OMAN

ْ
Oman Arabic: ‫ ُع َمان‬ʿUmān [ʕʊˈmaːn]), officially the Sultanate of Oman (Arabic: ‫سلطن ُة عُمان‬
Salṭanat(u) ʻUmān), is an Arabian country located in southwestern Asia. It is situated on the
southeastern coast of the Arabian Peninsula, and spans the mouth of the Persian Gulf. Oman
shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen, while sharing
maritime borders with Iran and Pakistan. The coast is formed by the Arabian Sea on the
southeast, and the Gulf of Oman on the northeast. The Madha and Musandam exclaves are
surrounded by the United Arab Emirates on their land borders, with the Strait of Hormuz (which
it shares with Iran) and the Gulf of Oman forming Musandam's coastal boundaries. Muscat is
the nation's capital and largest city.

The essential economic performance of a country is reflected by the gross domestic product. So
the total of all goods and services sold. Worldwide gross domestic product in 2021 was at about
12.259 USD per capita. GDP in Oman, on the other hand, reached USD 16.439 per capita, or
85.87 billion USD in the whole country. Oman is therefore currently ranked 69 of the major
economies. If this is calculated per inhabitant taking into account the purchasing power parity,
then Oman is in the list of the world's richest countries in place 50.

Inflation in Oman was in 2021 at around 1.55%. Within the EU, the average in the same year
was 2.55%. In the United States, it was most recently 4.70%.

Compared with the USA, prices for daily consumer goods are around 49.5% lower.
The Corruption Perceptions Index for the public sector counts 67 and is compared to other
countries moderate.
Over the past 10 years the global economy has grown by 27%.
Oman's contribution to this growth was 0.2% once any allowances are made for base year and
informal economy size.
Oman's data is highlighted in the table below, use the filter and sort order options to allow easy
comparison with other countries.

1. THE FRANKINCENSE
Frankincense (in Arabic, luban) is a resin obtained from one of four trees of the
Boswellia genus, particularly the Boswellia sacra, a distinctively short and rugged
species, rarely exceeding 5 metres (16ft) in height. Boswellia sacra can survive in the
most inhospitable conditions, sometimes appearing to grow straight out of solid rock,
and thrives particularly in the semi-arid mountains around Salalah.
Oman has long been famous for frankincense. The frankincense trade brought
enormous prosperity to the ancient cities of Dhofar, from where ships laden with the
precious perfume would depart to Egypt and the Mediterranean along the Red Sea, or
overland by camel via inland settlements such as the legendary Ubar. Demand has
waned somewhat since then, but frankincense remains a key ingredient in traditional
 Omani life. Frankincense burners are traditionally passed around after a meal to
perfume clothes and hair, while the resin is also used as an ingredient in numerous
perfumes, including the heady Amouage, Oman’s bespoke scent par excellence. The
smoke of frankincense also helps to repel mosquitoes, while certain types of
frankincense resin are also edible, and continue to be widely used in traditional Arabian
and Asian medicines to promote healthy digestion and skin – scientists are also
investigating its possible uses in the treatment of chronic inflammatory diseases such as
Crohn's disease, osteoarthritis and
Frankincense is an integral part of Oman’s culture and heritage. This aromatic resin is
mostly used in incense and perfume and obtained from the tree bark of genus Boswellia.
Frankincense is also known for its healing and restorative properties.Locally known as
luban, Oman is known to produce the world’s finest frankincense.
The best quality of frankincense is found in the Dhofar region and is abundantly
available
in the souqs. Hafa Souq in Salalah is an exclusive place that sells them. Oman’s
frankincense trail in Dhofar region was visited by explorers Marco Polo and Lawrence of
Arabia. The frankincense tree (boswellia sacra) can still be found in Wadi
Dawkah. The trees grow in the alluvial bed of the wadi under the extreme heat of this
region.
According to Oman’s Ministry of Tourism, “Frankincense is a symbol of life, or rather it is
life itself, for the Dhofari people. It is not a mere tree, but an embodiment of culture,
history, sociology and geography. The Omani researcher and historian, Abdul
Qadir bin Salim Al Ghassani, mentions in his book ‘Dhofar, the Land of Frankincense’
that Alexander the Great had imported huge quantities.

2. THE ECONOMY OF OMAN

Oman is a rural, agricultural country, and fishing and overseas trading are important to
the coastal populations. Oil in commercial quantities was discovered in Oman in 1964
and was first exported in 1967. Subsequently the production and export of petroleum
rapidly came to dominate the country’s economy. Oil revenues represent roughly two-
fifths of gross domestic product (GDP) and about three-fourths of the government’s
income.Oman is a rural, agricultural country, and fishing and overseas trading are
important to the coastal populations. Oil in commercial quantities was discovered in
 Oman in 1964 and was first exported in 1967. Subsequently the production and export of
petroleum rapidly came to dominate the country’s economy. Oil revenues represent
roughly two-fifths of gross domestic product (GDP) and about three-fourths of the
government’s income.
Oman’s economic freedom score is 56.6, making its economy the 108th freest in the
2022 Index. Oman is ranked 8th among 14 countries in the Middle East and North Africa
region, and its overall score is below the regional and world averages.

