General Info

Area: 309,500 sq km
Population: 2.4 million
Capital city: Muscat (population 380,000)
People: Arab, Asian, African, Baluchi
Languages: Arabic (official), English, Farsi, Baluchi, Urdu
Religion: Muslim
Government: Sultanate
Head of State: H.M. Sultan Qaboos bin Said

Economy

Under the visionary leadership of His Majesty Sultan Qaboos Bin Said, the Sultanate of Oman has seen the benefits of development in every area - be it social, political, industrial or its human resources. Today it is a strong, thriving economy where a traditional form of Government has led the way for the foundation of a modern state - one that marches with the rest of the world.

The last two decades especially have been all about progress and growth, and these changes encompass every aspect of modern-day living today — from the socio-economic infrastructure to technological progress to health care to professional manpower.

Oil was the economic mainstay in the 70s and Oman’s main source of income, but His Majesty’s vision has seen that Oman’s economy today has diversified and introduced wide-ranging structural reforms to make it a global player in many fields. With privatisation, Omanisation, expansions in the non-oil sector, lifting of impediments in most sectors to Foreign Direct Investment, a sound socio-economic infrastructure, a professional manpower base and streamlining business regulations, the outlook for the Omani economy is extremely bright.

Oman has made active plans to diversify its economy and is placing a greater emphasis on other areas of industry, such as tourism and liquid natural gas. Oman's Basic Statute of the State expresses in Article 11, that, "The National Economy is based on justice and the principles of a free economy."

The Vision Conference: Oman 2020, held in June 1995, has developed the following aims with regard to securing Oman's future prosperity and growth:

• To have economic and financial stability
• To reshape the role of the Government in the economy and to broaden private sector participation
• To diversify the economic base and sources of national income
• To globalise the Omani economy
• To upgrade the skills of the Omani workforce and develop human resources

By 2020, it is expected that the economy will not be reliant on oil, but rather, will have diversified into non-oil sectors, raising higher levels of savings and investments
The crude oil sector's share of GDP is estimated to drop to 9% in 2020, compared with 41% in 1996

The gas sector is expected to contribute around 10% to GDP, compared with less than 1% in 1996

The non-oil industrial sector's contribution is expected to increase from 7.5% to 29%

Oman’s health care system is today recognised as among the best in the world by the World Health Organisation. Its history of a flourishing international trade is today reflected in its successful accession to the World Trade Organisation, besides it being a founder nation in the recently established Indian Ocean Rim Association. Of late, Oman has also completed Free Trade Agreement negotiations with the United States. Oman’s high credit ratings with international agencies, its political and economic stability with a relatively low debt obligation, its ranking as the most transparent nation in the Middle East and North Africa and the second free economy in the region only goes to highlight its innumerable accomplishments. These achievements also show that Oman is a capable player in the global scenario of capital, technology, trade and co-operation.