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Oman: Reform, Security, and U.S. Policy
Kenneth Katzman
Specialist in Middle Eastern Affairs
March 12, 2015
Congressional Research Service
7-5700
www.crs.gov
RS21534

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Summary
The Sultanate of Oman has been a strategic ally of the United States since 1980 when it became
the first Persian Gulf state to sign a formal agreement with the United States allowing U.S. use of
its military facilities. It hosted U.S. forces during every U.S. military operation in and around the
Gulf since 1980 and has become a significant buyer of U.S. military equipment, moving away
from its prior reliance on British military advice and equipment. Oman is a partner in U.S. efforts
to counter the movement of terrorists and pirates in the Persian Gulf and Arabian Sea, and it has
consistently supported U.S. Middle East peacemaking efforts by publicly endorsing peace
agreements reached and by occasionally hosting Israeli leadership visits. It was partly in
appreciation for this alliance that the United States entered into a free trade agreement (FTA) with
Oman, which is also intended to help Oman diversify its economy to compensate for its relatively
small reserves of crude oil. Oman’s ties to the United States are unlikely to loosen if its ailing
leader, Sultan Qaboos bin Sa’id Al Said, leaves the scene in the near term.
Unlike most of the other Persian Gulf monarchies, Oman asserts that openly confronting Iran is
not the optimal strategy to address the potential threat from that country. Sultan Qaboos has
consistently maintained ties to Iran’s leaders and has discussed large energy sector ventures such
as a natural gas pipeline that would link Oman and Iran. Successive U.S. Administrations have
generally refrained from criticizing the Iran-Oman relationship, perhaps in part because Oman
has been useful as an intermediary between the United States and Iran. An August 2013 visit to
Iran by Qaboos, which followed months and possibly years of quiet U.S.-Iran diplomacy
brokered by Oman, helped pave the way for the November 24, 2013, interim nuclear agreement
between Iran and the international community. Earlier, Oman played the role of broker between
Iran and the United States in the September 2011 release of two U.S. hikers from Iran after two
years in jail there, and it reportedly is involved in efforts to obtain the release of other U.S.
citizens imprisoned in Iran or in territory under Iran’s control.
Oman’s ties to Iran are an example of the Sultanate’s largely independent foreign policy that
sometimes differs with that of Gulf Cooperation Council (GCC) leader Saudi Arabia. Oman
opposes a Saudi effort to promote greater political unity among the six GCC states—Saudi
Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, and Oman. Oman also differs with the
other Gulf states in refraining from any intervention in the Syria civil war. Oman has publicly
joined the U.S.-led coalition against the Islamic State organization but Oman is apparently not
participating militarily in those efforts.
Prior to the wave of Middle East unrest that began in 2011, the United States repeatedly praised
Sultan Qaboos for gradually opening the political process without evident public pressure to do
so. The liberalization allowed Omanis a measure of representation, but did not significantly limit
Qaboos’ role as paramount decision maker. The modest reforms—as well as the country’s
economic performance—apparently did not satisfy some Omanis because unprecedented protests
took place in several Omani cities for much of 2011. The apparent domestic popularity of
Qaboos, coupled with additional economic and political reforms as well as repression of protest
actions, caused the unrest to subside by early 2012.

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Contents
Introduction ...................................................................................................................................... 1
Democratization, Human Rights, and Unrest .................................................................................. 2
Representative Institutions and Election History ...................................................................... 4
2011 Unrest: Dissatisfaction but Not Hunger for a New Regime ....................................... 5
2011 and 2012 Elections Held Amid Unrest ....................................................................... 6
Broader Human Rights Issues ................................................................................................... 7
Freedom of Expression/Media ............................................................................................ 7
Labor Rights ........................................................................................................................ 8
Religious Freedom .............................................................................................................. 8
Advancement of Women ..................................................................................................... 8
Trafficking in Persons ......................................................................................................... 8
Defense and Security Ties................................................................................................................ 9
U.S. Arms Sales and other Security Assistance to Oman ........................................................ 10
U.S. Defense Articles and Services Transfers to Oman .................................................... 10
Cooperation Against Terrorism/”NADR” Funding ................................................................. 12
Foreign Policy/Regional Issues ............................................................................................... 13
Cooperation Against the Islamic State Organization/Syria and Iraq ................................. 14
Policies on Other Regional Uprisings ............................................................................... 14
Iran .................................................................................................................................... 15
Afghanistan ....................................................................................................................... 17
Arab-Israeli Issues ............................................................................................................. 17
Yemen ................................................................................................................................ 18
Economic and Trade Issues............................................................................................................ 19
Economic Aid .................................................................................................................... 20

Figures
Figure 1. Map of Oman.................................................................................................................... 2

Tables
Table 1. Some Key Facts on Oman .................................................................................................. 1
Table 2. Recent U.S. Aid to Oman ................................................................................................. 12

Contacts
Author Contact Information........................................................................................................... 20
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Introduction
Oman is located along the Arabian Sea, on the southern approaches to the Strait of Hormuz,
across from Iran. Except for a brief period of Persian rule, Omanis have remained independent
since expelling the Portuguese in 1650. The Al Said monarchy began in 1744, extending Omani
influence into Zanzibar and other parts of East Africa until 1861. A long-term rebellion led by the
imam of Oman, leader of the Ibadhi sect (neither Sunni nor Shiite and widely considered
“moderate conservative”) ended in 1959. Oman’s population is 75% Ibadhi—a moderate form of
Islam that is closer in philosophy to Sunni Islam than to Shiism. Sultan Qaboos bin Sa’id Al Said,
born in November 1940, is the eighth in the line of the monarchy; he became sultan in July 1970
when, with British support, he forced his father, Sultan Said bin Taymur Al Said, to abdicate.
The United States signed a Treaty of Amity and Commerce with Oman in 1833, one of the first of
its kind with an Arab state. This treaty was replaced by the Treaty of Amity, Economic Relations,
and Consular Rights signed at Salalah on December 20, 1958. Oman sent an official envoy to the
United States in 1840. A U.S. consulate was maintained in Muscat during 1880-1915, a U.S.
embassy was opened in 1972, and the first resident U.S. Ambassador arrived in July 1974. Oman
opened its embassy in Washington in 1973. Sultan Qaboos was accorded a formal state visit in
April 1983 by President Reagan. He had previously had a U.S. state visit in 1974. President
Clinton visited in March 2000.
Table 1. Some Key Facts on Oman
Population
3.22 million, which includes about 1 million non-citizens
Religions
Ibadhi Muslim (neither Sunni nor Shi te), 75%. Other religions: 25% (includes Sunni
Muslim, Shiite Muslim, Hindu)
GDP (purchasing power
$95 billion (2013)
parity, PPP)
GDP per capita (PPP)
$30,000 (2013)
GDP Real Growth Rate
5% (2013)
Unemployment Rate
15%
Inflation Rate
1.5% (2013)
Oil Production
863,000 barrels per day
Oil Reserves
5 billion-5.5 billion barrels
Oil Exports
750,000 barrels per day (bpd)
Natural Gas Production
875 billion cubic feet/yr
Natural Gas Reserves
30 trillion cubic feet
Natural Gas Exports
407 billion cubic feet/yr
Foreign Exchange and
$17.7 billion (end of 2013)
Gold Reserves
Energy Structure
Petroleum Development Oman (PDO) controls most oil and natural gas resources.
PDO is a partnership between the Omani government (60%), Royal Dutch Shel
(34%), Total (4%), and Partx (2%). Oman Oil Company is the investment arm of the
Ministry of Petroleum.