Oman’s economy gained strength from 2017 through 2018, turned negative in 2019, and
contracted further in 2020. Growth returned in 2021. Economic freedom has fluctuated
over the past five years. With sharp score decreases in judicial effectiveness, fiscal
health, business freedom, and trade freedom, Oman has registered a 5.5-point overall
loss of economic freedom since 2017 and has fallen from the “Moderately Free”
category to the “Mostly Unfree” category. Property rights and monetary freedom are
strong points, but labor freedom is mediocre.

FINANCIAL SERVICES

The Central Bank of Oman is the country’s main monetary and banking regulatory body.
Founded in 1974, it issues and regulates the national currency, the Omani rial, manages the
government’s accounts, and acts as lender of last resort. The country has commercial and
development banks, and a number of foreign banks operate there. A stock exchange, the
Muscat Securities Market, was opened in 1988.

AGRICULTURE
Agriculture is practiced mainly for subsistence and employs only about five percent of the
population. The falaj irrigation system has long supported a three-tiered crop approach (i.e.,
three crops raised at different heights within the same plot), with date palms above; lime,
banana, or mango trees in the middle level; and alfalfa (lucerne), wheat, and sorghum at ground
level. Vegetables, melons, bananas, and dates are the country’s most significant crops. Limes
that are grown in the interior oases are traded for fish from coastal areas as well as exported
abroad. Grapes, walnuts, peaches, and other fruits are cultivated on the high mountain
plateaus; Dhofar also produces coconuts and papayas. Although agricultural production meets
some local needs, most food must be imported. Many rural families keep goats, and Oman is
well known for camel breeding. Cattle are raised throughout the mountainous areas of Dhofar.

ECONOMIC SECTOR
Oman’s economy was traditionally based on fisheries, agriculture and trade before the
discovery and development of its oil and gas reserves.
Overlooking the Strait of Hormuz, the entrance to the Gulf, the source of two-thirds of the
world’s oil exports, Oman sits on key East-West trade routes, ensuring easy access to markets
in the Middle East, India, South East Asia, Africa and Europe.
While the country’s oil revenues have contributed towards Oman’s rapid economic growth, the
government has actively pursued a development plan focused on diversification,
industrialisation and privatisation of the economy with the aim of reducing the dependency on
the oil industry’s contribution to GDP.

OMAN'S INTERNATIONAL TRADES

Crude oil, refined petroleum, and natural gas account for most exports, while imports
consist mainly of machinery and transport equipment, basic manufactured goods, and
foodstuffs. Some manufactured products are also exported. Among the country’s major trading
partners are the United Arab Emirates, China, Japan, Saudi Arabia, and India. Its trade
relationship with Qatar increased significantly after 2017, when the latter came under blockade
by its neighbours and sought new trade partners. Oman has been a member of the World Trade
Organization since 2000, and it enjoys duty-free trade with the other members of the GCC and
with the United States. They dealt in silk, textiles, gold, leather, carpets, spices, and pearls, in
addition to acting as an entrepot for spices and paper from the East, which were then re-
exported onto Europe. Oman too established trade settlements on the Persian coast in the
1700s, and to this day, maintain strong trade ties. They dealt in silk, textiles, gold, leather,
carpets, spices, and pearls, in addition to acting as an entrepot for spices and paper from the
East, which were then re-exported onto Europe. Oman too established trade settlements on the
Persian coast in the 1700s, and to this day, maintain strong trade ties.

SERVICES
Services, including public administration and defense, account for roughly half of the value of
GDP and employ more than two-fifths of the workforce. Despite the country’s frequent balance-
of-payment deficits, defense spending consistently constitutes a significant portion of the total
budget. The tourist trade contributes only a small fraction of Oman’s GDP; however, the
government has been promoting the sector more aggressively in an attempt to further diversify
the economy.

CULTURES AND TRADITIONS

Hospitality through coffee and frankincense
A very important part of Oman culture and tradition is hospitality. If invited into an Omani house,
a visitor is likely to be greeted with a bowl of dates, qahwa (coffee with cardamom) and fruits.
The coffee is always served with the right hand and in a small cup. For the guest, the cup
should be shaken after three servings to show that you have finished.
As an expression of hospitality to a visitor leaving the house, the host should bring the guest
incense and perfume. It is however impolite to bring it in the middle of the visit because it gives
the idea that you are rushing the visitor to leave. Oman tradition
Hospitality through coffee and frankincense
A very important part of Oman culture and tradition is hospitality. If invited into an Omani house,
a visitor is likely to be greeted with a bowl of dates, qahwa (coffee with cardamom) and fruits.
The coffee is always served with the right hand and in a small cup. For the guest, the cup
should be shaken after three servings to show that you have finished.
As an expression of hospitality to a visitor leaving the house, the host should bring the guest
incense and perfume. It is however impolite to bring it in the middle of the visit because it gives
the idea that you are rushing the visitor to leave.

