Policy
Sultan Haitham is head of state, supreme authority and head of the armed forces. He holds legislative, executive and military powers, presides over the Council of Ministers, appoints or dismisses members of the government and supreme judges, promulgates laws, ratifies international treaties and agreements, decides on the state budget and grants amnesty for punishments. His actions are supported by the Council of Oman. This is made up of two bodies, as there are no political parties: the Majilis al-Shura (Consultative Council), whose members are elected every three years by Omani citizens; and the Majilis al Dawla (Council of State), whose members are directly appointed by the Sultan. The sultanate is divided into eleven governorates, themselves subdivided into districts or wilayats headed by walis.
Egypt and Jordan, Iran and Israel, Great Britain and the United States, India, China and the Emirates - what different friends! Codified by Sultan Qaboos, Oman's foreign policy is based on balance, a form of pluripolar neutrality and commercial logics embedded in a great Afro-Indian-Oceanic history. Linked to Washington by military agreements illustrated by the presence of a discreet base, Muscat is also the guardian of a close relationship with Teheran, from the Shah to the mullahs, unlike other Gulf countries. You can't choose your neighbors, and geography dictates: Oman to the south and Iran to the north control the Strait of Hormuz. Look at a map and you'll understand that the Sultanate is on the edge, not in it, like a window to Africa and Asia. This position as a modest, peacemaking power gives the Sultanate a number of freedoms, such as that of receiving Israeli Prime Minister Netanyahu at the end of 2018. These choices do not prevent the sultanate from being a parallel member of the Arab League and the Organization of Islamic Cooperation for half a century.
Economy: the stakes
Privatization of public companies, "Omanization" of jobs, sectoral diversification: the priority is now to invent the post-oil era by working on manufacturing, tourism, logistics, fisheries and mining.
Oman's economic strategy is based on five-year plans that set targets for all government sectors, with a firm commitment to making the most of the country's strategic position. The driving force behind these ambitions is the planned 2,000 km² Duqm Special Economic Zone (with its airport, hotels, logistics hub, refinery, gigantic warehouses and fish fridges), a nod to Dubai, the emirate of free zones, and the geopolitical advantage of facing the vast ocean outside the Gulf trap, in open waters.
This policy of major development is all the more necessary as the shadow of unemployment looms on the horizon (17% according to the International Labour Organization), particularly for young workers (50%). Faced with the "Omani Spring" in 2011, the government reacted by creating 50,000 jobs in the civil service, mainly in the army and police, a real burden on the budget. The public sector, which boasts a high rate of omanization (84% versus 13% in the private sector), is no longer able to absorb the 45,000 young people who enter the job market every year. Certain jobs (cab drivers, bus drivers, public relations staff in private companies) are reserved exclusively for Omanis, an exclusivity extended in 2004 to the sale of ready-to-wear clothing, textiles and fabrics, and the manufacture of fishing boats.
Energies
Discovered in the 1920s, oil production began in earnest in the late 1960s, with the first commercial exports in 1967. The industry is largely run by Petroleum Development Oman, a veritable "state within a state", 60% owned by the government and 40% by multinationals (Shell 34%, Total 4% and Partex 2%). The main deposits are located in the desert areas of Yibal, Natih and Fahud. The exploitation of hydrocarbons has largely contributed to the current level of development of the country, considered high-income by the World Bank (GDP of 19,500 USD per capita). Nevertheless, Oman remains a "small" country in terms of production, with a maximum of 1 million barrels per day - ranked 20th in the world - 78% of which is sold to China, and tenuous reserves. As a result, the national oil company is now operating under the less carbon-intensive umbrella of Energy Development Oman, a new entity that will steer all energies, with renewable energies a priority. Extensive solar energy projects are in the pipeline, while gas, discovered in 1991 in the Al-Wusta region, is being converted into LNG at Qalhat near Sur for export, mainly to Korea.
