08_chapter 3.pdf - shodhganga
TRANSCRIPT
Chapter No.3
Geo-Physical and Socio-Economic
Features of Sultanate of Oman and its Diplomatic Relations
26
Chapter No:3Geo-Physical and Socio-Economic Features
of Sultanate of Oman and its Diplomatic Relations.
PAGE NO:
27
3.1: Introduction 283.2: Geo-graphical features 28 3.2.1. Location of Oman 28-29 3.2.2. Economic & Social Indicators of Oman 30-31
3.2.3 .Climate 31 3.2.4. Natural Resources of Oman Economy 32-34 A. Introduction 32 B. Oil Sector 32-33 C. Gas Sector 33 D. Minerals Sector 343.3. Social Features 34 3.3.1. The geographical distribution of Oman population 35 3.3.2. Population 35-36 3.3.3. Population Growth 37 3.3.4. Density of Population 38 3.3.5. Size of Family 38 3.3.6. Fertility and Birth Rate 39 3.3.7. Mortality Rate 40 3.3.8. Age 41 3.3.9. Education 41 3.3.10. Health 423.4. Economic Factors 42 3.4.1. Agriculture 42 3.4.2. Animal Husbandry 43 3.4.3. Fisheries Sector 43-45 3.4.4. Industry 45-46 3.4.5. Labour 46-47 3.4.6. Trade Sector 47-48 3.4.7. Banking Sector 48-49 3.4.8. Tourism Sector 49-503.5. Socio-Economic Political Dimensions of Foreign Policy 50-51 3.5.1. Diplomatic relations 51-52 3.5.2. Social-Cultural Relations 53 3.5.3. Religious Relations 54 3.5.4. Economic Relations 54-55 3.5.5. Political Relations 56
Chapter No.3Geo-Physical and Socio-Economic
Features of Sultanate of Oman and its Diplomatic Relations28
3.1: Introduction : The Omani Economy stands on strong base and diverse sources included
the geographical location at the at most south east of Arabian Peninsula, with
its beautiful features , in addition to Oil and others minerals, and the fisheries
and agriculture sources. The Government of His Majesty the Sultan gives
great attention to all these sources, but gives greater attention to the people
as the main base for development . To have a good information base, the
government has carried the 1st census in 1993 and the 2nd in 2003 and these
census have provide good information to build on all plans. In this chapter
we shall discuss main points relate to Oman, such as Geo-Physical features,
Natural resources, Social and Economic features.
3.2: Geo-Physical Features
3.2.1: Location of Oman The Sultanate of Oman location at the South East of Arabian Peninsula
between 16°.40° and 26°.20° North, and long 51°.50° and 59°.40° East .
The coast line of Omani extend TO 1.700 Km from Arab Sea at South East
to Oman Gulf and ended at Musandam North at Hurmoz Strait. Map of the
location of Oman is given in Map No:( 3.1 ) The boundaries of Oman are the
Republic of Yemen at South West, Kingdom of Saudi Arabia West, and state
of Arab Emirates North, There are many small islands belong to Oman gulf
and Hurmoz Strait as Salama and its daughter and in the Arabian sea as
Masira island and group of Al-Halanyat island. The Sultanate of Oman
controls the most important sea passage in the old, world , and that is the road
between Arab Gulf and Indian Ocean, and from Oman the Camel caravans
had crossed the Arabian Peninsula from East to West and from North to
South. The area of Oman is the 3rd in Arabian Peninsula, it is about
(309.000) km. This area varied from one area to another .Map No:( 3.1 )
Map of Sultanate of Oman
29
3.2.2. Socio-Economic Indicators in Sultanate of Oman.Table No:( 3.1) Indicates the Socio-Economic indicators in Sultanate of Oman.
30
Table No:( 3.1 )
The Economic & Social Indicators in Sultanate of Oman – in 2005
FiguresDescriptionSr:NO
FiguresDescriptionSr:NO
153Tourism – Total Hotels & Motels14309500Area : Km21
11889.8G.D.P. at Current Prices (Mn.R.O)152509Population No:(000)2
4727G.D.P. Per Capita(R.O)168.1
Population Density(person:Km2)3
11279.6Gross National Income(Mn.R.O)1758Hospitals4
4497G.N.I. Per Capita(R.O)18897
Health Centers. Dispensaries & Clinics5
4510.5Total Revenue(Mn.R.O)1945Omani Woman's
Associations6
4207.6Total Public Expenditure(Mn.R.O)
201240Schools7
283Crude Oil Production-Annual (Mn.BBL)21
3024
Institutions of high Education -Government -Private
8
50.26Annual Average Price(US $.BBL)2216Banks9
847489Natural Gas Production(MNSCF)
23364Branches of Banks10
245433233328
-Copper.TonMinerals -Gold .Kg -Silver .Kg
24359Petrol Filling Stations11
10580.9Total Trade Exchange(Mn.R.O)25238Social Houses12
1.U.S.$=0.385R.O
Local Currency:-Rial Omani=1000Bs2648869
The Cases Recipients of Social welfare13
31
We can divide to the following sections from the North coastal plains as
Batina rich plain which has at North West of Muscat (Capital) it extends
about 270 km.
It is considered as the mainly agricultural which extend from heads of
mountains at Musandam to Ras AL Had (at most extension to A. Peninsula
from the South East in the Indian Ocean) in a shape of a bow from North
West to South East.
The summit of these mountains reaches 3000 m at AL Labal Akhdar, at
Musandam it Oman & Iran ; on both sides of these mountains run many
valleys west of which extends a vast desert extends from the west of the empty
quarter. At the South where Governorate of Dhofar we find coastal beaches
which extend from 8-10 km, these coasts are rich with fisheries.
