Oman: Politics, Security, and U.S. Policy
April 17, 2024
Updated November 25, 2025
(RS21534)
Jump to Main Text of Report
Summary
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
Over the past decade, Oman has played the role of discreet mediator, having served as an Over the past decade, Oman has played the role of discreet mediator, having served as an
Eastern Affairs
intermediary in seeking to resolve the ongoing civil conflict in Yemen. Oman also helped
facilitate negotiations with Iran, including those that led to the 2015 Joint Comprehensive Plan of Action to limit Iran’s nuclear program, from which the Trump Administration withdrew in 2018.
Oman’intermediary in seeking to resolve conflict in Yemen and nuclear negotiations with Iran. Oman's strategic location at the entrance to the Strait of Hormuz, one of the worlds strategic location at the entrance to the Strait of Hormuz, one of the world
’'s most s most
important oil chokepoints, and along the Arabian Sea approaches to East Africa and the Red Sea provide it with important oil chokepoints, and along the Arabian Sea approaches to East Africa and the Red Sea provide it with
some regional and regional and
global influence.global influence.
In January 2020, OmanIn January 2020, Oman
’'s long-time leader, Sultan Qaboos bin Sas long-time leader, Sultan Qaboos bin Sa
’'id Al Said, passed away and was succeeded by his cousin id Al Said, passed away and was succeeded by his cousin
Haythim bin Tariq Al Said (born 1955). Sultan Haythim leads a stable, high-income nation, though Oman faces challenges in Haythim bin Tariq Al Said (born 1955). 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 apparent maintaining its decades-long social contract, in which oil has brought prosperity to its citizens in exchange for their apparent
acceptance of the Sultanacceptance of the Sultan
’'s absolute rule. Like the other Gulf Cooperation Council (GCC) states—Saudi Arabia, Qatar, the 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 United Arab Emirates (UAE), Bahrain, and Kuwait—Oman derives most of its state income from hydrocarbon production
and export; however, Omanand export; however, Oman
’'s hydrocarbon-focused economy is smaller than those of its wealthier neighbors. To curb s hydrocarbon-focused economy is smaller than those of its wealthier neighbors. To curb
government spending, attract foreign investment, and diversify the economy, Sultan Haythim has launched government spending, attract foreign investment, and diversify the economy, Sultan Haythim has launched
“"Vision 2040,Vision 2040,
”" a 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 September 26, 2006). Today, the United States is one of Oman’s largest trading partners and foreign investors. In 2022, the United States exported $1.8 billion in goods and services to Oman and imported $1.6 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.
The 2023-2025 war between Israel and Hamas in Gaza sparked expressions of widespread opposition to the United States and Israel in the Sultanate. During the war, some Omanis boycotted certain U.S. corporations to protest U.S. support for Israel. Omani government policy may reflect broad sympathies among Omanis for the Palestinians, as well as fears that Israel could be jeopardizing regional stability in its conflicts with various actors (including Iran, Oman's large northern neighbor with which it has normal relations). Oman is not a signatory to the Abraham Accords, and Omani officials have repeatedly stated that the two-state solution is the only path to resolving the Israeli-Palestinian conflict. Before the Gaza war, Oman opened up its airspace to Israeli commercial air carriers. During the war, Israeli carrier El Al paused flying over Oman on flights to southeast Asia.
Oman and the United States maintain strong defense ties, whereby Oman permits the U.S. military to use its military 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, 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 providesU.S.-Omani defense relations are smaller in scale. The United States has provided minimal foreign assistance to Oman, mainly for border security. From 1946 to minimal foreign assistance to Oman, mainly for border security. From 1946 to
20202025, the United , the United
States provided Oman with $States provided Oman with $
853 million1.6 billion in total economic and military assistance. in total economic and military assistance.
The United States provides small funding grants, through Nonproliferation, Antiterrorism, Demining, and Related (NADR) 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.
Congressional Research Service
link to page 4 link to page 6 link to page 6 link to page 7 link to page 8 link to page 8 link to page 9 link to page 9 link to page 11 link to page 11 link to page 12 link to page 5 link to page 6 link to page 14 link to page 15 Oman: Politics, Security, and U.S. Policy
Contents
Overview ......................................................................................................................................... 1
Domestic Governance ..................................................................................................................... 3
Economic Reforms and Diversification .......................................................................................... 3
Human Rights .................................................................................................................................. 4
Advancement of Women ..................................................................................................... 5
Foreign Policy ................................................................................................................................. 5
China ......................................................................................................................................... 6
Iran ............................................................................................................................................ 6
Yemen........................................................................................................................................ 8
Israel and the War in Gaza ........................................................................................................ 8
U.S. Relations, Defense, Aid, and Trade ......................................................................................... 9
Figures
Figure 1. Oman ................................................................................................................................ 2
Figure 2. Oman GDP Growth .......................................................................................................... 3
Figure 3. 2024 U.S.-Oman Joint Military Commission ................................................................. 11
Contacts
Author Information ........................................................................................................................ 12
Congressional Research Service
Oman: Politics, Security, and U.S. Policy
Overview
Oman is located along the Arabian Sea (see Figure 1), on the southern approaches to the Strait of Hormuz, across from Iran.