Sources: CIA, The World Factbook, information posted as of March 2015.
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Figure 1. Map of Oman

Source: CRS.
Democratization, Human Rights, and Unrest
Oman remains a monarchy in which decision making still is largely concentrated with Sultan
Qaboos, even though he has repeatedly demonstrated immense popularity among Omanis.
Qaboos himself holds the formal position of Prime Minister, as well as the positions of Foreign
Minister, Defense Minister, Finance Minister, and Central Bank Governor. His government, and
Omani society, reflects the diverse backgrounds of the Omani population, many of whom have
long-standing family connections to parts of East Africa that Oman once controlled, and to the
Indian subcontinent.
Along with political reform issues, the question of succession has long been central to observers
of Oman. Qaboos’ brief marriage in the 1970s produced no children, and the sultan, who was
born in November 1940, has no heir apparent. According to Omani officials, succession would be
decided by a “Ruling Family Council” of his relatively small Al Said family (about 50 male
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members). If the family council cannot reach agreement within three days, it is to base its
succession decision on a sealed Qaboos letter to be opened upon his death; there are no confirmed
accounts of whom Qaboos has recommended. The succession issue has come to the fore since
mid-2014 when he left Oman to undergo medical treatment in Germany, reportedly for colon
cancer.1 He appeared gaunt and weak in a video message to the Omani people, broadcast from
Germany, on the occasion of Oman’s national day in November 2014. Secretary of State John
Kerry met with Qaboos in Germany in January 2015.
Should Qaboos leave the scene, reported front-runners are three brothers who are cousins of the
sultan. They are: Minister of Heritage and Culture Sayyid Haythim bin Tariq Al Said, who some
assess him as indecisive; Asad bin Tariq Al Said, a former military officer who now holds the title
of “Representative of the Sultan;” and Shihab bin Tariq Al Said, a former high-ranking military
officer. Some say that another potential choice is deputy Prime Minister for Cabinet Affairs Fahd
bin Mahmud Al Said,2 who is referred to by many Omanis officials as “Prime Minister,” even
though Qaboos has long resisted advice from senior advisers to formally establish that post. Fahd
bin Mahmoud represented Oman at the December 2014 summit of leaders of the GCC (Saudi
Arabia, Kuwait, UAE, Bahrain, Oman, and Qatar). The heads of state of the GCC countries
generally make best efforts to attend that signature annual meeting.
Those who advocate establishing a post of Prime Minister have been strengthened by Qaboos’
long absence from Oman and uncertain prognosis. Even before his absence, those who argued for
a prime ministership asserted that such a figure is needed to organize the functions of the
government and render the head of state better able to focus on larger strategic decisions. Those
who opposed the suggestion generally argued that Qaboos already delegates extensively; for
example Minister of State for Foreign Affairs Yusuf bin Alawi bin Abdullah performs virtually all
the functions of Foreign Minister and has broad authority in that sphere. As possible candidates
for a post of Prime Minister , some suggest, in addition to Fahd bin Mahmud, the secretary
general of the Foreign Ministry, Sayyid Badr bin Hamad Albusaidi. He is said to be efficient and
effective, 3and he has recently raised his profile in speeches publicly articulating Omani foreign
policy. Another figure considered effective is economic adviser to the Sultan Salim bin Nasir al-
Ismaily, a businessman and philanthropist who reportedly was entrusted with brokering some of
the U.S.-Iran exchanges discussed later in this report.4
Despite the three-decade-long opening of the political process discussed below, some Omanis—
particularly younger, well-educated professionals—say they consider the pace of liberalization
too slow. Many older Omanis, on the other hand, tend to compare the existing degree of “political
space” favorably with that during the reign of the sultan’s father—an era in which Omanis needed
the sultan’s approval even to wear spectacles or to import cement, for example. Some experts
argue that Sultan Said bin Taymur kept Oman isolated in an effort to insulate it from leftist
extremism that gained strength in the region during the 1960s. Evidence that many were
dissatisfied with the pace of change was demonstrated in 2011-2012 in the form of protest in

