The diversification of Oman's economy to oil alternative sources of income
- Omanization policy
- Literature review
Oman relies heavily on oil for its economy which contributes a large proportion of the GDP of this country although it's not a large producer like its neighbors who heavily rely on oil in their economies. To reduce the gap left by oil in the GDP, agriculture and fishing play a major role in income generation. Of late, there has been a rise in tourism contributed by untouched coastlines, mountains, and the capital city. The main religion in this country is Ibadi Islam sect (BBC world news 2012).
Oman country occupies the south-eastern coast of the Arabian Peninsula where the Persian Gulf and Arabian Sea meet. Most of the country is dry land with high temperatures. On the contrary the coastal regions are far much better. Advanced economic activities started after the 1970s coup that brought Qaboos Bin Said to power. Oman's climate is hot and dry in the hinterland while at the coast, it is hot and humid. In summer temperatures at the capital at times goes as high as 43 C in the capital Muscat and other coastal towns.
During the winter temperatures are mild going as low as 17 C. In the interiors, the same applies although the temperatures may be mild at higher altitudes. Rainfall in Oman is minimal though it increases in the mountainous regions. Low rainfall has resulted to sparse vegetation excluding irrigated lands. Ancient water channels are used for irrigation purposes. The dominant natural vegetation is the acacia tree with plant species being protected at nature preserve as most of the land is rocky (Oman 2012).
[...] This helps in reducing pressure on grazing land due to overstocking and camels nature of feeding which destroys the roots of vegetation. Currently Oman is the leader in production of livestock in the Gulf region. Modern facilities used for sheep production are being introduced by the government while employing technology to reduce death rates, increase fertility and increase the rate at which the sheep grow. Ministry of agriculture and fisheries has started a project aimed at increasing milk and other dairy products. This involve breeders with concentrates feed fertilizer and seeds for fodder. [...]
[...] Literature review The foundation of Oman economy was built in the years 1970s after the rise of the sultan into power. The sultan instigated reforms aimed at improving the economic status of the country. Growth engines were based on oil, agriculture and trade. This was not without opposition for instance, the military insurgence by rebels. This had a negative impact on foreign investment and tourism. After 1975, the conflict ended and the economy was able to recover. Before commercialization of oil in Oman, the economy was dependant on religious taxes custom duties and British subsidies (Federal Research Division 2004). [...]
[...] This was aimed at reducing contribution attributed to the oil sector to in the year 2020 and increase contribution from the gas sector to 10%. Gas has a higher potential in Oman due to its large volumes of deposits as compared to oil. The government on its part is stimulating energy intensive as well as gas related industries like fertilizers, aluminium production and downstream petrochemical. The government is promoting export oriented as well as processing businesses and any projects that are in position of employing a large population. [...]