Oman National Economy - An Overview

[Equality]

Oman enjoys a stable political, economic, and social system, which is enhanced by the excellent relationships between the Sultanate and neighboring countries. His Majesty, Sultan Qaboos, encourages market-orientated policies and private sector development as the mechanism for prosperity and growth.

Commercial export of oil began in 1967 and since H.M. Sultan Qaboos' accession to the throne in 1970, many more oil fields have been found and developed. In June 1999, Petroleum Development Oman (PDO) discovered a new oil field in southern Oman after drilling and testing three wells which demonstrated the commercial viability of the reservoir. This is the most significant find in five years. There is currently only one oil refinery in the Sultanate, which is located at Mina al Fahal. Plans are now underway to build a refinery at Sohar with an associated polypropylene programme. The Sohar Refinery is expected to produce 75,000 barrels/day. The basic engineering design has been finished and completion of the whole project is anticipated for the end of 2003, with beneficial operation achieved in early 2004.

Since the slump in oil prices in 1998/99, Oman has made active plans to diversify its economy and is placing a greater emphasis on other areas of industry, such as tourism and liquid natural gas. Oman's Basic Statute of the State expresses in Article 11, that, "The National Economy is based on justice and the principles of a free economy."

The Vision Conference: Oman 2020, held in June 1995, has developed the following aims with regard to securing Oman's future prosperity and growth:

To have economic and financial stability

To reshape the role of the Government in the economy and to broaden private sector participation

To diversify the economic base and sources of national income

To globalise the Omani economy

To upgrade the skills of the Omani workforce and develop human resources

By 2020, it is expected that the economy will not be reliant on oil, but rather, will have diversified into non-oil sectors, raising higher levels of savings and investments

The crude oil sector's share of GDP is estimated to drop to 9% in 2020, compared with 41% in 1996

The gas sector is expected to contribute around 10% to GDP, compared with less than 1% in 1996

The non-oil industrial sector's contribution is expected to increase from 7.5% to 29%
BY Oman times

[Arabian Princess]

Thank you Samaki, very intresting thread.

I would add some stats about Oman's economy, some members who are not fammiler with economic terms might find this difficult, but after reading what Samaki has written this is almost the same but a little bit detailed:

GDP: purchasing power parity - $19.6 billion (2000 est.)

GDP - real growth rate: 4.6% (2000 est.)

GDP - per capita: purchasing power parity - $7,700 (2000 est)

GDP - composition by sector: agriculture: 3%

industry: 40%

services: 57% (1999 est.)

Inflation rate (consumer prices): -0.8% (2000 est.)

Labor force: 850,000 (1997 est.)

Agriculture - products: dates, limes, bananas, alfalfa, vegetables; camels, cattle; fish

Exports: $11.1 billion (f.o.b., 2000 est.)

Exports - commodities: petroleum, reexports, fish, metals, textiles

Exports - partners: Japan 27%, China 12%, Thailand 18%, UAE 12%, South Korea 12%, US (1999)

Imports: $4.5 billion (f.o.b., 2000 est.)

Imports - commodities: machinery and transport equipment, manufactured goods, food, livestock, lubricants

Imports - partners: UAE 26% (largely reexports), Japan 16%, UK 9%, Italy 7%, Germany 6%, US (1999)

I got this information from CIA world fact book (http://www.cia.gov/cia/publications/factbook/)

[Seham]

Samaki, AP! Sounds interesting but it would make more sense to me if someone explained the meaning of GDP?

[Nimr Mal Zibala]

GDP IS GROSS DOMESTIC PRODUCT
THAT IS THE TOTAL "HOUSE" hold being produced IN OTHER WORDS MY DEAR THIS IS THE SINGLE AND MOST IMPORTANT FIGURE AND ECONOMY CAN SHOW .

PER CAPITA = PER HEAD AKA GDP PER CAPITA IS WHAT IS THE total "INCOME" (income in the broad sense)

AND WHEN WE SAY TOTAL THAT MEANS NO COSTS HAVE BEEN DEDUCTED. IE u make 500 rials per month but really wnat you make after paying bills and food is 50 rials leftover that would be your GDP-NET see? I hope i am being clear as i ahvent been with the economics for some time.