OMAN'S RELIGION
Oman is a Muslim country, but around 13% of the population is Hindu. Three-quarters of
Muslims are Ibadi – a school of Islam that prevails in Oman, often seen as a tolerant sect of
Islam. The remaining quarter is Sunni – the largest denomination of Islam and the traditionalist
branch.Although Islam is the official religion of Oman and the Sharia is the source of legislation,
the country generally allows others to practice their religions without interference from the state.
Discrimination on the basis of religion is not practiced by the state. The Omani society is mostly
tolerant of the religion of others but social hierarchies do exist. Religious gatherings in private
are discouraged by the government. Also, publications by non-Islamic religious institutions are
required to take ministerial approval prior to printing. The religious organizations in the country
must also be registered with the government.Christianity is the largest minority religion in Oman.
Most of the Christians living in the country are migrant workers who have arrived from South
Asia or Southeast Asia. Oman’s Christians are affiliated with the various Christian
denominations like Catholicism, Eastern Orthodoxy, and Protestantism. They are mainly found
in and around the major urban areas like the capital city of Muscat. The Hindus of Oman are
primarily immigrants from India. There are two Hindu temples in the country.

POLITICS
There are no political parties. Elections to the Consultative Council have been held since 1994.
At first, voting was limited to individuals chosen by the government; the pool of eligible voters
was 50,000 in 1994 and 175,000 in 2000. Universal suffrage for citizens at least 21 years old
was implemented in 2003. Members of the Council of State are appointed by the sultan.

EDUCATION
Education has expanded dramatically since 1970, when only three primary schools existed and
few girls received any schooling. Some three-fourths of elementary-school-age and more than
two-thirds of secondary-school-age children are now enrolled, and nearly half of all these are
female. Education is provided free to all Omanis but is still not mandatory.

GOVERNMENT
Oman is governed by a monarchy (sultanate) with two advisory bodies. The sultan is the head
of state, and, although he also acts as the prime minister, he may appoint one if he chooses.
The sultan is assisted by a Council of Ministers (Majlis al-Wuzarāʾ), the members of which he
typically appoints from among Muscat merchants, informal representatives of interior tribes, and
Dhofaris.

PRODUCTS THAT MARKETED GLOBALLY

The top exports of Oman are Crude Petroleum ($13.3B), Petroleum Gas ($4.4B), Refined
Petroleum ($2.39B), Semi-Finished Iron ($1.03B), and Nitrogenous Fertilizers ($957M),
exporting mostly to China ($13.8B), India ($2.77B), South Korea ($1.93B), United Arab Emirates
($1.75B), and Saudi Arabia ($1.57B).
The top imports of Oman are Cars ($2.21B), Broadcasting Equipment ($1.08B), Refined
Petroleum ($937M), Machinery Having Individual Functions ($724M), and Iron Ore ($656M),
importing mostly from United Arab Emirates ($9.69B), China ($3.08B), India ($2.31B), Japan
($1.28B), and United States ($1.08B).
When oil was discovered in 1964, the production and export increased significantly. The
government has made plans to diversify away from oil under its privatization and Omanization
policies.[17] This has helped raise Oman's GDP per capita continuously in the past 50 years. It
grew 339% in the 1960s, reaching a peak growth of 1,370% in the 1970s.Similar to the pricing
of all other commodities, the price of oil is subject to significant fluctuations over time, especially
those associated with the business cycle.A commodity's price will rise sharply when demand,
like that for oil, outpaces supply; meanwhile, when supply outpaces demand, prices will fall.

OMAN IS KNOWN FOR:

Oman is known for Arabian horses, dromedaries, wild asses, green turtles, the Oryx antelope
(the national animal), frankincense trees, and date palms.
Oman is famous for its ancient aflaj oases irrigation system, terraced orchards (Jebel Akhdar),
adobe fortresses, lots of mosques, wadis (stream valleys), dhows (traditional Arabian sailing
ships), meteorites, and Al Said, the world's third-largest yacht, owned by the Sultan.
The country's staple food is chicken, fish, and lamb (no pork, please) and coffee.The culture of
Oman describe the cultural aspects of people living in Oman, which is steeped in the religion of
Islam. Oman has its own unique subsect of Islam, known as Ibadhism, however other strands of
Islam such as Sunni and Shi'a are also practised. The Islamic month of fasting, Ramadan, and
other Islamic festivities are very important events in the Omani culture.
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