Oman 

Oman country policy

Policy established 01 May 2012

• Early warning signal 1300 mln euro
• - of which was used as at 2012-04-30 855 mln euro
• Open without restrictions

Country class: 2

Oman country facts

Atradius Dutch State Business Economic Research

Country Report last updated :  October  12th, 2011
Country :  OMAN

Political Situation

    
Stable

Head of state
Sultan Qaboos bin Said al-Said.

Form of government
The Sultan is also prime-minister, minister of defense, finance and foreign affairs. Members of the Majlis al-Shura (consultative council) are appointed by the Sultan. They have no real power. Although no parliamentary democracy Oman can be qualified as a relative pluralist and tolerant country in the Gulf-region.

Internal Economic Situation
Rather Good

General situation
The economy is highly dependent on the oil/gassector. Higher oil production (865,000 bpd) and increased government spending have boosted GDP-growth to 4.5% in 2010 and probably 2011 as well. Inflation has risen to 4% p.a. because of higher food prices, in spite of the extensive subsidy system.  Well managed and well capitalised banking sector, low level of NPL’s. The 7 large local banks dominate the sector, of which 3 account for 60% of assets and deposits.                                                                                 

External Economic Situation
Strong

Main sources of foreign exchange
Crude oil/LNG (60%). Long term contracts with Korea, Japan, India for export of 6.5 mln tons LNG per year.

Main foreign markets
Asia (> 60%), USA.  

Main expenses of foreign exchange
Machinery and transports (50%), food . 
 
Balance of payments 
Higher oil prices and output have boosted exports in 2010, hence trade and current account surpluses. In addition to net FDI, gross registered reserves have accumulated further.