1 Simon Henderson. “Oman’s Rulers Failing Health Could Affect U.S. Iran Policy.” Washington Institute for Near East
Policy
, November 7, 2014.
2 Author conversations with Omani officials in Washington, DC, June 2013.
3 Author conversation with Omani Foreign Ministry consultant and unofficial envoy. May 5, 2011. Sayyid Badr’s name
is nearly identical to that of the Minister of State for Defense, but they are two different persons.
4 Oman Stands in U.S.’s Corner on Iran Deal. Wall Street Journal, December 29, 2013.
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several Omani cities at a time of the so-called “Arab Spring” unrest sweeping other Middle East
countries.
Representative Institutions and Election History
Many Omanis, U.S. officials, and international observers repeatedly praised Sultan Qaboos for
establishing consultative institutions and an election process long before there was any evident
public pressure to do so, even though the process was gradual. Under a 1996 “Basic Law,”
Qaboos created a bicameral “legislature” called the Oman Council. The Oman Council consists of
the Consultative Council (Majlis As Shura), which was established in November 1991, and an
appointed State Council (Majlis Ad Dawla), formed after the promulgation of the Basic Law. The
Consultative Council replaced a 10-year-old all-appointed advisory council. However, even after
implementation of a March 2011 Sultan’s decree expanding its powers to question some ministers
and review government-drafted legislation, the Oman Council’s overall scope of authority still
does not approach that of a Western-style legislature. It does not have the power to draft
legislation or to overturn the Sultan’s decrees or government regulations, and it generally confines
its actions to discussing economic and social issues. Many Omanis have said in interviews that
the lack of substantial expansion of the Oman Council’s powers had caused Oman to lag several
other Gulf states on political liberalization. This perception might have contributed to the 2011
unrest in Oman. As in the other Gulf states, formal political parties are not allowed. Unlike
Bahrain or Kuwait, there are not well-defined “political societies” (de-facto parties) in Oman that
compete within or outside the electoral process.
Oman Council’s Elected Component: The Consultative Council. The Consultative Council was
initially chosen through a selection process in which the government had substantially influence
over the body’s composition, but this process was gradually altered to a full popular election.
When it was formed in 1991, the body had 59 seats, and was expanded in stages to its current size
of 84 elected members. The sultan appoints the Consultative Council president from among the
membership, and the Consultative Council chooses two vice presidents. The electorate for the
Consultative Council has gradually expanded. In the 1994 and 1997 selection cycles for the
council, “notables” in each of Oman’s districts chose up to three nominees, with Qaboos making
a final selection for the council. The first direct elections were held in September 2000 (then a
three-year term), but the electorate was limited (25% of all citizens over 21 years old). In
November 2002, Qaboos extended voting rights to all citizens, male and female, over 21 years of
age, applicable for the October 4, 2003, election. About 195,000 Omanis voted in that election
(74% turnout), but the vote produced a council similar to that elected in 2000, including the
election of the same two women as in the previous election (out of 15 women candidates). In the
October 27, 2007, election (after changing to a four-year term), Qaboos allowed public
campaigning. Turnout among 388,000 registered voters was 63%, including enthusiastic
participation by women, but none of the 21 female candidates (out of 631 candidates) won.
Appointed State Council. The State Council, which had 53 members at inception, has been
expanded to 83 members, but it remains an all-appointed body. By law, the appointed State
Council cannot have a membership that exceeds the number of elected members of the
Consultative Council. The State Council appointees are former high-ranking government officials
(such as ambassadors), military officials, tribal leaders, and other notables. The government
apparently sees the State Council as a check and balance on the elected Consultative Council.
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2011 Unrest: Dissatisfaction but Not Hunger for a New Regime
Evidence mounted in 2010 and particularly in 2011 that many Omanis were dissatisfied with the
pace of political change and the country’s economic performance. In July 2010, 50 prominent
Omanis petitioned Sultan Qabooos for a “contractual constitution”—one that would guarantee
basic rights and provide for a fully elected legislature. In February 2011, after protests in Egypt
toppled President Hosni Mubarak, protests broke out in the northern industrial town of Sohar,
Oman. On February 27, 2011, several hundred demonstrators there demanded better pay and
more job opportunities; one was killed when security forces fired rubber bullets. Protests
expanded in Sohar over the next few days, and spread to the capital, Muscat. Although most
protesters asserted that their protests were motivated primarily by economic factors, some echoed
the calls of the July 2010 petition for a fully-elected legislature. Few demonstrators called for
Qaboos to step down and many demonstrators reportedly carried posters lauding the Sultan.
The government calmed some of the unrest through a series of measures, including clearing
protesters from Sohar. Not relying solely on repressive measures, on March 7, 2011, Qaboos
appointed several members of the Consultative Council as ministers and named an additional
female minister (Madiha bint Ahmad bin Nasser as education minister). He also ordered that
50,000 new public sector jobs be created immediately, raised the minimum wage by about one-
third (to about $520 per month), and gave $400 to unemployed job seekers. Sultan Qaboos
decreed that the office of public prosecutor will have independence from government control, that
there will be new consumer protections, and, as noted above, expanded the powers of the Oman
Council. These moves followed an earlier mandated increase in private sector minimum wages.
Despite the modest reforms and the security measures, tensions remained high. One demonstrator
was killed in a demonstration in Sohar on April 1, 2011. On April 7, 2011, protesters outside the
Oman Council headquarters called for an investigation of protester deaths. Activists using social
media called for protests in Sohar on April 8, 2011, but a heavy security presence prevented them.
During April and May 2011, protests were held after each Friday’s prayers in the city of
Salalah—the capital of the Dhofar region that rebelled against the government in the 1970s.
In January 2012, the government announced plans to boost its expenditures by about 26% to
provide for jobs, social security, and unemployment benefits—an apparent further budgetary
effort to head off any resurgence of unrest. In July 2012, there was a wave of oil sector strikes and
further demonstrations in Sohar by recent graduates protesting a lack of job opportunities. Some
protesters expressed anger at what they said was a waste of resources in Sultan Qaboos’ sending
of 100 horses to the Diamond Jubilee celebration of Britain’s Queen Elizabeth.
Even though protests largely ended by mid-2012, during that year, at least 50 journalists,
bloggers, and other activists were jailed for “defaming the Sultan,” “illegal gathering,” or
violating the country’s cyber laws. Twenty-four of them went on a hunger strike in February 2013
to draw attention to their incarceration and in the hopes of persuading Oman’s Supreme Court to
hear appeals of their cases. On March 21, 2013, the sultan pardoned 35 of them, and action
praised by international human rights groups and held up as a contrast with continued
incarcerations of social media critics in the other GCC states. Fourteen who remained in jail went
on a hunger strike in March 2013 and were pardoned on July 23, 2013. The pardon also reinstated
many Omanis who had been dismissed from public and private sector jobs for participating in
unrest. Also in March 2013, the government announced a limitation on the number of foreign
workers and a sharp rise in the minimum wage for Omani workers.
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Some experts forecast that unrest might re-ignite if Qaboos leaves the scene in the near term and
no successor is selected immediately. However, other experts assert that there is no tradition of
violent or prolonged succession struggles in Oman—or even in the other GCC states more
broadly—and that Oman is likely to remain stable throughout a leadership transition.
The U.S. reaction to the unrest in Oman was muted, possibly because Oman is a key ally of the
United States and perhaps because the unrest appeared minor relative to the rest of the region. On
June 1, 2011, after the unrest had begun, and after some government force had suppressed
protests, then U.S. Ambassador Richard Schmierer told an Omani paper: “The entire region,
including Oman, has witnessed enormous change in an extremely brief period of time. Sultan
Qaboos was quick to recognize and respond to the needs of Omanis. The way in which he
responded to the concerns of the Omani people is a testament to his wise leadership.”5 At her
confirmation hearings on July 18, 2012, Ambassador-Designate to Oman Greta Holz
(subsequently confirmed) said “If confirmed, I will encourage Oman, our friend and partner, to
continue to respond to the hopes and aspirations of its people.”
2011 and 2012 Elections Held Amid Unrest
The October 2011 Consultative Council elections went forward despite the unrest. The
enhancement of the Oman Council’s powers raised the stakes for candidates and voters in the
Consultative Council elections and State Council appointments, because the next Oman Council
would presumably have increased influence on policy. The election date was set as October 15,
2011. Attracted by the enhanced powers of the Oman Council, a total of 1,330 candidates
announced their candidacies—a 70% increase from the number of candidates in the 2007 vote. A
record 77 women filed candidacies, compared to the 21 that filed in the 2007 vote. The
government did not permit outside election monitoring.
Of the 520,000 Omanis who registered to vote, about 300,000 voted—the turnout of about 60%
(about the same as in the 2007 election) appeared to refute those who felt that the citizenry would
shun the political process following the months of unrest. Hopes among many Omanis that at
least several women would win were dashed—only one was elected, a candidate from Seeb
(suburb of the capital, Muscat). Some reformists were heartened by the election victory of two
political activists—Salim bin Abdullah Al Oufi, and Talib Al Maamari. There was a vibrant
contest for the speakership of the Consultative Council, and Khalid al-Mawali, a relatively young
entrepreneur, was selected. In the State Council appointments that followed the Consultative
Council elections, the sultan appointed 15 women, bringing the total female participation in the
Oman Council to 16 out of 154 total seats—just over 10%.
In its efforts to reduce unrest the government also began a separate electoral process for
provincial councils. The councils are empowered to make recommendations to the government on
development projects, but not to make final funding decisions. Previously, only one such council
had been established, for the capital region, and it was all appointed. On November 15, 2012, the
government announced that it would hold the first-ever elections for councils in all 11
provinces—to take place on December 22, 2012. The total number of seats up for election was
192. More than 1,600 candidates registered to run, including 48 women. About 546,000 citizens
voted. Four women were elected.

5 http://oman.usembassy.gov/pr-06012011.html
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Broader Human Rights Issues6
The State Department’s human rights report for 2013 did not repeat the assertions of earlier
reports that “the government generally respect[s] the human rights of its citizens.” It identified the
principal human rights problem as the inability of citizens to peacefully change their government;
limits on freedom of speech and assembly; restrictions on citizens and civil society from
associating with foreign governments; and discrimination against women, including that based on
cultural norms. The 2013 report repeated the assertion of the prior year’s report that security
personnel and other officials were generally held accountable for their actions. In November
2008, Oman established an appointed National Human Rights Commission as an “autonomous
body” attached to the State Council.
U.S. funds from the Middle East Partnership Initiative and the Near East Regional Democracy
account (both State Department accounts) have been used to fund civil society and political
process strengthening, judicial reform, election management, media independence, and women’s
empowerment. In 2011, Oman established a scholarship program through which at least 500
Omanis have enrolled in higher education in the United States. Some MEPI funds are also used in
conjunction with the U.S. Commerce Department to improve Oman’s legislative and regulatory
frameworks for business activity.
Freedom of Expression/Media
The State Department’s 2013 human rights report stated that Omani law provides for limited
freedom of speech and press, but that the government generally does not respect these rights.
Press criticism of the government is tolerated, but criticism of the sultan (and by extension,
government officials) is not. Private ownership of radio and television stations is not prohibited,
but there are few privately owned stations, including Majan TV, and three radio stations: HiFM,
HalaFM, and Wisal. Availability of satellite dishes has made foreign broadcasts accessible to the
public. There are some legal and practical restrictions to Internet usage, and only about 15% of
the population has subscriptions to Internet service. Many Internet sites are blocked, primarily for
offering sexual content, but many Omanis are able to bypass restrictions by accessing their
Internet over cell phones.
Some bloggers and other activists who use social media have been prosecuted as part of the
government’s effort to reduce public unrest. In September 2014, Omani police detained and
threatened to prosecute blogger and editor of Muwatin Magazine Mohammad al-Fazari if he
continued to criticize government policies. He was previously arrested in 2012 and was one of
those activists who was pardoned.
In December 2014, the upper house of the Oman Council (Majlis As Shura) voted to impose a
blanket ban on the sale of alcohol. However, opposition from the tourism industry in Oman
appears to have forestalled further movement to enact that recommendation.