NOW LETS ASSUME 7,700 US DOLLARS IS THE GDP/CAPITA (IN REALITY ITS PROBABLY HALF AS WE ALL KNOW OUR GOVERNM<ENT LIKES TO EXAGERATE FIGURES )
THAT MEANS THE AVERAGE KHALFAN BIN JUMAA makes a laughing figure of 641 DOLLARS PER MONTH LET ME REPEAT THAT TO YOU ALL

641 DOLLARS PER MONTH IS THE AVERAGE HOUSEHOLD INCOME PER HEAD (PER PERSON LIVING IN THE HOUSE) Does that sound GOOD FOR U?

LETS Say KHALFAN AND SHOG MAKE A TOTAL OF 1282 (641x2ppl) a month. THATS ABOUT %) 500 rials total.
KHALFAN & SHOG HAVE 5 KIDS:

Electricity 90 dollars/month
Rent 500 dollars/month
Food 500 Dollars/month
Water 50 dollars/month
School Books 100 Dollars per month
Petrol 200 Dollars month
Gas 50 dollars per month
Car maintence 30 dollars/month
Children 1 toy each kid 100 Dollars/month
TOTAL = 1570

I have not added cost of House maid BY THE WAY
NOW YOU MAY HAVE NOTICED SOMETHING
Khalfan and SHog have become virtually broke after the rent & food bills. I think this is a reasonsable if not stingy assumption of household costs. SOMEWHERE A FEW DAYS AFTER SALARY PAY DAY THE FAMILY HAS NO MONEY IN FACT THEY CANT EVEN AFFORD 1 toy books or petrol or the water bills.


NUMBERS DONT LIE AND IF YOU THINK 250 RIALS A MONTH IS A GOOD FOR U than go jump off a cliff.
WHAT IF KHALFAN OR SHOG DIE?
THEN they total income is halved back to 641 dollars month with 5 kids rent and bills and food.

WHAT GOOD ECONOMY ? GDP IS IT , THERE IS NO OTHER MORE POWERFUL FIGURE THAT DEFINES THE STRENGTH OF AN ECONOMY


Now maybe mR SAMMAKI works for the government or those SPY SPY PPL telling fibbies with sentences like:


1) "The crude oil sector's share of GDP is estimated to drop to 9% in 2020, compared with 41% in 1996"

THIS IS BAD PEOPLE NOT GOOD. LESS OIL= LESS MONEY

2)Oman enjoys a stable political, economic, and social system
stable politics?

New guy in charge every month - ECONOMIC? Average salary is 250- thats good? Social system? Lawatis are spearate, Belushi separate, Swahili separate, indian separate, pakis separate, everyone is segreated from each other. Tribalistic racist nonsense " If you are not from this or that place than i will not help you"
AKA MORE LIES

3) State expresses in Article 11, that, "The National Economy is based on justice and the principles of a free economy

FINALLY SOMETHING I CAN USE TO ATTACK THESE COMPANIES WHICH ARE INJUST ! Does it work? NO ? Free economy ? Where please tell? Wheres all teh big investors ? Oh look they're all in UAE!

4) The Sohar Refinery is expected to produce 75,000 barrels/day. The basic engineering design has been finished and completion of the whole project is anticipated for the end of 2003, with beneficial operation achieved in early 2004.

WE SHALL SE IF THIS EVER HAPPENS

5) By 2020, it is expected that the economy will not be reliant on oil, but rather, will have diversified into non-oil sectors, raising higher levels of savings and investments


NON OIL SECTORS ? LIKE WHAT ? PLEASE TELL ME? LIKE WHAT ? TOurism FOR PENSIONERS from GERMANY WHO CANT WALK TO THE SHOP TO BUY A CAN OF SODA? GAS? Where is the gas till now ? AND SO WHAT ? Do you have a Car which is fueled by gas? If you do than weyhey I await for the GAS to start pouring in. But lets face it, petrol is the big money- who teh hell uses gas?

Thanks good day i hope your eyes are more open now to the farcical merry japers that are going on here.

