ABSTRACT
The key resource is petroleum, although Oman is considerably less well endowed than any other member of the GCC except Bahrain. The development plan for diversifi cation aims to reduce the oil sector’s contribution to GDP to 9 per cent by 2020. However, through enhanced oil recovery techniques the country succeeded in increasing oil production, thereby giving it more time to diversify. The increase in global oil prices signifi cantly boosted government resources. Oman ranks high in Martial Potency at thirty-sixth in the world, with one of the larger defence budgets in the Middle East. Indeed, it is only fractionally smaller than that of Egypt. The armed forces are relatively small but well balanced and extremely well trained, largely by the UK, with high-quality equipment. Oman receives military assistance from the USA and is a signifi cant actor in Middle Eastern affairs as a result of the thoughtful diplomacy of Sultan Qaboos. However, Oman remains a destination country for people traffi cking, largely from the Indian subcontinent, to involuntary servitude. It is placed on the Tier Two Watch List.
