Oman

2008/9 Schools Wikipedia Selection. Related subjects: Middle Eastern Countries

سلطنة عُمان Sultanate of Oman
Flag National Emblem
Motto: none
Anthem:  Nashid as-Salaam as-Sultani
Capital (and largest city)		Muscat
Official languages		Arabic
Demonym		Omani
Government		Constitutional Monarchy
-	Sultan	Qaboos ibn Said Al Said
-	Chancellor	Fahad ibn Mahmood Al Said
Independence
-	From the Portuguese empire	1651
Area
-	Total	309,500 km² ( 70th) 119,498  sq mi
-	Water (%)	negligible
Population
-	mid 2006 estimate	3,204,897 ( 139th)
-	2003 census	2,300,000
-	Density	8.3/km² ( 182th) 21.5/sq mi
GDP ( PPP)		2007 estimate
-	Total	$52.3 billion ( 81th)
-	Per capita	$19,879 ( 44th)
GDP (nominal)		2007 estimate
-	Total	$40.992 billion ( 70th)
-	Per capita	$15,584 ( 40st)
HDI (2007)		▲ 0.814 (high) ( 58th)
Currency		Rial ( OMR)
Time zone		( UTC+4)
-	Summer ( DST)	( UTC+4)
Internet TLD		.om
Calling code		+968
1	Population estimate includes 693,000 non-nationals.

Oman, officially the Sultanate of Oman (Arabic: سلطنة عُمان, transliteration: Sulṭanat ˤUmān), is a country in southwest Asia on the southeast coast of the Arabian Peninsula. It borders the United Arab Emirates on the northwest, Saudi Arabia on the west and Yemen on the southwest. The coast is formed by the Arabian Sea on the south and east and the Gulf of Oman on the northeast. The country also contains Madha, an exclave enclosed by the United Arab Emirates, and Musandam, an exclave also separated by Emirati territory.

Etymology

Oman is a very ancient word and appears on very old maps. Little information exists regarding the origin of the word Oman: opinions of Arab geographers and historians differ greatly as to the origin of the name, some sources ascribing it to the Qahtani tribe of Oman and others linking it linguistically to a word meaning "settling" or "staying". Ibn al-Qabi says that Oman means "those who occupy a place", as in the adjective aamen or amoun (settled man), and that the word "Oman" was derived from this.

Some say that Oman was named after Oman bin Ibrahim al Khalil who built the city of Oman. Others believe the name to be taken from that of Oman bin Loot. Yet another explanation is that the Azd, a tribe migrating from Yemen to Oman in pre-Islamic times, labeled Oman "Omana" because they came from a valley in Ma'rib in Yemen which went by the name of Oman, and they likened it to this place.

One of the earliest Roman historians to mention Oman is Yalainous, who lived from 23-79 AD. He presents in his writings a city which he names Omana. This name also recurs in Ptolemy. Some historians identify this Omana of Ptolemy as the city of Sohar, which was the pre-eminent trading centre of Arabia in the classical age of Islam.

History

Oman Before Islam

From the 6th century BC to the arrival of Islam in the 7th century AD, Oman was controlled and/or influenced by three Iranian dynasties, the Achaemenids, Parthians and Sassanids. Achaemenids in the 6th century BC controlled and influenced the Oman peninsula. This was most likely exerted from a coastal centre such as Sohar. By about 250 B.C. the Parthian dynasty brought the Persian Gulf under their control and extended their influence as far as Oman. Because they needed to control the Persian Gulf trade route, the Parthians established garrisons in Oman. In the third century A.D. the Sasanids succeeded the Parthians and held the area until the rise of Islam four centuries later.

The Arrival of Islam

On the advent of Islam, the faith reached Oman within Prophet Muhammad's lifetime. The conversion of Omanis is usually ascribed to Amr ibn al-As, who visited the region. By the middle of the eighth century AD, Omanis were practicing a unique sect of the faith, Ibadhism, which remains a majority sect only in Oman. Ibadhism has been characterized as "moderate conservatism," with tenets that are a mixture of both austerity and peace.