Dhofar Mountains extend from East to West with a length of 400 km. From
Halanyat Islands to Yemen boundaries. The chain of Dhofar mountains
consists of Samhan at the East, Qara at the mind, and Qamar at the West the
at most height reaches 2.500 m.
The geographical areas vary from plains to mountains to valleys to deserts,
and population varies accordingly.
The sea, plain and mountain have participated in making Oman different
than other areas in Arabian Peninsula, and this variation has created a
culture that remain in history till today.
3.2.3: Climate :- The Sultanate of Oman Lays North & South Tropic of Cancer, so it is
considered in the zone of hot dry regions, but Dhofar in the South Lays in the
Tropical zone. So climate in Oman differs from one area to other . At the
coastal areas we find hot humid climate at summer and at the interior areas
it is hot dry except some high lands where climate is moderate at through the
year . Rains are few and irregular at the North through some areas have
some times heavy rains, mainly at winter , but in Dhofar the seasonal
monsoon brings heavy rains (June to October).
32
3.2.4. The Natural Resources of Oman Economy.
A. Introduction. The interest in diversification of the production sector has been known for
along time . Since the Sultanate of Oman recognized the importance of
depending on renewable resources to a single depletable source which is the
Oil . The successive development plans pursued this change . this concern was
clear in the Vision for Oman's Economy ( Oman 2020 ) which aims to increase
the dependence on the Natural Gas sector ; in addition to taking care of the
Industry ; Trade ; Tourism ; Financial Services and other production sector .
The economic diversification strategy forms one of the main fundamental
dimensions to achieve the Vision for Oman's Economy ; together with the
other strategies for sustainable development within a stable Macro-Economic
framework and development for human resources and the private sector .
We shall discuss the main production sector in this chapter .
B. Oil Sector The Oil Sector emerges, among all economic sectors as the most important
sector according to its contribution to the gross domestic product (GDP),
export earnings and government revenues. The importance of the Sector, also
stems from its strong indirect effect on the various national economic sectors.
First through the circulation of its revenues internally by government
expenditure, and secondly through its forward and backward linkages with
other sectors. The two prominent features of the oil are its fluctuation in
international price and non- renewable nature . In accordance with this
Oman’s development strategy aims at reducing the dependence on oil through
diversification of the national economic production base. The vision for the
sector is reliant on achieving the optimal utilization of the national wealth of
the Oil reserves through determining the production level that secures the
required revenues to meet the burdens of development without interfering
with the required technical measures and taking into consideration the
importance of oil for the future generations.
33
The vision aims at diversifying the production base so that the Oil sector
contribution to GDP be decreased from 33.5% in 1995 to about 9% in 2020.
From other side, the statistics of the last 5 years plan (2001-2005) indicate that
the Oil Sector has participated in the GNI with a sum of or 14660.7 m)
The PDO is considered the mother company in the field & Oil exploration in
the S. of Oman H produces about 95% of S. of Oman oil alone it works in 89
fields out of 95 fields in the S. of Oman.
C. Gas Sector The Sultanate since the dawn of its blessed renaissance , and for the
purpose or diversing its resources and production base, concentrated on
increasing the natural gas reserve and maintenance of this resource. The
Sultanate, also aims to replace the other power sources by the Natural Gas to
meet the direct demand of electrical power generation.
The vision for Oman’s Economy very relies on the Natural Gas Sector to meet
the challenge of the dwindling Oil reserves.
Based on this, the vision for the Natural Gas Sector is based on increasing the
reserves of the Natural Gas and its optimal utilization, such that the
contribution of the Sector in the GDP shall not be less than 10% in 2020.
The sector has participated in the National Income during the 6th 5 years
plan (2001-2005)with a total sum (OR 1208.8 m) , i.e. with a yearly
development during the plan(32.9%)This indicates the importance of this
sector in the Omani Economy.
The reserve of Gas reaches 28.32 Trillion sq/feet in Jan 97. He was 27.45
Trillion sq. feet m Jan 96 . The project of Liq Natural Gas Complex which has
been executed at Qalhat (Eastern region) at the year.
34
D. Minerals SectorThe Minerals sector is considered one of the sectors that is expected to
contribute to achieving the economic diversification, as the Sultanate
produces many of the minerals ores such as Copper, Gold, Silver, Chromite,
Manganese, Marble, Gypsum and Limestone.
The sector has many capabilities that qualify it to take an effective role in the
diversification of the production base, as its products are used as raw
materials and inputs for many of the domestic industries. The importance of
the sector arise from its interlacing relations with many of the other economic
sector such as manufacturing agriculture, construction , buildings and
construction of roads and ports. In accordance with the vision for Oman’s
Economy : Oman 2020, it is expected that the sector will meet fully the needs
of the Omani market from the minerals raw materials which will save the
foreign currency. To achieve the objective of national income diversification,
it is expected that the sector will process and export the surplus of the needs of
the local markets to abroad , which will contribute to the amelioration of the
trade balance.
The Minerals sector vision include increasing its contribution to the GDP
from about 0.6% in 1995 to about 2% in 2000. Within the endeavors of the
government to derisively the source of the income, and due to the importance
of this sector, the statistics in the 5 years plan (2001-2005) indicates that this
sector has participated with a sum of ( DR 96. 3M) in the National income. It
is important to mention that there are many factories in the Sultanate
depends on the raw materials in Oman as Cement, Marble, Glass, and
Ceramics.