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 2024, the total volume of bilateral trade was $3.2 billion. In April 2025, the White House announced a 10% reciprocal tariff rate on imports of Omani goods, reaffirmed in late July; certain categories of goods are subject to higher tariffs globally, including aluminum, of which Oman is an exporter.
Overview – A Stable Gulf Monarchy Seeking Economic Diversification
Oman is positioned astride the southeastern corner of the Arabian Peninsula, bordering the Arabian Sea, Indian Ocean, and the Strait of Hormuz, one of the world's key maritime choke points (see Figure 1). Oman is located across the Strait of Hormuz from Iran, and Oman's proximity to its much larger, more powerful northern neighbor, along with its shared border to the west with Saudi Arabia, has led the Sultanate to follow a pragmatic foreign policy. For over half-a-century, the Sultanate has pursued friendly relations with all of its neighbors, while maintaining close security ties with the United States and the United Kingdom.
Since the mid-eighteenth century, the Al Said (or Busaid) dynasty has 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.enact laws through royal decree.
21 In January 2020, Oman In January 2020, Oman
’'s long-time and childless leader, Sultan s long-time and childless leader, Sultan
Qaboos bin SaQaboos bin Sa
’'id Al Said, passed away and was succeeded by Haythim bin Tariq Al Said, a id Al Said, passed away and was succeeded by Haythim bin Tariq Al Said, a
cousin selected by Omancousin selected by Oman
’'s royal family s royal family
immediately upon Qaboosimmediately upon Qaboos
’'s death.s death.
Sultan Haythim bin Tariq al Said
Sultan Haythim leads a stable, high-income
Sultan Haythim bin Tariq, an Oxford-educated cousin of the late Sultan Qaboos, is 68 years old (born
nation (as categorized by the World Bank),
October 13, 1954). He had served since 2002 as
though Oman faces challenges in maintaining
Minister of Heritage and Culture and previously served
its decades-long social contract, in which oil
in senior positions in Oman’s foreign ministry.
has brought prosperity to Omani citizens in
Haythim’s selection bypassed his two older brothers—
exchange for their apparent acceptance of the
Asad bin Tariq and Shihab bin Tariq—whom many experts considered more likely successors than
Sultan’s absolute rule. Like the other Gulf
Haythim. Upon assuming the leadership, Sultan
Cooperation Council (GCC) states—Saudi
Haythim indicated a commitment to continue Qaboos’s
Arabia, Qatar, the United Arab Emirates
policies.1 In late January 2021, the new Sultan appointed
(UAE), Bahrain, and Kuwait—Oman derives
his son, Theyazin bin Haythim, who was born in August
most of its state income through hydrocarbon
1990, as Crown Prince. The appointment represented a contrast with the Qaboos era in which the succession
production and export. In 2023, oil and gas
was unclear (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
reserves at 5.2 billion barrels (ranked 23rd
training at the Royal Military Academy Sandhurst in the
globally as of June 2022) and 2023 production
United Kingdom.
at 1.07 million barrels per day (mbd), however,4 Oman’s hydrocarbon-focused economy is smaller than those of its wealthier neighbors. Oman is not a member of the Organization of the Petroleum Exporting Countries (OPEC) but coordinates with other oil producers through the wider, 23-member OPEC+ arrangement. Oman’s sovereign wealth fund, the Oman Investment Authority, has total assets of nearly $47 billion (as of
March 2024), a figure far less than some other
Source: Foreign Ministry of Oman.
GCC state funds, which have hundreds of billions of 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/.
Congressional Research Service
1
Oman: Politics, Security, and U.S. Policy
The Sultanate has used its limited oil-generated wealth
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 powers rest firmly in the hands of the Sultan. Members of the Consultative Council (Majlis As Shura) are directly elected by Omani citizens, male and female, over 21 years of age. The sultan appoints all members of the upper house or State Council (Majlis Ad Dawla). Appointees are usually former high-ranking government officials, military officials, tribal leaders, and other notables.
