Oman A secretive land

Contents

General Information Historical overview Oil Discovery 1970: Oman’s Renaissance 1980-1990: A decade of economic turmoil Oil: blessing or curse? Longer-term

perspectives Conclusion

General Information

Oman

Population: 2,567,000 (July 2005 est.)

Religions: Ibadhi Muslim (75%), Sunni Muslim, Shi’a Muslim

Monarchy ( Sultan Qaboos)

Strategic location (Strait of Hormuz)

Member of the Gulf Cooperation Council but not of the OPEC

Historical Overview

Ancient times: the incense and spice route

Towards independence (1650) The heyday of the Omani empire A history dominated by the struggle of

conflicting interests (tribal, ethnic, political, commercial, geographic…)

The decline of the 20th Century

Oil Discovery

Oil and Politics: oil industry concentrates wealth and power in the hands of the governments

Oman: a Rentier state? Oil and Economy: in 2004, oil & gas

revenues accounted for 78% of the government revenue

Oman owns its own National Petroleum Company

The reign of Sultan Said: a restrictive rule

Oman’s renaissance

July, 23rd 1970: Sultan Qaboos takes over power:

1. Political changes• 1971: Oman enters the UN• 1981: Creation of a State Consultative Council • 1996: “Basic Statute of the State”

2. Economical and social development• Infrastructure (roads, ports, hospitals…)• Education• Healthcare

1980-1990: A decade of economic turmoil

1. A recurrent problem: a limited resource base

2. Fluctuating prices of the oil market

3. The hiccups of the modernisation program

Evolution of crude oil prices since 1961

(Source: BP Statistical Review of World Energy 2005)

Oil: Blessing or Curse?

1980-1997: general improvement of the population’s well-being

Oman’s economy remains based on a monocultural exportation (Oil)

The oil industry creates little employement 3 alternatives:

– Economic diversification– Omanisation– Privatization

Economic diversification

1. Natural gas• In 2005 5% of

the GDP• Limited resources

2. Minerals• Copper• Coal• Marble

Economic diversification

3.Agriculture and fisheries• Date and

frankincense producer

• Cattle herds (goats, camels, cows)

• Fishing Oman has 3165 km of coastlines

Economic diversification

4. Tourism• Today, this sector

represents less than 1% of the GDP

• Massif investment

1billion/year from the private sector

Omanisation

In 1997, 65% of the labour forces were expatriates conflicts with the younger generations now confronted to unemployment

The government now aims to replace foreign workers by qualified omanis

Privatization

A key element in the economic policy Privatization mainly in the industrial,

commercial and tourism companies In the public sector (water, electricity,

postal services)

Conclusion

Mitigated progress– Institutional weaknesses– Population torn between tradition and

modernity– An important population growth rate

(3,32% in 2005)

Oman needs to be more incorporated in regional policies

Bibliography

• Allen, C. H., Rigsbee, W. L. II., Oman under Qaboos, from Coup to Constitution, 1970-1996, Frank Cass Publishers, 2002.

• Beasant, J., Oman: the true-life drama and intrigue of an Arab State, Mainstream Publishing, 2002.

• Joyce, M., The sultanate of Oman: a twentieth century history, Praeger, Westport, 1995.

• Mansur, A. S., Oman beyond the oil horizon: policies toward sustainable growth, ed. by Ashan Mansur & Volker Treichel, Wahsington D.C: International Monetary Fund, 1999.

• Plekhanov, S., A reformer on the Throne: Sultan Qaboos Bin Said Al Said, Trident Press, 2004.

• http://www.moneoman.gov.om• http://www.omanet.om• http://www.omantourism.gov.om