|
Oman’s economy consisted mostly of
agriculture, fishing, and orthodox crafts such as boat making.
Today, while Oman’s economy maintains a largely orthodox area
based on agriculture, it also has a rapidly growing modern area
based on oil. Oil production in the mid-1990s accounted for
almost half the nation’s gross domestic product (GDP), which
measures the total value of goods and services produced. In 1998
GDP was $15 billion. The government controls the oil and gas
area and therefore dominates the economy.
Copper mines and a smelter were opened in the early 1980s at
an ancient mining site near Sohar, but production levels have
diminished considerably. Chromite is also mined in small
quantities. Coal deposits at Al-Kamil are being explored for
potential exploitation and use, particularly to generate
electricity. Exploration projects that began in the mid-1980s to
uncover more unassociated natural gas have proved successful,
and pipelines were constructed from the gas fields at Yibal to
Muscat and Sohar and to Izki. By the late 1990s, the known
natural gas reserves had doubled in less than a decade.
Oman's economic performance improved remarkablely in 2000 due
largely to the upturn in oil prices. The government is moving
ahead with privatization of its utilities, the development of a
body of commercial law to facilitate foreign investment, and
increased budgetary outlays. Oman continues to liberalize its
markets and joined the World Trade Organization (WTRO) in
November 2000. |
|