Sultan Haythim leads a stable, high-income nation (as categorized by the World Bank), though Oman faces challenges in maintaining its decades-long social contract, in which oil has brought prosperity to Omani citizens in exchange for their apparent acceptance of the 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 (over 70%) from hydrocarbon production and export.2 However, Oman has the lowest per capita Gross Domestic Product (GDP) in the GCC owing to its modest levels of oil and gas production.3
Although higher global prices from 2021-2024 enabled the Omani government to reach a budget surplus, the government has begun to explore other options to generate revenue and cut spending, including on development expenditures.4 Oman introduced a Value Added Tax in 2021. In June 2025, Oman became the first GCC country to impose a personal income tax.5 Though the new tax only affects a small number of high-earning Omanis, it could, according to one report, "lead to a recalibration of the relationship between citizens and their government."6
Figure 1. Oman
|
Source: Graphic created by CRS with information from CIA.
Note: Note: Oman's Musandam peninsula is bounded by the United Arab Emirates.
|
To date, the Sultanate has used its relatively limited oil-generated wealth (as compared to some of its neighbors) to provide citizens with subsidized goods, to provide citizens with subsidized goods,
low taxeslow taxes
, housing support, and public sector salaries. Nevertheless, at current oil production rates (estimated at a million barrels per day or bpd),7 and barring any new discoveries or major technological innovations, Oman could exhaust its proven oil reserves (around 5 billion barrels – ranked 21st globally8) in around twenty years.
Given the possibility of declining production, the Sultanate has embarked upon a diversification strategy called "Vision 2040." Under that whole-of-government approach, domestic and foreign investment is being channeled into other sectors, such as tourism, software, manufacturing, green hydrogen,9 renewable energy, and mineral-processing. With 64% of the population under 30, the Sultan has directed the Omani government to monitor the implementation of Vision 2040 on a regular basis.10 However, as other Gulf Arab monarchies attempt to enact their own economic diversification plans, it remains to be seen what comparative advantages the Sultanate can capitalize on relative to its Gulf neighbors. Though the non-oil sectors of the economy (e.g., transportation, financial services, construction) have experienced recent growth, manufacturing has remained flat and the bulk of foreign investment in Oman continues to be in the oil and natural gas sector.11
Foreign Policy – Omani Mediation
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.12 Oman's foreign policy sometimes diverges from that of some of its fellow GCC members, particularly Saudi Arabia and the UAE. Oman has generally sought to mediate regional conflicts and refrained from direct military involvement in them.
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 positioned Oman as a mediator in some regional conflicts in which Iran or its proxies are involved. Oman served as one of the key interlocutors during U.S.-Iranian negotiations over the 2015 Joint Comprehensive Plan of Action (JCPOA). Oman also has helped facilitate the release and transfer of detained U.S. citizens held in Iran and other foreign nationals.13
After the United States and Iran agreed to renew talks on Iran's nuclear program in early 2025, Oman hosted five rounds of mostly indirect negotiations beginning in April. The talks reportedly centered on restrictions on Iran's nuclear program in exchange for the reduction of U.S. sanctions on Iran, with Iran's insistence on maintaining the ability to enrich uranium emerging as a key point of disagreement. A sixth round of talks was scheduled for June 15; Iranian officials canceled it after Israeli strikes on Iran began on June 13. Oman officially condemned Israel's 2025 strikes on Iran, describing them a "dangerous and reckless escalation that constitutes a flagrant violation of the United Nations Charter and principles of international law."14
Since the conflict between Israel and Iran and after Israel's September 2025 military attack against Hamas leaders in Qatar, Omani Foreign Minister Badr Albusaidi has become more outspoken in calling for Arab engagement with Iran. In fall 2025 at a security conference in Bahrain, Albusaidi said "Over the years the GCC has at best sat back and permitted the isolation of Iran.... I believe this needs to change and it needs to change now."15
Though some observers have questioned Oman's neutrality vis-a-vis Iran, particularly when it comes to sanctions compliance,16 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.17 Some Omani persons and entities have been designated for sanctions for their role involvement in Iran-related oil smuggling and weapons procurement.18
Israel and the Palestinians
As elsewhere in the Arab world, the war between Israel and Hamas in Gaza sparked widespread expressions of opposition to the United States and Israel in the Sultanate. Oman did not officially and immediately condemn Hamas's October 7 attacks against Israel,19 and observers have noted how segments of Omani society appear to support the Palestinian cause and even Iran's "axis of resistance against Israel.20 Omani government policy may reflect broad sympathies among Omanis for the Palestinians, as well as fears that Israel could be jeopardizing regional stability. Foreign Minister Albusaidi said in November 2025 that "We have long known that Israel, not Iran, is the prime source of insecurity in the region."21
During the war, some Omanis boycotted certain U.S. corporations, such as Starbucks, McDonald's, Coca-Cola, Pepsi, and others, to protest U.S. support for Israel.22 The Omani Foreign Ministry also was critical of Israel's conduct of the war in Gaza and has continually reaffirmed its support for the establishment of an independent Palestinian state.23 In September 2025, Oman, along with the rest of the GCC states, condemned Israel's military attack against Hamas' external leadership inside Qatari territory.24
Oman is not a signatory to the Abraham Accords, and Omani officials have repeatedly stated that the two-state solution featuring an independent Palestinian state with East Jerusalem as its capital, is the only path to resolving the Israeli-Palestinian conflict.25 Before the Gaza war, Oman opened up its airspace to Israeli commercial carriers.26 During the war, Israeli carrier El Al paused flying over Oman on flights to southeast Asia.