3.3. Social Features.The social features of Oman are related to the Population of Oman, Size of
family, Fertility and birth rate, Mortality rate along with the forecasting of
Omani an Population in 2020. These features are discussed in this section.
35
3.3.1. The geographical distribution of Oman population.The total population of Oman in December 2003 has reached about (2341000)
persons, that is by increases amounted to (323000) persons or (%16) what was
in then in the year 1993.
And the population of the Sultanate distribution in (8) administrative
portions, it's (3) Governorates and (5) Regions, the bigger area Dhofar
Governorate (99300) sq/K.m , and the smaller Musandam Governorate
(1800)sq/K.m.
As far as the number of the population is concerned AL Batinah Region has
come the first position where it's alone about (%27.9) out of the total
population of the Sultanate and it followed by Muscat Governorate about
(%27.0) and that these two position affricating alone (%54.9) out of total
population of the Sultanate, whereas the les population it's AL Wasta region
and it followed by Musandam governorate where the percentage of the
population in both does not increase more than (%2.2) out of the total
population.
3.3.2. Population of Oman. Scientific Planning and logical study of projects constitute the base for
national development since early of renaissance.
To keep this on, the Government of HM the Sultan is providing update data
base on both sectoral and national bases.
The population of the Sultanate is estimated as 1-500.000 at the first Five-
Year plan (1976-1980), So plans an programmers are put on estimated data
base during the first Five-Year plan, with some partial surveys . In 1993 the
first general census had been carried out for people , houses, and
establishment .
This census provided a basic data used for the Fifth (96-2000) and the Sixth
(2001-2005) plans . IN 2003 the second census has been done, which helped to
provide total and update data base, on which all programmers are planned.
36
The difference in population can be noted within years between the first
census 1993 and the second census 2003 from the indicators in the table
No:( 3.2 ).
Table No:( 3.2)
Dissimilarity between 1993 and 2003 censuses
Sr: No Statements
Censuses
1993 20031 The gross population of sultanate of Oman 2,018,074 2,340,815
2 The total number of Oman citizen 1,483,226 1,781,558
3 The percentage of Oman citizen 73.5% 76.1%
4 The total number of non-Omani 534,848 559,257
5 The percentage of non-Omani 26.5% 23.9%
6 Population density “person/km²” 7.5 7.6
Source: Census Reports(1993&2003)
The results of the second population census in 2003 showed that Oman's
constituted (76.1%) of the total population, whereas non-Oman's constituted
(23.9%). The total increase in the population between the two censuses
reached (323) thousands, or an average annual growth rate of about (1.8%)
while the percentage of non-Omani population decreased from (26.5%) in
1993 to (23.9%) from the total population in 2003. the table No:( 3.2 ) showing
dissimilarity between 1993 and 2003 census.
3.3.3. Population Growth (1993-2020).37
The expects of Oman population up to year 2020. According to 1993 census, at
current annual growth 3.7%. It can show in this diagram No( 3.1 ).
Diagram No:( 3.1)
Source: Long-term Development Strategy(1996-2000).
3.3.4. Density of Population.
38
On author had the population density in Sultanate of Oman in (1.sq/K.m)
about (7.6) persons and it is thereby increases about (1) person what was then
in the year 1993 where recorded according to the results of previous Census
(6.5). Unlike this density have a big disparity between the Governorates and
Regions as clear from the table No:( 3.3 ). Table No: ( 3.3 )
Density of Population
Governorate/Region Area
Population
Density
person/Km
2
Distribution of
Population (%)2003 1993
AL Batinah Region 12500 52.3 27.9 28.0 Muscat Governorate 3900 162.1 27.0 27.2 Ash Sharqiyah Region 36400 8.6 13.4 12.8 Ad Dakhliyah Region 31900 8.4 11.4 11.4 Dhofar Governorate 99300 2.2 9.2 9.4 Adh Dahirah
Region
Adh Dahirah Region 44000 4.7 8.9 9.0AL Bowrami Governorate
Musandam Governorate 1800 15.8 1.2 1.4AL Wusta Region 79700 0.3 1.0 0.8Sultanate 309500 7.6 100.0 100.0Total population ---- ---- 2340815 2018074Source: Census Reports(1993&2003)
3.3.5. Size Family. The average family size stood at (8) persons according to the result of 2003
population census compared to a family size of (5) persons for non-Omani
families. The reason behind this discrepancy is that most non-Omani families
are small in size or constituted of individuals living together but not related to
each other.
3.3.6. Fertility and birth rate.During the 1970’s and 1980’s of the twentieth century, the sultanate witnessed
high promotion growth rates as a result of the prevalence of high fertility and
birth rates. These high rates have started to decline since the beginning of the
39
last decade of the past century for the number of factors. Notably among them
is the increase of the mean age at first marriage which reached (25.0) years
among females and (28.0) years among males during 2003, as compared to
(23.5) years for females and (26.5) years for males in 2000. The second factor
has been the introduction of the birth spacing programme by the ministry of
health since 1994, with the prime aim of improving mother and child health.
As a result of this programme, the average birth interval has increased from
(25.5) months in 1995 to (29.8) months in 2000. All these factors have helped
in the considerable drop of births from (27,917) in 2000 to (45,602) in 2005. it
is worth noting here that nationalization of non-Oman's has not been one of
the factors responsible for the population increase in the sultanate, as the total
number of those who had been given Omani nationality reached (735) persons
during the period 2000 – 2005, with females accounting for (69%) of them.
