ABSTRACT
This chapter explores how present trends can be assessed to delineate Oman's likely main challenges over the coming two decades. Through military skill, a delicate management of regional alliances and careful attention to domestic politics, Oman became one of the few countries of the world to defeat a major Communist-backed insurgency. More than other states in the region, Oman appears to have shown restraint in its spending patterns since the start of the current oil price wars and since mid-1985 has made significant cutbacks in government spending and commitments in all sectors, including defense. As in other Muslim countries, the new generation of Omani youth responds less readily to government-appointed religious scholars than to their own ability to interpret religious texts. The best guide to understanding the organizational consequences of Omanization and the emergence of a younger, educated generation for the Omani polity is the Sultan's Armed Forces, Oman's oldest and largest employer.
