Economy of Oman

Oman has an economy based on the exploitation of large reserves of natural gas and oil. Due to declining reserves, Oman has developed plans that seek to diversify its economy, attract industries and privatize activities, with a view to reducing its dependence on oil to just 9% of GDP by 2020.

Tourism and industries fueled by natural gas are the main components of the government's diversification strategy. By adopting techniques to increase productivity in extraction, the country managed to increase its production in 2009, gaining more time for its diversification strategies.

The economic system has been controlled by the reigning monarchy and members of the government. Starting in 2000, a liberalization process took place in a double sense: on the one hand, an attempt was made to separate economic and commercial activity from political power, typical of an absolutist system, and on the other hand, the orderly privatization of farms was facilitated. mining. The serious social imbalances that still maintain a level of unemployment among the country's inhabitants of 15% have been reduced over recent years with a progressive decrease in the workforce coming from countries such as Pakistan, Afghanistan or India.. At the same time, heavy industry dedicated to the transformation of products has increased, diversifying the economy. Furthermore, it hardly has any natural resources, which is why it is dependent on oil and its exports.

BASIC ECONOMIC DATA of Oman.

• GDP - Gross Domestic Product (2002): $20.1 billion U.S.
• Parity of purchasing power (2004): US$ 38.100 million.
• GDP - Per capita: $7,730 US.
• Per capita purchasing power parity (2004): $13,100.
• Average annual inflation: 0.5%.
• External debt approx. (2003): $5.7 billion.
• Imports (2002)5.5 billion US dollars.

• Major supplier countries: United Arab Emirates, Japan and United Kingdom.
• Main import products: Machinery, vehicles and food.

• Exports (2002)$10.6 billion U.S.

• Main client countries: China, Japan and South Korea.
• Main export products: Oil.

GDP structure in 2001:

Distribution by economic sectors of total GDP:

Agriculture, Forestry and Fisheries: 2.8%.

Industry and construction: 56.2%.

Manufacturing and mining industries: N.D.

Services: 51%.

• Unemployment rate (2004): 15%.
• Population below the level of poverty (2002): N.D.

- (N.D.): Not available.

Sources

• World Bank databases
• Economic-financial studies of the International Monetary Fund