Garima Chaudhary- 20BSP0762

Environmental Analysis OF Oman:

Social and Cultural Factors:

Oman's only census (1993) revealed a total population of 2 million, of which 1.5 million were Omanis.
There were 175,000 residents of Dhofar. Census figures were not broken down into ethnic or linguistic
categories, although it can be estimated that several hundred thousand Omanis were of Baluchi origin.
About half the Omani population belongs to the Ibadi sect of Islam and a similar number belong to
mainstream Sunni Islam. There are several small communities of Shia Muslims. Population growth is
estimated at nearly 4 percent per year.

Oman is primarily a tribal society, however tribal influence is waning. Its primarily Ib Muslim population
follows social conventions that, while nonetheless traditional by Western standards, are significantly less
stringent than those of Saudi Arabia. (For example, Omani inhabitants are prohibited from consuming
alcoholic beverages, while tourists to licenced dining venues are permitted.) In Oman, women, in
particular, have had more independence than elsewhere on the Arabian Peninsula. However, social
contact is still strongly gendered, and most Omani women, particularly those in rural regions, dress
conservatively and traditionally. Women's traditional costume consists of a dress (thawb) over loose-
fitting slacks (sirwl) and is marked by vividly coloured textiles and jewelled adornments, but it varies
slightly from region to region. The head is covered by a long, flowing scarf known as a lif (or generically as
ijb). Similarly, the dishdashah, or thawb, is a traditional woven cotton garment worn by most Omani
males.

Oman Museum (founded 1974), located outside Muscat, is the country’s foremost cultural repository; it
chronicles the country’s history and includes exhibits on Islam. The history of the Omani army is the focus
of the Armed Forces Museum (1988). Other institutions include the National Museum (1978), Natural
History Museum (1983), Children’s Museum (1990), and Bait Nadir, a converted 18th-century residence
that now houses Omani art and traditional items, including jewelry, silverware, pottery, and
woodcarvings. The Royal Oman Symphony Orchestra was formed in the late 1980s and has performed
with the BBC Philharmonic Orchestra; it is one of the few national orchestras in the Middle East.

Political Factors:
Oman is an absolute monarchy ruled by the Sultan and the government appointed by him. Political
parties and politically motivated associations are prohibited. In November 1996, Sultan Qaboos issued a
royal decree promulgating a Basic Law. The government considers the Basic Law to be constitutional.
Among other things, it established a bicameral legislature. The legislative branch consists of the State
Council (Majlis al-Dawla, or Upper Chamber) with 71 seats, and the Consultative Council (Majlis al-Shura,
or Lower Chamber) with 84 seats. The members of the State Council are appointed by the monarch and
have advisory power only. This applies to the members of the Consultative Council, who are elected by
popular vote to serve a four-year term. The suffrage is universal for all citizens aged 21 or older.
Members of the military and security forces are not allowed to vote.

Candidates for the Consultative Council compete individually for the seats. Despite the ban on political
parties and thus on parliamentary groups within the Consultative Council, there are lobby groups based
on shared interests. However, they only have very limited power in influencing national policy. The
Consultative Council cannot initiate any legislation.

During the elections in October 2007, none of the twenty female candidates were elected. Elections for
the Shura Council were renewed on 25 October 2015. Of the 56 women candidates, only one won a sit.
Legal Factors:
The legal system in Oman is composed of a mixture of the Anglo-Saxon law and the Islamic law. The
religion of the State is Islam and the Islamic Shari’s is the basis of legislation (article 2 of the Constitution).
Jurisdiction for deciding on disputes in commercial matters was earlier vested with the authority known
as “The Authority for the Settlement of Commercial Disputes (ASCD)”. The Royal Decree n°13/97 brought
changes in the title, structure and powers of the ASCD that can now be defined by the Commercial
Courts. These Courts comprise of a triple structure with the Supreme Court based in Muscat, six Courts of
Appeal at Muscat, Nizwa, Sohar, Ibra, Ibra and Salalah and about 45 Courts of First Instance disseminated
on the various districts of the Sultanate.

Economic & Financial Factors:

Oman is a rural, agricultural country, and fishing and overseas trading are important to the coastal
populations. Oil in commercial quantities was discovered in Oman in 1964 and was first exported in 1967.
Subsequently the production and export of petroleum rapidly came to dominate the country’s economy.
Oil revenues represent roughly two-fifths of gross domestic product (GDP) and about three-fourths of the
government’s income.

In anticipation of the eventual depletion of oil reserves, the government in 1996 initiated a plan for the
post-oil era that focused on developing the country’s natural gas resources to fuel domestic industry and
for export in the form of liquefied natural gas (LNG). Oman also sought to diversify and privatize its
economy in addition to implementing its policy of Omanization of the workforce. By the end of the 1990s,
the privatization plan had advanced further than those in the other states of the Gulf Cooperation
Council (GCC)—Kuwait, Qatar, Saudi Arabia, Bahrain, and the United Arab Emirates. Notable features of
the program included expanding the country’s stock market, selling several government-owned
companies, and creating a more liberal investment environment. The country’s development has been
aided in part by the GCC.

Finance

The Central Bank of Oman is the country’s main monetary and banking regulatory body. Founded in
1974, it issues and regulates the national currency, the Omani rial, manages the government’s accounts,
and acts as lender of last resort. The country has commercial and development banks, and a number of
foreign banks operate there. A stock exchange, the Muscat Securities Market, was opened in 1988.