The Portuguese Settlement

The Portuguese occupied Muscat for a 140-year period 1508–1648, arriving a decade after Vasco da Gama discovered the seaway to India. In need of an outpost to protect their sea lanes, the Europeans built up and fortified the city, where remnants of their colonial architectural style still remain. Revolting tribes drove out the Portuguese, but were pushed out themselves about a century later 1741 by the leader of a Yemeni tribe leading a massive army from various other tribes, who began the current line of ruling sultans. A brief Persian invasion a few years later was the final time Oman would be ruled by a foreign power. Oman has been self governing ever since.

Oman and East African Empire

In the 1690s Saif bin Sultan, the imam of Oman, pressed down the east African coast. A major obstacle was Fort Jesus, housing the garrison of a Portuguese settlement at Mombasa. After a two-year siege, it fell to Saif in 1698. Thereafter the Omanis easily ejected the Portuguese from Zanzibar and from all other coastal regions north of Mozambique. Zanzibar was a valuable property as the main slave market of the east African coast, and became an increasingly important part of the Omani empire, a fact reflected by the decision of the greatest 19th century sultan of Oman, Sa'id ibn Sultan, to make it from 1837 his main place of residence. Sa'id built impressive palaces and gardens in Zanzibar. He improved the island's economy by introducing cloves, sugar and indigo though at the same time he accepted a financial loss in cooperating with British attempts to end Zanzibar's slave trade. The link with Oman was broken after his death in 1856. Rivalry between his two sons was resolved, with the help of forceful British diplomacy, when one of them Majid succeeded to Zanzibar and to the many regions claimed by the family on the east African coast. The other Thuwaini inherited Muscat and Oman.

Politics

Chief of state and government is the hereditary sultān, Qaboos Bin Said Al-Said who appoints a cabinet called the " Diwans" to assist him. In the early 1990s, the sultan instituted an elected advisory council, the Majlis ash-Shura, though few Omanis were eligible to vote. Universal suffrage for those over 21 was instituted on 4 October 2003. Over 190,000 people (74% of those registered) voted to elect the 84 seats. Two women were elected to seats. The country today has three women ministers Rawiyah bint Saud al Busaidiyah - Minister of Higher Education, Sharifa bint Khalfan al Yahya'eyah - Minister of Social Development and Rajiha bint Abdulamir bin Ali - Minister of Tourism. There are no legal political parties nor, at present, any active opposition movement. As more and more young Omanis return from education abroad, it seems likely that the traditional, tribal-based political system will have to be adjusted. A State Consultative Council, established in 1981, consisted of 55 appointed representatives of government, the private sector, and regional interests.

Military

Oman's armed forces, including Royal Household troops foreign personnel numbered 41,700 in 2002. The army had 25,000 personnel equipped with over 100 main battle tanks and 37 Scorpion tanks. The air force of 4,100 operates 40 combat aircraft. The navy numbers 4,200 with 13 patrol and coastal combatants. Paramilitary includes the Tribal Home Guard (Firqats) of 4,000 organized in small tribal teams, a police coast guard of 400, and a small police air wing. The elite Royal Household brigade, naval unit, and air unit number 6,400, including 2 special forces regiments. In 2001 Oman spent $2.4 billion on defense or 12.2% of GDP.

Governorates and Regions of Oman

The Sultanate is divided into nine governorates and regions, each of which has states that has the same culture and habits and most of people speak the same dialects of Arabic and also share the same history and the same traditional clothes and most of them work in the past in similar jobs such as Regions in the coast where fishing is the main job and farming for regions where they are far from the coast.

Governorate of Muscat is the most densely populated region in the Sultanate with a population of more than half a million. It's Oman's political, economic, and administrative centre. Muscat is host to a balance between the traditional heritage of Omani society and the modern contemporary features. This preserves Oman’s historical and cultural identity as well as gives presents Muscat's embrace of modernity.

Governorate of Dhofar is in the far south of the Sultanate and borders on the Wusta Region the east, the Arabian Sea to the south, the Republic of Yemen to the west and the Kingdom of Saudi Arabia to the north and north-west. It is not simply a place of historical interest. All of its ten States display the clear imprint of the Renaissance. No mountain, plain, stretch of coast or border post, even as far as the sands of the Rub' Al Khali, has been neglected.