Though the Omani government has continued to criticize Israel's treatment of the Palestinians, the Sultanate has a long history of engagement with Israel. Oman and the other GCC states all participated in the multilateral peace talks established by the U.S.-sponsored Arab-Israeli peace process that was established in 1991. As a result of the multilateral working group sessions of that process, Oman hosts a Middle East Desalination Research Center, which, at times, has facilitated direct meetings between Israeli and Palestinian Authority officials on water issues.27 In December 1994, Oman became the first Gulf state to officially host a visit by an Israeli prime minister (Yitzhak Rabin28), and it hosted then-Prime Minister Shimon Peres in April 1996. In October 1995, Oman exchanged trade offices with Israel, but diplomatic relations were not established. The trade offices closed following the September 2000 Palestinian uprising and have remained closed.29 On October 25, 2018, Israeli Prime Minister Benjamin Netanyahu visited Oman and met with Sultan Qaboos to discuss regional issues.
Yemen
Oman has attempted to mediate resolutions to conflict in Yemen, which has been mired in a civil war since 2014 and where Houthi attacks against Israel and Red Sea shipping led to both Israeli and U.S. air strikes. Oman has long hosted in Muscat Mohammad Abdul Salam, the official spokesman of the Houthis and one of the group's lead negotiators.30 In Yemen, Oman helped mediate a 2022 cease-fire between Saudi Arabia and the Houthis. From March to May 2025, U.S. forces expanded strikes against the Houthis to compel an end to Houthi maritime attacks in the Red Sea. The Houthis agreed to end attacks on U.S. vessels in exchange for a halt to U.S. strikes under an Oman-mediated truce. In 2025, U.S. Secretary of State Marco Rubio thanked Oman for facilitating the release of the crew of the Galaxy Leader, who had been held captive by the Iran-supported Houthis in Yemen.31
Oman's territory reportedly has served as a conduit for the smuggling of weapons and weapons components to the Houthis.32 Smuggled materiel allegedly included anti-ship missiles,33 surface-to-surface short-range missiles, small arms, explosives, and unmanned aerial vehicles (UAVs).34 At times, the United States has obligated Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR) funds for counterterrorism programming, some of which is used for the Oman Border Security Enhancement Program.35
Oman has worked with the United States to accept Yemeni prisoners who were long detained in Guantanamo Bay. During the Obama Administration, Oman accepted 30 prisoners, though most eventually returned home; in January 2025, Oman accepted another 11 Yemeni prisoners.36
China
, 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 repayment of sovereign debt, though the fundamental challenge of how Oman transitions to a 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.) • Religions: Muslim 85.9%; Christian 6.4%; Hindu 5.7%; other 2% (2020 est.)
Economy • GDP: $108.3 bil ion (2023 est.)
• GDP per capita: $21,266 (2023 est.) • GDP real growth rate: 1.2% (2023 est.) • Unemployment Rate: 1.5% Youth Unemployment: 7.1% (2022)
Energy
• Oil Reserves: 5.2 bil ion barrels (2022)
and
•
Trade
Major Trade Partners: China (mostly oil), UAE, South Korea, Japan, India, United States, Saudi
Arabia
Source: Graphic created by CRS with information from CIA, The World Factbook, World Bank, International Monetary Fund, Economist Intelligence Unit, and International Trade Administration.
6 Economist Intelligence Unit (EIU), Oman (country report), March 13, 2024, available at http://country.eiu.com/oman. 7 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,” Al Monitor, September 1, 2022.
Congressional Research Service
2
Oman: Politics, Security, and U.S. Policy
Domestic Governance
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 powers rest firmly in the hands of the Sultan. Members of the Consultative Council (Majlis As
Shura) are directly elected by Omani citizens, male and female, over 21 years of age. The sultan appoints all members of the upper house or State Council (Majlis Ad Dawla). Appointees are usually former high-ranking government officials, military officials, tribal leaders, 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
To 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 states.9
Figure 2. Oman GDP Growth
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.
