Oman: Politics, Security, and U.S. Policy
March 2, 2023April 17, 2024
Since the British withdrawal from the Persian Gulf in the early 1970s, Oman has relied on the
Since the British withdrawal from the Persian Gulf in the early 1970s, Oman has relied on the
United States as a key defense partner, and successive U.S. presidential administrations have United States as a key defense partner, and successive U.S. presidential administrations have
Jeremy M. Sharp
considered Oman important to the promotion of regional stability and peace in the Middle East.
considered Oman important to the promotion of regional stability and peace in the Middle East.
Specialist in Middle
Specialist in Middle
Over the past decade, Oman has played the role of discreet mediator
Over the past decade, Oman has played the role of discreet mediator
, having served having served
as an an
Eastern Affairs
Eastern Affairs
intermediary in seeking to resolve the ongoing civil conflict in Yemen. Oman also
intermediary in seeking to resolve the ongoing civil conflict in Yemen. Oman also
has helped helped
facilitate negotiations
facilitate negotiations
with Iran, including those that led to the 2015 Joint Comprehensive Plan of Action to limit Iran’s that led to the 2015 Joint Comprehensive Plan of Action to limit Iran’s
nuclear program, from which the Trump Administration withdrew in 2018. nuclear program, from which the Trump Administration withdrew in 2018.
Oman’s strategic Oman’s strategic
location at the entrance to the Strait of Hormuz, one of the worldlocation at the entrance to the Strait of Hormuz, one of the world
'’s most important oil s most important oil
chokepoints, chokepoints,
providesand along the Arabian Sea approaches to East Africa and the Red Sea provide it with regional and global influence. it with regional and global influence.
In January 2020, Oman’s long-time leader, Sultan Qaboos bin Sa’id Al Said, passed away and was succeeded by his cousin
In January 2020, Oman’s long-time leader, Sultan Qaboos bin Sa’id Al Said, passed away and was succeeded by his cousin
Haythim bin Tariq Al SaidHaythim bin Tariq Al Said
(born 1955). Sultan Haythim leads a stable, high-income nation, though Oman faces challenges in maintaining . Sultan Haythim leads a stable, high-income nation, though Oman faces challenges in maintaining
its decades-long social contract, in which oil has brought prosperity to its citizens in exchange for their its decades-long social contract, in which oil has brought prosperity to its citizens in exchange for their
apparent acceptance of the acceptance of the
Sultan’s absolute rule. Like the other Gulf Cooperation Council (GCC) states—Saudi Arabia, Qatar, the United Arab Sultan’s absolute rule. Like the other Gulf Cooperation Council (GCC) states—Saudi Arabia, Qatar, the United Arab
Emirates (UAE), Bahrain, and Kuwait—Oman derives most of its state income from hydrocarbon production and export; Emirates (UAE), Bahrain, and Kuwait—Oman derives most of its state income from hydrocarbon production and export;
however, Oman’s hydrocarbon-focused economy is smaller than those of its wealthier neighbors. however, Oman’s hydrocarbon-focused economy is smaller than those of its wealthier neighbors.
In order toTo curb curb
government spending, attract foreign investment, and diversify the economy, Sultan Haythim has launched “Vision 2040,” a government spending, attract foreign investment, and diversify the economy, Sultan Haythim has launched “Vision 2040,” a
strategic plan similar to those of other GCC states. strategic plan similar to those of other GCC states.
The U.S.-Oman Free Trade Agreement was signed on January 19, 2006, and ratified by Congress (P.L. 109-283, signed
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). Today, the United States is one of Oman’s largest trading partners and foreign investors. In September 26, 2006). Today, the United States is one of Oman’s largest trading partners and foreign investors. In
20212022, the , the
United States exported $1.United States exported $1.
48 billion in goods billion in goods
and services to Oman and imported $1. to Oman and imported $1.
866 billion.
As elsewhere in the Arab world, the ongoing war between Israel and Hamas in Gaza has sparked widespread anti-American and anti-Israeli sentiment in the Sultanate. Omanis have boycotted certain U.S. corporations to protest U.S. support for Israel. The Omani Foreign Ministry has been critical of Israel’s conduct of the war in Gaza and the Foreign Minister has called for an emergency peace conference that would bring a wide array of actors to the table, including Israel, Iran, and Hamas.
Oman and the United States maintain strong defense ties, whereby Oman permits the U.S. military to use its military facilities. However, when compared to other Gulf Arab states, such as Saudi Arabia, the United Arab Emirates, and Kuwait, U.S.-Omani defense relations are smaller in scale. Oman is trying to modernize its arsenal with purchases from the United States. According to the Defense Security Cooperation Agency (DSCA), total U.S. Foreign Military Sales to Oman through FY2022 amounted to $3.5 billion. In October 2023, the Defense Security Cooperation Agency notified Congress of a possible Foreign Military Sale to Oman of 301 Tube-Launched, Optically-Tracked, Wireless Guided (TOW) 2B, Radio Frequency Missiles.
The United States provides minimal foreign assistance to Oman, mainly for border security. From 1946 to 2020, the United States provided Oman with $853 million in total economic and military assistance. The United States billion in goods.
Since the 1990s, Oman has consistently sought an end to the Arab-Israeli dispute as a means of calming regional tensions. During the height of Israeli-Palestinian peacemaking in the 1990s, Oman became the first Gulf state to officially host a visit by an Israeli prime minister (Yitzhak Rabin in 1994), and it hosted then-Prime Minister Shimon Peres in April 1996. At times, there has been speculation among experts that Oman would follow the UAE and Bahrain in normalizing relations with Israel (the Abraham Accords), but Omani officials have not given any indication that doing so is currently under consideration. In 2023, Oman did announce that it was opening up its airspace for all civil carriers, including Israeli commercial aircraft; the Israeli government responded with expressions of gratitude.
Oman and the United States maintain strong defense ties, whereby Oman permits the U.S. military to use its military facilities. Oman also allows other nations to use some of its maritime facilities, including China. In November 2022, the Defense Security Cooperation Agency notified Congress of a possible Foreign Military Sale to Oman of 48 Raytheon Joint Stand Off Weapons (JSOW) for $385 million. The JSOW is an unpowered glide bomb that uses Global Positioning System navigation for guidance in order to strike hardened targets.
From 1946 to 2020, the United States provided Oman with $853 million in total economic and military assistance. Currently, Oman receives around $5 million of annual foreign assistance to support specific U.S. programs. The United States provides Oman with annual International Military Education and Training (IMET) grants to support Omani officer participation in the IMET program, which provides professional military education and training to foreign military students and seeks to establish lasting relationships with future leaders. The United States also provides small funding grants, through provides small funding grants, through
Nonproliferation, Antiterrorism, Demining, and Related Nonproliferation, Antiterrorism, Demining, and Related
(NADR) programs, to help Oman counter terrorist programs, to help Oman counter terrorist
and related threats. The Biden Administration’s FY2025 budget request would eliminate NADR funding and reduce overall U.S.-Oman assistance to $2 million. and related threats. In previous years, the United States also has provided Oman with Foreign Military Financing grants to procure U.S. defense equipment.
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1415 Oman: Politics, Security, and U.S. Policy
Contents
Overview ......................................................................................................................................... 1
Domestic Politics ..Governance ........................................................................................................................... 3
Economic Reforms and Diversification .......................................................................................... 3
Human Rights .................................................................................................................................. 4
Advancement of Women ..................................................................................................... 5
Foreign Policy ................................................................................................................................. 5
China ......................................................................................................................................... 56
Iran ............................................................................................................................................ 6
Yemen........................................................................................................................................ 8
Israel and the Abraham AccordsWar in Gaza ........................................................................................................ 8
U.S. Relations, Defense, Aid, and Trade ................................................................................................. 9
Figures
Figure 1. Oman ................................................................................................................................ 2
Figure 2. Oman GDP Growth .......................................................................................................... 3
Figure 3. Oman’s Trade with Iran and the GCC..........2024 U.S.-Oman Joint Military Commission .................................................................... 7 11
Contacts
Author Information ......................................................................................................................... 11 12
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Oman: Politics, Security, and U.S. Policy
Overview
Oman is located along the Arabian Sea (
Oman is located along the Arabian Sea (
see Figure 1), on the southern approaches to the Strait of ), on the southern approaches to the Strait of
Hormuz, across from Iran. Since the mid-eighteenth century, the Al Said (or Busaid) dynasty has Hormuz, across from Iran. Since the mid-eighteenth century, the Al Said (or Busaid) dynasty has
ruled Oman. The Sultanate of Oman is a hereditary monarchy, and the sultan has sole authority to ruled Oman. The Sultanate of Oman is a hereditary monarchy, and the sultan has sole authority to
enact laws through royal decree.2 In January 2020, Oman’s long-timeenact laws through royal decree.2 In January 2020, Oman’s long-time
and childless leader, Sultan Qaboos bin leader, Sultan Qaboos bin
Sa’id Al Said, passed away and was succeeded by Haythim bin Tariq Al Said, a cousin selected Sa’id Al Said, passed away and was succeeded by Haythim bin Tariq Al Said, a cousin selected
by Oman’s royal family immediately upon by Oman’s royal family immediately upon
Qaboos’s death. Qaboos’s death.
