Oman: Reform, Security, and U.S. Policy
crude oil fields are aging, Oman is trying to privatize its economy, diversify its sources of
revenue, and develop its liquid natural gas (LNG) sector, for which Oman has identified large
markets in Asia and elsewhere. Oman is part of the
exporting natural gas to UAE and Oman through undersea pipelines; it began operations in 2007.
The natural gas supplies to Oman from Dolphin (or from Iran, if those proposed projects come to
fruition) free up other Omani natural gas supplies for sale to its customers. In December 2013,
military institutions, cannot continue to be the main source of employment.... The citizens have to
understand that the private sector is the real source of employment in the long run.
2014, it took further steps to address citizen unemployment by requiring that more than 100,000
jobs now performed by expatriates be transferred to Omani nationals, with the intention of
reducing the proportion of expatriate private sector employment from 39% to 33%.
Oman is also trying to position itself as a trading hub, asserting that ships that offload in its
Salalah port pay lower insurance rates than those that have to transit the Persian Gulf to offload in
Dubai or Bahrain.
facilities for transportation of petrochemicals. The planned transit hub would link to the other
GCC states by rail and enable them to access the Indian Ocean directly, bypassing the Persian
in goods from Oman. Of U.S.
exports to Oman, the largest product categories are automobiles, aircraft (including military) and
related parts, drilling and other oilfield equipment, and other machinery. Of the imports,
Oman was admitted to the WTO in September 2000. The U.S.-Oman Free Trade Agreement was
signed on January 19, 2006, and ratified by Congress (P.L. 109-283, signed September 26, 2006).
According to the U.S. Embassy in Muscat, the FTA has led to increased partnerships between
Omani and U.S. companies. General Cables and Dura-Line Middle East are two successful