6 Much of this section is from the State Department’s country report on human rights practices for 2013 (released
February 27, 2014),
http://www.state.gov/j/drl/rls/hrrpt/humanrightsreport/index.htm?year=2013&dlid=220371#wrapper; the International
Religious Freedom Report
for 2012 (May 20, 2013), http://www.state.gov/j/drl/rls/irf/religiousfreedom/index.htm?
year=2012&dlid=208398#wrapper; and the Trafficking in Persons Report for 2014 (June 2014),
http://www.state.gov/documents/organization/226848.pdf
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Labor Rights
Omani workers have the right to form unions and to strike. However, only one federation of trade
unions is allowed, and the calling of a strike requires an absolute majority of workers in an
enterprise. The labor laws permit collective bargaining and prohibit employers from firing or
penalizing workers for union activity. Labor rights are regulated by the Ministry of Manpower.
Religious Freedom
The 1996 Basic Law affirmed Islam as the state religion, but provides for freedom to practice
religious rites as long as doing so does not disrupt public order. Recent State Department religious
freedom reports note no “significant change” in the government’s respect for religious freedom
and no “reports of societal abuses or discrimination based on religious affiliation, belief, or
practice.” Non-Muslims are free to worship at temples and churches built on land donated by the
Sultan, but there are some limitations on non-Muslims’ proselytizing and on religious gatherings
in other than government-approved houses of worship.
All religious organizations must be registered with the Ministry of Endowments and Religious
Affairs (MERA). Among non-Muslim sponsors recognized by MERA are the Protestant Church
of Oman; the Catholic Diocese of Oman; the al Amana Center (interdenominational Christian);
the Hindu Mahajan Temple; and the Anwar al-Ghubairia Trading Co. Muscat (for the Sikh
community). The government agrees in principle to allow Buddhists to hold meetings if they can
find a corporate sponsor. Members of all religions and sects are free to maintain links with
coreligionists abroad and travel outside Oman for religious purposes. Private media have
occasionally published anti-Semitic editorial cartoons.
Advancement of Women
Sultan Qaboos has spoken regularly on the equality of women and their importance in national
development, and they now constitute over 30% of the workforce. The first woman of ministerial
rank in Oman was appointed in March 2003, and since 2004, there have been several women of
that rank in each cabinet. There are two female ministers in the 29-member cabinet. In April
2004, Qaboos placed five women among the 29 appointees to the public prosecutor’s office.
Oman’s ambassadors to the United States and to the United Nations are women. There are 15
women in the 2012-2016 State Council, up from 14 in the previous council and 9 in the 2003-
2007 council. One woman was elected to Consultative Council in the 2011 election, following a
four-year period (2007-2011) in which no females served in the elected body. Two women were
chosen in the election cycles prior to 2007.
Below the elite level, however, Omani women continue to face social discrimination, often as a
result of the interpretation of Islamic law. Allegations of spousal abuse and domestic violence are
fairly common, with women finding protection primarily through their families. Omani
nationality can be passed on only by a male Omani parent.
Trafficking in Persons
In October 2008, President Bush directed (Presidential Determination 2009-5) that Oman be
moved from “Tier 3” on trafficking in persons (worst level, assessed in the June 4, 2008, State
Department Trafficking in Persons report on that issue) to “Tier 2/Watch List.” That
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determination was made on the basis of Omani pledges to increase efforts to counter trafficking in
persons. Oman’s rating was raised to Tier 2 in the 2009 Trafficking in Persons report, and has
remained there since, including in the report for 2014, released in June 2014. The Tier 2 ranking
is based on an assessment that Oman is making significant efforts to comply with minimum
standards for the elimination of trafficking and on its prosecutions for those trafficking in persons.
Still, Oman is considered a destination and transit country for men and women primarily from
South and East Asia, in conditions indicative of forced labor.
Defense and Security Ties
Sultan Qaboos, who is Sandhurst-educated and is respected by his fellow Gulf rulers as a defense
strategist, has long seen the United States as the key security guarantor of the region. He also has
consistently advocated expanded defense cooperation among the state of the Gulf Cooperation
Council (GCC: Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, and Oman). Oman
was the first GCC state to formalize defense relations with the United States after the Persian
Gulf region was shaken by Iran’s 1979 Islamic revolution. Oman signed an agreement to allow
U.S. forces access to Omani military facilities on April 21, 1980. Three days later, the United
States used Oman’s Masirah Island air base to launch the failed attempt to rescue the U.S.
embassy hostages in Iran—although Omani officials assert they were not informed of that
operation in advance. Oman served as an intermediary between the United States and Iran for the
return of Iranians captured in clashes with U.S. naval forces in the Gulf during the 1980-1988
Iran-Iraq war.
Under the U.S.-Oman facilities access agreement, which was renewed in 1985, 1990, 2000, and
2010,7 the United States reportedly can use—with advance notice and for specified purposes—
Oman’s military airfields in Muscat (the capital), Thumrait, and Masirah Island. Some U.S. Air
Force equipment, including lethal munitions, has been stored at these bases.8 During the renewal
negotiations in 2000, the United States acceded to Oman’s request that the United States fund a
$120 million upgrade of a fourth air base (Khasab) at Musnanah (50 miles from Muscat).9 The
Defense Authorization Act for FY2011 (P.L. 111-383, signed January 7, 2011) authorized $69
million in additional military construction funding for the Musnanah facility.
Oman’s facilities contributed to U.S. major combat operations in Afghanistan (Operation
Enduring Freedom, OEF) and, to a lesser extent, Iraq (Operation Iraqi Freedom, OIF), even
though Omani leaders said that invading Iraq could “incite revenge” against the United States in
the Arab world. According to the Defense Department, during OEF there were about 4,300 U.S.
personnel in Oman, mostly Air Force, and U.S. B-1 bombers, indicating that the Omani facilities
were used extensively for strikes during OEF. The U.S. military presence in Oman fell to 3,750
during OIF because facilities in Gulf states closer to Iraq were used more extensively. Since 2004,
Omani facilities reportedly have not been used for air support operations in either Afghanistan or