Sultan Haythim bin Tariq al Said
Sultan Haythim leads a stable, high-income
Sultan Haythim leads a stable, high-income
Sultan Haythim bin Tariq, an Oxford-educated cousin
Sultan Haythim bin Tariq, an Oxford-educated cousin
of the late of the late
sultanSultan Qaboos, is 68 years old (born Qaboos, is 68 years old (born
nation (as categorized by the World Bank),
nation (as categorized by the World Bank),
October 13, 1954). He had served since 2002 as
October 13, 1954). He had served since 2002 as
though Oman faces challenges in maintaining
though Oman faces challenges in maintaining
Minister of Heritage and Culture and previously served
Minister of Heritage and Culture and previously served
its decades-long social contract, in which oil
its decades-long social contract, in which oil
in senior positions in Oman’s foreign ministry.
in senior positions in Oman’s foreign ministry.
has brought prosperity to Omani citizens in
has brought prosperity to Omani citizens in
Haythim’s selection bypassed his two older brothers—
Haythim’s selection bypassed his two older brothers—
exchange for their apparent acceptance of the
exchange for their apparent acceptance of the
Asad bin Tariq and Shihab bin Tariq—whom many
Asad bin Tariq and Shihab bin Tariq—whom many
experts considered more likely successors than experts considered more likely successors than
Sultan’s absolute rule. Like the other Gulf
Sultan’s absolute rule. Like the other Gulf
Haythim. Upon assuming the leadership, Sultan
Haythim. Upon assuming the leadership, Sultan
Cooperation Council (GCC) states—Saudi
Cooperation Council (GCC) states—Saudi
Haythim indicated a commitment to continue Qaboos’s
Haythim indicated a commitment to continue Qaboos’s
Arabia, Qatar, the United Arab Emirates
Arabia, Qatar, the United Arab Emirates
policies.1 In late January 2021, the new Sultan appointed
policies.1 In late January 2021, the new Sultan appointed
(UAE), Bahrain, and Kuwait—Oman derives
(UAE), Bahrain, and Kuwait—Oman derives
his son, Theyazin bin Haythim, who was born in August
his son, Theyazin bin Haythim, who was born in August
most of its state income through hydrocarbon
most of its state income through hydrocarbon
1990, as Crown Prince. The appointment represented
1990, as Crown Prince. The appointment represented
a contrast with the Qaboos era in which the succession a contrast with the Qaboos era in which the succession
production and export. In
production and export. In
20222023, oil and gas , oil and gas
was unclear
was unclear
. Theyazin serves in government as Minister
accounted for 78% of government revenues.3
of Culture, Youth, and (Qaboos had no children). Theyazin serves
accounted nearly 70% of expected
in government as Minister of Culture, Youth, and
government revenues.3 With proven oil
Sports. Crown Prince Theyazin completed officer
Sports. Crown Prince Theyazin
With proven reserves at 5.2 billion barrels reserves at 5.2 billion barrels
completed officer (ranked 23rd
training at the Royal Military training at the Royal Military
(ranked 23rd Academy Sandhurst in the
globally as of June 2022) and globally as of June 2022) and
Academy Sandhurst in the 2023 production
United Kingdom. United Kingdom.
current production at 1.05at 1.07 million barrels per million barrels per
day (mbd), however,day (mbd), however,
4 Oman’s hydrocarbon- Oman’s hydrocarbon-
focused economy is smaller than those of its focused economy is smaller than those of its
wealthier neighbors. Oman is not a member of wealthier neighbors. Oman is not a member of
the Organization of the Petroleum Exporting the Organization of the Petroleum Exporting
Countries (OPEC)Countries (OPEC)
, but coordinates with other but coordinates with other
oil producers through the wider, 23-member oil producers through the wider, 23-member
OPEC+ arrangement. Oman’s sovereign OPEC+ arrangement. Oman’s sovereign
wealth fund, the Oman Investment Authority, wealth fund, the Oman Investment Authority,
has total assets of has total assets of
$41.5nearly $47 billion (as of billion (as of
late
2022
March 2024), a figure far less than some other ), a figure far less than some other
GCC
Source: Foreign Ministry of OmanForeign Ministry of Oman
.
GCC
state funds, which have hundreds of billions of state funds, which have hundreds of billions of
dollars under management.4
Though the Sultanate has used its limited oil-generated wealth to provide citizens with subsidized goods, low taxes, and public sector salaries, the rising costs of oil-fueled state spending coupled with global inflation has put government finances under strain. Oman’s debt to Gross Domestic 1 “Meet Oman’s New Sultan. How Will He Navigate the Region’s Turmoil?” Washington Post, January 15, 2020. 2 U.S. Department of State, Overseas Security Advisory Council, Bureau of Diplomatic Security, Oman Country Security Report, March 31, 2022.
3 Kate Dourian, “Oman Has Cause To Celebrate Record High Oil Production And New Partners,” Middle East
Economic Survey, February 1, 2023.
4 See Global SWF Data Platform, available at:dollars under management.5
1 “Meet Oman’s New Sultan. How Will He Navigate the Region’s Turmoil?” Washington Post, January 15, 2020. 2 U.S. Department of State, Overseas Security Advisory Council, Bureau of Diplomatic Security, Oman Country Security Report, March 31, 2022.
3 “Oman—Country Commercial Guide,” International Trade Administration, updated February 20, 2024, at https://www.trade.gov/country-commercial-guides/.
4 U.S. Energy Information Administration, Open Data Application Programming Interface, accessed March 13, 2024, at https://www.eia.gov/opendata/.
5 See Global SWF Data Platform, available at https://globalswf.com/. https://globalswf.com/.
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Oman: Politics, Security, and U.S. Policy
Product ratio is already the second highest in the GCC after Bahrain's (total debt is $104 billion).5 In 2021, unemployed or underemployed youth protested in several Omani cities demanding access to stable jobs; Sultan Haythim had enacted austerity measures to rein in public spending.6 InThe Sultanate has used its limited oil-generated wealth to provide citizens with subsidized goods, low taxes, and public sector salaries. During periods of lower oil prices, these costs can strain Oman’s national budget. Nonetheless, Oman has made progress in reducing its debt to Gross Domestic Product (GDP) ratio, which remains high by GCC standards. Public debt was estimated to be around 35% of GDP in 2023, down from 64% of GDP in 2020; total debt is $39.5 billion.6 In September 2023, global credit rating agency Fitch Ratings upgraded Oman’s credit rating to BB+ from BB due to the decline in Oman’s debt-to-GDP ratio. Since 2022, pressure on the treasury has somewhat eased due to higher oil prices and government 2022, pressure on the treasury has somewhat eased due to higher oil prices and government
repayment of sovereign debt, though the fundamental challenge of how Oman transitions to a repayment of sovereign debt, though the fundamental challenge of how Oman transitions to a
post-oil, private-sector led economy remains.7 post-oil, private-sector led economy remains.7
Figure 1. Oman
People
• Population: 3.8 mil ion, of which about 46% are expatriates (2023 est.) Population: 3.8 mil ion, of which about 46% are expatriates (2023 est.)
• Religions: Muslim 85.9% Religions: Muslim 85.9%
(of which Ibadhis and Sunnis are over 90%, and 5% are Shia); Christian
; Christian 6.4%; Hindu 5.7%; other 2% (2020 est.) 6.4%; Hindu 5.7%; other 2% (2020 est.)
Economy • GDP: $ GDP: $
103108.3 bil ion ( bil ion (
2022)
2023 est.)
• GDP per capita: $ GDP per capita: $
41,572 (2022) 21,266 (2023 est.) • GDP real growth rate: GDP real growth rate:
4.7% (2022) 1.2% (2023 est.) • Unemployment Rate: Unemployment Rate:
31.5% Youth Unemployment: % Youth Unemployment:
14.6% (20217.1% (2022) )
Energy
• Oil Oil
Exports: $28Reserves: 5.2 bil ion bil ion
barrels (2022) (2022)
and
Trade
Oil Reserves: 5.2 bil ion barrels (2022)
•
Trade
Major Trade Partners: China (mostly oil), UAE, South Korea, Japan, India, United States, Saudi Major Trade Partners: China (mostly oil), UAE, South Korea, Japan, India, United States, Saudi
Arabia
Arabia
Source: Graphic created by CRS with information from CIA, Graphic created by CRS with information from CIA,
The World Factbook, World Bank,World Bank,
and International Monetary Fund, Economist Economist
Intelligence UnitIntelligence Unit
.