Main Indicators of fertility rates as age groups in the S. of Oman, as census
2003 in the table No( 3.4 ).Table No:( 3.4 )
Fertility Rate
No. of Born Fertility rates (per 1000) Age Group
1397 10.9 15-19
10313 94 20-2415137 198.6 25-298897 191.3 30-34
5213 136 35-391707 61.9 40-44453 19.8 45-49
General rate of born (For each 1000 of population = 24.4 rate of General Fertility = 3.6%Source: Census Report s .2003
3.3.7. Mortality rate. The improvement in health services in the sultanate in addition to the
improvement of the economic, social and cultural conditions for women have
led to the decline in maternal mortality ratio as well as infant and child
mortality rates between 2000 and 2005. This decline is a natural results of the
40
increase in the immunization coverage against infectious diseases, which led to
the decrease in the incidence if these diseases. The percentage of infants who
has received immunization against polio, measles, and tetanus ranged between
(98%) to (100%) during the above referenced period. The expansion of health
services and the improvement of the different health indicators have resulted
in the decline of the crude death rate which in turn contributed towards the
increase in life expectancy at birth for both males and females. Main
Indicators of Deaths in the Sultanate of Oman between years 2000-2005 . in
the table No( 3. 5 ).
Table No:( 3.5 )
Mortality Rate
Indicators 2000 2005
Maternal Mortality (per 100,000 live births) 16.1 15.4
Infants mortality rate (per 1,000 live births) 16.7 10.28
Under five mortality rate (per 1,000 live births) 21.7 11.05
Crude death rate (per 1,000 population ) 3.65 2.53
Life expectancy at birth
Males
Females
73.38
72
74.30
74.28
73.10
75.42
Source: Statistics Reports(2000-2005).
3.3.8. Age.The main indicators for proportional distribution according to age factor in
the Sultanate of Oman, as results of census 2003.Table No:( 3.6 )
Age wise classification of Population
41
Age factor Omani Non – Omani Total
0-14 40.6 12.3 33.8
15-64 56.2 87 63.6
65 3.2 0.7 2.6
Total
100.0 100.0 100.0
1,781,558 559,257 2,340,815
Source: Census Reports.2003
3.3.9. Educational.Educational indicators in the Sultanate of Oman as the results of Census 2003,
in the table No:( 3.7 ).Table No:( 3.7 )
Educational Indicators
Sr:No Disruptions Figure
1 People in the age of pum. education 309,532
2 Students imprimed 303,512
3 Education (Prim ed) 21,526
4 Student (For each Teach) 29
5 Student (For each class) 14.5
6 Ratio of Total joined 98.1%
Source: Census Reports.2003
3.3.10. Health. Health indicators in the Sultanate of Oman as the results of the lost census
2003. in the table No:( 3.8 )
Table No:( 3.8 )Health Indicators
42
Disruptions Figure
Doctors (For each 1.000) 1.59
Nueses (For each 1.000) 3.67
Beds (For each 1.000) 2.23
People most exposed to health rips
Women (pregnant (15-49) 446,678
Children (less than 5yrs) 215,531
Source: Census Reports.2003
3.4. Economic Features.The Economic features of Oman include the Agriculture, Animal Husbandry,
Fisheries, Industry, Labour, Trade, Banking and Tourism. The details of each
are given in the following paragraphs.
3.4.1. Agriculture. The Agriculture Sector (with both Plant and Animal Sectors) represents
one of the basic dimensions in the national economy’s structure , specially in
satisfying the largest possible needs of local consumption from foodstuffs. Its
importance extend to include the exchangeable relations, between it and other
national economy’s Sectors. The agriculture supplies the industry with the
substances that are include in foodstuff industry and it is expected that this
relation will increase with agriculture industrialization through the private
sector. In addition, it has large contribution to the exports and improvement
of commercial balance. The marketing of agriculture products and inputs for
production comprise an essential part of the activity of Trade Sector locally
and abroad, since it supplies the products and take the inputs. The sector is
effected and affects many other sectors.
3.4.2. Animal Husbandry. The Animal Wealth Sector is considered as one of the important production
sections, since the animal husbandry is scattered all over the Sultanate
agriculture regions, inspite of the climate and geographic differences. Also,
the animal wealth is considered as a basic source of nutrition and income to
43
many of the animal owners. The sectors endeavors to provide suitable
incentives to encourage increased production of animal proteins and linking
its expansion with other agricultural activities.
The vision for the sector is related to the Vision for Oman’s Economy Oman
2020, since the potentialities relished by the sector allows the possibility of its
development and consequently the diversification of the production base of
the national economy and the sustainable growth of national income. The
vision for the agriculture sector aims to achieve an annual growth rate not less
than 4.5% and thus increasing its contribution to the GDP to 3.1% in 2020
compared to about 3.0% in 1995. From the figures and statistic of the last 5
years plan in this sector, it show that it has participated in National income
with a sum of (OR 539.6m). The total area of Farms is 101350 Hectors, out of
which 61500 Hectors are cultivated of which 42900 Hectors with long life hope
and 18600 Hectors seasonal crops. The efforts are continuing to introduce
modern irrigation systems in the farms & Nationals, also construction of
protection done against valley’s floods. In the field of animals resources
efforts are continuing to breed better animals about 1406000 of cows, sheep,
and camels ) efforts are also carried on the improve animals of milk
producing though better methods of feeding and housing.
3.4.3. Fisheries SectorThe Fisheries Sector is considered one of the important Sectors in the
Sultanates economy due to its economic potentials involving the fisheries
resources whereas the Sultanate’s coasts are honored by abundance and
diversity of these resources.
