The Sultanate of Oman is strategically located of the south-eastern corner of the Arabian Peninsula, at the junction of the world’s two large continents: Asia and Africa and on the trade route between Europe, Asia and the Far East. On the East of Oman lie the Gulf of Oman and the Arabian Sea, on the West the United Arab Emirates and Kingdom of Saudi Arabia, on the North the Islamic Republic of Iran and on the South the Republic of Yemen. Oman total population is about 2.7 millions in 2007. It occupies a land area of approximately 309, 500 sq kms with a coastline extending almost 1700km overlooking the Arabian Gulf, Gulf of Oman and the Arabian Sea.

Muscat is the Capital of the Sultanate of Oman. The Sultanate is divided into four Governorates and five Regions. The Governorates are Musandam,
Al Buraimi, Muscat and Dhofar, and the regions are Al-Batinah, Adh-Dhahira, Ad-Dakhliyah, Ash-Sharquiah, and Al-Wusta.

His Majesty Sultan Qaboos bin Said is the Head of State of the country. His accession in July 1970 ushered in the new era and modern age for Oman.

The Sultanate enjoys a stable social, political, and economic system with excellent relations with neighboring countries. All this enabled the country to play an active role in promoting regional political and economic cooperation. In addition to its rich cultural heritage it has a safe environment, friendly people and abundant scenic beauty and variety. Oman offers a lot to attract tourists and business visitors alike.

Market-oriented policies and private sector development are deeply rooted economic concepts and practices in Oman. The Government has always regarded a dynamic private sector as the engine of prosperity and growth. This is clearly reflected in Oman’s Development Strategy that was adopted back in 1974. One of the salient features of this strategy has been to establish a free competitive market economy with equal opportunities for all.

Through consecutive Five-Year development plans, Oman has achieved remarkable progress on both the economic and social fronts in a relatively short period of time. Nevertheless, after three decades of intensive development efforts, Oman still faces a host of challenges stemming mainly from the fact that the economy is reliance on oil which is a non-renewable dwindling resource subject to a high degree of price volatility. Recognizing this challenge, the Government has initiated a structural adjustment process aimed at laying down a solid foundation for a diversified economic base led by the private sector. Entailed amending laws and regulations such as Foreign Investment Law, labour law, and other laws including the Commercial Law, the Agency Law, the Copyright Law, and the Corporate Income Tax Law, which are purshuing the provisions of the Basic Law of the State proclaimed the supremacy of law as the basis for governance and guaranteed equal opportunity and freedom for all.

These reform measures paved the path towards improving the economy’s potential and its ability to break away from its dependency on oil and to diversify the sources of national income. To this end, a number of huge projects have been completed or are underway in the current Seventh Five-Year Development Plan.
These are the positive steps in Oman’s way to realize its Future Vision, and outline the major policies and mechanisms through which the country will achieve sustainable development in a private sector-led and an export-oriented economy with diversified sources of national income.

With the objective of integrating into the international economy, Oman joined World Trade Organization, in November, 2000 and became a full-fledged member.
Oman as a founder-member of GCC, is now heading towards the implementation of the Common Market launched, in Jan, 2008 and playing an active role in the Greater Arab Free Trade Area of the Arab League. With the successful completion of the Sixth Five-Year Development Plan (2001-2005) and the satisfactory progress realized in the first’s years of the Seventh Plan (2006-2010). Oman has confidence and a robust outlook for future.

Source: “Ministry of National Economy, Sultanate of Oman”