5, and International Trade Administration.
6 Economist Intelligence Unit Economist Intelligence Unit
(EIU), ,
Oman (country report), (country report),
January 21, 2023March 13, 2024, available at, available at
: http://country.eiu.com/oman. http://country.eiu.com/oman.
6 “Protests in Oman over economy, jobs continue for third day,” Al Jazeera, May 25, 2021. 77 EIU Viewpoint, One-click report: Oman, March 1, 2024, at https://viewpoint.eiu.com/analysis/geography/XN/OM/reports/one-click-report; Hassan Jivraj, “Oman’s economy surges with higher oil prices, fiscal reform,” Hassan Jivraj, “Oman’s economy surges with higher oil prices, fiscal reform,”
Al Monitor, September 1, 2022. , September 1, 2022.
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Domestic PoliticsGovernance
Oman has a bicameral parliament with limited legislative powers; members may question Oman has a bicameral parliament with limited legislative powers; members may question
ministers, select their own leadership, and review government-drafted legislation, but law-making ministers, select their own leadership, and review government-drafted legislation, but law-making
powers rest firmly in the hands of the Sultan. Members of thepowers rest firmly in the hands of the Sultan. Members of the
86-seat Consultative Council Consultative Council
((
Majlis As Shura) are directly elected by Omani citizens, male and female, over 21 years of age. ) are directly elected by Omani citizens, male and female, over 21 years of age.
The sultan appoints all The sultan appoints all
85 members of the upper house or State Council (members of the upper house or State Council (
Majlis Ad Dawla). ).
Appointees are usually former high-ranking government officials, military officials, tribal leaders, Appointees are usually former high-ranking government officials, military officials, tribal leaders,
and other and other
notables. The most recent Consultative Council elections in October 2023 saw the election of 90 members. While women have previously won some Consultative Council seats, no women won elected seats in 2023; however, a month after the elections, Sultan Haythim appointed 18 women to the 83-member State Council. Voting in the 2023 election was conducted electronically using a biometric-based digital ID smartphone platform called in Arabic Antakhib or elections.8
Economic Reforms and Diversification Tonotables. The next election for the Consultative Council is scheduled for October 2023 although, according to the Economist Intelligence Unit, “with political parties banned and candidates heavily vetted, we expect that voter apathy will again result in a low turnout in 2023.”8 Female candidates have been competing in elections for the Consultative Council since 2000. Two women were elected to the council in 2019 and, that same year, the late Sultan Qaboos appointed 15 women to the State Council.
Economic Reforms and Diversification
In order to curb government spending, attract foreign investment, and diversify the economy, curb government spending, attract foreign investment, and diversify the economy,
Sultan Haythim has launched “Oman Vision 2040,” a strategic plan similar to those of other GCC Sultan Haythim has launched “Oman Vision 2040,” a strategic plan similar to those of other GCC
states.9 states.9
Figure 2. Oman GDP Growth
annual percent change
Source: IMF Data Mapper, World Economic Outlook, October 2022
Over the past two years, the government has consolidated state-owned enterprises and merged duplicative investment authorities, while appointing younger technocrats and ministers to lead government agencies.10 To attract foreign investors, Oman is offering tax incentives, lower government fees, expanded land use, and increased access to capital for qualifying companies in 8 Economist Intelligence Unit, Country Report, Oman, January 31, 2023. 9 See Oman Vision 2040, available at: https://www.oman2040.om/index-en.html. 10 Jonathan Campbell-James, “Oman’s Economic Success Is Driven by Accountability as Much as Oil,” Policy Watch #3639, Washington Institute for Near East Policy, August 11, 2022.
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Source: IMF Data Mapper, World Economic Outlook, October 2023.
8 Masha Borak, “Oman holds first remote elections with biometric IDs from Tech5 and uqudo” Biometricupdate.com, October 30, 2023.
9 See Oman Vision 2040, available at https://www.oman2040.om/index-en.html.
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Beginning in 2021, the government has overseen the consolidation (and some privatization) of state-owned enterprises, encouraged economic diversification, and merged duplicative investment authorities, while appointing younger technocrats and ministers to lead government agencies.10 To attract foreign investors, Oman is offering tax incentives, lower government fees, expanded land use, and increased access to capital for qualifying companies in sectors, such as manufacturing, logistics, tourism, mining, and fishing. However, according to the sectors, such as manufacturing, logistics, tourism, mining, and fishing. However, according to the
U.S. Department of Commerce’s Country Commercial Guide for OmanU.S. Department of Commerce’s Country Commercial Guide for Oman
:,
Oman’s success in
Oman’s success in
growing its economygrowing its economy
will depend in part on revising labor policies, will depend in part on revising labor policies,
which some U.S. companies tell us can be challenging to navigate. Smaller companies with which some U.S. companies tell us can be challenging to navigate. Smaller companies with
limited or no local or regional experience report bureaucratic difficulties, including limited or no local or regional experience report bureaucratic difficulties, including
requirements to hire a certain percentage of Omanis for their workforce and problems requirements to hire a certain percentage of Omanis for their workforce and problems
letting go of non-performing or redundant employees. The government recognizes these letting go of non-performing or redundant employees. The government recognizes these
challenges and is working to address them as part of efforts to improve the investment challenges and is working to address them as part of efforts to improve the investment
climate and achieve its economic development goals under Oman’s Vision 2040 climate and achieve its economic development goals under Oman’s Vision 2040
development plan.11 development plan.11
One of Oman’s signature economic projects is to become a global leader in green hydrogen production. In October 2023, the state established a corporation called Hydrogen Oman. In 2023, the Paris-based International Energy Agency (IEA) presented a report to the government of Oman encouraging the government to pursue hydrogen production, noting that “Oman’s high-quality renewable energy resources and vast tracts of available land make it well placed to produce large quantities of low-emissions hydrogen.”12
Human Rights
Oman is an absolute monarchy in which, according to international human rights groups, state Oman is an absolute monarchy in which, according to international human rights groups, state
authorities target individuals and entities that are critical of the government.authorities target individuals and entities that are critical of the government.
1213 Freedom House’s Freedom House’s
annual survey of political rights and civil liberties globally ranks Oman as “not free”; it also notes annual survey of political rights and civil liberties globally ranks Oman as “not free”; it also notes
that “Political parties are not permitted, and the authorities do not tolerate other forms of that “Political parties are not permitted, and the authorities do not tolerate other forms of
organized political opposition.”organized political opposition.”
1314 According to the most recent State Department report on human According to the most recent State Department report on human
rights, the principal human rights issues in Oman arerights, the principal human rights issues in Oman are
:
arbitrary
arbitrary
arrest or detention; arrest or detention; arbitrary or unlawful interference with privacy; serious restrictions on serious restrictions on
freefreedom of expression and media, including censorship and criminal libel and blasphemy laws; serious restrictions on internet freedom; substantial interference with the rights of peaceful assembly and freedom of association; serious restrictions on political participation; laws criminalizing consensual same-sex sexual conduct that were not widely enforced expression and media, including censorship and criminal libel laws; serious restrictions on the internet, including site blocking; substantial interference with the rights of peaceful assembly and freedom of association; serious restrictions on political participation; criminalization of consensual lesbian, gay, bisexual, transgender, queer, and intersex conduct; and labor exploitation of ; and labor exploitation of
foreign migrants.foreign migrants.
1415
The law provides for an independent judiciary, but the Sultan chairs the country’s highest legal
The law provides for an independent judiciary, but the Sultan chairs the country’s highest legal
body, the Supreme Judicial Council, which can review judicial decisions. The Oman Human body, the Supreme Judicial Council, which can review judicial decisions. The Oman Human
Rights Commission (OHRC), a quasi-independent but government-sanctioned body, investigates Rights Commission (OHRC), a quasi-independent but government-sanctioned body, investigates
and monitors prison and detention center conditions through site visits. According to the U.S. State Department, “OHRC functions semi-independently with moderate effectiveness in protecting human rights in the country, based on limited public information.”15
The government has been credited with expanding
10 Jonathan Campbell-James, “Sultan’s Landmark Speech to the Majlis Oman: A Window into Oman’s Economic Reforms,” Policy Analysis, Washington Institute for Near East Policy, November 27, 2023. 11 U.S. Department of Commerce, International Trade Administration, Oman Country Commercial Guide, February 20, 2024.
12 “Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions,” IEA, June 12, 2023.
13 Amnesty International, Amnesty International Report 2022/23, Oman 2022. 14 Freedom House, Freedom in the World 2023, Oman. 15 U.S. Department of State, 2022 Country Reports on Human Rights Practices: Oman.
