ECONOMICS

Main Crops: dates, limes, bananas, alfalfa, vegetables; camels, cattle; fish .

Natural Resources: Petroleum, copper, asbestos, some marble, limestone, chromium, gypsum, natural gas.

Major Industries: Crude oil production and refining, natural gas production, construction, cement, copper

Oman is heavily dependent on oil and gas resources, which can generate between and 68% and 85% of government revenue, depending on fluctuations in commodity prices. The country's economy has been greatly impacted by fluctuations in oil prices and in 2016, low global oil prices drove Oman’s budget deficit to $13.8 billion, or approximately 20% of GDP. However, the budget deficit is estimated to have reduced to 12% of GDP in 2017 as Oman reduced government subsidies and implemented cost-saving measures. As of January 2018, Oman has sufficient foreign assets to support its currency’s fixed exchange rates and is issuing debt to cover its deficit.

To address the dependency on oil and gas, Oman is using enhanced oil recovery techniques to boost production. However, it has simultaneously pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP. The key components of the government's diversification strategy are tourism, shipping and logistics, mining, manufacturing, and aquaculture. The country is actively working to promote and attract foreign investment in these sectors in order to create new job opportunities and revenue streams.

Muscat also has notably focused on creating more Omani jobs to employ the rising number of nationals entering the workforce. Oman has a young and rapidly growing population, and the government recognizes the need to create jobs and opportunities for its citizens. However, high social welfare benefits - that had increased in the wake of the 2011 Arab Spring - have made it impossible for the government to balance its budget in light of current oil prices. In response, Omani officials imposed austerity measures on its gasoline and diesel subsidies in 2016. These spending cuts have had only a moderate effect on the government’s budget, which is projected to again face a deficit of $7.8 billion in 2018.

In conclusion, Oman faces a challenging economic environment due to its dependency on oil and gas. The government is actively working to diversify its economy and create new job opportunities for its citizens, but it is a difficult task and the government is still facing budget deficits. The country is closely monitoring global oil prices and making adjustments to its policies in order to address the challenges it faces.s