Congressional Research Service
3
Oman: Politics, Security, and U.S. Policy
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 U.S. Department of Commerce’s Country Commercial Guide for Oman,
Oman’s success in growing its economy will depend in part on revising labor policies, 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 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 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 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 authorities target individuals and entities that are critical of the government.13 Freedom House’s 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 organized political opposition.”14 According to the most recent State Department report on human rights, the principal human rights issues in Oman are
arbitrary arrest or detention; arbitrary or unlawful interference with privacy; serious restrictions on freedom 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; and labor exploitation of foreign migrants.15
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 Rights Commission (OHRC), a quasi-independent but government-sanctioned body, investigates
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.
Congressional Research Service
4
Oman: Politics, Security, and U.S. Policy
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 laborers, who are about 80% of the workforce. Some measures to reform the kafala or visa-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 employer 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 laborers have “faced working conditions indicative of forced labor, including withholding of passports, restrictions on movement, usurious recruitment fees, nonpayment of wages, long working hours without food or rest, threats, and physical or sexual abuse.”18
Advancement of Women
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 Council and, in 2004, Sultan Qaboos appointed the first female cabinet minister.19 Since then, 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 at higher education institutions in the sultanate compared to just 39% a decade prior.20 In the labor market, as of 2022, women (citizens and expatriates) constituted some 31% of the workforce.21 The 2023 Global Gender Gap Report—which benchmarks progress in gender parity across four areas (economic opportunities, education, health, and political leadership)—notes that Oman ranks 139th of 146 countries, 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 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 and the environment.”23
Foreign Policy
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.24 Oman’s foreign policy sometimes diverges from that of some of its fellow GCC members, particularly 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.
Congressional Research Service
5
link to page 5 Oman: Politics, Security, and U.S. Policy
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 against the Islamic State, but did not participate in the coalition’s airstrikes or ground operations against the group. Oman opposed the Saudi-led campaign from June 2017 to December 2020 to isolate Qatar over a number of policy disagreements.
China
Beyond its close ties to fellow GCC states and the West, Oman also is cultivating ties to the People’Beyond its close ties to fellow GCC states and the West, Oman also is cultivating ties to the People's Republic of China (PRC). Oman exports nearly 80% of its oil to the PRC (accounting s Republic of China (PRC). Oman exports nearly 80% of its oil to the PRC (accounting
for for
87% of total imported oil to China).% of total imported oil to China).
2537 The PRC government also has financed an industrial park The PRC government also has financed an industrial park
in the port of Duqm in the port of Duqm
(Figure 1) and lent Oman $3.6 billion in 2017 for Duqm and lent Oman $3.6 billion in 2017 for Duqm
’'s development.38 Chinese companies also have invested in Omani state enterprises which were privatized, such as the Oman Electricity Transmission Company and the Oman Cement Company.39 In 2025, China's Central New Energy Holding Group committed to investing in solar power projects in Oman.40
The Chinese telecommunications firm Huawei has an extensive presence in Oman. Oman Airports have partnered with Huawei to install WiFi networks in Oman's airports,41 and Huawei in September 2025 signed an offset agreement with the Omani Ministry of Finance to train thousands of Omani students and workers in information and communication technology.42
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 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 U.S. policymakers. According to one report, in November 2023, U.S. officials briefed
then-President President
Biden on a PRC plan to build a military facility in Oman.Biden on a PRC plan to build a military facility in Oman.
2943 PRC naval taskforces conduct PRC naval taskforces conduct
goodwill visits and joint exercises with the Royal Navy of Oman.goodwill visits and joint exercises with the Royal Navy of Oman.
3044 The Royal Army of Oman has The Royal Army of Oman has
purchased 122mm multiple rocket launch systems from PRC producers.purchased 122mm multiple rocket launch systems from PRC producers.
31
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 positioned Oman as a mediator in some regional conflicts in which Iran or its proxies are involved. In explaining Oman’s positive relations with Iran, Omani leaders often cite the former Shah of 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 1962-1975 leftist revolt in Oman’s Dhofar Province, a conflict in which 700 Iranian soldiers died.32
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 supported U.S. operations to deter Iran, and 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.
Congressional Research Service
6
Oman: Politics, Security, and U.S. Policy
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.
Congressional Research Service
7
Oman: Politics, Security, and U.S. Policy
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, insofar as U.N. investigators have cited Iran as arming and advising the Zaydi Shia Ansar Allah (aka Houthi) movement that drove the 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. 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 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. 41 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 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.
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.
Congressional Research Service
8
Oman: Politics, Security, and U.S. Policy
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 1970s, both countries have conducted cordial relations. According to the U.S. State Department, “Oman’s long-standing partnership with the United States is critical to our mutual objectives, including increasing economic diversification and development opportunities, promoting regional stability, and countering terrorism.”51 Secretary Blinken has highlighted the key role Oman has played 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.”52
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 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 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.
