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July 06, 2008
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Country Profiles
Oman Oman Flag

Brief History    Geography & Demographics    Water & Sanitation    Economy
Trade & Industry    Business    Holidays    Travel    Links
________________________________________________________________________

Oman Map

Official Name: Sultanate of Oman
Capital: Muscat
Population: 2,903,165 (July 2004 est.)
Major language: Arabic, English, Baluchi, Urdu, Indian dialects
Major religion: Ibadhi Muslim, Shia Muslim, Sunni Muslim, Hindu
Monetary unit: 1 Omani Rial = 1,000 Baizas
International dialing code: +968
Main exports: Petroleum, reexports, fish, metals, textiles

Brief History:

Oman's history goes back to the very dawn of civilization. The coastal area on the Gulf of Oman is believed to have been the land known to the Sumerians as Magan, from which as early as 3,000 B.C. they were importing copper. In the mid-8th century AD the tribes of northern Oman swept into the rest of Arabia, briefly conquering Medina, where they were subsequently overthrown by the Abbasids. Though defeated, Oman managed to remain relatively free of Abbasid control. The Portuguese occupied Oman for more than a century, until they were expelled by Imam Sultan bin Saif in 1650.

This victory marked the beginning of a great expansion: by the end of the 18th century the Omanis ruled a far-flung empire. In the late 18th century, Oman began its close ties with Great Britain, which still continue. At its peak in the 19th century, under Sultan Said bin Sultan, Oman controlled both Mombasa and Zanzibar and operated trading posts even further down the African coast. It also controlled portions of the Indian subcontinent. Oman was recognized as fully independent in 1951.

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Geography:

Location: Middle East, bordering the Arabian Sea, Gulf of Oman, and Persian Gulf, between Yemen and UAE
Area: Total: 212,460 sq km   Land: 212,460 sq km   Water: 0 sq km
Land Boundaries: Total: 1,374 km
Natural Resources: Petroleum, copper, asbestos, some marble, limestone, chromium, gypsum, natural gas
Environment - Current Issues: Rising soil salinity; beach pollution from oil spills; very limited natural fresh water resources.

Demographics:

Population   2,903,165 (July 2004 est.)
Age Structure   0-14 years: 42.4%
   15-64 years: 55.1%
   65 years and over: 2.5%
Population Growth Rate   3.35% (2004 est.)
Birth Rate   37.12 births/1,000 population (2004    est.)
Death Rate   3.91 deaths/1,000 population (2004    est.)
Net Migration Rate   0.28 migrant(s)/1,000 population (2004    est.)
Sex Ratio   at birth: 1.05 male(s)/female
   under 15 years: 1.04 male(s)/female    15-64 years: 1.49 male(s)/female
   65 years and over: 1.17 male(s)/female
   total population: 1.27 male(s)/female    (2004 est.)
Infant Mortality Rate   20.26 deaths/1,000 live births
Life Expectancy at Birth   total population: 72.85 years
   male: 70.66 years
   female: 75.16 years (2004 est.)
Total Fertility Rate   5.9 children born/woman (2004 est.)
Literacy   definition: NA
   total population: 75.8%
   male: 83.1%   female: 67.2% (2003    est.)

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Water and Sanitation:

% of population with access to
safe water
% of population with access to
adequate sanitation
Water - Total39Sanitation - Total92
Water - Urban41Sanitation - Urban98
Water - Rural30Sanitation - Rural61

Economy - Overview:

Oman enjoys a stable political, economic, and social system, which is enhanced by the excellent relationships between the Sultanate and neighboring countries. The Omani economy is based on the policy of free economy that fosters perfect competition, freedom of markets and price mechanism as the main guiding elements of the national economy, and which depends basically on one single sector, the oil. There is currently only one oil refinery in the Sultanate, which is located at Mina al Fahal. Plans are now underway to build a refinery at Sohar with an associated polypropylene programme.

