IX.  BUSINESS ARRANGEMENTS

In Oman, as in other countries of the Middle East, business
transactions are characterized by the importance attached to
personal relationships.  Visits to Oman -- generally more than
one -- by responsible businessmen and intermediaries are usually
necessary for market penetration by foreign companies, even
after local representation has been established.

Generally speaking, U.S. firms are latecomers to the Omani
market and face stiff competition from other established foreign
companies.  The UAE, as the largest transshipment point in the
Gulf, has the biggest share of Oman's market.  The Japanese have
also captured a major share of the market, independent of
transshipment through Dubai.  The U.K. has long maintained close
political and commercial relations with Oman, but the British
share of the market is slowly dropping.  U.S. products have
become better known in recent years, and some inroads have been
made.  U.S. firms wishing to export to Oman must be prepared to
satisfy legitimate Omani concerns regarding price, shipping
schedules, and availability of spare parts.

In terms of business customs, while most leading businessmen are
accustomed to Western business practices, some still operate
along more traditional Arab lines.  A visit to the office of an
Omani businessman may involve some of the following elements.
Appointments will sometimes not be made until after the foreign
businessman arrives in Oman.  Upon arriving for an appointment,
he may discover that others have appointments at the same time
or have arrived without one.  A 9:00 a.m. appointment often
translates to a morning appointment.  However, particularly with
government appointments, a visitor should be on time.  Once the
meeting begins, it may be interrupted by numerous telephone
calls.  Coffee, tea, or soft drinks will probably be offered
(except during the Muslim fasting month of Ramadan) and should
be accepted.  Blunt or frank statements should be avoided if
possible; politeness is highly valued.  Visitors should also be
sensitive to hosts who break off a discussion for prayer; devout
Muslims pray five times each day.

Business representatives who plan to visit Oman should be aware
that entry into the country is strictly controlled.  They must
obtain permission to enter in advance from the Omani
authorities.  Prospective visitors without such permission will
either be prevented from boarding an aircraft bound for Oman or
will be denied entry upon arrival at the airport and deported
on the next available flight.

Visitors must obtain a visa in advance from an Omani embassy or
consulate abroad or arrange for a No Objection Certificate
(NOC).  Local hotels are able to apply for NOCs for their
guests.  The U.S. Embassy in Muscat does not arrange visas or
NOCs for visiting businessmen, but it can help find sponsors for
NOCs.

There are no travel advisories in effect for Oman.

The holidays for 1994-1995 are August 18 (Birth of the Prophet),
November 18-19 (National Day), December 29 (Ascension Day),
March 1-2 (Eid Al Fitr), May 9-10 (Eid Al Adha) and May 30
(Islamic New Year).  Most of these dates are approximations.
The religious holidays are determined by locally observed phases
of the moon.  The actual date and duration of the National Day
holiday is announced shortly before the holiday is to take
place.

For further information on commercial matters, please contact
the American Embassy's Commercial Section.  The U.S. mailing
address is:  Commercial Section, State Department -- Muscat,
Washington, D.C. 20520-6220.  The international mailing address
is U.S. Embassy, Commercial Section, P.O. Box 202 - Madinat
Qaboos, Postal Code 115, Sultanate of Oman; TEL: (968) 698-989;
FAX: (968) 604-316.

The official language of Oman is Arabic, although Swahili,
Farsi, Urdu, Baluchi, and various Indian dialects are quite
common.  English is the accepted language of business and is
widely spoken in commercial and government circles.  Certain
business documents, however, such as company registration
papers, must be in Arabic.

Oman has a modern infrastructure.  Modern roads provide access
to most of the country.  The telephone system is modern and
efficient and fax machines are common.  The quality of the food
and water is generally good, particularly at the major hotels.
However, the use of bottled water is recommended, particularly
in the summer months.  Health care in Oman is adequate and there
are a number of Western or Western-educated health care
providers in the Muscat area.

APPENDICES