51 U.S. Department of State, U.S. Relations With Oman, Bilateral Relations Fact Sheet, May 12, 2022. 52 U.S. Department of State, Secretary Antony J. Blinken and Omani Foreign Minister Sayyid Badr al Busaidi, November 8, 2022.
Congressional Research Service
9
Oman: Politics, Security, and U.S. Policy
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 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, 38-member nation
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 exercises, and Oman is considered a CMF partner nation.58 In 2023 and 2024, CMF reported several large drug (heroin, hashish) and weapon (rifles, explosives, and ammunition rounds) seizures in the Gulf of Oman 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.-Oman Joint Military Commission (JMC), last held in March 2024. 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.
Congressional Research Service
10
Oman: Politics, Security, and U.S. Policy
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.
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 (IMET) grants to support Omani 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 (est. $1 million)—much of it through the NADR—to help Oman counter terrorist and related threats. NADR-funded Export Control and Related Border Security, Anti-Terrorism Assistance, 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 civilian agencies to interdict weapons of mass destruction, advanced conventional weapons, or 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/.
Congressional Research Service
11
Oman: Politics, Security, and U.S. Policy
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 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 2022, the United States exported $1.8 billion in goods to Oman and imported $1.6 billion in goods. According to the U.S. Embassy in Oman, “the largest U.S. export categories to Oman are automobiles, aircraft (including military) and related parts, industrial machines, and engines, plastic materials, and pharmaceuticals.” Of the imports,
the largest product categories are “industrial supplies, aluminum, fertilizers, jewelry, and oil by-products such as plastics.”63 The United States imports relatively small amounts of Omani oil.
Author Information
Jeremy M. Sharp
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 shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
63 U.S. Embassy in Oman, “U.S.-Oman Free Trade Agreement,” accessed March 26, 2024.
Congressional Research Service
RS21534 · VERSION 119 · UPDATED
12 45
U.S. Relations – Longstanding Ties
Since the United States and Oman opened embassies in their respective capitals in the early 1970s, both countries have conducted cordial relations. Under President Trump, the United States and Oman have maintained strong ties, though the President did not visit Oman when he traveled to the Gulf in spring 2025.
U.S.-Omani Defense Cooperation
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 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 Salalah and Al Duqm, the latter of which is large enough to handle U.S. aircraft carriers.46
U.S.-Omani security cooperation is ongoing. According to the U.S. State Department, as of January 2025:
The United States has 63 active cases valued at $2.72 billion with Oman under the government-to-government Foreign Military Sales (FMS) system. Recent and significant prior sales include: F-16 Operational Flight Profile and Identification Friend or Foe; upgrades to its F-16 Block 50/52 fighter aircraft, ongoing logistics and sustainment support; AIM-120C-7 AMRAAM and AIM-9X Sidewinder air-to-air missiles; AGM-84 Harpoon air-to-ground munitions; and Javelin and TOW-2B anti-tank missile systems. In FY 2021, Oman has been allocated $20.74 million in Title 10 grant military assistance.47
The signature bilateral forum for discussing U.S.-Omani defense ties is the U.S.-Oman Joint Military Commission (JMC), last held in March 2024. According to the Defense Department readout of the JMC, both sides discussed maritime and border security threats and threat deterrence, the Israel-Gaza war, Red Sea security, and how to strengthen the U.S.-Omani defense partnership.48 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.
Oman has received 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 (IMET) grants to support Omani 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. As previously mentioned, the United States also provides small funding grants (est. $1 million)—much of it through NADR—to help Oman counter terrorist and related threats. NADR-funded Export Control and Related Border Security, Anti-Terrorism Assistance, 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 civilian agencies to interdict weapons of mass destruction, advanced conventional weapons, or illegal drugs at land and sea borders. The funding is also used to train Omani law enforcement agencies on investigative techniques and border security.
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 as Section 1226 of the National Defense Authorization Act for Fiscal Year 2016 (22 U.S.C. 2151).