Governorate of Musandam lies in extreme north of the Sultanate. It is separated from the rest of the Sultanate by a strip of United Arab Emirates land. its distinguished for its strategic location, with part of it known as Ras Musandam - overlooks the international water passage called the Strait of Hormuz. It is worth noting that not the whole of the Strait is good for navigation. The part suitable for sea navigation falls within the territorial waters of the Sultanate, which made Omanis shoulder a huge responsibility in organizing navigation in this Strait since the old ages. The strategic importance of this Strait has increased nowadays, as it turned to be a crossing point to 90% of the Gulf's oil shipped to all over the world.

[[Governorate of Buraimi which is situated in the North West corner of the Sultanate, adjacent to the borders with United Arab Emirates . It has a number of historic forts and houses. Its main forts are al Khandaq, which has been adopted as the emblem of the Governorate , and Al Hillah Fort. Both these forts have recently been restored by the Ministry of National Heritage and Culture.

Batinah Region is a prime area for investment. It has achieved much over the years.occupy a coastal strip along the Gulf of Oman from the state of Barka in the south to Khatmat Malahah in the state of Shinas to the north. The wide strip is enclosed by the Gulf of Oman to the east and the foothills of the Western Hajar mountains to the west.

Ad DhahirahDahirah Region is a semi desert plain which slopes from the southern fool of Al Hajr AI Gharbi Mountains towards the Empty Quarter. It is separated from A’Dakhliyah Region by Al Kur Mountain to the East; it joins the Empty Quarter from the West and Wusta Region from the south. state of Ibri is distinguished for its unique location which joins the Sultanate with other areas in the Arabian Peninsula.

Dakhiliah Region is rich in economic and natural resources and has numerous tourist attractions including forts, castles, towers, old residential quarters and historic mosques. The state of Nizwa has a famous and imposing fort, several old mosques and a traditional souq, while Bahla Fort is one of the treasures of the human heritage. Misfah al Abriyeen in the state of al Hamra is a splendid example of a hanging village.

Sharqiyah Region is the north east front of Oman over looking the Arabian Sea from the east. It includes the internal side of Al Hajr Al sharqi mountains which join it from the north. It also joins Wahibah Sand frmothe south and Dakhliah Region from the west. Sur is one of the regional centers and the most important of Sharqiyah cities. It played a historical rule in trade and navigation in the Indian Ocean. It was also known for ship building, as it was the most renowned city in the Arabian Peninsula in ship building in the last century. Besides, marine activity and ship building, Sur is famous for some historical touristic places such as caves. It is also known wood industries. textiles and produces a number of agricultural crops.

Wusta Region is situated to the south of both Dakhliah and Dhahirah Regions, at the east side it is linked to the Arabian Sea, at the west to the Empty Quarter and at the south to Governorate of Dhofar. It includes a large area of central parts of the Sultanate. It is distinguished for having a great number of oil wells.

Geography

Geography of Oman
Coastline	2,092 km
Bordering countries	Saudi Arabia, UAE and Yemen

A vast gravel desert plain covers most of central Oman, with mountain ranges along the north ( al Jebel al Akhdar) and southeast coast, where the country's main cities are also located: the capital city Muscat, Matrah and Sur in the north, and Salalah in the south. Oman's climate is hot and dry in the interior and humid along the coast. During past epochs Oman was covered by ocean. Fossilized shells exist in great numbers in areas of the desert away from the modern coastline. The peninsula of Musandam (Musandem), which has a strategic location on the Strait of Hormuz, is separated from the rest of Oman by the United Arab Emirates and is thus an exclave. The series of small towns known collectively as Dibba are the gateway to the Musandam peninsula on land and the fishing villages of Musandam by sea. Boats may be hired at Khasab for trips into the Musandam peninsula by sea. Oman has one other exclave, inside UAE territory, known as Madha. It is located halfway between the Musandam Peninsula and the rest of Oman. Belonging to Musandam governorate, it covers approximately 75 km² (29  sq mi). The boundary was settled in 1969. The north-east corner of Madha is closest to the Fujairah road, barely 10 m (32.8  ft) away. Within the exclave is a UAE enclave called Nahwa, belonging to the Emirate of Sharjah. It is about 8 km (5  mi) on a dirt track west of the town of New Madha. It consists of about forty houses with its own clinic and telephone exchange.