7 Author conversation with State Department officer responsible for Oman. January 6, 2011.
8 Hajjar, Sami. U.S. Military Presence in the Gulf: Challenges and Prospects. U.S. Army War College, Strategic
Studies Institute, p. 27. The State and Defense Departments have not released public information recently on the
duration of the 2010 renewal of the agreements or modifications to the agreements, if any.
9 Finnegan, Philip. “Oman Seeks U.S. Base Upgrades.” Defense News, April 12, 1999.
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Iraq, and the numbers of U.S. military personnel in Oman have fallen to a few hundred, mostly
Air Force.10 Unlike Bahrain or UAE, Oman did not send military or police forces to Afghanistan.
U.S. Arms Sales and other Security Assistance to Oman11
Oman’s approximately 45,000-person armed force is the third largest of the GCC states and
widely considered one of the best trained. However, in large part because of Oman’s limited
funds, it is one of the least well equipped of the GCC countries. Using U.S. assistance and
national funds, Oman is trying to expand and modernize its arsenal primarily with purchases from
the United States. Because of his historic ties to the British military, Qaboos early on relied on
seconded British officers to command Omani military services and Oman bought British
weaponry. Over the past two decades, British officers have become mostly advisory and Oman
has shifted its arsenal of major combat systems mostly to U.S.-made systems.
U.S. Defense Articles and Services Transfers to Oman
Oman uses U.S.-provided Foreign Military Financing (FMF), other U.S. accounts, and national
funds to modernize its forces. These sales are among the large recent arms sales to the GCC states
intended in part to contain Iran. In dollar value, most of the U.S. sales to the GCC countries are to
the wealthier GCC states such as Saudi Arabia, UAE, and Qatar. For FY2016, FMF will be used
to help promote the professionalization of Oman’s armed forces and build its ability to address
emerging threats to the coalition combatting the Islamic State organization.12
F-16s: In October 2001, Oman purchased (with its own funds) 12 U.S.-made F-
16 C/D aircraft. Along with associated weapons (Harpoon and AIM missiles), a
podded reconnaissance system, and training, the sale was valued at about $825
million; deliveries were completed in 2006. Oman made the purchase in part to
keep pace with the other GCC states that bought U.S.-made combat aircraft. The
Defense Security Cooperation Agency (DSCA) notified Congress on August 4,
2010, of a potential sale to Oman of up to 18 additional F-16s and associated
equipment and support, with a value of up to $3.5 billion.13 Oman signed a
contract with Lockheed Martin for 12 of the aircraft in December 2011, with a
contract for an additional 6 still possible. The first of the aircraft was delivered in
July 2014 and the deliveries are to be completed by December 2016. Oman has
also bought associated weapons systems, including Advanced Medium-Range
Air-to-Air Missiles (AMRAAMs), 162 GBU laser-guided bombs, AIM
“Sidewinder” air-to-air missiles, and other weaponry and equipment.
Countermeasures for Head of State Aircraft. In November 2010, DSCA notified
Congress of a possible sale of up to $76 million worth of countermeasures
equipment and training to protect the C-130J that Oman bought under a June
2009 commercial contract. The prime manufacturer of the equipment is Northrop

10 Contingency Tracking System Deployment File, provided to CRS by the Department of Defense.
11 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.
12 State Department Congressional Budget Justification for FY2016.
13 Andrea Shalal-Esa. “Lockheed Hopes to Finalize F-16 Sales to Iraq, Oman.” Reuters, May 16, 2011.
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Grumman. Another sale of $100 million worth of countermeasures equipment—
in this case for aircraft that fly Sultan Qaboos—was notified on May 15, 2013.
Surface-to-Air and Air-to-Air Missiles. On October 19, 2011, DSCA notified
Congress of a potential sale to Oman of AVENGER and Stinger air defense
systems, asserted as helping Oman develop a layered air defense system.
Missile Defense. On May 21, 2013, Secretary of State John Kerry visited Oman
reportedly in part to help finalize a sale to Oman of the THAAD (Theater High
Altitude Area Defense system), the most sophisticated missile defense system the
United States exports. The deal for the system, made by Raytheon, was
announced on May 27, 2013, with an estimated value of $2.1 billion, but subject
to further negotiations between Oman and Raytheon. DSCA has not, to date,
made a notification to Congress about the potential sale. The THAAD has been
sold to the UAE and will reportedly also be bought by Qatar and Saudi Arabia.
Oman’s potential buy of the system indicates Oman is cooperating with U.S.
efforts to construct a Gulf-wide missile defense network.
Tanks as Excess Defense Articles. Oman is eligible for grant U.S. excess defense
articles (EDA) under Section 516 of the Foreign Assistance Act. It received 30
U.S.-made M-60A3 tanks in September 1996 on a “no rent” lease basis (later
receiving title outright). In 2004, it turned down a U.S. offer of EDA U.S.-made
M1A1 tanks, but Oman is believed to still need new armor to supplement the 38
British-made Challenger 2 tanks and 80 British-made Piranha armored personnel
carriers Oman bought in the mid-1990s.
Border/Maritime Security and Anti-Terrorism Equipment and Training. FMF has
been used to help Oman purchase several other types of equipment that help
Oman secure its borders, operate alongside U.S. forces, and combat terrorism.
FMF has helped Oman buy U.S.-made coastal patrol boats (“Mark V”) for anti-
narcotics, anti-smuggling, and anti-piracy missions, as well as aircraft munitions,
night-vision goggles, upgrades to coastal surveillance systems, communications
equipment, and de-mining equipment. The minor EDA grants since 2000 have
gone primarily to help Oman monitor its borders and waters and to improve inter-
operability with U.S. forces. In FY2011, DOD funds (“Section 1206” funds)
were to be used to help Oman’s military develop its counterterrorism capability
through deployment of biometric data collection devices. However, Oman
decided not to take delivery of the system and the devices were redirected to
Bahrain.14
Regarding purchases from other countries, Oman has continued to buy some British equipment,
such as patrol boats. Oman’s air force possesses 12 Eurofighter “Typhoon” fighter aircraft as
well. Oman has also bought some Chinese-made armored carriers and other gear.

14 Information from DOD in response to questions from the House of Representatives on the use of 1206 funding.
September 4, 2013.
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IMET Program
The International Military Education and Training program (IMET) program is used to promote
U.S. standards of human rights and civilian control of military and security forces, as well as to
fund English language instruction, and promote inter-operability with U.S. forces.
Table 2. Recent U.S. Aid to Oman
(In millions of dollars)

FY07 FY08 FY09 FY10 FY11
FY12
FY13
FY14
FY15
FY16
IMET 1.11
1.43 1.45
1.525
1.622 1.638 1.935 2.0 1.9
2.0
FMF 13.49
4.712 7.0 8.85 13.0
8.0
7.6 8.0
4.0
2.0
NADR
1.28
1.593
0.95
1.655
1.5
1.5
1.475
1.5
1.5
1.5
1206
0.948


Notes: IMET is International Military Education and Training; FMF is Foreign Military Financing; NADR is
Nonproliferation, Anti-Terrorism, De-Mining and Related Programs, and includes ATA (Anti-Terrorism
Assistance); EXBS (Export Control and Related Border Security); and TIP (Terrorism Interdiction Program).
Numbers for FY2011 reflect final al ocations by State Department FY2013 and FY2014 figures refer to requested
funds.
Cooperation Against Terrorism/”NADR” Funding
Since September 11, 2001, Oman has cooperated with U.S. legal, intelligence, and financial
efforts against terrorist groups including Al Qaeda, Al Qaeda in the Arabian Peninsula (AQAP,
headquartered in neighboring Yemen), and more recently the Islamic State organization. No
Omani nationals were part of the September 11, 2001, attacks and no Omanis have been publicly
identified as senior members of the Al Qaeda organization. According to the State Department
report on global terrorism for 2013, released April 30, 2014, Oman is actively involved in
preventing members of these and other terrorist groups from conducting attacks and using the
country for safe haven or transport.15 According to the report, at the request of Bahrain, Oman
arrested three members of the alleged terrorist group “Army of the Imam,” in February 2014.
The United States provides funding – Nonproliferation, Antiterrorism, Demining, and Related
(NADR) to help Oman counter terrorist and related activity. NADR funding falls into two
categories: Export Control and Related Border Security (EXBS) funds and Anti-Terrorism (ATA)
fund. For FY2016, $1.0 million of the $1.5 million NADR request is for EXBS to provide law
enforcement training to Omani border security officers to detect illicit trafficking of WMD or
advanced conventional weapons technology. On November 22, 2005, Oman joined the U.S.
“Container Security Initiative,” agreeing to pre-screening of U.S.-bound cargo from its port of
Salalah for illicit trafficking of nuclear and other materials, and for terrorists.