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and monitors prison and detention center conditions through site visits, reports on human rights conditions, and participates in election oversight. While the U.S. State Department previously assessed that the “OHRC function[ed] semi-independently with moderate effectiveness,” it noted that the Sultan’s June 2022 reforms of the body increased its independence.16
The government has expanded its efforts to protect the rights of expatriate its efforts to protect the rights of expatriate
laborers, who are about 80% of the workforce. Some measures to reform the laborers, who are about 80% of the workforce. Some measures to reform the
kafala or visa- or visa-
sponsorship employment system have been implemented, such as the June 2020 removal of a sponsorship employment system have been implemented, such as the June 2020 removal of a
requirement for migrant workers to obtain a “no-objection” certificate from their current requirement for migrant workers to obtain a “no-objection” certificate from their current
employer before changing jobsemployer before changing jobs
. and 2022 visa suspensions for countries whose citizens have been subject to forced labor in Oman.17 However, the State Department reports that some expatriate However, the State Department reports that some expatriate
laborers have laborers have
“faced working conditions indicative of forced labor, including withholding of faced working conditions indicative of forced labor, including withholding of
passports, restrictions on movement, usurious recruitment fees, nonpayment of wages, long passports, restrictions on movement, usurious recruitment fees, nonpayment of wages, long
working hours without food or working hours without food or
rest, threats, and physical or sexual abuse.”18 rest, threats, and physical or sexual abuse.16
11 U.S. Department of Commerce, International Trade Administration, Oman Country Commercial Guide, September 14, 2022.
12 Human Rights Watch, World Report 2021, Oman. 13 Freedom House, Freedom in the World 2022, Oman. 14 U.S. Department of State, 2021 Country Reports on Human Rights Practices: Oman. 15 Ibid. 16 Ibid.
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Advancement of Women
During his reign, Sultan Qaboos emphasized that Omani women are vital to national development
During his reign, Sultan Qaboos emphasized that Omani women are vital to national development
and sought to promote their advancement. In 2000, he began appointing women to the State and sought to promote their advancement. In 2000, he began appointing women to the State
Council and, in 2004, Sultan Qaboos appointed the first female cabinet minister.Council and, in 2004, Sultan Qaboos appointed the first female cabinet minister.
1719 Since then, Since then,
there have consistently been several female ministers in each cabinet. there have consistently been several female ministers in each cabinet.
In terms of indexes of gender indicators, Oman appears to reflect mixed results. For the 2021-2022 Omani academic year, Omani women comprised 62% of all enrolled students For the 2021-2022 Omani academic year, Omani women comprised 62% of all enrolled students
at higher education institutions in the sultanate compared to just 39% a decade at higher education institutions in the sultanate compared to just 39% a decade
ago.18prior.20 In the labor In the labor
market, as of market, as of
20212022, women (citizens and expatriates) , women (citizens and expatriates)
constitute nearly 30constituted some 31% of the workforce.% of the workforce.
19 The 2022 21 The 2023 Global Gender Gap ReportGlobal Gender Gap Report
– —which benchmarks progress in gender parity across four which benchmarks progress in gender parity across four
areas (economic opportunities, education, health, and political leadership)areas (economic opportunities, education, health, and political leadership)
– —notes that Oman notes that Oman
ranks 139th of 146 countriesranks 139th of 146 countries
.20, with the second-lowest score for gender parity in the Middle East and North Africa region after Algeria.22 UN Women notes that researchers require more data to properly UN Women notes that researchers require more data to properly
assess the state of development goals for Omani women in key sectors, such as “gender and assess the state of development goals for Omani women in key sectors, such as “gender and
poverty, physical and sexual harassment, women’s access to assets (including land), and gender poverty, physical and sexual harassment, women’s access to assets (including land), and gender
and the environment.”and the environment.”
2123
Foreign Policy
Oman is sometimes colloquially referred to as the “Switzerland of the Middle East,” though it Oman is sometimes colloquially referred to as the “Switzerland of the Middle East,” though it
does not formally espouse neutrality as a principle of its foreign policy.does not formally espouse neutrality as a principle of its foreign policy.
22 Accordingly,24 Oman’s Oman’s
foreign policy sometimes diverges from that of some of its fellow GCC members, particularly foreign policy sometimes diverges from that of some of its fellow GCC members, particularly
Saudi Arabia and Saudi Arabia and
16 Ibid. 17 U.S. Department of State, 2023 Trafficking in Persons Report: Oman. 18 U.S. Department of State, 2022 Country Reports on Human Rights Practices: Oman. 19 “Omanis Welcome Appointment of Woman Minister,” Arab News, March 10, 2004. 20 “Oman women demand ‘equal partnership’ as divorce rates rise,” Al Jazeera, January 27, 2022. 21 World Bank, Labor force participation rate, female (% of female population ages 15+) (modeled International Labor Organization estimate) – Oman.
22 World Economic Forum, Global Gender Gap Report 2023, available at https://www.weforum.org/publications/global-gender-gap-report-2023/in-full/benchmarking-gender-gaps-2023/.
23 UN Women, The Women Count Data Hub, Oman, at https://data.unwomen.org/country/oman. 24 Giulia Daga, “Is Oman the Switzerland of the Middle East,” Arab Gulf States Institute, January 20, 2023.
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the UAE. Oman has generally sought to mediate regional conflicts and the UAE. Oman has generally sought to mediate regional conflicts and
refrained from direct military involvement in them. In 2014, Oman joined the U.S.-led coalition refrained from direct military involvement in them. In 2014, Oman joined the U.S.-led coalition
against the Islamic State, but did not participate in the coalition’s airstrikes or ground operations against the Islamic State, but did not participate in the coalition’s airstrikes or ground operations
against the group. Oman opposed the Saudi-led against the group. Oman opposed the Saudi-led
move incampaign from June 2017 to June 2017 to
December 2020 to isolate Qatar over a number isolate Qatar over a number
of policy disagreements. of policy disagreements.
China
Beyond its close ties to fellow GCC states and the West, Oman also is cultivating ties to the Beyond its close ties to fellow GCC states and the West, Oman also is cultivating ties to the
People’s Republic of China (PRC). OmanPeople’s Republic of China (PRC). Oman
’s exports exports
85nearly 80% of its oil to the PRC% of its oil to the PRC
. (accounting for 8% of total imported oil to China).25 The PRC The PRC
government also has financed an industrial park in the port of Duqm government also has financed an industrial park in the port of Duqm
(Figure 1) and lent Oman $3.6 billion and lent Oman $3.6 billion
in 2017 for Duqm’s development.23 According to the U.S. State Department, as of 2020, China was the fifth largest foreign investor Oman, with one Chinese company taking a 49% stake in the Oman Electricity Transmission Company.24
17 “Omanis Welcome Appointment of Woman Minister,” Arab News, March 10, 2004. 18 “Oman women demand ‘equal partnership’ as divorce rates rise,” Al Jazeera, January 27, 2022. 19 World Bank, Labor force participation rate, female (% of female population ages 15+) (modeled International Labor Organization estimate) – Oman.
20 World Economic Forum, Global Gender Gap Report 2022, available at: https://www.weforum.org/reports/global-gender-gap-report-2022/in-full/1-benchmarking-gender-gaps-2022#1-6-in-focus-country-performances.
21 UN Women, The Women Count Data Hub, Oman. 22 Giulia Daga, “Is Oman the Switzerland of the Middle East,” Arab Gulf States Institute, January 20, 2023. 23 Economist Intelligence Unit, Middle East and Africa economy: Middle East weekly brief: China's expanding role, August 26, 2020.
24 U.S. Department of State, 2022 Investment Climate Statements: Oman.
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in 2017 for Duqm’s development.26 One report in the Omani state-run press quoted China’s Ambassador to Oman, Li Lingbing, who hailed Omani-Chinese trade ties, claiming they had reached $40.45 billion by the end of 2022 with Chinese investment in Oman's transmission grid, telecommunications infrastructure (Huawei), and cement industry.27 According to the U.S. State Department, as of 2022, China was the fifth largest foreign investor Oman, with Chinese companies owning a 49% stake in the Oman Electricity Transmission Company and a 59.8% stake in Oman Cement Company.28
Beyond economic ties, Omani-PRC military ties are limited, but are being closely followed by U.S. policymakers. According to one report, in November 2023, U.S. officials briefed President Biden on a PRC plan to build a military facility in Oman.29 PRC naval taskforces conduct goodwill visits and joint exercises with the Royal Navy of Oman.30 The Royal Army of Oman has purchased 122mm multiple rocket launch systems from PRC producers.31
Iran
Omani leaders, including Sultan Haythim, have consistently asserted that engagement with Iran Omani leaders, including Sultan Haythim, have consistently asserted that engagement with Iran
better mitigates the potential threat from that country than confrontation—a stance that has better mitigates the potential threat from that country than confrontation—a stance that has
positioned Oman as a mediator in positioned Oman as a mediator in
some regional conflicts in which Iran or its proxies are involved. In regional conflicts in which Iran or its proxies are involved. In
explaining Oman’s positive relations with Iran, Omani leaders often cite the explaining Oman’s positive relations with Iran, Omani leaders often cite the
late former Shah of former Shah of
Iran’s support for the late Sultan Qaboos’s seizure of power from his father in 1970 and Iran’s Iran’s support for the late Sultan Qaboos’s seizure of power from his father in 1970 and Iran’s
deployment of troops to help Oman end the deployment of troops to help Oman end the
1962-1975 leftist revolt in Oman’s Dhofar leftist revolt in Oman’s Dhofar
ProvinceProvince during 1962-1975, a conflict in which 700 Iranian soldiers died., a conflict in which 700 Iranian soldiers died.