GDP   purchasing power parity -    $37.5 billion (2003 est.)
GDP - Real Growth Rate   3.3% (2003 est.)
GDP - Per Capita   purchasing power parity -    $13,400 (2003 est.)
GDP - Composition by Sector   agriculture: 2.1%
   industry: 53.4%
   services: 44.5% (2002 est.)
Inflation Rate (consumer prices)   0.3% (2003)
Labor force   920,000 (2002 est.)
Labor force - by occupation   Services - NA, Industry - NA,    Agriculture - NA
Budget   revenues: $9.2 billion
   expenditures: $6.9 billion,    including capital expenditures    of $NA (2000 est.)
Industries   crude oil production and    refining, natural gas    production, construction,    cement, copper
Exports   $11.7 billion f.o.b.(2003 est.)
Exports commodities   petroleum, reexports, fish,    metals, textiles
Exports partners   Japan 22.1%, South Korea    19.9%, China 15.2%, Thailand    12.6%, Taiwan 5.5%,    Singapore 4.7%, US 4.4%    (2002)
Imports   $5.659 billion f.o.b. (2003    est.)
Imports commodities   machinery and transport    equipment, manufactured    goods, food, livestock,    lubricants
Imports partners   UAE 27.6%, Japan 16.7%, UK    7.4%, US 6.9%, Germany 5%    (2002)
Currency   Omani Rial (OMR)
Exchange Rates   Omani rials per US dollar -    0.38 (2003), 0.38 (2002), 0.38    (2001), 0.38 (2000), 0.38    (1999)

The Sultanate is one of the developing countries that has succeeded in achieving, within a very short period of time, a high level of economic growth in the mining, agriculture & fisheries, converting industries, electricity & water, and oil sectors. In addition, construction is the vital sector that plays a significant role in Oman's developments. With respect to foreign trade, the Sultanate enjoys full freedom of import from and export to the international markets. The degree of openness of the Omani economy, reflects the philosophy of the country's economic policy and the extent of its relations with the outer world.

Since the slump in oil prices in 1998/99, 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. By 2020, it is expected that the Sultanate economy will not be reliant on oil, but rather, will have diversified into non-oil sectors, resulting in higher levels of savings and investments.

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Trade and Industry:

The industrial sector contributes over 10% to GDP, most of which is generated by oil refining, construction and power. The Omani government's desire to make the agriculture and fishing sectors internationally competitive has led to several incentives for foreign investors to enter these sectors. Other key issues in the agricultural sector include the increasing salinity of the water table and water supply pressures. To date, much of the country's industrial enterprises occur in light industry. Types of products being manufactured include non-metallic and wood products, oils, perfumes, and detergents. The government of Oman has encouraged its light industry, offering several incentives to potential developers.

The government has repeatedly stressed its desire to promote tourism only to the extent that it does not clash with local custom, but the tourism infrastructure is quickly being expanded. The Six-Year Plan, places tourism near the top of the priority list for Oman, as it seeks to move its economy away from reliance on oil. In addition to several new hotels already built and others being planned, the Directorate of Tourism within the Ministry of Commerce and Industry has taken several steps, including efforts to hold international dune rallies, yacht races, annual festivals, and other large-scale attractions to increase Oman's global presence.

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Current Business Situation:

Oman has been identified as a priority market for construction equipment and building materials. Oman is undergoing rapid socio-economic development with tremendous growth in physical planning and construction sector. Muscat Municipality is looking to work with the government and the private sector on key initiatives like tourism projects and the development of the city centre and central business district.

Water saving technology is also being sought as Oman comes to terms with increased salinity of its water table. Companies that specialize in sewage and water treatment and irrigation systems will find interested buyers in Oman. The telecommunications and power sectors will also draw outside investors. Priority in privatization has been given to service sectors that operate on a commercial basis such as sewage, electricity, water, communications, speedways, etc. Foreign participation in the privatization projects has been encouraged extensively, with the objective of benefitting from the foreign capital invested, and technical and managerial expertise provided as a result.

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Working times:

Most Government and ministry offices are open from 0730-1430 hrs, saturday to wednesday. Most private companies and offices are open from 0800-1300 and 1600-1900 hrs. saturday to thursday. Generally shopping establishments are open from 0900 to 1300 hrs and 1600-2100 hrs.

National Holidays:

Hijra New Year, one day 1st Moharram
Prophet's Birthday, one day, 12th Rabi al Awal
Isra wal Miraj, one day, 27th Rajab
Eid Al Fitr, four days, starting 1st Shawwal
Eid Al Adha, five days, starting 9th Dil Hijja
National Day, two days, 18th and 19th November

Travel:

Oman, the second largest country in Arabia with an area of 300,000 square km, occupies the south eastern part of the Arabian Peninsula. The most notable feature of Oman is the range of imposing mountains running North West to South East across the Northern third of the country. The 1700 km long coastline is a showcase of varying terrain from the deep fjords in the Musandam, long sand beaches between Sohar and Muscat, mangrove lagoons, coral reefs, rocky islets and coves from Muscat to Sur around Ra's Al Hadd, Eastern most point of the Arabian peninsula to Salalah.

