The inhabitants of the area of Oman have long prospered on Indian Ocean trade.

In the late 18th century, a newly established sultanate in Muscat signed the first in a series of friendship treaties with Britain.

Over time, Oman's dependence on British political and military advisors increased, but it never became a British colony.

In 1970, Qaboos bin Said al-Said overthrew the restrictive rule of his father; he has ruled as sultan ever since.

His extensive modernization program has opened the country to the outside world while preserving the longstanding close ties with the UK.

Oman's moderate, independent foreign policy has sought to maintain good relations with all Middle Eastern countries.

Source: CIA World Fact Book

Population: 3,204,897 note: includes 577,293 non-nationals (July 2007 est.)

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Age structure: 0-14 years: 42.7% (male 698,461/female 670,793) 15-64 years: 54.6% (male 1,026,686/female 723,712) 65 years and over: 2.7% (male 47,534/female 37,711) (2007 est.)

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Median age: total: 18.9 years male: 21.5 years female: 16.5 years (2007 est.)

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Population growth rate: 3.234% (2007 est.)

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Birth rate: 35.76 births/1,000 population (2007 est.)

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Death rate: 3.78 deaths/1,000 population (2007 est.)

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Net migration rate: 0.36 migrant(s)/1,000 population (2007 est.)

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Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.041 male(s)/female 15-64 years: 1.419 male(s)/female 65 years and over: 1.26 male(s)/female total population: 1.238 male(s)/female (2007 est.)

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Infant mortality rate: total: 18.28 deaths/1,000 live births male: 20.96 deaths/1,000 live births female: 15.46 deaths/1,000 live births (2007 est.)

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Life expectancy at birth: total population: 73.62 years male: 71.37 years female: 75.99 years (2007 est.)

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Total fertility rate: 5.7 children born/woman (2007 est.)

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HIV/AIDS - adult prevalence rate: 0.1% (2001 est.)

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HIV/AIDS - people living with HIV/AIDS: 1,300 (2001 est.)

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HIV/AIDS - deaths: less than 200 (2003 est.)

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Nationality: noun: Omani(s) adjective: Omani

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Ethnic groups: Arab, Baluchi, South Asian (Indian, Pakistani, Sri Lankan, Bangladeshi), African

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Religions: Ibadhi Muslim 75%, other (includes Sunni Muslim, Shi'a Muslim, Hindu) 25%

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Languages: Arabic (official), English, Baluchi, Urdu, Indian dialects

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Literacy: definition: NA total population: 81.4% male: 86.8% female: 73.5% (2003 est.)

Oman is a middle-income economy in the Middle East with notable oil and gas resources, a substantial trade surplus, and low inflation. Sustained high oil prices in recent years have helped build Oman's budget and trade surpluses and foreign reserves. Oman joined the World Trade Organization in November 2000 and continues to liberalize its markets. It ratified a free trade agreement with the US in September 2006 and, through the Gulf Cooperation Council, seeks similar agreements with the EU, China and Japan. To reduce unemployment and limit dependence on foreign labor, the government is encouraging the replacement of foreign expatriate workers with local workers. Oman actively seeks private foreign investors, especially in the industrial, information technology, tourism, and higher education fields. Industrial development plans focus on gas resources, metal manufacturing, petrochemicals, and international transshipment ports.

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GDP (purchasing power parity): $44.53 billion (2006 est.)

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GDP (official exchange rate): $27.25 billion (2006 est.)

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GDP - real growth rate: 6.6% (2006 est.) GDP - per capita (PPP): $14,400 (2006 est.)

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GDP - composition by sector: agriculture: 2.6% industry: 38.8% services: 58.7% (2006 est.)

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Labor force: 920,000 (2002 est.)

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Labor force - by occupation: agriculture: NA% industry: NA% services: NA%

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Unemployment rate: 15% (2004 est.)

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Population below poverty line: NA%

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Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

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Inflation rate (consumer prices): 3% (2006 est.)

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Investment (gross fixed): 14.2% of GDP (2006 est.)

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Budget: revenues: $14.33 billion expenditures: $12.81 billion; including capital expenditures of $NA (2006 est.)

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Public debt: 4.5% of GDP (2006 est.)

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Agriculture - products: dates, limes, bananas, alfalfa, vegetables; camels, cattle; fish

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Industries: crude oil production and refining, natural and liquefied natural gas (LNG) production; construction, cement, copper, steel, chemicals, optic fiber

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Industrial production growth rate: 5.9% (2006 est.)

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Electricity - production: 14.33 billion kWh (2004)

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Electricity - consumption: 13.33 billion kWh (2004)

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Electricity - exports: 0 kWh (2004)

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Electricity - imports: 0 kWh (2004)

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Oil - production: 740,000 bbl/day (2006 est.)

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Oil - consumption: 60,000 bbl/day (2004 est.)

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Oil - exports: 733,100 bbl/day (2004)

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Oil - imports: NA bbl/day

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Oil - proved reserves: 4.7 billion bbl (2006 est.)

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Natural gas - production: 17.2 billion cu m (2004 est.)

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Natural gas - consumption: 6.77 billion cu m (2004 est.)

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Natural gas - exports: 10.43 billion cu m (2004 est.)

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Natural gas - imports: 0 cu m (2004 est.)

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Natural gas - proved reserves: 829.1 billion cu m (1 January 2005 est.)

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Current account balance: $7.097 billion (2006 est.)

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Exports: $24.73 billion f.o.b. (2006 est.)

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Exports - commodities: petroleum, reexports, fish, metals, textiles

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Exports - partners: China 23.7%, South Korea 18%, Japan 10.9%, Thailand 10.7%, South Africa 7.7%, UAE 6.3% (2006)

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Imports: $10.29 billion f.o.b. (2006 est.)

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Imports - commodities: machinery and transport equipment, manufactured goods, food, livestock, lubricants

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Imports - partners: UAE 22.4%, Japan 16.4%, US 8.1%, Germany 5.4%, India 4.3% (2006)

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Reserves of foreign exchange and gold: $4.908 billion (2006 est.)

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Debt - external: $4.259 billion (2006 est.)

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Economic aid - recipient: $76.4 million (1995)

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Currency (code): Omani rial (OMR)

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Exchange rates: Omani rials per US dollar - 0.3845 (2006), 0.3845 (2005), 0.3845 (2004), 0.3845 (2003), 0.3845 (2002)

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Fiscal year: calendar year