Economy in Oman

By the end of the 1960s, the  oil production began in the Sultanate of Oman. Oil quickly became the main source of income for the country, while the largest economic sector until then, agriculture, gradually shrank. Due to the economic boom triggered by oil production, the  infrastructure could be expanded. Roads, schools, hospitals, and power lines were constructed. The population also owes a general increase in income to oil. With the concept of privatization and diversification, financial and economic stability is aimed for. Based on free competition, government shares in private companies are sold, and public services are increasingly privatized. Oman’s economy is to be gradually restructured to promote further sectors alongside oil. Other economic sectors include fishing, the extraction of mineral resources, and  tourism . Through the promotion of industry and production, commerce, finance, and services are being extended so as to adapt to the world economy. Oman is the 139th member of the World Trade Organization WTO. In 2016, the GDP per capita was $ 46 689. Agriculture accounts for 1.7 % of this, 45.4 % come from the industry and services account for 52.9 % of the GDP.

Foreign Workers

About 45 % of the inhabitants of Oman are foreigners and are primarily in the country as guest workers. More than half of them are from India and other Asian countries. The guest workers are mainly active in trade, service industries and construction. Without these helpers from abroad, the construction of the Omani economy since 1970 would not have been possible. However, the Omani government wants to reduce its dependency on the guest workers, which is why the “Omanization” was started. Omanization is a concept whereby guest workers are to be replaced by qualified Omanis. The project began in 1988, when percentages were set that determines how many Omanis are employed in different industries. So far, the project is working well, but there are not enough training centers left to give the further expansion of the economy entirely into Omani hands.

Agriculture

5% of Oman's territory is used for agriculture. Dates, pomegranates, bananas, mangoes, tobacco, and other products are cultivated. Agriculture is carried out in the north, in the Batinah region, and in the south around the city of

Salalah

The Jebel Akhdar near the capital Muscat , is also arable. There, green terraced fields with various fruits are created. Agriculture covers about 50% of Oman’s self-sufficiency. The remaining 50% are imported from abroad. The goal of the Ministry of Agriculture is to increase the self-sufficiency of the Sultanate. Mineral Resources Oil reserves have helped Oman achieve prosperity and wealth. In just 20 years, Oman transformed from a poor agrarian country into a wealthy oil state.

Mineral Resources

The oil deposits have helped Oman to prosperity and wealth. In just 20 years, Oman has transformed itself from a poor agricultural land into a wealthy oil state.  Sultan Qaboos  initiated the modernization of the country in 1970. The oil fields lie in the deserts of the interior and reach into the Dhofar.  Pipelines  have been laid, allowing the oil to be pumped all over the country and finally shipped from the port of Mina al-Fahal, near Muscat, to all over the world. Mina al-Fahal has become the export hub and most important port of shipment of the country. Finally, in 1982, a refinery was built near the port. The country’s oil reserves amount to about 50 million barrels (1 barrel = 159 liters). According to forecasts, this stock is expected to last 15 years, and it is believed that more oil fields will be found, which would increase the stock. Oman ranks 21st among oil exporters, exporting mainly to the US, China, Japan, South Korea, and Taiwan. This makes Oman very much dependent on the international oil price and the US dollar.

In the 1990s, natural gas was also discovered. Again, much was invested in the promotion, but there was hope for more profit than it ultimately brought. In addition to natural gas and oil, Oman has copper, hard coal, gold, chromium and iron deposits. Also, marble, limestone and other types of rock can be found in the sultanate. The mining thus provides a perspective for the time after the oil. The manufacturing industry will then become a significant industry.

Foreign Trade

Since 1967, the Sultanate of Oman has been exporting crude oil. Oil and gas exports account for 81 % of the country’s total exports. Other exports include fish, metals, and textiles. Machinery, vehicles, industrial goods and foodstuffs must be imported to Oman. 32 % of the imported goods come from the United Arab Emirates.