In order to achieve its role, much efforts should be exerted towards the
optimal utilization for all available resources to achieve the economic
objectives of the Sultanate.
On the top of these efforts, is the diversification of national economic
resources and achieving food security for the Sultanate and self- sufficiency of
this major nutritional commodity. The Sector is distinguished by important
44
characteristics in the framework of its relation to a number of other economic
sectors, through establishment of industries for both foodstuffs and forages to
contribute; to the availability of the food materials to the animal wealth. The
export activity for fish is honored by a large attention due to its effective
return to the national economy due to its high chances for development &
growth through formulation of standard for quality control and observance
of the international measure and specifications followed by new systems for
sea-foods and required by fisheries importing countries. Since the fisheries
resources are not inexhaustible large resource , but limited resources liable
for depletion, therefore it is of necessity to seek better utilization and
protection from depletion and exhaustive fishing and amelioration of
management system and its improving to ensure the continuity of its
utilization with the required economic efficiency. The sector is considered as
a source of living for a large number of Oman citizens specially those living in
the coastal areas extending from Musandam in the North to Dhofar in the
South, in addition to the other professions and activities related to fishing
such as marketing, transport, preparation and other services. The sector has
a significant economic potential enable it to accommodate a large ratio of the
investment of the Government and private sector for a long period. The most
important of which is, the availability of Fishery Stock estimated for surface
and bottom fishes at about 817 thousand tons, of which , 278.8 thousand ton
available for exploitation if the stock is rehabilitated and the fishing seasons
have been organized and introducing the operation of handling and
processing for same varieties and development of utilization techniques.
The vision for Oman’s Economy rely on the fisheries sector since it is
expected that the growth of the sector will till 2020 accelerate to 5.6% per
year raising its share in the GDP from 1.1% in 1995 to about 2% in 2020.
Due to the geographical location and the long beaches of the Sultanate of
Oman, so this sector has great importance in the National Income. The
statistics of the last 5 years plan analyses in these research indicate that this
45
sector has participated with an amount of (OR 277,9m) in the National
Income. In addition to self-satisfaction from fishes with about 100%.
3.4.4: Industry Sector.The manufacturing sector assumes a distinct and axial role in sustaining
development, due to its interlacing relations with other sectors of oil, Gas,
Agriculture, fisheries, trade, minerals and others. Development in the sector
will reflect a positive effect on the improvement of these sectors. And hence on
the national economy. This will lead to provide more new chances of work to
assimilate the increasing educational graduates and the improvement of these
sectors, and status of the balance of payment. Through increased exports and
substitution of import, and strengthening the connection of the national
economy with the international Economy to benefit from the comparative
advantages of the sultanate through the optimal exploitation of all the wealth
and natural resources in the sultanate and for assimilation and upgrading of
technology.
The vision for the industry sector is related to the vision for Oman’s
Economy: Oman2020 in the sense that it provides the basis for diversification
of the economy base, and development of the national income sources, and
finding new and alternative sources for the Oil revenues through increasing
the investment in income generating projects, specially in manufacturing
industry actives and encouraging private sector industrial investments in the
different regions of the sultanate. Paying attention to qualifying the national
human resources to take their role in the development and improvement of
the industrial sector.
Also encouraging scientific Researches and researches of development and
Transfer of new technology and meeting the finances of the infrastructure to
satisfy the sector requirements.
The vision for the Sector aims to increase the value added in an accelerated
manner to top the average annual growth rate targeted for the national
economy for the period 1995-2020 to raise its contribution to the GDP from
46
5% in 1995 to 15% by the end of the year 2020 The industry is important for
the development of nations, without it no real development can be achieved ,
so in this regard we mention that this sector has participated in the G.N.
income of the Sultanate, in the last 5years plan (2001-2005) with a sum of
5416,4 Mn. R.O. It is important to mention that the Government encourages
to establish General Companies, and Foreign investment particular in these
companies (upto 49% of the shares in the major industrial projects, which are
considered as a joint venture ).
3.4.5. Labour.Indicators of Labour Force in the Sultanate of Oman as the results of census
2003 only Civil Nationals and Non Omani are given in table No:( 3.9).Table No:( 3.9 )
Labour force
Description Non Omani Omani Total
Figure % Figure % Figure %
Government
Employee (Civil)
23,969 3.95 99,076 16.37 123,045 20.31
Labour in private
Sector
407,816 67.33 74,816 12.35 482.632 79.69
Total 431785 71.28 173892 28.72 605677 100
Source: Census Reports.2003
It is observed from table No:( 3.9 ) that the percentage of Non-Omani
Labours is higher ( 71.28%) than Omani Labours ( 28.72%).
However there are 16.37 percent of Oman workers as government employees,
whereas the corresponding percentage of Non-Omani in government service is
only 3.95 percent.
3.4.6. Trade Sector.Trade is considered as the prime mover which regulates all economic
activities . This is due to its distinguished leading role through stimulation
of mechanism and services products promotion, and contribution in
encouragement of production. According , it links the economic sectors and
47
their development , aiming to achieve the sustainable development and
provision of more work opportunities. Due to this, the sector assumes a
significant importance in the Sultanate.
Trade sector in the Sultanate have several major constituents that could
increase the trade activity and enables the sector to assume its leading role.
Such constituents include the strategic location of the Sultanate in the middle
of the old three constituents , the state adoption of the philosophy of free
economy and reliance on private sector, the political stability and security,
and the availability of infrastructure, as well as the integrated legal and
legislative systems.
