Economy Oman

Omani citizens enjoy good living standards, but the future is uncertain with Oman's limited oil reserves.[14] The other sources of income, agriculture and local industries, are small in comparison and count for less than 1% of the country's exports. Agriculture, often subsistence in its character, produces Dates, Limes, Grains and vegetables. Less than 1% of the country is under cultivation but, in general, food has to be imported. Industries contribute only with 4%, but there are governmental plans to increase this.

Oil production is extracted and processed by Petroleum Development Oman. In recent years, proven oil reserves have been holding approximately steady, although oil production has been decreasing.[15][16] Oman has other mineral resources including Copper, Asbestos and Marble, but this is little exploited.
Oil and gas

Commercial export of oil began in 1967 and since Sultan Qaboos' accession to the throne in 1970, many more oil fields have been found and developed. In June 1999, 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.

Work is continuing on the RO 503.876 million ( US$1,300 million ) oil refinery project in Sohar, which was due to go into operation in 2006 with a 116,400 barrels a day refining capacity. In 2004, Oman Oil Refinery was supplied with about 78,200 barrels a day for refining, while PDO began using steam injection technology in several wells to increase their productivity. Oman's future economy is expected to depend on Sohar, which is growing very fast.

Since the slump in oil prices in 1998, Oman has made active plans to diversify its economy and is placing a greater emphasis on other areas of industry, such as tourism and 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."
[edit] Mineral resources

Oman's mineral resources include chromite, dolomite, zinc, limestone, gypsum, silicon, copper, gold, cobalt and iron. Several industries have grown up around them as part of the national development process which, in turn, have boosted the minerals sector’s contribution to the nation’s GDP as well as providing jobs for Omanis.

Copper has been mined in Oman for thousands of years. The mineral sector’s operations include mining and quarrying. Several projects have recently been completed including: an economic feasibility study on silica ore in Wadi Buwa and Abutan in the Wusta Region, which confirmed that there were exploitable reserves of around 28 million tonnes at the two sites; a feasibility study on the production of magnesium metal from dolomite ore; a draft study on processing limestone derivatives; a project to produce geological maps of the Sharqiyah Region ; economic feasibility studies on the exploitation of gold and copper ores in the Ghaizeen area; a study on raw materials in the wilayats of Duqm and Sur for use in the Sultanate’s cement industry; and a study on the construction of a new minerals laboratory in Ghala in the Governorate of Industry

The industrial sector is a cornerstone of the Sultanate’s long-term (1996-2020) development strategy. Industry is not only one of the main sectors involved in diversifying the sources of national income and reducing dependence on oil; it is also capable of helping to meet Oman’s social development needs and generate greater added value for national resources by processing them into manufactured products.

The Seventh Five-Year Development Plan creates the conditions for an attractive investment climate. Under its strategy for the industrial sector the government also aims to develop the information technology and telecommunications industries. The Knowledge Oasis Muscat complex has been set up and expanded, and Omani companies are developing their technological potential through collaboration with various Japanese and German institutions.

There is also an industrial estate in Sohar - where the Sultanate’s heavy industries are based - as well as other estates in Sur, Salalah, Nizwa and Buraimi. Natural gas is transported to the industrial estates in Sohar and Salalah, helping to promote expansion of those industries that depend on natural gas; the government grants these industries tax exemptions, as an incentive to encourage their expansion and development. By 2020 the industrial sector is expected to contribute 15% to the country’s GDP.