Oman Power and Water Procurement is in charge of water and electricity production projects. With regard to water, an average growth in demand of +7% per year between now and 2025 is forecast, confirming plans for new desalination plants, Ghubrah III, Barka V, Wadi Dayqah, Batinah North, Dhofar and Masirah. On the electricity side, demand growth is projected to average +5% per year between now and 2025. In addition to two gas-fired power plant projects, OPWP is leading the Manah I and Manah II solar power plant projects, scheduled for commissioning in 2023 and 2024 respectively. Oman now intends to focus on developing renewable energies, which are set to account for 16% of the electricity mix by 2025.
Ores
The Omanis have been mining gold, silver and especially copper in the northern Batinah region for almost 5,000 years. The government attaches great importance to this sector, and encourages the Omani private sector and foreign companies to invest in it. New geological and geophysical surveys are being undertaken to identify sites containing copper and gold, and exploration is constantly underway.
The sultanate also mines salt. The Qurayyat refinery produces 3,000 tonnes of table salt and 5,000 tonnes of industrial salt annually.
Agriculture and fisheries
Self-sufficient to 40%, the sultanate is focusing on the development of aquaculture, poultry farming and soilless cultivation. Oman is a net importer of certain basic foodstuffs such as dairy products, cooked rice and meat, while fruit and vegetables are produced in sufficient quantities. The country mainly grows dates and bananas, as well as limes, wheat, sorghum and seasonal vegetables such as tomatoes and potatoes. Date cultivation is enjoying a resurgence, accounting for over 60% of arable land and 200 registered varieties. The private sector has been encouraged to invest in the various date and tree product processing industries.
Coconuts are another export product. Of the 6,847 tonnes of annual production, 1,700 tonnes are exported, the rest being consumed locally. Coconut trees cover 396 ha of Dhofar's arable land. A coconut milk production plant is under study.
Even if its role is no longer as prestigious as it once was, incense is still appreciated in Oman and marketed worldwide. Oleo-gum is collected from some 8,000 trees growing wild in Dhofar. The government plans to plant 40,000 more.
The fishing industry is also booming again. Over 150 species of fish and shellfish have been identified. Tuna, grouper, kingfish and sardines are the most commonly consumed locally or exported, as are, to a lesser extent, shrimps, shark fins and lobsters. The real renaissance of fishing as a local industry dates back to 1978, when the Fishermen's Incentive Fund was set up. This fund provided financial assistance for the purchase of small fiberglass boats and outboard motors, enabling small fishing communities to try their luck again. The government intends to invest further and modernize the sector: fisheries have been set up in the Gulf of Oman and the Arabian Sea, the fleet has been equipped with powerful motorboats for sardine and tuna fishing, and lobster fishing is booming in Masirah Island and the Dhofar region.
Place du tourisme
Tourism is one of the key sectors in the country's diversification policy, thanks to its many assets, its stability (absence of any terrorist incidents) and its promise. The authorities are well aware of this potential, and have embarked on ambitious plans to renovate the country's cultural and religious heritage (forts, museums, mosques, etc.). The Vision 2040 plan makes the Sultanate a regional hub for travel and tourism, with the aim of increasing its share of GDP to 6% over the next 20 years. With a growth target of 7% a year, the government is encouraging foreign direct capital and greater private sector participation. The development of transport infrastructures, and in particular the new Muscat international airport, contributes to the country's attractiveness. The national airline Oman Air has also undertaken to expand its fleet and the number of destinations it flies to, in order to be an effective ambassador for the country's most ambitious tourism objectives.
At the same time, the government is encouraging the development of several major projects, notably on the northern and southern bangs of Muscat (Al Mouj and Sifah), in Dhofar (Hawana marina, hotels and adjoining residences...), and in more remote areas such as Duqm. The development of hotel infrastructures and the establishment of major international chains such as St. Regis or Mandarin Oriental are also encouraged, in addition to those already present - Accor, Anantara, Crowne Plaza, Intercontinental, Kempinsky, Marriott, Millennium, Radisson, Six Senses, The Chedi, etc.
In addition to these resources, the country is making a special effort to put in place skilled teams. An Omani Academy of Tourism and Hospitality has been set up to train young Omanis in the tourism industry, with a specialization in tour guiding. In addition, students at Sultan Qaboos University in Seeb receive theoretical and practical training, enabling them to work in agencies, hotels or in the field.
