2016 Country Review

Oman 2016 Country Review http://www.countrywatch.com Table of Contents Chapter 1 1 Country Overview 1 Country Overview 2 Key Data 3 Oman 4 Middle East 5 Chapter 2 7 Political Overview 7 History 8 Political Conditions 10 Political Risk Index 16 Political Stability 30 Freedom Rankings 45 Human Rights 57 Government Functions 59 Government Structure 60 Principal Government Officials 62 Leader Biography 64 Leader Biography 64 Foreign Relations 65 National Security 70 Defense Forces 72 Chapter 3 74 Economic Overview 74 Economic Overview 75 Nominal GDP and Components 77 Population and GDP Per Capita 79 Real GDP and Inflation 80 Government Spending and Taxation 81 Money Supply, Interest Rates and Unemployment 82 Foreign Trade and the Exchange Rate 83 Data in US Dollars 84 Energy Consumption and Production Standard Units 85 Energy Consumption and Production QUADS 87 World Energy Price Summary 88 CO2 Emissions 89 Agriculture Consumption and Production 90 World Agriculture Pricing Summary 93 Metals Consumption and Production 94 World Metals Pricing Summary 97 Economic Performance Index 98 Chapter 4 110 Investment Overview 110 Foreign Investment Climate 111 Foreign Investment Index 113 Corruption Perceptions Index 126 Competitiveness Ranking 138 Taxation 147 Stock Market 148 Partner Links 148 Chapter 5 149 Social Overview 149 People 150 Human Development Index 151 Life Satisfaction Index 155 Happy Planet Index 166 Status of Women 175 Global Gender Gap Index 179 Culture and Arts 188 Etiquette 190 Travel Information 191 Diseases/Health Data 201 Chapter 6 207 Environmental Overview 207 Environmental Issues 208 Environmental Policy 209 Greenhouse Gas Ranking 210 Global Environmental Snapshot 221 Global Environmental Concepts 232 International Environmental Agreements and Associations 247 Appendices 271 Bibliography 272 Oman Chapter 1 Country Overview Oman Review 2016 Page 1 of 284 pages Oman Country Overview OMAN Occupying the south-east corner of the Arabian Peninsula, Oman has a strategically important position at the mouth of the Gulf. Oman adopted Islam in the seventh century, and is the oldest independent state in the Arab world. The Portuguese gained control of parts of the coast in 1508 but were driven out by the Arabs in 1650. In the late 18th century, a newly established sultanate established close relationship with Britain. Over time, Oman's dependence on British political and military advisors increased, but it never became a British colony. Under Sultan Said bin Taimur, who came to power in 1938, Oman experienced decades of international isolation and was home to a society run along feudal lines and internal rebellion. In 1970, Qaboos Bin Said overthrew the restrictive rule of his father, and he has since ruled as sultan. Sultan Qaboos Bin Said opened up the country to the outside world, embarked on economic reforms, and boosted spending on health, education and welfare. As with other Gulf nations, oil is the mainstay of the economy, but compared to its neighbors Oman is a modest producer of oil. Oman Review 2016 Page 2 of 284 pages Oman Key Data Key Data Region: Middle East Population: 3286936 Dry desert; hot, humid along coast; hot, dry interior; strong southwest Climate: summer monsoon (May to September) in far south Arabic (official) English Languages: Baluchi Urdu Indian dialects Currency: 1 Omani rial (RO$) = 1,000 baiza Holiday: National Day is 18 November (1940), Sultan's Birthday is 19 November Area Total: 212460 Area Land: 212460 Coast Line: 2092 Oman Review 2016 Page 3 of 284 pages Oman Oman Country Map Oman Review 2016 Page 4 of 284 pages Oman Middle East Regional Map Oman Review 2016 Page 5 of 284 pages Oman Oman Review 2016 Page 6 of 284 pages Oman Chapter 2 Political Overview Oman Review 2016 Page 7 of 284 pages Oman History The people of Muscat and Oman (as the country was called before 1970) converted to Islam in the seventh century B.C.E., during the lifetime of Muhammad. Ibadhism-a moderate sub-sect of the Kharijite (Sunni islamic) movement-became the dominant religious sect in Oman by the eighth century. Contact with Europe was established in 1508 when the Portuguese conquered parts of the coastal region. Portugal's influence dominated for more than a century with only a short interruption by the Turks. Fortifications built during the Portuguese occupation can still be seen in Muscat. After the Portuguese were expelled in 1650 and while resisting Persian attempts to establish supremacy, Muscat and Oman extended its conquests to Zanzibar (now part of Tanzania), other parts of the eastern coast of Africa, and portions of the southern Arabian peninsula. During this period, political leadership shifted from the Ibadhi imams, who were elected religious leaders, to hereditary sultans who established their capital in Muscat. The Muscat rulers established trading posts on the Persian coast (now Iran) and also exercised a measure of control over the Makran coast (now