1. Oman A secretive land

2. Contents  General Information  Historical overview  Oil Discovery  1970: Oman’s Renaissance  1980-1990: A decade of economic turmoil  Oil: blessing or curse? Longer-term perspectives  Conclusion

3. General Information

4. Oman  Population: 2,567,000 (July 2005 est.)  Religions: Ibadhi Muslim (75%), Sunni Muslim, Shi’a Muslim  Monarchy ( Sultan Qaboos)  Strategic location (Strait of Hormuz)  Member of the Gulf Cooperation Council but not of the OPEC

5. Historical Overview  Ancient times: the incense and spice route  Towards independence (1650)  The heyday of the Omani empire  A history dominated by the struggle of conflicting interests (tribal, ethnic, political, commercial, geographic…)  The decline of the 20th Century

6. Oil Discovery  Oil and Politics:  oil industry concentrates wealth and power in the hands of the governments  Oman: a Rentier state?  Oil and Economy:  in 2004, oil & gas revenues accounted for 78% of the government revenue  Oman owns its own National Petroleum Company  The reign of Sultan Said: a restrictive rule

7. Oman’s renaissance July, 23 rd 1970: Sultan Qaboos takes over power: 1.Political changes 1971: Oman enters the UN 1981: Creation of a State Consultative Council 1996: “Basic Statute of the State” 2.Economical and social development Infrastructure (roads, ports, hospitals…) Education Healthcare

8. 1980-1990: A decade of economic turmoil 1.A recurrent problem: a limited resource base 2.Fluctuating prices of the oil market 3.The hiccups of the modernisation program

9. Evolution of crude oil prices since 1961 (Source: BP Statistical Review of World Energy 2005)

10. Oil: Blessing or Curse?  1980-1997: general improvement of the population’s well-being  Oman’s economy remains based on a monocultural exportation (Oil)  The oil industry creates little employement  3 alternatives: –Economic diversification –Omanisation –Privatization

11. Economic diversification 1.Natural gas In 2005  5% of the GDP Limited resources 2.Minerals Copper Coal Marble

12. Economic diversification 3.Agriculture and fisheries Date and frankincense producer Cattle herds (goats, camels, cows) Fishing  Oman has 3165 km of coastlines

13. Economic diversification 4.Tourism Today, this sector represents less than 1% of the GDP Massif investment  1billion/year from the private sector

14. Omanisation  In 1997, 65% of the labour forces were expatriates  conflicts with the younger generations now confronted to unemployment  The government now aims to replace foreign workers by qualified omanis

15. Privatization  A key element in the economic policy  Privatization mainly in the industrial, commercial and tourism companies  In the public sector (water, electricity, postal services)

16. Conclusion  Mitigated progress –Institutional weaknesses –Population torn between tradition and modernity –An important population growth rate (3,32% in 2005)  Oman needs to be more incorporated in regional policies

17. Bibliography Allen, C. H., Rigsbee, W. L. II., Oman under Qaboos, from Coup to Constitution, 1970-1996, Frank Cass Publishers, 2002. Beasant, J., Oman: the true-life drama and intrigue of an Arab State, Mainstream Publishing, 2002. Joyce, M., The sultanate of Oman: a twentieth century history, Praeger, Westport, 1995. Mansur, A. S., Oman beyond the oil horizon: policies toward sustainable growth, ed. by Ashan Mansur & Volker Treichel, Wahsington D.C: International Monetary Fund, 1999. Plekhanov, S., A reformer on the Throne: Sultan Qaboos Bin Said Al Said, Trident Press, 2004. http://www.moneoman.gov.om http://www.omanet.om http://www.omantourism.gov.om