15 http://www.state.gov/j/ct/rls/crt/2013/224823.htm
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The other NADR category, ATA funds ($0.5 million of the FY2016 request), will be used in
FY2016 to help Oman build capacity for border security. The border threats emanate primarily
from AQAP in neighboring Yemen, and from the Islamic State in nearby Iraq and Syria.
There are no Omani nationals held in the U.S. prison for suspected terrorists in Guantanamo Bay,
Cuba. In January 2015, Oman accepted the transfer of three non-Omani nationals from
Guantanamo Bay as part of an effort to support U.S. efforts to close the facility.
Oman is a member of the Middle East and North Africa Financial Action Task Force (MENA-
FATF). Recent State Department terrorism reports credit Oman with transparency regarding its
anti-money laundering and counterterrorist financing enforcement efforts and with steady
improvement in its legal system related to those efforts. The reports note that the government
exercises caution and oversight in its commercial banking sector to prevent terrorists from using
Oman’s financial system. The reports add that Oman does not permit the use of hawalas, or
traditional money exchanges in the financial services sector and Oman has on some occasions
shuttered hawala operations entirely. In September 2008, it strengthened its anti-money
laundering program by requiring non-banking establishments to verify the identity of their clients
and document financial transactions. A 2010 Royal Decree is Oman’s main legislation on anti-
money laundering and combatting terrorism financing.
Foreign Policy/Regional Issues
Oman under Qaboos has pursued a relatively independent foreign policy, even though Oman’s
key regional relationships are with the other GCC states. Oman has differed with several other
GCC states, including de-facto GCC leader Saudi Arabia, particularly on the issue of how to
address the perceived threat from Iran. Omani leaders assert that dialogue and engagement, and
not open confrontation, is the appropriate policy for minimizing the perceived threat from Iran.
Oman’s differences with other GCC states have erupted periodically, but particularly at a GCC
leadership meeting on May 14, 2012, in which Saudi Arabia advanced a plan for political unity
among the GCC states as a signal of GCC solidarity against Iran. However, the plan was not
adopted due to concerns among the other GCC leaders about surrendering some of their
sovereignty. Observers say that Oman was among the most vociferous opponents of the Saudi
plan.16 Saudi Arabia again raised the proposal in advance of the December 10-11, 2013, GCC
summit in Kuwait—intended this time to signal GCC solidarity in the face of a potential U.S.-
Iran rapprochement. At an international security conference in Bahrain on December 7, 2013,
(“Manama Dialogue,” sponsored by the International Institute for Strategic Studies, IISS), Oman
forcefully objected to the plan, to the point of threatening to withdraw from the GCC entirely if
the plan were adopted. The proposal was not adopted according to the final communique of the
December 10-11, 2013, GCC summit. Oman backed the communique’s provision to form a joint
GCC military command, subject to further study. In 2007, Oman was virtually alone within the
GCC in balking at a plan to form a monetary union. Lingering border disputes also have plagued
Oman-UAE relations; the two finalized their borders in 2008, nearly a decade after a tentative
border settlement in 1999.


16 Comments to the author by a visiting GCC official. May 2012.
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Along with the other GCC states, Oman fully backs the Al Khalifa regime in Bahrain in its
confrontation with mostly Shiite protests that have been taking place since early 2011. Oman
supported the GCC consensus to send forces from the GCC joint “Peninsula Shield” unit into
Bahrain on March 14, 2011, to provide backing to the regime’s beleaguered security forces,
although Oman did not deploy any forces itself. The GCC countries also decided, in March 2011,
to set up a $20 billion fund to help both Bahrain and Oman cope with popular unrest, to be used
to create jobs and take other steps to ease protester anger.
Cooperation Against the Islamic State Organization/Syria and Iraq
At a meeting in Jeddah on September 11, 2014, Oman and the other GCC countries formally
joined the U.S.-led coalition to defeat the Islamic State organization. Unlike fellow GCC states
Saudi Arabia, UAE, and Bahrain, Oman has not joined in U.S.-led airstrikes against Islamic State
positions in Syria. It is likely that Oman has offered the use of its air bases for the coalition, but
Oman’s bases are further from the areas of operations than are similar facilities in the other GCC
countries and Oman is likely not used much, if at all, for strikes in Iraq or Syria. Oman’s relative
lack of direct action against the Islamic State has generally reflected its reluctance to intervene
directly in the civil war in Syria. Unlike Saudi Arabia, Qatar, and UAE, Oman has not been
providing any funds or arms to anti-Assad rebel groups in Syria. In November 2011, Oman voted
to suspend Syria’s membership in the Arab League and, in concert with the other GCC states,
subsequently closed its embassy in Damascus.
No GCC state is participating in air strikes against the Islamic State fighters in Iraq, nor is any
GCC state directly assisting the Iraqi government or military there. All the GCC states expressed
dismay that Shiite factions achieved preponderant authority in post-Saddam Iraq. With the
exception of Kuwait, the GCC countries have been hesitant to support the Baghdad government.
Like virtually all the GCC states with the exception of Saudi Arabia, Oman opened an embassy in
post-Saddam Iraq but then closed it for several years following a shooting outside it in November
2005. The shooting wounded four, including an embassy employee. The embassy reopened in
2007 but Oman’s Ambassador to Iraq, appointed in March 2012, is resident in Jordan, where he
serves concurrently as Oman’s Ambassador. Oman provided about $3 million to Iraq’s post-
Saddam reconstruction, a relatively small amount reflecting Oman’s limited available resources.
Policies on Other Regional Uprisings
Libya. Oman did not play as active a role in supporting the Libya uprising as its fellow GCC
states Qatar and UAE. Oman did not supply weapons or advice to rebel forces or fly any strike
missions against Qadhafi forces, but it recognized the opposition Transitional National Council as
the government of Libya after Tripoli fell on August 21, 2011. In March 2013, Oman granted
asylum to the widow of slain, ousted Libyan leader Muammar Qadhafi and their daughter, Aisha,
and sons Mohammad and Hannibal17 who reportedly had entered Oman in October 2012. Aisha
and Hannibal are wanted by Interpol pursuant to a request from the Libyan government, but
Libya has not asked for their extradition. Omani officials said they were granted asylum on the
grounds that they not engage in any political activities.