The vision for trade sector is linked to the vision for Oman’s Economy:
Oman 2020 in terms of provision of basic constituents for the development
and improvement of the sector with the aim of diversifying the economic
base, development of national income resource and finding new resources,
besides the Oil revenues. This will be achieved through broadening the
economic base, which will increase the trade exchange volume through
emphasizing on the export drives of Oman’s Economy, utilization of the
strategic location in increasing export, re-export and transit operations. All
these aim at making Oman an International Centre for Trade and Fiscal
Services. In addition, the development of the legal frameworks for abolishing
restrictions and obstacles that limit market dynamism.
The vision for the Trade sector aimed at rising its relative contribution in the
GDP to 15% by the end of 2020. Due to the importance & Trade and its vital
role in the economy, so the government gives great importance to this sector
and that leads to the participation of trade in the N Income in the 6th5years
plan (2001-2005) with a sum of or 5178m.
The commercial Agreements with friendly countries as the trade agreement
with Islamic Iranian R. in July 03, and the Economical Cooperation
Agreement with Belaries in 17th March 2004, open great opportunities for
trade cooperation generally . In addition the Sultanate is a member in a
48
member of Economical groups as GCCC, Arab Free Trade Zone, The League
of Indian Ocean Countries, and the WTO.
3.4.7. Banking Sector.The Banking Sector plays an important role by way of providing an effective
instrument for directing the monetary policies and securing the fiscal balance
and economical stability . The Banking service contribute, beside the other
fiscal intermediary services, to enhancement of the economic activity and
acceleration of development through mobilization of savings and funding of
investment activities by the different economic sector. The banks are
considered an important tool in increasing the efficiency of fiscal
intermediary.
The means if follows in mobilizing savings, credit offering and meeting of
payments, have noticeable effects on the implementation of the objectives of
the plans for Economic and Social Development due to that, the banks have
the ability to raise the level and efficiency of the different production
establishments which further its contribution in the GDP.
The vision for Oman’s Economy aimed at transforming the Banking Sector
into dynamic sector capable of offering improved financial service and grow
at accelerating rates leading to raising its contribution to the GDP from about
2.6% in 1993 to about 5% in 2020.
This sector has participated in the National income within the last 5 years
plan, with a sum of 1653.7 Mn.R.O.
The fund system constitutes of the Central Bank ( constitutes in 1974) many
local banks , branches for Foreign banks , in addition to two specialized
banks, Housing Bank (constituted 1977) and Oman Development bank
( constituted 1979) and exchange companies.
3.4.8: Tourism SectorThe Tourism Sector is distinguished by its broad and strong interlacing
relations with other Sectors, such as industry, Agriculture and Services. The
development of the Tourism Sector leads to the activation of other Sectors and
49
consequently , the development of this Sector is considered as one of the
effective mechanisms for the incessant growth of the national economy . Many
countries seek the attraction of foreign investments in tourism areas through
furnishing the suitable legislative environment.
The Tourism Sector in the Sultanate is characterized by solid components
that qualified it to take a distinctive role in accelerating process of
diversification of the production base of national economy ant its activation.
The most prominent component being the strategically geographical location
of the Sultanate whereas, the Sultanate is located in the for South East of the
Arabic Peninsula with its coast extending to about 1700 kilometer from
Hormuz Strait in the North and to the boundaries adjacent to the Yemen
Republic, and thus emerging at three seas which are the Arabian Gulf of
Oman and the Arabian Sea. The entire Sultanate is dotted with many of
historical antiquities , fortresses and forts which are in the midst of a series
of mountains and the three seas, in addition to the clean environment .
The Sultanate is famous for its kindness and hospitality of its people, political
stability and security , and the presence of tourism infrastructure in the form
of hotel chains and tourism establishments.
The sultanate has great expectations on this sector to be as an important
source of the Oman economy due to what has been explained.
The statistics of the 6th 5 years plan (2001- 2005) indicate that thus sector
has participation in the National Income with a sum of 337 Mn.R.O.
Due to the importance of Tourism in the Sultanate , Ministry of Tourism was
declared through Royal Decree No: 61/04 HM has stated a clear vision for
tourism which concentrates on the objectives due to the importance of this
section in diversification of National Income.
3.5. Socio-Economic Political Dimensions of Foreign Policy. The Sultanate is working to improve its mutual relations with other
countries to achieve the common interests, at the same time it is keen to use
50
these relations to sustain its economic role, and to serve the objectives of the
economic development within the plan.
In this context, the Sultanate has played an important role to develop the
cooperation and integration between the GCC as at the early stages of the
council constitution in 1981, or during the post years mainly within the
meetings of the council on all levels, to enable the council to improve its
mechanism, and positive interaction with regional and international
developments for the welfare of its people.
The Sultanate is playing an important role to develop the economic
integration between the GCC members, and to enhance the custom’s Union
that started in 1st January 2003.
And to apply all the regulations of citizenship, including the rights of Real
Estate ownership, and in addition to that the Sultanate has worked, through
the dual channels, to develop its relations with GCC, through the mutual
committees with UAE, Qatar & Kuwait to give an example that can be
pillowed between GCC. From an another side, the Sultanate is activating the
economy in the Sultanate and the Arab Gulf Region.
So it works together with GCC to expand their trades with EU. The
interaction between the GCC is coincide with Arab countries movement
to develop the mutual relations with friends for a better cooperation
environment within the Arab Countries League.
In this context, the Sultanate has joined the constitution of Arab Free Zone,
and played an important role in the Arab Free Trade Area, and works to
activate the role of Arab C. League for the welfare of the countries and people
of the region, and the Sultanate gives a good for problem’s solving with
neighbors, and could reach agreements over borders with them.
