Oman Economy Grows as Inflation Lessens

Recent reports publicized in Oman have revealed a growth of 11.8% over the past three quarters. During the first quarter of this year, the country saw a 15.3% increase in economy as a result of strong oil prices, while inflation dwindled towards the lower end of the Central Bank’s prediction.

“This is a good performance given the unrest in the first quarter, although much of the nominal growth could be accounted for by higher oil prices,” said Liz Martins of HSBC. “The key will be whether this feeds through to job creation, particularly among Omani nationals.”

Following some major jumps in GDP, protests have encouraged Sultan Qaboos bin Said to pledge $2.6 billion in spending in April, as well as to create 50,000 new jobs.

An official from Central Bank recently predicted a 5% increase in Oman’s economy, and the Internatinal Monetary Fund calculated that Oman’s real GDP did in fact rise above 4.2%.

Graduation Ceremony of Newest RAO Soldiers

Last Wednesday the Royal Army of Oman held a graduation ceremony to honor the newest recruits now serving in the Sultan’s Armed Forces.

Held at Training Battalion Grounds

The ceremony was held at the Training Battalion Ground and held under the auspices of the commander of the Royal Air Force of Oman Air Vice Marshal Yahya bin Rasheed bin Rashid Al Juma.

The fresh graduates conducted several military exercises and training displays for the guests in attendance while the musical band of the RAO played along. In an amazing display of synchronization the new recruits placed their rifles into an array which displayed the name of the Royal Army of Oman.

Prizes Awarded

The soldiers were later presented with prizes and awards to those who had distinguished themselves during their training. Soldiers were granted awards in different areas of expertise and success.

The commander of the RAFO addressed the recruits with words of praise for their high level of training and the work accomplished by the SAF Training Battalion.

The ceremony ended with the soldiers chanting the RAO anthem. Then they took the oath to swear loyalty to the army, and then chanted three times,

“Long Live His Majesty Sultan Qaboos Bin Said, the Supreme Commander of the Armed Forces.”

Oman Pledges Support to Syrian Leadership

Sultan Qaboos Bin Said of Oman sent a message of support to President Bashar al-Assad of Syria via the Omani Foreign Minister Yusuf bin Alawi during his visit to Damascus this past week.

Omani Foreign Minister Yusuf bin Alawi

The Syrian president and the Syrian Foreign Minister Walid al-Moallem met with bin Alawi to discuss the latest events taking place in the region with an emphasis on the developments now in Libya and Yemen.

Crisis in Syria Discussed

The leaders discussed the volatile situation in Syria as well. President al-Assad told Alawi about the violence which is being perpetrated by armed, organized groups who are specifically targeting Syria’s security and its citizens.

President al-Assad explained to the Omani delegation that he is confident that Syria will be able to deal with the present crisis and come out stronger and more united when control is regained.

Oman Pledges Support for Syria

Bin Alawi was also told about the reforms which Syria is beginning to institute by the Syrian leadership. The Omani Foreign Minister pledged total support of and confidence in Syria from Oman, explaining that Oman stands together with Syria against the destabilizing efforts of the opposition and the terrorism they are committing against the Syrian people.

In recent months the Syrian president has received letters from several kings and leaders of Arab countries pledging their complete and total support of the security and stability of Syria.

Protests for Better Wages Continue in Oman

Demonstrating for higher wages, private security guards blocked the main airport in the Gulf State of Oman on Wednesday.

Concessions Granted

Despite the fact that Oman’s ruler, Sultan Qaboos bin Said, has granted several concessions since the unrest began there several weeks ago, the unrest has continued apparently unabated. The Sultan, who has been in power for 40 years, as already decided to give some legislative powers to the Oman Council, to double monthly welfare payments, and to raise pension payments. This follows the pattern of other Gulf States who are offering cash to protesters in an effort to quell the unrest and maintain order.

In the latest action by demonstrators, about 400 to 500 security guards, who are privately employed by several different security companies, staged a protest on the road to the Muscat airport.

One protester, who wished to remain unnamed, said that, “Our objective of this protest is for our wages to be raised.”

The protesters left the scene when the police asked them to disperse. No violence was reported, although some travelers did not make their flights in time.

Other Protests in Oman

Workers from the state run oil firm Petroleum Development Oman (PDO) also demonstrated on Tuesday for better wages. Several hundred employees staged their protest at the company headquarters and in the oil and gas fields. This work stoppage was the first to disrupt a Gulf energy firm since the demonstrations swept through the region.

There have been protests at Oman International Bank, Oman Investment Finance Company and the Intercontinental Hotel, which is owned by the government.

There have also been demonstrations for improved political conditions, including sit-ins at the consultative Shura Council in Muscat, in front of the governor’s office in Salalah in the south and also in Sohar. Along with improved wages, and an increase in the number of jobs, protesters also demand an elected parliament and a new constitution.