2532
At the same time, Oman has supported U.S. efforts to deter Iran strategically. As noted below, it
At the same time, Oman has supported U.S. efforts to deter Iran strategically. As noted below, it
has hosted U.S. forces since the 1980s, has hosted U.S. forces since the 1980s,
it has supported U.S. operations to deter Iran, and has supported U.S. operations to deter Iran, and
it regularly regularly participates in U.S.-led exercises in and around the Gulf.
25 U.S. Department of Defense, “Military and Security Developments Involving the People’s Republic of China 2023,” annual report to Congress.
26 Economist Intelligence Unit, Middle East and Africa economy: Middle East weekly brief: China’s expanding role, August 26, 2020.
27 “China-Oman partnership reaches new heights: Ambassador Li Lingbing,” The Times of Oman, January 31, 2024. 28 U.S. Department of State, 2023 Investment Climate Statements: Oman. 29 Michelle Jamrisko and Jennifer Jacobs, “Biden Briefed on Chinese Effort to Put Military Base in Oman,” Bloomberg, November 7, 2023.
30 “44th Chinese naval escort taskforce concludes visit to Oman,” China Military Online, October 16, 2023. 31 “Oman has Chinese 122mm MRLs,” Jane’s Defence Weekly, January 2, 2022. 32 Faramarz Davar, “Why is Oman So Loyal to Iran?” Iranwire, August 9, 2018.
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Oman has apparently sought to ensure that its projects with Iran not violate any of the wide array of U.S. sanctions in effect on transactions with Iran. In 2021, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated an Omani businessman and his network of companies for involvement in an international oil smuggling network that supported Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).33 In 2024, the Paris-based Financial Action Task Force (FATF) is evaluating whether Oman should be added to its so-called grey list, which consists of countries that require improvements in countering money laundering and terrorist financing.34
Oman also has helped facilitate the release and transfer of detained U.S. citizens held in Iran. In October 2022, U.S. Secretary of State Antony Blinken thanked Oman for working with Iranian authorities to arrange for the flight out of Iran of detained 85-year-old Iranian-American Baquer Namazi. Several months earlier, the Secretary had thanked Oman for securing the release of Morad Tabhaz, a trilateral U.S.-British-Iranian citizen who had been unjustly detained in Iran.35 Oman partially mediated the 2023 deal in which Americans held in Iranian prisons were released in exchange for the transfer of some Iranian oil revenue to Qatar (U.S. officials have said that the funds were frozen after the October 2023 Hamas attacks on Israel). According to one report, during negotiations for the deal, Omani mediators “shuttled back and forth” between American and Iranian delegations, often serving as the medium of communication between the two sides.36
Oman also has agreed to accept the transfer from Iraq of blocked Iranian funds that accrue in Iraq as a result of Iraqi electricity purchases from Iran, for which Iraq receives a sanction waiver from the United States. In July 2023, a State Department spokesperson said that the Administration “thought it was important to get this money out of Iraq, because it is a source of leverage that Iran uses against its neighbor.” The spokesperson said “this money will be held in a fund or an account in Oman ...but will still be subject to the same restrictions as when the money was held in accounts in Iraq.” In December 2023 testimony, a Treasury official stated that there had been two transactions involving the Oman-based funds.37
In April 2024, Iranian Foreign Minister Hossein Amirabdollahian arrived in Oman for a series of meetings with regional counterparts. During their bilateral exchange, Omani Foreign Minister Sayyid Badr al Busaidi called for de-escalation in the region and condemned an alleged 2024 Israeli air strike against the Iranian Embassy in Damascus, Syria’s “consular annex.”38 Reportedly, Iran also signaled during its meetings in Oman that it would strike back against Israel, but that it would keep its attack “contained, and that it was not seeking a regional war.”39 After Iran’s missile and drones strikes against Israel in April 2024, Oman’s Foreign Ministry
33 U.S. Department of the Treasury, “Treasury Targets Oil Broker Network Supporting Qods Force,” August 13, 2021. 34 Ben Bartenstein, “Oman Seeks to Avoid Financial Gray List, With Iran Ties in Focus,” Bloomberg, December 18, 2023.
35 U.S. Department of State, “Secretary Blinken’s Call with Omani Foreign Minister Al Busaidi,” July 31, 2022. 36 Michael D. Shear and Farnaz Fassihi, “Inside the Deal to Free 5 American Prisoners in Iran,” New York Times, September 21, 2023.
37 Testimony of Assistant Secretary of the Treasury Elizabeth Rosenberg before the House Financial Services Subcommittee on Oversight and Investigations Holds Hearing on Iran's Financial Support of Terrorism, December 18, 2023.
38 “Oman urges de-escalation during Iran FM visit,” Agence France Presse, April 7, 2024. 39 Ronen Bergman, Farnaz Fassihi, Eric Schmitt, Adam Entous and Richard Pérez-Peña, “Miscalculation Led to Escalation in Clash Between Israel and Iran,” New York Times, April 17, 2024.
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called for adherence to international law, the maintaining of international peace and security, and an immediate ceasefire in Gaza, amongst other things.40
Yemen41 In neighboring Yemen, Oman’s and Iran’s interests are often described as being in conflict, participates in U.S.-led exercises in and around the Gulf. Iran’s President Ibrahim Raisi visited Oman in late May 2022 to discuss regional issues and sign a series of agreements to expand bilateral trade and move forward on long delayed joint energy development projects, including to develop the Hengham oil field in the Persian Gulf.26
Iran and Oman civilian trade volumes are marginal (see Figure 2), and Oman has sought to ensure that its projects with Iran not violate any of the wide array of U.S. sanctions in effect on transactions with Iran. In 2014, the two countries signed a deal to build a $1 billion undersea pipeline to bring Iranian natural gas from Iran’s Hormuzegan Province to Sohar in Oman, from where it would be exported, but the reimposition of U.S. sanctions on Iran in 2018 derailed the concept.27
25 Faramarz Davar, “Why is Oman So Loyal to Iran?” Iranwire, August 9, 2018. 26 Iran, Oman to jointly develop oil field, Al Monitor, May 23, 2022. 27 Dana El Baltaji, “Oman Fights Saudi Bid for Gulf Hegemony with Iran Pipeline Plan,” Bloomberg, April 21, 2014; “Oman to Invite Bids to Build Gas Pipeline,” Financial Tribune, April 23, 2018.
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Figure 3. Oman’s Trade with Iran and the GCC
Source: IMF and Economist Intelligence Unit
Oman’s relations with Iran reportedly often have helped U.S. officials negotiate with Iranian officials. U.S. officials’ meetings with Iranian officials in Oman, which began in early 2013, set the stage for negotiations that culminated in the Joint Comprehensive Plan of Action (JCPOA) Iran nuclear agreement that was finalized in July 2015.28 Omani banks, including Bank Muscat, held about $5.7 billion in Iranian funds, and implemented some of the pact’s financial arrangements.29 During 2016-2019, Iran exported heavy water to Oman in order to maintain its stockpile of that material at levels that comport with its commitments under the JCPOA. However, in May 2019, the United States ended waivers that enabled countries to buy Iranian heavy water without U.S. penalty, a decision that caused Oman to stop importing Iranian heavy water. 30
Oman has supported now-moribund indirect negotiations between the Biden Administration and Tehran to restore full compliance with the JCPOA, and Omani officials, including during the visit to Oman of Iranian President Raisi in May 2022, have reportedly encouraged Iran to compromise in those talks in the interests of achieving an accord. In February 2023, Sultan Haythim reportedly traveled to Iran, drawing praise from the U.S. State Department which noted that same month that “Oman's played a constructive role across the Middle East in helping to solve 28 David Ignatius, “Opinions: The Omani ‘back channel’ to Iran and the secrecy surrounding the nuclear deal,” Washington Post, June 7, 2016.
29 Omani banks had a waiver from U.S. sanctions laws to permit transferring those funds to Iran’s Central Bank, in accordance with Section 1245(d)(5) of the National Defense Authorization Act for Fiscal Year 2012 (P.L. 112-81). For text of the waiver, see a June 17, 2015, letter from Assistant Secretary of State for Legislative Affairs Julia Frifield to Senate Foreign Relations Committee Chairman Bob Corker, containing text of the “determination of waiver.” See also Permanent Subcommittee on Investigations of the U.S. Senate. Majority Report, “Review of U.S. Treasury Department’s License to Convert Iranian Assets Using the U.S. Financial System,” May 2018. 30 “A conversation with H.E. Sayyid Badr Albusaidi, Foreign Minister of Oman,” The Atlantic Council, February 11, 2021.