The Sultanate of Oman has joined WTO in 1996 and in 1997 the Sultanate
and the other countries of the Indian Ocean has constitute the
IORARC(Indian Ocean Run Association for Regional Cooperation) which
aims to improve the commercial relations between these countries.
51
In 1998 has reached a common trades with USA, the EU, Canada, Japan,
Australia, New Zealand and Switzerland from the other side, the Sultanate
has signed an agreement with Morocco the constitute a joint council for
businessmen, in 10th of Feb. 1999, and in 17th of March 2004.
The Sultanate has signed an agreement with Bella Russia for economic
cooperation and political understanding, another agreement signed with USA
to develop commercial and investment relations in the context of this far
vision, the political relations of the Sultanate have extended over the world,
which reflects its greater role within the past 35 years(1970 – 2005).
The organizations and Authorities that have relations with the Sultanate,
either in the Gulf, Arab world, Islamic or International are discussed.
3.5.1. Diplomatic Relations.
The diplomatic relations of Oman with the world countries are given in
table No:( 3.10 ).
Table No:( 3.10 )Analysis of Diplomatic Relations of Oman with the world countries
Year Names of the countries
1992 Albania, Armenia, Azerbaijan, Belarus, Estonia, Greece Hellenic, Guinea Bissau, Iceland, Kazakhstan, Korea North, Kyrgyzstan, Lithuania, Moldova, Mongolia, Turkmenistan, Ukraine, Uzbekistan, Vietnam,
1974 Algeria, Austria, France, Germany, Italian, Italy, Korea South, Lebanon, Morocco, Qatar, Romania, Saudi Arabia, Yemen,
1978 Argentine, Belgium, Canada, Chile, China, Cyprus, Mexico, Spain, Sudan,
1981 Australia, Burkinafaze, Comoros, Gabon, Guinea, Maldives, New Zealand, Nigeria, Sri Lanka, Tanzania,
1979 Bahrain, Brazil, Denmark, Finland, Mali, Sweden,
52
1984 Bangladesh, Brunei Darussalam,
1986 Bolivia, Jamaica, Peru, Uganda, Venezuela, --- Bosnia and Herzegovina, Honduras, Macedonia, Mauritania, St. Lucia,
Slovenia, South Africa, Wanda,
1990 Bulgaria, Hungary, Poland, 1975 Burundi, Jordon,
1989 Chad, Ghana,
1985 Colombia, Russian Federation, Singapore,
1991 C’Oted’Ivoire, Mauritius, Nicaragua, 1994 Cuba, Eritrea, Panama,
1993 Czech, Guatemala, Latvia, Mozambique, Slovakia, 1977 Djibouti, Indonesia, Nepal,
1982 Ecuador, Malaysia, Rwandese, Zaire, Zambia, Zimbabwe, 1972 Egypt, India, Iran, Kuwait, Netherlands, United Arab Emirates,
United State of America,
1995 Ethiopia, 1980 Gambia, Luxembourg, Malta, Niger, Norway, Philippines, Somalia,
Switzerland, Thailand,
1976 Iraq, Kenya, Portugal, Turkey, 1987 Ireland, Senegal, Syria, Uruguay,
1973 Japan,
1971 Pakistan, Tunisia, U.K.& Northern Ireland,
1983 Seychelles, Sierra Leone, Source: Ministry of Foreign Affairs ( List of Diplomatic Relations between Sultanate and the Countries
of the World 1995 -96).
3.5.2. Social and Cultural Relations. In order to achieve the common interests the Sultanate is working to improve
its relations with other countries, The Sultanate is playing an important role
to develop social and cultural relations with the world countries.
Table No:( 3.11 ) given details of the organizations at the national and
international level with whom Oman has established its relations. Table No:( 3.11 )
Social and Cultural RelationsYearName of OrganizationSr:No
53
Gulf Organization:-1. Arab Culture for Educational Research Higher Education Council…… ...19732. Arab Education Office for the Gulf States ………………………….….…...19793. Arab Gulf University…………………………………………….……..……. 19804. Gulf News Agent……………………………………………………….……...19765. Gulf Television Board………………………………………………………...19806. Technical Office for Communication(Gulf States Co-operative Council ).1982
1.
Arab Organization:-1. Arab Girl Guides Officer……………………………………………………….19762. Arab Health Ministers Council………………………………………………...19753. Arab Housing Ministers Council……………………………………...……….1982 4. Arab League Educational Cultural and Scientific Organization……...…….19735. Arab Scouts Office……………………………………………………...………19766. Arab Social Affairs Ministers Council…………………………………...……19807. Arab Social Defence Organization Against Crime……………………...…...19738. Arab States Broadcasting Union……………………………………………….19729. Arab Telecommunication Union……………………………………………….198310. Arab Youth & Sports Ministers Council………………………………...…..198011. Arabsat………………………………………………...……………………….197612. Organization of Arab Cities…………………………………...……………...1971
2.
Islamic Organization:-1. Islamic Education, Scientific and Cultural Organization (ISESCO)………..1980 2. Islamic History and Cultural Research Centre……………………………….19763. Islamic International News Agency……………………………………………19704. Islamic States Broadcasting Organization…………………………………….1975 5.Islamic States Centre for Statistical, Economic and Social Research Training………………………………...…….1977
3.
International Organization:-1. Internal Association of Schools and Institutes of Administration………...…19862. International Organization for Training and Welfare of the Disabled……….---3. IUAT (International Union Against Tuberculosis)…………………………...19854. IUCN (International Union for Conservation of Nature)…………………....19755. International Union of Child Welfare…………………………...…………….19806. World Association of Girl Guides & Girl Scouts………………...…………...19877. World Council for Welfare of the Blind………………………………...…….1979
4.