[Seham]

Fishfood21,
Thank you for taking the time to explain gross domestic product!

So the average income per person is about $7,700.That is strange I read somewhere (I'll try to get hold of the source) that according to oil production the average Omani person income should be $18,000 per person per year. This fiqure was estimated by dividing the whole country's income of petrol by the number of population. However, as we all know that the majority of people get way beyond that fiqure and as previously said somewhere around $7,700. I also read that KSA and Bahrain have a similar fiqure as us i.e. around $8,000 (which I don't think is convincing but that was written in a BBC website). So if KSA which is the world's largest oil producer in the world has this income what are we to say! So far it is estimated that Qatar is going to have the highest income per capita in the near future because of huge LNG sources. What I am trying to say Fishfood21 that LNG does play a role in improving the country's economic status a classic example is Qatar!
Anyway, different people have different sources of information and I don't believe that all the fiqures are right.....I don't think that an average Omani Income is 250 R.O per month(= $7,700 per year) because then we won't be an Oil producing country and most Omani's will be riding donkey's rather than cars! And we would fall under the category of poor countries rather than rich.

[Quick Silver]

Originally posted by Seham

.....I don't think that an average Omani Income is 250 R.O per month(= $7,700 per year) because then we won't be an Oil producing country and most Omani's will be riding donkey's rather than cars! And we would fall under the category of poor countries rather than rich.

somebody stop you from posting pleasseeeeeeeeee!!!!!!!!!! you just proved to yourself that you are the one that should read that thread about the preception of civilization......... get alife will ya?????? who said that you are a major oil producing country.... you are an oil dependent country.. or renteir state..... you are only producing 800,000 bbl/day..... with reserves of 3 billion bbl........you got no guts talking about civilization at all cause you are not civilized yourself.... if you were civilized you would have felt the suffering of MOST omanies getting sallaries below 300 OMR......

[Nimr Mal Zibala]

Hold your horses. What topic is this ? Point me to this topic!

By the way Oman is going to produce even less oilm meaning less oil less income for all. YUM

[Seham]

Originally posted by M5
preception of civilization......... get alife will ya????
Strange I addressed this issue to 2 people only Sabal el'3af and fishfood21 ...... so ...

1. Which of the 2 are you??
2. You have a problem staying focused we are discussing "Oman's National Economy" and not "Civilisation"?

[Quick Silver]

talking about staying focused I think you are the one who is not focusing here..... if you have noticed (by focusing of course) you would know that sabal el'3af is know as M5 now....... second of all

ÇÊÇãÑæä ÇáäÇÓ ÈÇáÈÑ æÊäÓæä ÇäÝÓßã
when you talked about us getting civilized, were we talking about civilization? no my friend we were not.. to remind you, we were talking about forigners and their effect on our economy.......
really sad..... again get alife!!!

[Arabian Princess]

M5 and Fishfood,
I admit that between the lines you have good points. But both of spoil those good points by the rude behaviour you face members. Please for the last time I am calling you all to respect all members and not to attack them personally. I am giving a plea, if you have respect for this sabla and for both of your selves I dont want to see more attacks.

[Nimr Mal Zibala]

So telling the truth is not realyl permitted in here as i really always knew. Just because you can not wrap your mind around normal arguments and theories doesnt mean u have to ban me. AS for what M5 is talking about i have no idea

[Quick Silver]

Originally posted by Arabian Princess
M5 and Fishfood,
But both of spoil those good points by the rude behaviour you face members. .

how could you call my behaviour rude??? I was just answering her (seham) with the same ugly sarcastic way she was using..... she talked about me keeping focus, well now I demand that both of you stay focus.....

[Arabian Princess]

M5
thank you for asking me to stay focus, but am not talking about one post or another, am talking about many posts here in the business sabla.

FIshfood, there is a huge differnce between telling the truth and insulting someone. If you say the truth in a respectable way, everyone would listen to you, if you say it in a rude way everyone would ignnore your points and focus on how ur rude behavious is.

[shamsery]

Courtesy does not cost any thing

[Nimr Mal Zibala]

is not my idea of getting the truth across