.S. passports are the property of the U.S. government.

Islamic ideals provide the conservative foundation of Oman’s customs, laws and practices. Foreign visitors are expected to be sensitive to the Islamic culture, and not dress in a revealing or provocative style, including the wearing of sleeveless shirts and blouses, halter-tops and shorts. Athletic clothing is worn in public only when the wearer is obviously engaged in athletic activity. Western bathing attire, however, is the norm at hotel pools and beaches.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Omani laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Oman are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy Location: Americans living or traveling in Oman are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department’s travel registration website, and to obtain updated information on travel and security within Oman. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency.

The U.S. Embassy is located on Jamiat A’Duwal Al Arabiya Street, Al Khuwair Area (Shatti Al-Qurum), in the capital city of Muscat. The mailing address is: P.O. Box 202, Medinat Al Sultan Qaboos 115, Sultanate of Oman, telephone: (968) 24-698-989, fax: (968) 24-699-189. The Embassy’s e-mail address is: ConsularMuscat@ state.gov, and its website address is: http://oman.usembassy.gov.

International Adoption : February 2007

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

General: The following is a guideline for U.S. citizens who are interested in adopting a child in Oman and applying for an immigrant visa for the child to come to the United States. Interested U.S. citizens are strongly encouraged to contact U.S. consular officials in Oman before formalizing an adoption agreement to ensure that appropriate procedures have been followed which will make it possible for the Embassy to issue a U.S. immigrant visa for the child.

Availability of Children for Adoption: To date, no Omani children have been adopted by American citizens.

Adoption Authority: The government office responsible for adoptions in Oman is the Ministry of Social Affairs. Please contact Ms. Batool Hassan, Deputy Director of the Office of Children’s and Women’s Affairs (968) 601-598.

Age and Civil Status Requirements: The Omani Government requires that individuals who wish to adopt Omani children must have Omani nationality and must be of the Muslim faith. Married couples are preferred but single women may also be eligible to adopt under special circumstances.

Adoption Agencies and Attorneys: All adoptions are processed by the Government of Oman.

Doctors: The U.S. Embassy maintains current lists of doctors and sources for medicines, should either you or your child experience health problems while in Oman.

U.S. Immigration Requirements: A Oman child adopted by an American citizen must obtain an immigrant visa before he or she can enter the U.S. as a lawful permanent resident. Please see the International Adoption section of this book for more details and review current reports online at www.travel.state.gov/family.

Embassy in the United States:
2535 Belmont Road, NW
Washington, DC 20008.
Tel. (202) 387-1980.

U.S. Embassy in Oman:
P.O. Box 202
Code 115 Madinat Al-Sultan Qaboos
Muscat, Sultanate of Oman.
Tel. (968) 698-989 X 216, 294, or 435.
Fax (968) 699-189.
E-mail: aemctcns@omantel.net.om

Additional Information: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at www.travel.state.gov/family.

Questions: Specific questions regarding adoption in Oman may be addressed to the Consular Section of the U.S. Embassy Muscat, Oman. You may also contact the Office of Children’s Issues, SA-29, 2201 C Street, NW, U.S. Department of State, Washington, DC 20520-2818, Tel: 1-888-407-4747 with specific questions.

International Parental Child Abduction : February 2007

The information below has been edited from the report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Child Abduction section of this book and review current reports online at www.travel.state.gov.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is provided for general information only. Questions involving interpretation of specific foreign laws should be addressed to foreign legal counsel.

General Information: Oman is not a party to the Hague Convention on the Civil Aspects of International Child Abduction, nor are there any international or bilateral treaties in force between Oman and the United States dealing with international parental child abduction. American citizens who travel to Oman are subject to the jurisdiction of Omani courts, as well as to the country’s laws and regulations. American citizens planning a trip to Oman with dual national children should bear this in mind.

Custody Disputes: When child custody disputes arise between parents of any religion, the custody decisions by Omani courts are based on Islamic (Shari’a) law. Custody cases can be very complex and are usually determined on a case-by-case basis. When making decisions regarding child custody matters, Omani courts consider the parents’ religion(s), place(s) of permanent residence, income, and the parents’ marital status.