Pakistan) of mainland Asia. By the early 19th century, Muscat and Oman was the most powerful state in Arabia and on the East African coast. Muscat and Oman was the object of Franco-British rivalry throughout the 18th century. The British developed the stronger position in 1908 through an agreement of friendship. During the 19th century, Muscat and Oman and the United Kingdom concluded several treaties of friendship and commerce. When Sultan Said Sayyid died in 1856, his sons quarreled over his succession. As a result of this struggle, the empire-through the mediation of the British government under the "Canning Award"- was divided in 1861 into two separate principalities; Zanzibar, with its East African dependencies, and Muscat and Oman. Zanzibar paid an annual subsidy to Muscat and Oman until its independence in early 1964. During the late 19th and early 20th centuries, the sultan in Muscat faced rebellion by members of the Ibadhi sect residing in the interior who wanted to be ruled exclusively by their religious leader, Oman Review 2016 Page 8 of 284 pages Oman the Imam of Oman. This conflict was resolved temporarily by the Treaty of Seeb, which granted the imam autonomous rule in the interior, while recognizing the nominal sovereignty of the sultan. The conflict flared up again in 1954, when the new imam led a sporadic five-year rebellion against the sultan's efforts to extend government control into the interior. The insurgents were defeated in 1959 with British help. The sultan then terminated the Treaty of Seeb and voided the office of the imam. In the early 1960s, the exiled imam obtained support from Saudi Arabia and other Arab governments, but this support ended in the 1980s. In 1964, a separatist revolt began in the Dhofar Province. Aided by communist and leftist governments such as the former South Yemen (People's Democratic Republic of Yemen), the rebels formed the Dhofar Liberation Front, which later merged with the Marxist-dominated Popular Front for the Liberation of Oman and the Arab Gulf, also known as the PFLOAG. PFLOAG's declared intention was to overthrow all traditional Arab Gulf regimes in the Persian Gulf. In mid-1974, PFLOAG shortened its name to the Popular Front for the Liberation of Oman, or PFLO, and embarked on a political rather than a military approach to gain power in the other Persian Gulf states, while continuing the guerrilla war in Dhofar. Meanwhile, Sultan Qaboos bin Said assumed power on July 24, 1970, in a palace coup directed against his father, Said bin Taymur, who later died in exile in London. The new sultan was confronted with insurgency in a country plagued by widespread disease, illiteracy and poverty. One of the new sultan's first measures was to abolish many of his father's harsh restrictions, which had caused thousands of Omanis to leave the country and offer amnesty to opponents of the previous regime, many of whom returned to Oman. He also established a modern government structure, launched a major development program to upgrade educational and health facilities, build a modern infrastructure, and develop the country's resources. In an effort to curb the Dhofar insurgency, Sultan Qaboos expanded and re-equipped the armed forces and granted amnesty to all surrendered rebels while vigorously prosecuting the war in Dhofar. He obtained direct military support from Iran and Jordan. By early 1975, the guerrillas were confined to a 50-square-kilometer (20-square-miles) area and shortly thereafter were defeated. As the war drew to a close, civil action programs were given increasing priority throughout the province and since then have become major elements in winning the allegiance of the people. The PFLO threat appeared to diminish further with the establishment of diplomatic relations in October 1983 between South Yemen and Oman, and South Yemen's subsequent diminution of propaganda and subversive activities against Oman. In late 1987, Oman opened an embassy in Aden, South Yemen, and appointed its first resident ambassador to the country. Oman Review 2016 Page 9 of 284 pages Oman Note on History: In certain entries, open source content from the State Department Background Notes and Country Guides have been used. A full listing of sources is available in the Bibliography. Political Conditions In November 1991, Sultan Qaboos established the "Majlis ash-Shura" (Council of Consultation), which replaced the 10-year-old State Consultative Council, in an effort to systematize and broaden public participation in government. Representatives were chosen in the following manner: Local caucuses in each of the 59 districts sent forward the names of three nominees, whose credentials were reviewed by a cabinet committee. These names were then forwarded to the sultan, who made the final selection for the 59 seats. The "Majlis ash-Shura" serves as a conduit of information between the people and the government ministries.

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