Sultanate of Oman: Risk Analysis

Abstract

Oman, like Bahrain, was the second GCC country to be most affected by the 2011 political turmoil. Unlike Bahrain however, the political situation in Oman has stabilized following the implementation of some political reforms and measures to boost national employment. Oman, with Bahrain, constitutes a middle to lower income country within the GCC bloc, and is still heavily dependent on dwindling hydrocarbon resources. A young population structure and a growing labor force have ensured that the Omani government pursues a vigorous development plan that focuses on economic diversification, industrialization, and public sector efficiency. Tourism, especially from nearby GCC countries like the United Arab Emirates and European destinations, as well as developing more gas-based industries, are important elements of the government’s diversification policies.