17 “Muammar Gaddafi’s Family Granted Asylum in Oman.” Reuters, March 25, 2013.
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Egypt. The GCC is divided on post-Mubarak Egypt. Qatar supported the elected presidency of
Muslim Brotherhood leader Mohammad Morsi, but Saudi Arabia and the UAE oppose the
Brotherhood and supported the Egyptian military ouster of Morsi in July 2013. The divisions
contributed to a decision by Saudi Arabia, UAE, and Bahrain to close their embassies in Qatar in
March 2014. Suggesting a position close to that of Qatar, Omani media (“Times of Oman”) has
been critical of the Egyptian military for its crackdown against Morsi supporters.18
Iran
Oman has closer ties to Iran than does any other GCC state. Omani leaders assert that
engagement with Iran better mitigates the potential threat from that country than does
belligerence towards it. There are residual positive sentiments among the Omani leadership for
the Shah of Iran’s provision of troops to help Oman end the leftist revolt in Oman’s Dhofar
Province during 1964-1975. Oman has no sizable Shiite Muslim community with which Iran
could meddle in Oman. Others attribute Oman’s position on Iran to its larger concerns that Saudi
Arabia has sought to spread its Wahhabi form of Islam into Oman, and Oman sees Iran as a
potential counterweight to Saudi Arabia. In an action criticized in the United States and the GCC,
Sultan Qaboos visited Tehran in August 2009, despite protests in Iran over alleged governmental
fraud in declaring the reelection of President Mahmoud Ahmadinejad in the June 2009 election.
Sultan Qaboos has long maintained that Oman’s alliance with the United States and its friendship
with Iran are not mutually exclusive. Successive Administrations have refrained from criticizing
the Omani position, and have used the Oman-Iran relationship not only to resolve some U.S.-Iran
disputes but also to develop informal ties to Iranian officials. Oman was an intermediary through
which the United States returned Iranian prisoners captured during U.S.-Iran skirmishes in the
Persian Gulf in 1987-1988. A U.S. State Department spokesman publicly confirmed that Oman
had played a brokering role in the September 2010 release from Iran of U.S. hiker Sara Shourd,
reportedly including paying her $500,000 bail to Iranian authorities. Oman similarly helped
broker the release one year later of her two hiking companions Josh Fattal and Shane Bauer. It
was subsequently reported that a State Department official on Iran affairs had coordinated with
Oman and with Switzerland (which represents U.S. interests in Iran) to achieve their release.19 In
April 2013, Omani mediation resulted in the release to Iran of an Iranian scientist, Mojtaba
Atarodi, imprisoned in the United States in 2011 for attempting to procure nuclear equipment for
Iran. During his May 2013 visit to Oman, Secretary Kerry reportedly discussed with Qaboos
possible Omani help in obtaining the release from Iran of ex-Marine Amir Hekmati, a dual citizen
jailed in Iran in August 2011, and retired FBI agent Robert Levinson, who disappeared after
visiting Iran’s Kish Island in 2006 and is believed held by groups under Iranian control.
Oman’s role as an intermediary between the United States and Iran has been highlighted in the
context of the November 24, 2013, interim nuclear deal (“Joint Plan of Action”) between Iran and
the “P5+1” countries (United States, Britain, France, Russia, China, and Germany). Press reports
indicate that Qaboos had tried to broker U.S.-Iran rapprochement for several years, and that then
Deputy Secretary of State William Burns and other U.S. officials had begun meeting with Iranian
officials in early 2013 to explore the possibility of a nuclear deal. These meetings took place well
before the moderate Hassan Rouhani was elected Iran’s president in June 2013. These talks

18 Times of Oman website in English. August 18, 2013.
19 Dennis Hevesi. “Philo Dibble, Diplomat and Iran Expert, Dies At 60.” New York Times, October 13, 2011.
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reportedly accelerated after Rouhani took office in August 2013 and, coupled with Sultan
Qaboos’s August 25-27, 2013, visit to Iran, helped pave the way for U.S.-Iran diplomatic
overtures in September 201320 and the JPA.
Oman saw the JPA as an affirmation of its long-standing advocacy of engagement with Iran.
Oman, as did the other GCC states aside from Bahrain and Saudi Arabia, welcomed a visit by
Iranian foreign policy officials in the aftermath of the JPA. In mid-March 2014, Rouhani visited
Oman—the only Gulf state he has visited since taking office. Oman reportedly has played a key
role in muting GCC and other Arab public opposition to the U.S. diplomacy with Iran.21
Oman’s pivotal role as an intermediary continues in November 2014, in the runup to the
November 24, 2014, deadline for Iran to reach a comprehensive nuclear deal with the P5+1.
During November 9-10, Secretary of State Kerry met with Iranian Foreign Minister Mohammad
Javad Zarif in Muscat to try to resolve remaining issues. On November 11, the entire P5+1 will
meet with Iranian negotiators in Muscat to continue the negotiating process. However, the Muscat
meetings did not close remaining gaps and Iran and the P5+1 agreed to extend the deadline to
reach a comprehensive accord until June 30, 2015. Secretary Kerry’s meeting with the ailing
Qaboos in Germany in January 2015 reportedly represented a gesture of appreciation for Oman’s
role in facilitating talks with Iran.22
Some experts and GCC officials argue that Oman-Iran relations, particularly their security
cooperation, are undermining GCC defense solidarity. On August 4, 2010, Oman signed a
security pact with Iran, which reportedly commits the two to hold joint military exercises.23 That
agreement followed a 2009 Iran-Oman agreement to cooperated against smuggling across the
Gulf of Oman, which separates the two countries. The two countries have held a few joint
exercises under the 2010 pact, including an April 7, 2014, joint search and rescue naval exercise.
None of the security ties with Iran have interfered with Oman’s continuing cooperation with U.S.
efforts to promote joint GCC defense cooperation and interoperability with U.S. forces.
Economically, the two conduct formal trade, supplemented by the informal trading relations that
have long characterized the Gulf region. Oman’s government is said to turn a blind eye to the
smuggling of a wide variety of goods to Iran from Oman’s Musandam Peninsula territory. The
trade is illegal in Iran because the smugglers avoid paying taxes in Iran, but Oman’s local
government collects taxes on the goods shipped.24
Oman-Iran Energy Ventures. Iran and Oman have jointly developed the Hengham oilfield in the
Persian Gulf, and the field came on stream officially on July 11, 2013, producing 22,000 barrels
of oil per day. That rate is expected to rise to 30,000 barrels per day. The investment is estimated
at $450 million, although the exact share of the costs between Iran and Oman is not known. The

20 Paul Richter. “Oman Sultan’s Visit Reportedly a Mediation Bid Between Iran and U.S.” Los Angeles Times, August
30, 2013; Shashank Bengali. “U.S.-Iran Thaw Began with Months of Secret Meetings.” Los Angeles Times, November
24, 2013.
21 “Oman Stands in U.S.’s Corner on Iran Deal.” op.cit.
22 Carol Morello. “Kerry Meets with Oman’s Ailing Sultan at His Estate in Germany.” Washington Post, January 11,
2015.
23 Iran, Oman Ink Agreement of Defensive Cooperation. Tehran Fars News Agency, August 4, 2010.
24 Ibid.
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field also produces natural gas, and it is expected to total 80 million cubic feet per day when fully
producing.
The two countries have also discussed potential investments to further develop Iranian offshore
natural gas fields that adjoin Oman’s West Bukha oil and gas field in the Strait of Hormuz. The
Omani field began producing oil and gas in February 2009. During the Rouhani visit to Oman in
March 2014, the two countries signed a deal to build a $1 billion pipeline to bring Iranian natural
gas to Oman beginning as early as 2017. The gas would flow from Iran’s Hormuzegan Province
to Sohar in Oman, and then likely be re-exported to neighboring countries25 and would
supplement Oman’s energy projects with other GCC and neighboring states. The Iran-Oman
energy projects appear to constitute violations of the Iran Sanctions Act (ISA), but the United
States has not sanctioned them or otherwise accused Oman of any violations or noncooperation
with international sanctions against Iran. Ambassador Holz, at her confirmation hearings on July
18, 2012, said that Oman is “compliant and supportive of the international sanctions on Iran.”
(See CRS Report RS20871, Iran Sanctions, for a discussion of ISA and its provisions.)
At times, Oman’s attempts to steer a middle ground between Iran and the United States have
caused problems for Oman. For example, in April 1980, within days of signing the agreement
allowing the United States military to use several Omani air bases, the United States used these
facilities—reportedly without prior notification to Oman—to launch the abortive mission to
rescue the U.S. Embassy hostages seized by Iran in November 1979.26 Oman complained to the
United States about the lack of prior notification of the mission.
Afghanistan
As noted above, Oman has not sent forces or trainers to Afghanistan, although its facilities have
been used by U.S. forces to support operations there. Still, Oman has been engaged on the issue.
On February 24, 2011, Oman hosted then Chairman of the Joint Chiefs of Staff Admiral Michael
Mullen for meetings with Omani senior defense leaders and discussions there on Afghanistan and
Pakistan with Mullen’s chief Pakistani counterpart, Chief of Army Staff General Ashfaq Kayani.27
Arab-Israeli Issues
On the Arab-Israeli dispute, in a stand considered highly supportive of U.S. policy, Oman was the
one of the few Arab countries not to break relations with Egypt after the signing of the Egyptian-
Israeli peace treaty in 1979. All the GCC states participated in the multilateral peace talks
established by the 1991 U.S.-sponsored Madrid peace process, but only Oman, Bahrain, and
Qatar hosted working group sessions of the multilaterals. Oman hosted an April 1994 session of
the working group on water and, as a result of those talks, a Middle East Desalination Research
Center was established in Oman. Participants in the Desalination Center include Israel, the
Palestinian Authority, the United States, Japan, Jordan, the Netherlands, South Korea, and Qatar.