Though national defense spending in the Sultanate remains opaque, according to one source, Oman's overall defense budget (est. $6.6 billion) accounts for a quarter of the overall national budget.49 Jane's Defence Budget notes that "While the UK and US will remain key providers of defence and security equipment in the future, Oman is likely to continue expanding its horizons as third-party suppliers are able to deliver more capable equipment at lower costs."50
To 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 routinely interdict suspected smuggling operations. Oman is a member of the U.S.-led, 41-member nation Combined Maritime Forces (CMF), which operates task forces to counter piracy and smuggling. While highly capable, the Royal Navy of Oman patrols a 200 nautical mile exclusive economic zone (EEZ), where Iran and maritime smugglers operate.51
U.S.-Omani Economic Relations
The United States is one of the largest foreign direct investors in Oman after the United Kingdom and has registered a cumulative trade surplus of $6.3 billion since 2006.52 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 U.S. economy and accelerate Oman's efforts to diversify its economy. The United States is one of Oman's largest trading partners. In 2024, the total volume of bilateral trade was $3.2 billion. According to the U.S. Embassy in Oman, as of 2024, "the largest U.S. export categories to Oman are automobiles, aircraft (including military) and related parts, industrial machines, and engines, plastic materials, and pharmaceuticals." Of the imports, the largest product categories are "industrial supplies, aluminum, fertilizers, jewelry, and oil by-products such as plastics."53 The United States imports relatively small amounts of Omani oil. In April 2025, the White House announced a 10% reciprocal tariff rate on imports of Omani goods, reaffirmed in late July; certain categories of goods are subject to higher tariffs globally, including aluminum, of which Oman is an exporter.54
Footnotes
| 1.
|
U.S. Department of State, Overseas Security Advisory Council, Bureau of Diplomatic Security, Oman Country Security Report, March 31, 2022.
|
| 2.
|
Economist Intelligence Unit, Oman, June 2025.
|
| 3.
|
Arabian Gulf Business Insight, "GCC economic data," October 22, 2025.
|
| 4.
|
KPMG, "Analysis of Oman's State Budget 2025," January 2025.
|
| 5.
|
"Oman moves to become first Gulf state to impose personal income tax," Reuters, June 23, 2025.
|
| 6.
|
Turki Al-Balushi and Vivian Nereim, "The First Income Tax in the Persian Gulf Signals a Changing Economic Reality," New York Times, July 2, 2025.
|
| 7.
|
Energy Institute, Statistical Review of World Energy 2025.
|
| 8.
|
"Oman's crude oil reserves dip 2.8% to 4.8 billion barrels," Oman Observer, July 10, 2025.
|
| 9.
|
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." See, "Oman's huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions," IEA, June 12, 2023.
|
| 10.
|
Ousmane Dione and Khamis bin Saif Al Jabri, "Oman Vision 2040: A Blueprint for Sustainable Growth and Global Integration," World Bank Blogs, May 28, 2025.
|
| 11.
|
Economist Intelligence Unit, "Oman on track for steady growth," October 28, 2025.
|
| 12.
|
Giulia Daga, "Is Oman the Switzerland of the Middle East," Arab Gulf States Institute, January 20, 2023.
|
| 13.
|
U.S. Department of State, "Secretary Blinken's Call with Omani Foreign Minister Al Busaidi," July 31, 2022.
|
| 14.
|
Oman News Agency (official media), "Oman Strongly Condemns Israeli Military Aggression against Iran," June 13, 2025.
|
| 15.
|
"Arab States Should Deepen Links With Iran, Omani Minister Says," Bloomberg, November 1, 2025.
|
| 16.
|
Ahmad Sharawi, "U.S. Should Not Mistake Oman for a Neutral Mediator," Foundation for Defense of Democracies, June 16, 2025.
|
| 17.
|
Ben Bartenstein, "Oman Seeks to Avoid Financial Gray List, With Iran Ties in Focus," Bloomberg, December 18, 2023.
|
| 18.
|
U.S. Department of the Treasury, "Treasury Targets Oil Broker Network Supporting Qods Force," August 13, 2021 and U.S. Department of the Treasury, "Treasury Targets Multiple Procurement Networks Supporting Iran's Proliferation-Sensitive Programs," March 20, 2024.
|
| 19.
|
Cleary Waldo, Gabriel Epstein, Sydney Hilbush, Aaron Y. Zelin," International Reactions to the Hamas Attack on Israel," PolicyWatch 3793, The Washington Institute for Near East Policy, October 11, 2023. Oman, as a member of the Arab League, did support the July 2025 "New York Declaration on the Peaceful Settlement of the Question of Palestine and the Implementation of the Two-State solution – UN High-Level International Conference," which condemned Hamas' attacks on October 7, 2023 and called for the group to disarm. See, https://www.un.org/unispal/document/un-high-level-international-conference-new-york-declaration-29jul2025/.
|
| 20.
|
Giorgio Cafiero, "Gaza War Undermines Oman's Role as Bridge in a Conflict-Ridden Middle East," Stimson, August 26, 2024.
|
| 21.
|
Mina al Oraibi, "Omani Foreign Minister says Israel, not Iran, is prime source of insecurity in region," The National (UAE), November 1, 2025.
|
| 22.
|
U.S. Department of State, "2024 Investment Climate Statements: Oman."