Source: Ministry of Foreign Affairs ( List of Diplomatic Relations between Sultanate and the Countries
of the World 1995 -96).
3.5.3. Religious Relations. Oman itself Muslim country . It has relations with several religious
Institutions. The table No:( 3.12 ) given the details of such relations of Oman
with different religious organizations. Table No:( 3.12 )
Religious Relations
YearName of OrganizationSr:NoIslamic Conference Organization (ICO)………………………………………...1972al-Quads Fund(Jerusalem)………………………………………………………..1976International Committee for the Presentation of Islamic Heritage…………....1978
1. 2. 3.
54
Islamic Capitals Organization…………………………...……………………….1982Islamic Fiqh Council……………………………………...……………………….1982
4. 5.
Source: Ministry of Foreign Affairs ( List of Diplomatic Relations between Sultanate and the Countries
of the World 1995 -96).
3.5.4. Economic Relations. The economic relations of Oman are established with different
organizations at the national and international level. It is depicted in table No:
( 3.13). Table No:( 3.13 )
Economic relationsYearName of OrganizationSr:No
Gulf Organization:-1. Arab Gulf Cooperation Council………………………………...……………..19802. Arab Gulf States Joint Programme Production Organizations…………......19823. Cooperation Council States Specifications and Standards Board…………...19824. Gulf International Bank………………………………………...……………...19765. Gulf Organization for Industrial Investments…………………………...…...1976 6. Gulf States Labour & Social Affairs Ministers’ Council Continuity Office..1978
1.
Arab Organization:-1. Arab Academy for Maritime Transport………………………...…………….19752. Arab Bank for Economic Development in Africa……………………...……..19753. Arab for the Study of Arid Zones and Dry Lands………………………...….19754. Arab Civil Aviation Council……………………………………………………19735. Arab Fund for Economic & Social Development……………………………..19756. Arab Industrial Development Organization…………………………………..19807. Arab Interior Ministers Council……………………………………………….19828. Arab Labour Organization………………………………………...…………..19739. Arab Monitory Fund……………………………………………………...……197710. Arab Organization for Agriculture Development…………………………...197411. Arab Organization for Specifications & Standards…………………………197412. Arab Planning Institute………………………………………………...……..198013. Arab Postal Union…………………………………………………...………...197114. Arab Tourism Union…………………………………………………………..198415. Arab Transport Ministers Council…………………………………………...198516. Arab World Institute in Paris……………………………………...…………198717. Inter-Arab Investment Guarantee Corporation………………………...…..1977
2.
Islamic Organization:-1. Islamic Center for Commercial Development………………………...………19792. Islamic Center for Technical and Vocational Training and Research…...…19783. Islamic Development Bank……………………………………………………..19744. Islamic Solidarity Fund……………………………………...…………………1974
3.
International Organization:-1. International Bank for Reconstruction and Development……………...…...19712. International Civil Aviation Organization……………………………...…….19733. International Fund for Agricultural Development……………………...…...19834. ILO…………………………………………………………………...………….19945. International Maritime Organization ( IMO)…………………………...……1974
4.
55
6. International Monetary Fund ( IMF)………………………………………….19717. International Telecommunication Union……………………………………...19728. FAO……………………………………………………………………...………19719. Universal Postal Union………………………………………...……………….197110. WHO…………………………………………………...………………………197411. World Meteorological Organization………………………………...……….197512. WTO(observer status)…………………………………………...……………199513. International Association of Lighthouse Authorities………………………..198714. International Civil Defence Organization (ICDO)……………………...…..198515. International Hydrographic Organization…………………………...……...198716. INTELSAT (International Satellite Organization)………………………….197517. ISO (International Standardization Organization)……………………...….1989Other Regional Organizations:-1. Afro-Asian Insurance Union………………………………………...…………19812. Afro-Asian Organization for Rural Development……………………...…….19793. Arab Gulf Organization for Support of Development Activities for the United Nations (AGFUND)………………………………….---4. Regional Organization for Protection of the Maritime Environment…...….1979
5.
Source: Ministry of Foreign Affairs ( List of Diplomatic Relations between Sultanate and the Countries
of the World 1995 -96).
3.5.5. Political Relations. Oman has maintained political relations with national and international
organizations. The details of the organizations with whom the political
relations are maintained by Oman are given in table No:( 3.14 ). Table No:( 3.14 )
Political Relations YearName of OrganizationSr:No
56
Arab Organization:-1. League of Arab States..........................................................................................19712. Arab Administrative Development Organization.............................................19753. Arab Justice Ministers Council..........................................................................1982
1.
International Organization:-1. United Nations Organization (UN)…………………………………...………..19722. UNESCO……………………………………………………………………...…19723. UNIDO……………………………………………………………………...…...19854. Inter-Government Bureau for Informatics…………………………… ……19865. INTERPOL……………………………………………………………………...19726. International Institute of Administrative Science…………………………….19857. International Organization for Legal Mectonology…………………………..19898. IWC (International Whaling Commission)…………………………...………19809. Non-Aligned Movement………………………………………………………...197310. World Scout Borean…………………………………………………………...1977
2.
Other Regional Organizations:-1. Afro-Asian Legal Consultation Committee………………………...…………1976
3.
Source: Ministry of Foreign Affairs ( List of Diplomatic Relations between Sultanate and the Countries
of the World 1995 -96).
57