25 Dana El Baltaji. “Oman Fights Saudi Bid for Gulf Hegemony with Iran Pipeline Plan.” Bloomberg News, April 21,
2014.
26 CRS conversations with U.S. Embassy officials in Oman. 1995-2003.
27 “Mullen, Mattis Meet With Omani Counterparts.” American Forces Press Service. February 24, 2011.
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In September 1994, Oman and the other GCC states renounced the secondary and tertiary Arab
boycott of Israel. In December 1994, it became the first Gulf state to officially host a visit by an
Israeli prime minister (Yitzhak Rabin), and it hosted then Prime Minister Shimon Peres in April
1996. In October 1995, Oman exchanged trade offices with Israel, essentially renouncing the
primary boycott of Israel. However, there was no move to establish diplomatic relations. The
trade offices closed following the September 2000 Palestinian uprising.
Oman has expressed an openness to renewing trade ties with Israel if there is progress on Israeli-
Palestinian issues. In an April 2008 meeting in Qatar, de-facto Foreign Minister Yusuf bin Alawi
bin Abdullah informed his then Israeli counterpart, Tzipi Livni, that the Israeli trade office in
Oman would remain closed until agreement was reached on a Palestinian state. Still, the meeting
represented a degree of diplomatic outreach by Oman to Israel. Several Israeli officials reportedly
visited Oman in November 2009 to attend the annual conference of the Desalination Center, and
the Israeli delegation held talks with Omani officials on the margins of the conference.28 Oman
reiterated its offer to resume trade contacts with Israel if Israel agrees to at least a temporary halt
in Israeli settlement construction in the West Bank. Israel has not consistently maintained such a
suspension and Israel and Oman have not reopened trade offices. Oman supports the Palestinian
Authority (PA) drive for full U.N. recognition and the Omani official press refers to the PA-run
territories as the “State of Palestine.”
Yemen
Oman’s relations with neighboring Yemen have historically been troubled, and Oman’s apparent
fears of spillover of Yemen’s instability have increased since 2014 as central authority has largely
collapsed. AQAP is under reduced pressure and the pro-Iranian “Houthi” Shiite rebels took over
Yemen’s capital, Sanaa, in January 2015. In response to the instability since 2011, Oman has built
some refugee camps near its border with Yemen to accommodate refugees fleeing violence there,
and it has built a 180 mile fence along their border. Oman has redeployed some security assets to
the border with Yemen. In July 2013, Oman arrested nine Omanis for an alleged role in
smuggling arms reportedly bound for Yemen. A GCC initiative, which Oman joined, had helped
organize a peaceful transition from the rule of Ali Abdullah Saleh in 2011-2012, but that effort
has now largely failed as Saleh’s successor, Abdu Rabu Mansur Al Hadi, has been driven out of
Sanaa. Hadi is attempting to reconstitute a government in the port city of Aden.
The instability in Yemen builds on earlier schisms 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
occasional border clashes later in that decade. Relations improved after 1990, when PDRY
merged with North Yemen to form the Republic of Yemen. In May 2009, Oman signaled support
for Yemen’s integrity and the government of then President Ali Abdullah Saleh by withdrawing
the Omani citizenship of southern Yemeni politician Ali Salim Al Bidh, an advocate of separatism
in south Yemen.

28 Ravid, Barak. “Top Israeli Diplomat Holds Secret Talks in Oman.” Haaretz, November 25, 2009.
http://www.haaretz.com/hasen/spages/1130242.html.
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Economic and Trade Issues29
Despite Omani efforts to diversify its economy, oil exports generate about 60% of government
revenues. Oman has a relatively small 5.5 billion barrels (maximum estimate) of proven oil
reserves, enough for about 15 years at current production rates—although analysts say production
at some Omani fields is declining.30 In part because it is a relatively small producer, Oman is not
a member of the Organization of the Petroleum Exporting Countries (OPEC). Recognizing that its
crude oil fields are aging, Oman is trying to privatize its economy, diversify its sources of
revenue, and develop its liquid natural gas (LNG) sector, for which Oman has identified large
markets in Asia and elsewhere. Oman is part of the “Dolphin project,” under which Qatar is
exporting natural gas to UAE and Oman through undersea pipelines; it began operations in 2007.
The natural gas supplies to Oman from Dolphin (or from Iran, if those proposed projects come to
fruition) free up other Omani natural gas supplies for sale to its customers. In December 2013,
Oman signed a $16 billion agreement for energy major BP to develop Oman’s own natural gas
reserves.
Recognizing its budgetary limitations, the government is attempting to address a perception in the
public that encourages public sector employment. In a November 12, 2012, speech to open the
fall session of the Oman Council, Sultan Qaboos said “The state, with all its civil, security, and
military institutions, cannot continue to be the main source of employment.... The citizens have to
understand that the private sector is the real source of employment in the long run.” In February
2014, it took further steps to address citizen unemployment by requiring that more than 100,000
jobs now performed by expatriates be transferred to Omani nationals, with the intention of the
proportion of expatriate private sector employment from 39% to 33%.
Oman is also trying to position itself as a trading hub, asserting that ships that offload in its
Salalah port pay lower insurance rates than those that have to transit the Persian Gulf to offload in
Dubai or Bahrain.31 The government reportedly is also trying to raise $60 billion to build a large
transit hub at Duqm (see map)—including a refinery, a container port, a dry dock, and other
facilities for transportation of petrochemicals. The planned transit hub would link to the other
GCC states by rail and enable them to access the Indian Ocean directly, bypassing the Persian
Gulf.32
The United States is Oman’s fourth-largest trading partner, and there was over $2.5 billion in
bilateral trade in 2013, down about $500 million from 2012. In 2013, the United States exported
$1.57 billion in goods to Oman, and imported $1.022 billion in goods from Oman. Of U.S.
exports to Oman, the largest product categories are automobiles, aircraft (including military) and
related parts, drilling and other oilfield equipment, and other machinery. Of the imports, about
60% consist of crude oil and oil by-products such as plastics.

29 For more information on Oman’s economy and U.S.-Oman trade, see CRS Report RL33328, U.S.-Oman Free Trade
Agreement
, by Mary Jane Bolle.
30 Gerth, Jeff and Stephen Labaton. “Oman’s Oil Yield Long in Decline, Shell Data Show. New York Times, April 8,
2004.
31 Author conversation with Omani officials. September 2013.
32 Hugh Eakin. “In the Heart of Mysterious Oman.” New York Review of Books, August 14, 2014.
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Oman was admitted to the WTO in September 2000. The U.S.-Oman Free Trade Agreement was
signed on January 19, 2006, and ratified by Congress (P.L. 109-283, signed September 26, 2006).
According to the U.S. embassy in Muscat, the FTA has led to increased partnerships between
Omani and U.S. companies. General Cables and Dura-Line Middle East are two successful
examples of joint ventures between American and Omani firms. These two ventures are not
focused on hydrocarbons, suggesting the U.S.-Oman trade relationship is not focused only on oil.
Economic Aid
The United States phased out development assistance to Oman in 1996. At the height of that
development assistance program in the 1980s, the United States was giving Oman about $15
million per year in Economic Support Funds (ESF) in loans and grants, mostly for conservation
and management of Omani fisheries and water resources.

Author Contact Information

Kenneth Katzman

Specialist in Middle Eastern Affairs
kkatzman@crs.loc.gov, 7-7612

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