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challenges and to bridge divide -- divides between countries that don't see eye to eye, and that's putting it mildly. We're consulting closely with Iran on challenges near and far.”31
Oman also has helped facilitate the release and transfer of Western hostages held in Iran. In October 2022, U.S. Secretary of State Antony Blinken thanked Oman for working with Iranian authorities to arrange for the flight out of Iran of detained 85-year-old Iranian-American Baquer Namazi. Several months earlier, the Secretary had thanked Oman for securing the release of Morad Tabhaz, a trilateral U.S.-British-Iranian citizen who had been unjustly detained in Iran.32
Yemen33
In neighboring Yemen, Oman’s and Iran’s interests conflict, insofar as U.N. investigators have insofar as U.N. investigators have
cited Iran as arming and advising the cited Iran as arming and advising the
Zaidi Shia Ansarallah Zaydi Shia Ansar Allah (aka Houthi) movement that drove the (aka Houthi) movement that drove the
Republic of Yemen government (ROYG) out of the capital, Sana’a, in 2014. In an effort to help Republic of Yemen government (ROYG) out of the capital, Sana’a, in 2014. In an effort to help
mediate a resolution of the conflict, the Omani government has hosted talks between U.S. mediate a resolution of the conflict, the Omani government has hosted talks between U.S.
diplomats and Houthi representatives. Oman has been facilitating talks aimed at extending a U.N-diplomats and Houthi representatives. Oman has been facilitating talks aimed at extending a U.N-
mediated ROYG-Houthi cease-fire that lapsed in October 2022 mediated ROYG-Houthi cease-fire that lapsed in October 2022
but has been observed since. Oman has long hosted in Muscat Mohammad Abdul Salam, the official spokesman of the Houthis and one of the group’s lead negotiators.42 In December 2023, UN Special Envoy for Yemen Hans Grundberg announced that Abdul Salam and his ROYG counterpart had committed to a roadmap for a nationwide ceasefire and other measures aimed at preparing for wider political talks on peace and Yemen’s future.43 Grundberg expressed concern in January 2024 that the “increasingly precarious regional context” posed risks to roadmap implementation and Yemen’s progress toward peace.44
According to one report, in January 2024, Oman hosted secret, indirect talks between Iranian and U.S. officials over Houthi threats to Red Sea shipping and attacks against U.S. forces by Iran-backed militias in Iraq.45
In April 2024, Omani officials met with U.S. Special Envoy for Yemen Tim Lenderking in Oman, where they discussed, among other things, maritime security in the Red Sea and Gulf of Aden in the midst of Houthi attacks on international shipping. To date, Oman, perhaps to distance itself from the United States and Israel amidst the ongoing war in Gaza, has not joined Operation Prosperity Guardian, the U.S.-led international task force to protect Red Sea maritime commerce against Houthi attacks.
Israel and the War in Gaza As elsewhere in the Arab world, the ongoing war between Israel and Hamas in Gaza has sparked expressions of widespread opposition to the United States and Israel in the Sultanate. According to a joint poll conducted by the Arab Center for Research and Policy Studies and the Doha Institute, 69% of Omanis have a more negative opinion of U.S. policy since the war began.46 Some Omanis have boycotted certain U.S. corporations, such as Starbucks, to protest U.S. support for Israel.
40 Foreign Ministry of Oman, “Oman calls for restraint to spare the region from risk of war,” April 14, 2024. 41but has been observed since. In January 2023, United Nations Special Envoy for Yemen Hans Grundberg visited the Omani capital Muscat, where he met with Omani senior officials; a month earlier, Oman had sent a delegation to Sana’a to meet with Houthi leaders.34 In a briefing to the U.N. Security Council, Grundberg expressed appreciation for Omani diplomatic efforts.35
Israel and the Abraham Accords
Since the 1990s, Oman has consistently sought an end to the Arab-Israeli dispute as a means of calming regional tensions. During the height of Israeli-Palestinian peacemaking in the 1990s, Oman became the first Gulf state to officially host a visit by an Israeli prime minister (Yitzhak Rabin in 1994), and it hosted then-Prime Minister Shimon Peres in April 1996. Since 1997, Oman has hosted the Middle East Desalination Research Center (MEDRC), which brings together scientists from Israel, the West Bank and Gaza, Jordan, and Qatar to discuss desalination and water treatment cooperation in the region. The U.S. State Department’s Bureau of Near Eastern Affairs at times obligates grants (around $400,000 in Economic Support Funds or ESF) to support MEDRC operations. Other donors include Oman, Germany, Sweden, the Netherlands, Japan, and the Republic of Korea.36
At times, there has been speculation among experts that Oman would follow the UAE and Bahrain in normalizing relations with Israel (the Abraham Accords), but Omani officials have not given any indication that doing so is currently under consideration. On October 25, 2018, Israel’s then-Prime Minister Benjamin Netanyahu visited Oman and met with Sultan Qaboos to discuss regional issues. Israel has sought to convince the Omani government to open Oman’s airspace to
31 U.S. Department of State, Press Briefing, February 22, 2023. 32 U.S. Department of State, Secretary Blinken’s Call with Omani Foreign Minister Al-Busaidi, July 31, 2022. 33 The current instability adds to a long record of difficulty in Oman-Yemen relations. The former People’s Democratic The current instability adds to a long record of difficulty in Oman-Yemen relations. The former People’s Democratic
Republic of Yemen (PDRY), considered Marxist and pro-Soviet, supported Oman’s Dhofar rebellion. Oman-PDRY Republic of Yemen (PDRY), considered Marxist and pro-Soviet, supported Oman’s Dhofar rebellion. Oman-PDRY
relations were normalized in 1983, but the two engaged in border clashes later in that decade. Relations improved after relations were normalized in 1983, but the two engaged in border clashes later in that decade. Relations improved after
1990, when PDRY merged with North Yemen to form the Republic of Yemen. 1990, when PDRY merged with North Yemen to form the Republic of Yemen.
34 “Yemen: Briefing and Consultations,” What’s in Blue, Security Council Report, January 13, 2023. 35 Samy Magdy, “Yemen rebels, Saudis in back-channel talks to maintain truce,” Associated Press, January 17, 2023. 36 See https://www.medrc.org/about-us/42 Ibrahim Jalal, “The war next door: Omani foreign policy toward Yemen,” Middle East Institute, September 21, 2023. 43 Office of the Special Envoy of the Secretary-General for Yemen (OSESGY), “Update on efforts to secure a UN roadmap to end the war in Yemen,” December 23, 2024. 44 OSESGY, “Statement attributable to the UN Special Envoy for Yemen,” January 13, 2024. 45 Farnaz Fassihi and Eric Schmitt, “Iran and U.S. Held Secret Talks on Mideast Threats,” New York Times, March 17, 2024.
46 “Arab Public Opinion about the War in Gaza,” Arab Center for Research and Policy Studies, January 10, 2024. .
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Israeli commercial flights to Asia. In November 2022, during the U.S.-Omani strategic dialogue, U.S. officials met with Omani Foreign Minister Sayyid Badr al Busaidi to discuss the potential opening of Omani airspace to Israeli airlines. Reportedly, the late Sultan Qaboos had been in favor of doing so, but Sultan Haythim has held back; one commentator argued this was because “the Omanis had several bilateral issues and requests from the U.S. that they wanted to get in return.”37
Then, in February 2023, the Sultanate’s Civil Aviation Authority announced that “As part of the Sultanate of Oman’s continuous efforts to fulfill its obligations under the Chicago Convention of 1944, the Civil Aviation Authority affirms that the Sultanate’s airspace is open for all carriers that meet the requirements of the Authority for overflying.”38 In response, Israeli Foreign Minister Eli Cohen thanked the government of Oman, remarking that it’s a “historic decision that will shorten the journey to Asia, lower costs for Israelis, and help Israeli companies be more competitive.”39
U.S. Relations, Defense, The Omani Foreign Ministry has been critical of Israel’s conduct of the war in Gaza. After an Israeli-Hamas cease-fire ended in November 2023, the Foreign Ministry issued a press release saying, “The statement reiterates Oman’s appeal to the international community to meet its legal and moral responsibility to seek a ceasefire, protect the Palestinian people, provide for their humanitarian needs and hold Israel accountable for its violation of international law and international humanitarian law.”47
Omani officials also have called for an emergency peace conference that would bring a wide array of actors to the table, including Israel, Iran, and Hamas. According to Omani Foreign Minister al Busaidi:
Those who follow the affairs of the region sometimes praise the Omanis as mediators. It is true we have supported peace initiatives from Camp David in 1978 to the Madrid process in 1991 and the Oslo Accords in 1993, as well as the JCPOA multilateral nuclear accord with Iran, talks aimed at ending war in Yemen, and various hostage releases. But we are just facilitators, not mediators, for some infer that mediators sit in judgment. That is not the Omani way.48
Both the U.S. and Omani governments appear to remain committed to the partnership. According to one observer, “Despite the rising anti-American sentiment and the Omani leadership’s discomfort with Washington’s Israel stance, Oman has no intention of abandoning its strategic ties with the United States.”49 In November 2023, U.S. Secretary of State Antony Blinken affirmed to Omani Foreign Minister al Busaidi the “urgency of addressing humanitarian needs in Gaza, preventing further spread of the conflict, and reinforcing regional stability and security. He also emphasized the importance of working toward sustainable peace between Israelis and Palestinians, a shared priority of both the United States and Oman.”50
U.S. Relations, Defense, Aid, and Trade
Since the United States and Oman opened embassies in their respective capitals in the early Since the United States and Oman opened embassies in their respective capitals in the early
1970s, both countries have conducted cordial relations. According to the U.S. State Department, 1970s, both countries have conducted cordial relations. According to the U.S. State Department,
“Oman’s “Oman’s
longstandinglong-standing partnership with the United States is critical to our mutual objectives, partnership with the United States is critical to our mutual objectives,
including increasing economic diversification and development opportunities, promoting regional including increasing economic diversification and development opportunities, promoting regional
stability, and countering terrorism.”stability, and countering terrorism.”
