Sultanate of Oman, The Land of Mystery
Oman, the Sultanate of Oman, is located southeast of the Arabian Peninsula in southwest Asia and borders the Strait of Hormuz in the Persian Gulf, the world’s most important oil export route. The coastline is 1700 kilometers long, most of the territory is 200 to 500 meters above sea level of the plateau, the northeast of the Hajar Mountains, the main peak of the Sham Mountain 3,352 meters above sea level, the highest peak in the country. Oman is the only country in the Gulf of Arabian Peninsula with beaches, mountains and deserts. It has beautiful natural scenery, cultural and historical sites and abundant sightseeing resources. As far as monuments are concerned, Oman has more than 500 forts, most of which were built by the Portuguese in the 14th century and are largely intact. In recent years, Oman has developed new tourism programs such as desert camping, bird watching, watching turtles lay eggs, and mountaineering. Muscat, the capital, is a must-see for any visitor to Oman, and there are many other places to visit around it, such as the satellite city of Watyat and the city of Kurong, which has preserved its complete history.
Tourism is a key sector for the Government of Oman. In 2004, the Ministry of Tourism was established to plan and promote the development of Oman’s tourism industry. Oman invested $662 million in tourism in 2013 and is expected to grow another 11.7 percent in 2014. As of 2012, Oman has 238 star hotels (including motels) (including 15 five-star hotels and 18 four-star hotels), with 12,180 rooms (suites) and 18,565 beds. The Omani cabinet has decided to transform Sultan Qaboos port in the capital Muscat into a tourist port, with its original commercial functions gradually transferred to places such as Sohar Port in the north of Oman. According to Oman’s long-term development plan, tourism will grow at an average annual rate of 5.5% from 2011.
Oman’s tourism ministry hopes to increase the contribution of tourism to GDP to 5% by 2020 and create 100,000 jobs by 2024. According to the WorldTravel&TourismCouncil (WTTC) ‘economic impact of tourism and travel 2016’ report, revenue generated directly from tourism in Oman reached $1.8 billion (2.5% of GDP) in 2015, That could rise to $3.5 billion (3.4% of GDP) by 2026. If indirect revenues are included, tourism revenues in the country will reach $4.1 billion (5.7% of GDP) in 2015 and $7.9 billion (7.7% of GDP) by 2026. On the employment front, the WTTC forecasts that the tourism industry, which currently directly creates 53,000 jobs, could cumulatively create 81,000 jobs by 2026. The government of Oman appreciates the positive role of tourism as a labor-intensive industry in creating jobs. Currently, 39 tourism projects are under construction, which will lay a good foundation for the future growth of the tourism industry.
In addition, Oman pursues a free and open economic policy with the goal of flourishing its national culture and improving the lives of its people; It has always pursued a unique foreign policy of good-neighborliness, non-interference in each other’s internal affairs, mutual respect, peaceful coexistence, balance, moderation, comprehensive friendship and settlement of disputes through dialogue. Following the principles of neutrality, non-alignment, good-neighborliness and non-interference in other countries’ internal affairs, China actively participates in regional and international affairs, is committed to safeguarding security and stability in the Gulf region, and stands for resolving differences among countries through dialogue and peaceful means.
The oil and gas industry is Oman’s pillar industry, accounting for 68 percent of state revenue and 41 percent of GDP. Industry is mainly oil extraction, in recent years began to pay attention to the natural gas industry. A free and open economic policy will be implemented, and oil revenues will be used to vigorously develop the national economy. Efforts will be made to attract foreign capital, introduce technology and encourage private investment. In order to gradually change the national economy’s dependence on oil, realize the diversification of financial revenue sources and sustainable economic development, the government vigorously promotes industrial diversification, employment omanization and economic privatization, increases the investment in infrastructure construction, and expands the participation of private capital. Agriculture is underdeveloped and food is mainly imported. Fisheries are rich in resources and are a traditional industry in Oman. In addition to meeting domestic demand, fisheries are also available for export and are one of the main sources of Oman’s export income from non-oil products.
Oman’s fiscal, economic and financial indices showed positive results in 2021 thanks to beneficial initiatives implemented by the government. Gross domestic product (GDP) is expected to reach 32 billion riyals ($84 billion) in 2021, up 13.8 percent year-on-year. The fiscal deficit was 1.2 billion riyals ($3.2 billion), or 3.8 percent of GDP, compared with 15.5 percent of GDP in 2020. Debt stood at 68% of GDP in 2021, compared with a planned 83% of GDP. At the end of September 2021, the central bank’s foreign exchange reserves reached $18.4 billion, up 31 percent from $14 billion in September 2020. At the end of October 2021, the bank’s total deposits amounted to 25.2 billion riyals, an increase of 5.3 percent year-on-year. At the end of October, total loans provided by the banks of Arbenia amounted to 27.8 billion riyals, up 5 percent year-on-year.