|
| 23.
|
Foreign Ministry of Oman, "Oman condemns Israeli statements on so-called 'Greater Israel,'" August 14, 2025.
|
| 24.
|
Gulf Cooperation Council, "Final Statement of the Extraordinary Session of the Supreme Council of the Gulf Cooperation Council (GCC) on the Israeli Aggression Against the State of Qatar," September 15, 2025.
|
| 25.
|
Muscat Daily, "Two-state solution only path to peace: Sayyid Badr," September 28, 2025.
|
| 26.
|
"Israel thanks Oman for opening its airspace," Reuters, February 23. 2023.
|
27.
|
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. In the past, the U.S. State Department's Bureau of Near Eastern Affairs obligated 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. See https://www.medrc.org/about-us/.
| 28.
|
Oman's former Foreign Minister, Yousuf bin Alawi bin Abdullah, attended the funeral of Israeli Prime Minister Yitzhak Rabin in Jerusalem in November 1995.
|
| 29.
|
See CRS In Focus IF11237, Israel and the Palestinians: Chronology of a Two-State Solution, by Jim Zanotti.
|
| 30.
|
Ibrahim Jalal, "The war next door: Omani foreign policy toward Yemen," Middle East Institute, September 21, 2023.
|
| 31.
|
U.S. Department of State, "Secretary Rubio's Call with Omani Foreign Minister Sayyid Badr Albusaidi," March 3, 2025.
|
| 32.
|
"800 Drone Propellers Seized at Yemen-Oman Border, Intended for Houthi Militants," YemenOnline.info, March 25, 2025.
|
| 33.
|
"U.S. warship targeted in failed missile attack from Yemen: official," Reuters, October 15, 2016.
|
| 34.
|
"Iranian Technology Transfers to Yemen," Conflict Armament Research, March 2017.
|
| 35.
|
U.S. Department of State, Country Reports on Terrorism 2021 Oman and U.S. Department of State, "U.S. Security Cooperation With Oman," January 20, 2025.
|
| 36.
|
Carol Rosenberg, "U.S. Sends 11 Guantánamo Prisoners to Oman to Start New Lives," New York Times, January 6, 2025.
|
| 37.
|
U.S. Department of Defense, "Military and Security Developments Involving the People's Republic of China 2024," annual report to Congress.
|
| 38.
|
Economist Intelligence Unit, Middle East and Africa economy: Middle East weekly brief: China's expanding role, August 26, 2020.
|
| 39.
|
U.S. Department of State, 2023 Investment Climate Statements: Oman.
|
| 40.
|
"Chinese Clean Energy Firm's Venture Enhances Oman's Solar Hub Status," OPIS, September 2, 2025.
|
| 41.
|
Elias Al Helou, "Oman Airports becomes first in the world to deploy Wi-Fi 7, supporting over 40,000 daily travelers at Muscat International Airport," Middle East Economy, November 17, 2025.
|
| 42.
|
Oman News Agency, "Partnership for Development Agreement Signed Between Ministry of Finance, Huawei," September 28, 2025.
|
| 43.
|
Michelle Jamrisko and Jennifer Jacobs, "Biden Briefed on Chinese Effort to Put Military Base in Oman," Bloomberg, November 7, 2023.
|
| 44.
|
"44th Chinese naval escort taskforce concludes visit to Oman," China Military Online, October 16, 2023.
|
| 45.
|
"Oman has Chinese 122mm MRLs," Jane's Defence Weekly, January 2, 2022.
|
| 46.
|
U.S. Embassy in Oman, "U.S. Statement on the Signing of the Strategic Framework Agreement" March 24, 2019.
|
| 47.
|
U.S. Department of State, "U.S. Security Cooperation with Oman," January 20, 2025.
|
| 48.
|
U.S. Department of Defense, "Readout of U.S.-Oman Joint Military Commission," Release, March 6, 2024.
|
| 49.
|
Nadim Kawach, "Oman spends a quarter of its budget on defence," Arabian Gulf Business Insight, April 8, 2025.
|
| 50.
|
Jane's Emerging Markets, "Oman – Market Report," June 26, 2025.
|
| 51.
|
Jonathan Campbell-James, "Oman Seeks to Improve Its Coastal Security," Fikra Forum, The Washington Institute for Near East Policy, October 23, 2024.
|
| 52.
|
U.S. Department of State, 2025 Oman Investment Climate Statement, September 2025.
|
| 53.
|
U.S. Embassy in Oman, "U.S.-Oman Free Trade Agreement," accessed March 26, 2024.
|
| 54.
|
Justin Alexander, "Trump tariffs present both challenges and opportunities for Oman," Muscat Daily, April 6, 2025.
|