Climate

Annual rainfall in Muscat averages 10 cm (4 in), falling mostly in January. Dhofar is subject to the southwest monsoon, and rainfall up to 64 cm (25 in) has been recorded in the rainy season from late June to October. While the mountain areas receive more plentiful rainfall, some parts of the coast, particularly near the island of Masirah, sometimes receive no rain at all within the course of a year. The climate generally is very hot, with temperatures reaching 54°C (129°F) in the hot season, from May to October.

Flora and fauna

Desert shrub and desert grass, common to southern Arabia, are found. Vegetation is sparse in the interior plateau, which is largely gravel desert. The greater monsoon rainfall in Dhofar and the mountains makes the growth there more luxuriant during summer. Coconut palms grow plentifully in Dhofar and Frankincense grows in the hills. Oleander and varieties of Acacia abound.

Indigenous mammals include the Leopard, Hyena, Fox, Wolf, and Hare, Oryx, Ibex, Tahr. Birds include the Vulture, Eagle, Stork, Bustard, Arabian Partridge, Bee Eater, Falcon and Sunbird.

Environment

Maintaining an adequate supply of water for agricultural and domestic use is Oman's most pressing environmental problem. The nation has limited renewable water resources, with 94% used in farming and 2% for industrial activity. Drinking water is available throughout the country, either piped or delivered. Both drought and limited rainfall contribute to shortages in the nation's water supply. The nation's soil has shown increased levels of salinity. Pollution of beaches and other coastal areas by oil tanker traffic through the Strait of Hormuz and Gulf of Oman is also a persistent problem. In 2001, the nation had nine endangered species of mammals and five endangered types of bird. Nineteen plant species are also threatened with extinction. Decrees have been passed to protect endangered species, which include the Arabian Leopard leopard, Arabian oryx, mountain gazelle, goitered gazelle, Arabian tahr, green sea turtle, hawksbill turtle and olive ridley turtle.

Demographics

Demographics of Oman
Languages	Arabic, Swahili, Urdu and English
Religions	Islam
Ethnic groups	Arab, South Asian and African
Life expectancy	73.13 years

The Ministry of Economy estimates that in mid 2006 the total population was 2.577 million. Of those, 1.844 million were Omanis. The population has grown from 2.018 million in the 1993 census to 2.340 million in the 2003 census.In Oman, about 50% of the population lives in Muscat and the Batinah coastal plain northwest of the capital; about 200,000 live in the Dhofar (southern) region, and about 30,000 live in the remote Musandam Peninsula on the Strait of Hormuz. Some 600,000 expatriates live in Oman, most of whom are guest workers from Pakistan, Bangladesh, Egypt, Jordan, India and the Philippines.

Of total population, about 55% are Ibadi Muslims who are related to the early Kharajites. Sunnis account for 38% of the population while Shia Jaffaris are 4%. The remaining 3% of the population are Hindus, Christians and other minorities, most of whom are expatriates.

Historical populations
Year	Pop.		Change
1910	249,000		16.4%
1920	290,000		16.5%
1930	337,000		16.2%
1940	392,000		16.3%
1950	413,000		5.4%
1960	505,000		22.3%
1970	654,000		29.5%
1980	1,060,000		62.1%
1990	1,625,000		53.3%
2000	2,402,000		47.8%
Est. 2008	3,204,000		33.4%

Economy

Economy of Oman
Currency	Omani Riyal (R$, OMR)
Fiscal year	Calendar year
Central Bank	Central Bank of Oman
Stock Market	Muscat Stock Market

Omani citizens enjoy good living standards, but the future is uncertain with Oman's limited oil reserves. The other sources of income, agriculture and local industries, are small in comparison and count for less than 1% of the country's exports. Agriculture, often subsistence in its character, produces Dates, Limes, Grains and vegetables. Less than 1% of the country is under cultivation but, in general, food has to be imported. Industries contribute only with 4%, but there are governmental plans to increase this.

Oil production is extracted and processed by Petroleum Development. Oil reserves are limited though and the proven reserves will run out in few years time. Oman has other mineral resources including Copper, Asbestos and Marble, but this is little exploited.