The climate varies from region to region. In the coastal areas it is hot and humid in summer. In the Interior it is hot and dry, with the exception of some higher locations, where it is temperate all year round. In the southern region, the climate is more benign. The government through the Directorate of Tourism is now encouraging foreign participation to develop the country's tourism industry. The expansion of Seeb Airport and the opening up of the country's desert, mountains and coastlines to tourists should earn foreign exchange, diversify the economy and create employment opportunities for Omanis. A number of large hotel construction/redevelopment projects are underway.

Communications:

Telephones - main lines in use   227,600 (2002)
Telephones - mobile cellular   464,900 (2002)
Telephone systemgeneral assessment:modern system consisting of open-wire, microwave, and radiotelephone communication stations; limited coaxial cable

domestic:open-wire, microwave, radiotelephone communications, and a domestic satellite system with 8 earth stations

international:country code - 968; satellite earth stations - 2 Intelsat (Indian Ocean) and 1 Arabsat

Radio broadcast stations   AM 3, FM 9, shortwave 2 (1999)
Television broadcast stations   13 (plus 25 low-power repeaters) (1999)
Internet country code   .om
Internet hosts   676 (2002)
Internet users   180,000 (2002)

Transportation:

Highwaystotal: 34,965 km

paved: 9,673 km

unpaved: 25,292 km (2001)

Waterwaysnone
Pipelinesgas 3,599 km; oil 3,187 km (2003)
Ports and harborsMatrah, Mina' al Fahl, Mina' Raysut
Merchant marinetotal: 2 ships (1,000 GRT or over) 15,430 GRT/6,360 DWT

ships by type: passenger 2

registered in other countries: 1 (2003 est.)

Airports135 (2003 est.)
Airports - with paved runwaystotal: 6
Airports - with unpaved runwaystotal: 129
Heliports1 (2003 est.)

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Airline Services:

Air Canada - http://www.aircanada.ca/

Air India - http://www.airindia.com/

Emirates - http://www.emirates.com/

Gulf Air - http://www.gulfairco.com/

KLM - http://www.klm.com/

Oman Air - http://www.oman-air.com/

British Airways - http://www.british-airways.com/

Air France - http://www.airfrance.com/

Lufthansa German Airlines - http://www.lufthansa.com/

Swiss Air - http://www.swiss.com/

Air Lanka - http://www.srilankan.lk/

AIR:
Oman Air- the designated carrier of Sultanate of Oman is recognised for its strong market presence. Respected for its professional attitude. And recommended for its punctuality and service excellence. Oman Air has created a niche for itself on all operating routes. Covers 18 international destination and two domestic destinations with a young fleet of B737-800 B737-700NG and ATR42-500s. Offers the first ever intra-Gulf commuter services.

International airports:
Oman's two international airports are located at Seeb (the largest) and Salalah. Seeb International is situated approximately 32 kilometers west of Muscat, the capital of the Sultanate of Oman. Seeb provides excellent connections with a number of international destinations. Out of the total number of passengers, the largest destination is South Asia with Middle East destinations coming second. Salalah is situated in the southern region of Dhofar.

Dress Code:

Like all Arab countries, Arab Islamic culture dominates the style of life in the Sultanate. However, being an international market, other cultures of various nationalities are widely visible. Both men and women are expected to dress conservatively in public places. To comply with Omani traditions, it is advised not to wear revealing clothes or swimming costumes in residential areas.

Useful Links:

Oman Chamber of Commerce - http://www.chamberoman.com/

Oman Chamber of Commerce & Industry (OCCI) - http://www.omanchamber.com/

Omani Centre for Investment Promotion & Export Development (OCIPED) - http://www.ociped.com/

Ministry of Information - http://www.omanet.com/

CIA World Factbook: Oman - http://www.cia.gov/cia/publications/factbook/geos/mu.html

Oman: the Essence of Arabia - http://www.mocioman.gov.om/

ArabDataNet.com - Country Guide : Oman - http://www.arabdatanet.com/country/profiles/profile.asp?CtryName=Oman&CtryAbrv=om

Lonely Planet World Guide: Oman - http://www.lonelyplanet.com/destinations/middle_east/oman/

NationMaster.com: Country Profile : Oman - http://www.nationmaster.com/country/mu

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