Oman: The 'Real' Middle East

Editor's Note: This is the second in an exclusive series of columns Chris Edmonds will be filing from a 10-day business trip through the Middle East.

OMAN -- Our visit to Oman on Tuesday provided a nice contrast to the frenetic lifestyle of the United Arab Emirates and Qatar.

This country of just over 3.2 million residents is about the same size as Kansas. Landing in the capitol of Muscat, you immediate recognize differences from the more commercial capitals of Abu Dhabi and Doha: the diversity of the topography where desert rises to majestic mountainous terrain that quickly falls backs to isolated coastline, a slower pace of life in both travel and commerce and an overall sense that life is more balanced in Oman.

What's most striking is that Oman is largely inhabited by nationals and that the workforce is nearly 80% Omanis. While the country has nearly 830,000 barrels of oil production per day (up from 750,000 last year), the country's economy also relies on light industry and tourism (tourism growth will be nearly 7% in 2007) for growth and stability. And, more so than other countries visited so far, the country seems to almost downplay its oil-and-gas industry in an attempt to portray a more balanced economy.

We spent the afternoon with a number of Omani business and government leaders that work to promote international business and investment opportunities in Oman. Again, however, unlike the U.A.E. and other burgeoning economies that appear more interested in foreign spending on real estate, Oman appears more interested in new business formation and expansion from foreign companies to bring the potential for wealth creation and jobs to the country.

While Oman doesn't have the glitz and glamour of Dubai, it does offer what many may think is a more balanced lifestyle and government stability that puts it at the top of the Gulf Cooperation Counsel (GCC) countries. Moreover, the country is focused on developing a native workforce that can provide basic industry with a qualified labor pool.

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At time of publication, Edmonds had no positions in stocks mentioned, although holdings can change at any time.

Christopher Edmonds is managing principal at Energy Research & Capital Partners, an energy investment firm and an affiliate of FIG Partners. He is based in Atlanta. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While Edmonds cannot provide investment advice or recommendations, he appreciates your feedback; click here to send him an email.