{"id":23374,"date":"2015-01-05T21:17:53","date_gmt":"2015-01-05T20:17:53","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=23374"},"modified":"2015-01-05T21:17:53","modified_gmt":"2015-01-05T20:17:53","slug":"whats-in-qaboos-caboose","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/whats-in-qaboos-caboose\/","title":{"rendered":"What’s In Qaboos’ Caboose?"},"content":{"rendered":"

Giorgio Caifero writes: Tumbling oil prices are upsetting political equations all over the globe, especially for governments that depend heavily on oil revenue to provide services for their populations.\u00a0 Governments in the oil-rich Middle East are also being forced to tighten their belts.<\/p>\n

The slide in oil prices has hit\u00a0the Sultanate of Oman. The sultanate\u2019s vulnerability was underscored late last year when Standard & Poor’s cut its outlook for Oman\u2019s sovereign rating from stable to negative.\u00a0 Last month, the economic and financial committee for the lower house of the Majlis al-Shura (Oman\u2019s legislative body) proposed\u00a0a ‘fair tax’ on liquefied natural gas\u00a0exports, estimated to generate $509 million. The Majlis al-Shura has also approved legislation to impose a 2 % tax on goods the Oman\u2019s 1.9 million expatriates send overseas.\u00a0 The Majlis al-Shura also\u00a0proposed a 12%\u00a0levy on telecommunications revenue, which Oman News Agency reports would bring in $80.5 million. Meanwhile Oman Cement and Raysut Cement announced that the Ministry of Oil and Gas would double the priceof natural gas for\u00a0the two firms.. State spending in health, housing and training will remain the same.<\/p>\n

Oman\u2019s unique stability is largely attributed to the state\u2019s high\u00a0domestic spending, making budget cuts a politically risky solution to the shortfall in oil revenue.\u00a0 Oman’s ability to increase government services in times of unrest has been a crucial lifeline for the monarchy in the recent past.<\/p>\n

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After the rulers\u00a0of\u00a0Tunisia and Egypt\u00a0stepped down under public pressure, Omani youths held demonstrations idemanding political and economic reform.<\/p>\n

Sultan Qaboos bin Said\u00a0ordered the government to create 50,000 jobs and pay every job-seeker $386 each month.\u00a0 Omani protesters demanding reform\u00a0actually pledged allegiance to Qaboos, showing their support for the monarchical system while demanding changes within it.<\/p>\n

Throughout the Arab Spring, Qaboos has maintained a degree of popularity enjoyed by no other Middle Eastern leader of the 21st century. Oman\u2019s monarchical political system has not democratized, and power remains staunchly in Qaboos\u2019 hands. Observers conclude that as a rentier state, the government has been successful in quelling the citizenry\u2019s democratic aspirations in exchange for material benefits.<\/p>\n

At this juncture, the Omani government\u2019s challenge is to maintain this unwritten agreement with its citizens as sliding oil prices create new fiscal pressures.<\/p>\n

Oman\u2019s crude oil reserves are expected to deplete far sooner than those of neighboring Saudi Arabia and the United Arab Emirates, putting\u00a0greater pressure on Oman\u00a0to increase the role of non-oil sectors in its economy. The sultanate\u2019s unique stability will be tested if future economic reform\u00a0triggers unrest and the government lacks the lifeline it used before.<\/p>\n

\"Qaboos<\/a><\/p>\n<\/div>\n<\/div>\n

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Giorgio Caifero writes: Tumbling oil prices are upsetting political equations all over the globe, especially for governments that depend heavily on oil revenue to provide services for their populations.\u00a0 Governments in the oil-rich Middle East are also being forced to … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-23374","post","type-post","status-publish","format-standard","hentry","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t