Gulf States Regaining Stability, At Least for Now

Sultan Qaboos bin Said

This past Sunday was the first trading day throughout the Persian Gulf region since the announcement by Gulf State foreign ministers that they were pledging $20 billion in financial aid to assist fellow Gulf States Oman and Bahrain, who have been facing civil unrest and anti-government demonstrations for the past several weeks. This boost has proved to be welcome medicine for the region, prompting a strong showing on the Gulf’s major markets. Dubai’s main market was the leader in gains with an increase of 4.3% up to 1,513 points.

Saudi Arabia Quells Mass Protest with Mass Show of Force

Another factor contributing to the improved market performance was the averted major protests which had been feared were going to appear in Saudi Arabia. But the Saudi main financial index increased by 1.5% to trade at 6,693 points. The much feared anti-government protests in Saudi Arabia were thwarted by a huge show of power and force by the Saudi security forces, thus, at least for the time being, quelling the national fervor to protest.

Oman Grants More Handouts

Helping to improve the optimistic market mood was the announcement that Oman’s ruler, Sultan Qaboos bin Said would be doubling the welfare payments to his citizens while also increasing pension payments. This is just the newest in a series of rulers offering improved financial entitlements to citizens as a result of the regional unrest which has been taking the Arab world by storm in the last few months.

More Power to the People?

The sultan has also agreed to grant lawmaking powers to the Oman council. This is a huge concession on the part of the sultan who has led Oman as a dictator for the past 40 years, with only himself and his cabinet able to create legislation. The Oman Council, until now, was only able to advice the sultan. Consisting of two parts, the elected Shura Council and the State Council, which consists of members who the sultan has himself appointed, giving legislative power to the council is a decision which came on the heels of shocking protests in Oman which left one person dead.

The concessions were met with mixed reactions on the part of the protestors, who continue to hold a vigil outside the Shura Council, some were skeptical while others were hopeful.

“It does not mean much at the moment. We will celebrate when the Shura Council is granted real powers in the running of the government,” protester Hadi Suleiman said.

Faiz al-Ashour, another protester, said: “It looks good and it shows that the protests are beginning to bear results toward meaning political reforms.”

Oman Air Employees Join National Unrest Movement

This past Sunday employees of one of Oman’s major companies took to the streets outside the headquarters of Oman Air in Muscat, not far from the Gulf state’s international airport in Oman’s capital city. This latest protest comes on the heels of several days of demonstrations in Oman demanding political reforms. Oman, together with Bahrain, the small island state in the Persian Gulf, have been the locales for the largest and most enduring outbursts of unrest in the Gulf states which is part of the general unrest transpiring in the Arab world since January 25th’s explosion in Tunisia and then in Egypt.

No Disruption in Flights

According to several witnesses about 100 employees at Oman Air joined together in the late morning hours to call for better working conditions. The national air carrier’s chief officer for corporate affairs, Philippe Georgiou stated that no flights were disrupted by the demonstration and that the airline is ready and willing to discuss issues with the protesters. Mr. Georgiou told the Associated Press that the demonstrators represented several corporate departments and they have a wide range of demands, one of which being higher compensation.

Mr. Georgiou said of the timing of the protest that, “The general environment is of people expressing their views … in the region.”

Watchful Eye on Oman

The other Gulf nations, especially Saudi Arabia, are keeping a wary watch on the unrest in their fellow regional states, especially Oman. Oman, along with Iran, shares the responsibility of controlling the crucial waterway through which 40% of the world’s oil tanker traffic passes, the Strait of Hormuz.
Oman Air services 41 destinations, mostly in the Middle East and India, with a few routes to Europe and Southeast Asia as well.

Government Shakeup

Protesters have come out to demonstrate throughout Oman, staging sit-ins and similar events, to call on the government to reform the economy and hold investigations into who is responsible for attacks on protesters. In response to the unrest, on Saturday Sultan Qaboos bin Said, the ruler of Oman, fired three key government officials in what was the second installment of government shakeups in the same number of weeks.

One Wounded in Oman as Government Attempts to Disperse Crowds

Tuesday marked the fourth day of protests in the northern port city of Sohar in Oman. According to witnesses, about 200 to 300 people were on the road demanding jobs and political reforms when the army began shooting in the air. “Many people ran,” said one protester who asked not to be mentioned by name. “The man who was shot came to calm down the army.”

The shots fired caused the crowd to begin to disperse, but they soon reformed at a traffic circle near the port, and the troops pulled back.

On Monday the demonstrators successfully blocked the entrance to Sohar port, disrupting the export of the country’s life blood, oil. On average Oman sends 160,000 barrels a day out of the country.

Protests also spread to the capital city of Muscat on Monday. The demonstrations are a rare event in what is usually considered a ‘sleepy sultanate.’ Sultan Qaboos bin Said has ruled the country for over 40 years, and is surprised by the fervor he is witnessing in what is otherwise a stable society.

The sultan is acting to calm the tensions in his country, which erupted on the general wave of protests which are sweeping through the Middle East. On Sunday the sultan offered to create 50,000 jobs and offered unemployment benefits to workers out of jobs of 239 pounds/month. He has also said that he will investigate ways to give more power to the quasi-parliamentary advisory council.