Oil and Gas

Commercial export of oil began in 1967 and since Sultan Qaboos' accession to the throne in 1970, many more oil fields have been found and developed. In June 1999, PDO discovered a new oil field in southern Oman after drilling and testing three wells which demonstrated the commercial viability of the reservoir. This is the most significant find in five years. Work is continuing on the RO 503.876 million ( US$1,300 million ) oil refinery project in Sohar, which was due to go into operation in 2006 with a 116,400 barrels a day refining capacity. In 2004, Oman Oil Refinery was supplied with about 78,200 barrels a day for refining, while PDO began using steam injection technology in several wells to increase their productivity.

Since the slump in oil prices in 1998, Oman has made active plans to diversify its economy and is placing a greater emphasis on other areas of industry, such as tourism and 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."

Industry

The industrial sector is a cornerstone of the Sultanate’s long-term (1996-2020) development strategy. Industry is not only one of the main sectors involved in diversifying the sources of national income and reducing dependence on oil; it is also capable of helping to meet Oman’s social development needs and generate greater added value for national resources by processing them into manufactured products.

The Seventh Five-Year Development Plan creates the conditions for an attractive investment climate. Under its strategy for the industrial sector the government also aims to develop the information technology and telecommunications industries. The Knowledge Oasis Muscat complex has been set up and expanded, and Omani companies are developing their technological potential through collaboration with various Japanese and German institutions.

There is also an industrial estate in Sohar - where the Sultanate’s heavy industries are based - as well as other estates in Sur, Salalah, Nizwa and Buraimi. Natural gas is transported to the industrial estates in Sohar and Salalah, helping to promote expansion of those industries that depend on natural gas; the government grants these industries tax exemptions, as an incentive to encourage their expansion and development. By 2020 the industrial sector is expected to contribute 15% to the country’s GDP.

Development Plans

The Omani economy has been radically transformed over a series of development plans beginning with the First Five­-year Plan (1976-1980). At Sultan Qaboos's instruction, a vision of Oman's economic future up to the year 2020 was set out at the end of the first phase of the country's develop­ment 1970-1995. Vision 2020, outlined the country's economic and social goals over the 25 years of the second phase of the development process (1996­-2020).

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

Tourism

Oman is known for its popular tourist attractions. Wadis, deserts, beaches, and mountains are areas which make Oman unique to its neighboring GCC nations (Wadis in particular). Jebel Shams is Oman's tallest mountain, highest point, and is a popular destination for camping. Most of the major malls are located in Muscat, the capital. The largest mall in the country is the Muscat City Centre which was built by Majid hFuttaim, an Emirati business man. Other popular tourist activities include sand skiing in the desert, mountain-climbing, camel racing, and camping.

The Muscat Festival is usually held at the beginning of every year. During this event, traditional dances are held, temporary theme parks open, and concerts take place. Another popular event is the Khareef Festival, which is similar to Muscat Festival; however it is held in August in Salalah, Dhofar. During this latter event, mountains are packed as a result of the cool breeze weather during that period of time which rarely occurs in Muscat.

Labor

The estimated workforce was 920,000 in 2002. A large proportion of the population were still engaged in subsistence agriculture or fishing. The skilled local labor force is small, and many of the larger industries depend on foreign workers from India, Pakistan, the Philippines, Bangladesh, and Sri Lanka — foreign laborers constituted over 80% of the modern-sector workforce in 1996.

Omani law does not provide the right of union formation. The law forbids a strike for any reason. Collective bargaining is not permitted, however there exist labor-management committees in firms with more than 50 workers. These committees are not authorized to discuss conditions of employment, including hours and wages. The Labor Welfare Board provides a venue for grievances.

The minimum working age is 13, but this provision is not enforced against the employment of children in family businesses or on family farms. The minimum wage for non-professional workers was $260 per month in 2002. However, many classes of workers (domestic servants, farmers, government employees) are not required to receive the minimum wage and the government is not consistent in its enforcement of the minimum wage law. The private sector working week is 40 to 45 hours long, while government officials have a 35-hour working week.

Inflation

As oil prices have risen to a record high, so has inflation. The government depends mostly on oil revenue, more than on tax returns from companies and other government-owned companies. The government is also Oman's largest employer, so the high interest that government gets increases the prices of food and construction equipment. The government did support the fuel prices so it doesn't increase the inflation and to make the price suitable for people on low wages.

In 2006, government employee salaries were increased by 15%, placing Oman in the category of high-medium income countries. and a year after increase employees' were also increased in salaries so, employees with low wages have a higher increase that may go up to 48% and employees who earn more get a lesser increase in their salaries which end at 5%. The minimum wage has been changed from 120 Rial a month to 140 Rials because of high records of inflation driven by high prices of oil.

