| المستخلص: |
For over 45 years, Oman has been depending largely on oil revenues in order to develop the country to where it has reached today. The government spending due to the surplus revenues from oil have created an oil-based economy where over 80% of the GDP comes from oil and oil related exports; large parts of the government spending in infrastructure projects have created a local economy that does not have enough diversification nor alternative sources of income that could replace revenues generated from oil exports. Even the large corporates and small and medium enterprises that exists today cannot survive without government expenditure, through the enormous tenders awarded every year over the past 45 years. This have created an economy that is volatile and strongly correlated to any volatility in the oil prices. The fact that Oman today lacks alternative sources of income in the midst of the collapse of oil prices has created uncertainty in the political, social and economic stability for the country in the coming years. This uncertainty will be reflected in high level of crime, and social unrest. The possibility of having such events occur is very much likely to happen as it has happened to many countries that were unable to create jobs to the youth or raise the structure of education through concentration to human development or to raise the living standard by either raising wages or creating a business environment that is transparent and effective that is not part of any economy regulated by the government. In today's world, a healthy economy means a healthy state. It has been witnessed in every single country where high level of income and low level of unemployment reflects the stability and the security of the country. This study addresses possible solutions alternatives when it comes to increasing the income of the country and further diversification.
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