Note: Omani law differentiates between custodianship and guardianship. Generally speaking, a custodian has been awarded custody of the child and is responsible for his/her upbringing including education and care. A guardian is responsible for the child’s financial support.

Omani courts do not, as a general rule, award custody of “dual national” (U.S./Omani) children to an American mother or father, even one who is Muslim. A fundamental consideration of awarding custody is the parent’s place(s) of permanent residence and degree of access to the children. Custody of very young children is generally granted to the mother as long as certain restrictive conditions are met. Once the children come of age (for males completion of their seventh year of age, for females the onset of puberty), the father can appeal for, and will usually be awarded, full custody provided certain restrictive conditions are met. If a father were unable or unfit to be custodian of his children, the court may give custody to another family member. Shari’a court judges have broad discretion in custody cases and often make exceptions to these general guidelines, particularly in cases in which a parent is from an influential family or has powerful connections in Oman.

Even when a mother is granted custody, the non-custodial father maintains a great deal of influence on the rearing of the children. In many cases, the father has been able to acquire legal custody of children against the wishes of the mother when she is unable or unwilling to meet certain conditions set by law for her to maintain her custodial rights. For example, if a mother refuses to give the father access to his child or attempts to leave Oman with the children without the court’s permission, a mother’s custody rights can be severed. The Omani court can sever a mother’s custody if it determines that the mother is incapable of safeguarding the child or of bringing the child up in accordance with the appropriate religious standards. Either parent can lose custody by re-marrying a party considered “unmarriageable,” or by residing in a home with people that might be “strangers.” However, the final decision is left to the discretion of the Shari’a court.

Shari’a law forbids the removal of children from Oman without first obtaining permission from the court. The U.S. Embassy cannot prevent the Omani government from arresting and either deporting or prosecuting an American citizen who violates Omani law.

Persons who wish to pursue a child custody claim in an Omani court should retain an attorney in Oman. The State Department and the U.S. Embassy in Oman maintain a list of attorneys willing to represent American clients. A copy of this list may be obtained by contacting either office. It is the responsibility of the prospective client to assess the capabilities of an attorney. The Embassy cannot recommend any specific attorney, and makes no claim as to the ability or the integrity of the attorneys on the list. The Embassy cannot pay for any legal expenses incurred.

Specific questions regarding child custody in Oman should be addressed to an Omani attorney or to the Embassy of Oman at:

Embassy of the Sultanate of Oman
2535 Belmont Road, NW
Washington, DC 20008
Telephone: (202) 387-1980
Fax: (202) 745-4933

Enforcement of Foreign Judgements: Custody orders and judgments of foreign courts are not enforceable in Oman if they potentially contradict or violate local laws and practices. For example, an order from a U.S. court granting custody to an American parent will not be honored in Oman if the parent intends to take the child to live outside Oman. Nor will Omani courts enforce U.S. court decrees ordering a parent in Oman to pay child support.

Visitation Rights: Non-custodial parents are generally entitled to visitation rights as determined by the Shari’a judge.

Dual Nationality: Dual nationality is not recognized by the Sultanate of Oman. Children of Omani fathers automatically acquire Omani citizenship at birth and must enter and leave the country on Omani passports even if they are entitled to hold the passport of another country. Omani women cannot transmit citizenship to their children.

Travel Restrictions: When a custody case is pending with the Shari’a court, children, regardless of their nationality, are generally subject to court-imposed travel restrictions. Either parent can request the court to restrict the travel of his/her minor children.

For more information, please read the International Parental Child Abduction section of this book and review current reports online at www.travel.state.gov.

Criminal Remedies: For information on possible criminal remedies, please contact your local law enforcement authorities or the nearest office of the Federal Bureau of Investigation (FBI). Information is also available on the Internet at the web site of the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention (OJJDP) at http://www.ojjdp.ncjrs.org.

For further information on international parental child abduction, contact the Office of Children’s Issues, U.S. Department of State at (202) 736-7000 or visit its web site on the Internet at http://travel.state.gov.