Education

Before 1970, only three formal schools existed in the whole country with less than 1000 students receiving eduction in them. Since Sultan Qaboos came to power in 1970, the government has given high priority to education to develop a domestic work force, which the government considers a vital factor in the country's economic and social progress. Today there are over 1000 state schools and about 650,000 students. In 1986, Oman's first university, Sultan Qaboos University, opened. Other post secondary institutions include a law school, technical college, banking institute, teachers training college, and health sciences institute. Some 200 scholarships are awarded each year for study abroad.

Pre-university education in Oman has three stages: primary, preparatory, and secondary. Six years of primary schooling are followed by preparatory school. Academic results of the preparatory exams determine the type of secondary education the student will receive.

Nine private colleges exist, providing 2-year post secondary diplomas. Since 1999, the government has embarked on reforms in higher education designed to meet the needs of a growing population, only a small percentage of which are currently admitted to higher education institutions. Under the reformed system, four public regional universities will be created, and incentives are provided by the government to promote the upgrading of the existing nine private colleges and the creation of other degree-granting private colleges.

The adult illiteracy rate was estimated at 28.1% for the year 2000 (males, 19.6%; females, 38.3%). In 1998, there were 411 primary schools with 313,516 students and 12,052 teachers. Student-to-teacher ratio stood at 26 to 1. In secondary schools in 1998, there were 12,436 teachers and 217,246 students. As of 1999, 65% of primary-school-age children were enrolled in school, while 59% of those eligible attended secondary school. In the same year, public expenditure on education was estimated at3.9% of GDP. In 1993, there were 252 literacy centers and 176 adult education centers. Three teachers' colleges were functioning as of 1986. The Institute of Agriculture at Nazwa became a full college by 1985. Sultan Qaboos University opened in 1986. In 1998, all higher-level institutions had 1,307 teachers and 16,032 students.

Science and technology

Most research conducted in Oman has been done at the behest of the government; agriculture, minerals, water resources, and marine sciences have drawn the most attention. Sultan Qaboos University, founded in 1985, has colleges of science, medicine, engineering, and agriculture. In 1987–97, science and engineering students accounted for 13% of college and university enrollments. The Institute of Health Sciences, under the Ministry of Health, was founded in 1982. Muscat Technical Industrial College, founded in 1984, has departments of computing and mathematics, laboratory science, and electrical, construction, and mechanical engineering. The Oman Natural History Museum, founded in 1983, includes the national herbarium and the national shell collection. All of these organizations are located in Muscat.

Health

As of 1999, there were an estimated 1.3 physicians and 2.2 hospital beds per 1,000 people. In 1993, 89% of the population had access to health care services. In 2000, 39% of the population had access to safe drinking water and 92% had adequate sanitation. Average life expectancy in 2000 was 74 years. Infant mortality was 17 per 1,000 live births. As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 37.8 and 4 per 1,000 people. About 24% of married women (ages 15 to 49) were using contraception in 2000. The fertility rate was 4.3 children per woman living through her childbearing years. In 1995, children up to one year old were vaccinated against tuberculosis, 96%; diphtheria, pertussis, and tetanus, 99%; polio, 99%; measles, 98%; and hepatitis B, 99%. As of 1999, the rates for DPT and measles were, respectively, 86% and 99%. About 12% of children under five were malnourished as of 1999 and goiter was prevalent in 10% of school-age children. There were only 59 AIDS cases reported in 1996. The HIV-1 prevalence rate was 0.1 per 100 adults in 1999.

Challenges

Oman's political challenges are primarily around succession plans. The democratic institutions and processes are still in early development and have not experienced real power. There is some risk of destabilization by radicals backed by militant groups or rogue states.

Oman's Musandam peninsula is a strategic asset which may become contested in future. Strong military ties with the United States and the GCC countries helps maintain stability. The growing power of Iran is a concern.

The demographic challenges are, like in other GCC countries, that a large proportion of the population are non-citizens.

The economic challenge is over-dependence on oil. While this is a benefit during oil price spikes, it is a risk during downturns. Oman's economy has not diversified to the extent neighboring UAE has.