Oman

OMAN

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS OMANIS
DEPENDENCIES
BIBLIOGRAPHY

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.

Country	Exports	Imports	Balance
World	10,115.4	6,572.2	3,543.2
Areas nes	8,448.6	…	8,448.6
United Arab Emirates	468.6	1,417.9	-949.3
Iran	415.5	45.7	369.8
Saudi Arabia	134.1	224.4	-90.3
United States	83.4	409.6	-326.2
United Kingdom	78.0	371.5	-293.5
Jordan	56.6	…	56.6
Kuwait	41.3	34.8	6.5
Yemen	34.8	…	34.8
Singapore	30.9	75.6	-44.7
(…) data not available or not significant.

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.