4051 Secretary Blinken has highlighted the key role Oman Secretary Blinken has highlighted the key role Oman
plays has played as a U.S. partner, specifically on “Iran, as well as on Yemen and a commitment to try to bring the as a U.S. partner, specifically on “Iran, as well as on Yemen and a commitment to try to bring the
war in Yemen to an end.”war in Yemen to an end.”
4152
Oman was the first Persian Gulf state to sign a formal accord permitting the U.S. military to use
Oman was the first Persian Gulf state to sign a formal accord permitting the U.S. military to use
its facilities (1980) as part of this long-standing strategic partnership. On March 24, 2019, Oman its facilities (1980) as part of this long-standing strategic partnership. On March 24, 2019, Oman
and the United States signed a “Strategic Framework Agreement” that expands the U.S.-Oman and the United States signed a “Strategic Framework Agreement” that expands the U.S.-Oman
facilities access agreements by allowing U.S. forces to use the ports of facilities access agreements by allowing U.S. forces to use the ports of
Salalah and Al Duqm,
47 “Oman denounces resumption of aggression by Israeli occupation forces against Gaza,” Foreign Ministry of Oman, December 1, 2023.
48 “Oman ’s foreign minister calls for an emergency peace conference,” The Economist, February 21, 2024. 49 Giorgio Cafiero, “Oman, Gaza, and Relations with the United States,” Arab Center Washington DC, January 5, 2024. 50 U.S. Department of State, “Secretary Antony J. Blinken’s Call with Omani FM Sayyid Badr al-Busaidi,” November 8, 2024.
51Al Duqm, which is large enough to handle U.S. aircraft carriers, and Salalah.42 In April 2021, the Eisenhower Carrier Strike Group visited Duqm port for logistics and maintenance support. Oman is trying to expand and modernize its arsenal primarily with purchases from the United States. As of June 2021, the United States has 72 active cases valued at $2.7 billion with Oman under the government-to-government Foreign Military Sales (FMS) system.43
37 Barak Ravid, “U.S. and Oman talk potential opening of Omani airspace to Israeli planes,” Axios, November 16, 2022.
38 Twitter, @CAAOMN, February 23, 2023. 39 “Israel thanks Oman for opening its airspace,” Reuters, February 23. 2023. 40 U.S. Department of State, U.S. Relations With Oman, Bilateral Relations Fact Sheet, May 12, 2022. U.S. Department of State, U.S. Relations With Oman, Bilateral Relations Fact Sheet, May 12, 2022.
4152 U.S. Department of State, Secretary Antony J. Blinken and Omani Foreign Minister Sayyid Badr al Busaidi, U.S. Department of State, Secretary Antony J. Blinken and Omani Foreign Minister Sayyid Badr al Busaidi,
November 8, 2022. November 8, 2022.
42 U.S. Embassy in Oman, “U.S. Statement on the Signing of the Strategic Framework Agreement” March 24, 2019. 43 U.S. Department of State, “U.S. Security Cooperation with Oman,” fact sheet, June 15, 2021. Section 564 of Title V, Part C of the Foreign Relations Authorization Act for FY1994 and FY1995 (P.L. 103-236) banned U.S. arms transfers to countries that maintain the Arab boycott of Israel during those fiscal years. As applied to the GCC states, this provision was waived on the grounds that doing so was in the national interest.
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U.S.-led Maritime Interdiction in the Gulf of Oman
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which is large enough to handle U.S. aircraft carriers.53 U.S. Central Command Commander General Michael Kurilla has testified that “Oman provides critical access, basing, and overflight to U.S. forces. With its strategic location near key naval chokepoints, Oman is valuable to DoD operations and planning.”54 In May 2023, the Royal Oman Navy and U.S. Navy jointly participated in a five-day exercise, called Khunjar Hadd (Sharp Dagger), focused on mine countermeasures, explosive ordnance disposal, and maritime interdiction.55 Omani cooperation presumably would be essential were the United States and partner countries to conduct maritime security operations involving the Strait of Hormuz comparable to those currently underway in the Bab al Mandab.
Oman is trying to expand and modernize its arsenal primarily with purchases from the United States. According to the Defense Security Cooperation Agency (DSCA), total U.S. Foreign Military Sales to Oman through FY2022 have amounted to $3.5 billion (this figure does not include Direct Commercial Sales or DCS).56 Since 2016, the U.S. State Department has authorized export licenses for $613 million in defense articles to Oman via the DCS process for equipment, such as small arms, ammunition/ordnance, and military electronics.57
U.S.-led Maritime Interdiction in the Gulf of Oman
To counter weapons and drug trafficking in the Gulf of Oman, U.S. Naval forces, in conjunction with counter weapons and drug trafficking in the Gulf of Oman, U.S. Naval forces, in conjunction with
regional partners in the U.S. Central Command (CENTCOM) area of responsibility, patrol coastal waters and regional partners in the U.S. Central Command (CENTCOM) area of responsibility, patrol coastal waters and
routinely interdict suspected smuggling operations. While Oman is not a member of the U.S.-led, routinely interdict suspected smuggling operations. While Oman is not a member of the U.S.-led,
3438-member -member
nation nation
Combined Maritime Forces (CMF), which operates task forces to counter piracy and smuggling, the Royal Combined Maritime Forces (CMF), which operates task forces to counter piracy and smuggling, the Royal
Omani Navy has at times participated in CMF-led joint exercisesOmani Navy has at times participated in CMF-led joint exercises
.44 In 2022 and 2023, and Oman is considered a CMF partner nation.58 In 2023 and 2024, CMF reported several large , CMF reported several large
drug (heroin, hashish) and weapon (rifles, explosives, and ammunition rounds) seizures in the Gulf of Omandrug (heroin, hashish) and weapon (rifles, explosives, and ammunition rounds) seizures in the Gulf of Oman
.45 and nearby waters.59 Oman is not a member of U.S.-led Operation Prosperity Guardian, which was established in December 2023 to protect freedom of navigation in the Red Sea fol owing increased Houthi attacks on commercial shipping.60
The signature bilateral forum for discussing the entirety of U.S.-Omani defense ties is the U.S.-
The signature bilateral forum for discussing the entirety of U.S.-Omani defense ties is the U.S.-
Oman Joint Military Commission (JMC), last held in March Oman Joint Military Commission (JMC), last held in March
20222024. According to the Defense Department readout of the JMC, both sides discussed maritime and border security threats and
53 U.S. Embassy in Oman, “U.S. Statement on the Signing of the Strategic Framework Agreement” March 24, 2019. 54 U.S. Congress, House Armed Services Committee, Middle East/North Africa Challenges, March 21, 2024. 55 U.S. Department of Defense, U.S. Navy, “U.S. Navy Completes Participation in Oman-led Naval Exercise,” May 11, 2023.
56 Defense Security Cooperation Agency, Historical Sales Book, Fiscal Years 1950-2022. 57 U.S. Department of State, “U.S. Security Cooperation with Oman,” fact sheet, June 15, 2021. Section 564 of Title V, Part C of the Foreign Relations Authorization Act for FY1994 and FY1995 (P.L. 103-236) banned U.S. arms transfers to countries that maintain the Arab boycott of Israel during those fiscal years. As applied to the GCC states, this provision was waived on the grounds that doing so was in the national interest.
58 Combined Maritime Task Forces, Combined Task Force Visits Senior Oman Armed Forces Leadership, April 22, 2021.
59 For examples of drug seizures, see U.S. Naval Forces Central Command Public Affairs, “U.S. Coast Guard Seizes $30 Million in Drugs with International Task Force,” May 8, 2023, “U.S. Seizes $80 Million Heroin Shipment in Gulf of Oman,” May 10, 2023, “French Warship Seizes $108 Million in Drugs during Indian Ocean Seizures,” May 24, 2023, “French-led Combined Task Force 150 seized more illegal narcotics in the Arabian Sea,” September 20, 2023, and “First Drug Interdiction of the Year for CMF French-led Combined Task Force 150,” January 8, 2024. For examples of weapons seizures, see USCENTCOM, “CENTCOM Forces Intercept More than 2,000 Assault Rifles Shipped from Iran,” January 10, 2023, “U.S. Central Command Supports Partner Forces in Major Iranian Weapons Seizure,” February 1, 2023, and “CENTCOM Intercepts Iranian Weapons Shipment Intended for Houthis,” February 15, 2024.
60 U.S. Department of Defense, “Statement from Secretary of Defense Lloyd J. Austin III on Ensuring Freedom of Navigation in the Red Sea,” Release, December 18, 2023.
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threat deterrence, the Israel-Gaza war, Red Sea security, and how to strengthen the U.S.-Omani defense partnership.61 Through the U.S. Department of Defense’s National Guard Bureau State Partnership Program, the Arizona National Guard has partnered with the Sultan of Oman’s Armed Forces, beginning in 2022.
Figure 3. 2024 U.S.-Oman Joint Military Commission
Source: Oman Observer, March 5, 2024. . According to the Defense Department readout of the JMC, both sides discussed maritime and border security threats, Iran’s destabilizing activities in the region, the conflict in Yemen, and how to strengthen the Sultanate’s air and missile defense.46 Through the U.S. Department of Defense’s National Guard Bureau State Partnership Program, the Arizona National Guard has partnered with the Sultan of Oman’s Armed Forces, beginning in 2022.
In November 2022, the Defense Security Cooperation Agency (DSCA) notified Congress of a possible FMS to Oman of 48 Raytheon AGM-154C Joint Stand Off Weapons (JSOW) for $385 million. The JSOW is an unpowered glide bomb that uses Global Positioning System navigation for guidance in order to strike hardened targets. The United States has sold the JSOW to Saudi Arabia and approved its sale to other GCC states, such as Qatar, the UAE, and Bahrain. According to Jane’s Defence Weekly, the Royal Air Force of Oman may be seeking to purchase the JSOW in order to use against hardened targets, “including Iranian coastal anti-ship missile storage sites, from a relatively long range to minimize its F-16 fighters’ exposure to air defenses.”47 In November 2022, an Israeli-owned oil tanker was struck by an armed drone off the coast of Oman, in a suspected Iranian attack; a similar attack in 2021 on another Israeli-owned tanker killed two people onboard.48
Oman receives a small amount of annual foreign assistance to support specific U.S. programs.
Oman receives a small amount of annual foreign assistance to support specific U.S. programs.
The United States provides Oman with annual International Military Education and Training The United States provides Oman with annual International Military Education and Training
(IMET) grants to support Omani (IMET) grants to support Omani
officer participation in the IMET program, which provides participation in the IMET program, which provides
professional military education and training to foreign military students and seeks to establish professional military education and training to foreign military students and seeks to establish
lasting relationships with future leaders. The United States also provides small funding grants lasting relationships with future leaders. The United States also provides small funding grants
(est. $1 million)—much of it through the NADR—to help Oman counter terrorist and related (est. $1 million)—much of it through the NADR—to help Oman counter terrorist and related
threats. threats.
NADR fundingNADR-funded Export Control and Related Border Security, Anti-Terrorism Assistance, Export Control and Related Border Security, Anti-Terrorism Assistance,
and Terrorism Interdiction Program enhance the capabilities of the Royal Oman Police (ROP), the and Terrorism Interdiction Program enhance the capabilities of the Royal Oman Police (ROP), the
ROP Coast Guard, the Directorate General of Customs, the Ministry of Defense, and several ROP Coast Guard, the Directorate General of Customs, the Ministry of Defense, and several
civilian agencies to interdict weapons of mass destruction, advanced conventional weapons, or civilian agencies to interdict weapons of mass destruction, advanced conventional weapons, or
44 Combined Maritime Task Forces, Combined Task Force Visits Senior Oman Armed Forces Leadership, April 22, 2021.
45 For example, see: U.S. Naval Forces Central Command Public Affairs, U.S. Coast Guard Seizes Heroin Shipment in Gulf of Oman, June 2, 2022; U.S. Naval Forces Central Command Public Affairs, U.S. Ship Seizes Illegal Narcotics in Gulf of Oman, August 31, 2022; U.S. Naval Forces Central Command Public Affairs, U.S. Coast Guard Ship Seizes$48 Million in Drugs in Middle East, October 11, 2022; U.S. Naval Forces Central Command Public Affairs, U.S. Naval Forces Intercept Explosive Material Bound for Yemen, November 15, 2022; U.S. Naval Forces Central Command Public Affairs, U.S. Seizes 1.1 Million Rounds of Ammunition, Other Illegal Weapons in Gulf Of Oman, December 4, 2022; and U.S. Naval Forces Central Command Public Affairs, U.S., International Forces Seize Illegal Drugs in Gulf of Oman, January 31, 2023.
46 U.S. Department of Defense, Readout of U.S.-Oman Joint Military Commission, March 24, 2022. 47 Jeremy Binnie, “U.S. Approves JSOW Sale to Oman, Jane’s Defence Weekly, November 10, 2022. 48 “Oil tanker hit by armed drone off coast of Oman: Official,” Al Jazeera, November 16, 2022.
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illegal drugs at land and sea borders. The funding is also used to train Omani law enforcement agencies on investigative techniques and border security.
illegal drugs at land and sea borders. The funding is also used to train Omani law enforcement agencies on investigative techniques and border security. The Biden Administration’s FY2025 budget request would eliminate NADR for Oman but increase IMET funding to $2 million.
Congress also authorizes Oman (see Section 8110 of P.L. 118-47, the Further Consolidated Appropriations Act, 2024) to receive U.S. military aid for border security through DOD-managed accounts, such section 1226 of the National Defense Authorization Act for Fiscal Year 2016 (22 U.S.C. 2151).
Since 1997, Oman has hosted the Middle East Desalination Research Center (MEDRC), which brings together scientists from Israel, the West Bank and Gaza, Jordan, and Qatar to discuss desalination and water treatment cooperation in the region. The U.S. State Department’s Bureau of Near Eastern Affairs at times obligates grants (around $400,000 in Economic Support Funds or ESF) to support MEDRC operations. Other donors include Oman, Germany, Sweden, the Netherlands, Japan, and the Republic of Korea.62
61 U.S. Department of Defense, “Readout of U.S.-Oman Joint Military Commission,” Release, March 6, 2024. 62 See https://www.medrc.org/about-us/.
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The U.S.-Oman Free Trade Agreement was signed on January 19, 2006, and ratified by Congress 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). It was intended to facilitate Oman’s access to the (P.L. 109-283, signed September 26, 2006). It was intended to facilitate Oman’s access to the
U.S. economy and accelerate Oman’s efforts to diversify. Today, the United States is one of U.S. economy and accelerate Oman’s efforts to diversify. Today, the United States is one of
Oman’s largest trading partners and foreign investors. In Oman’s largest trading partners and foreign investors. In
20212022, the United States exported $1., the United States exported $1.
4 8 billion in goods to Oman and imported $1.billion in goods to Oman and imported $1.
866 billion in goods. billion in goods.
The According to the U.S. Embassy in Oman, “the largest U.S. export categories largest U.S. export categories
to Oman are automobiles, aircraft (including military) and related to Oman are automobiles, aircraft (including military) and related
parts, industrial machines, and engines, plastic materials, and pharmaceuticals.”parts, drilling and other oilfield equipment, and other machinery. Of the imports, Of the imports,
the largest product categories are the largest product categories are
fertilizers, industrial supplies“industrial supplies, aluminum, fertilizers, jewelry, and oil by-products such as plastics., and oil by-products such as plastics.
”63 The United States imports The United States imports
a relatively relatively
small amounts of Omani oil. small amounts of Omani oil.
Author Information
Jeremy M. Sharp Jeremy M. Sharp
Specialist in Middle Eastern Affairs
Specialist in Middle Eastern Affairs
Acknowledgments
Abigail Martin, Research Assistant on the Middle East and Africa, contributed research to this report.
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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63 U.S. Embassy in Oman, “U.S.-Oman Free Trade Agreement,” accessed March 26, 2024.
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