Oman

Of all the Gulf states, Oman has the oldest and closest relationship with the UK. In fact British advisors - political, business and military - have had a strong prescence in Oman for many years. This has produced a steady flow of orders to British arms companies.

In December 2000 the six Gulf Cooperation Council (GCC) states agreed a mutual defence agreement. Under its terms, Oman announced that its 2001 budget defence was to be increased by 38% to a staggering $2.4 billion. This accounted for 37% of the entire projected state budget. In 1999 it spent $1.6 billion on defence. In 2000, $1.75billion.

This is 'relatively modest' in GCC terms (only Qatar and Bahrain spend less), but large considering the size of the economy. As a proportion of GDP, it's 10.9% - more than any other GCC country. As if this wasn't enough, they tend to overspend by about 5% to 18%.

Of course, mutual defence also suggests compatible defence systems - and it is thought that this will only serve to increase links, hardware and interdependency between the Gulf Emirates and the US in the future.

This financing was made possible largely by cuts in oil production, a more buoyant oil price, and the resultant easing of cash flows into state coffers. By late 2002, however, the price of oil has put many of the Gulf states on the edge of a financial crisis, and their creditors in a good position.

Arms sales to Oman

In 2001, the UK sold £121 million worth of military-related equipment to the Oman, under 71 SIEL (Standard Individual Export Licences). Of these 77 deals, 70 involved equipment on the Military List. this included armoured fighting vehicles, armoured personnel carriers, command and control vehicles, components for combat aircraft, components for general-purpose machine guns, assault rifles and sniper rifles, components for surface to air missile control and handling and launching equipment, equipment for the use of large calibre artillery, grenade launchers, military aero-engines, mortar bombs, projectile launchers, small arms ammunition, sniper rifles, technology for the development of combat aircraft, toxic chemical precursors and toxins.

Over the years the close links between Oman and the UK have led to much weaponry heading in that direction.

In November 2000 Alvis won a $70 million deal for 80 Piranha armoured vehicle, in seven versions, for the Royal Army of Oman. This was to add to the 80 delivered up to 1997, in six flavours.

At that time, the Omani Army had recently bought 24 self-propelled artillery systems from South Africa and 38 Vickers Challenger 2 main battle tanks.

Matra BAe Dynamics got a contract for an air defence system - supplying Oman with the Mistral 2 'fire-and-forget' surface-to-air missile. Apparently this made them the 25th user of the Mistral missile.

In April 2002 the Omanis signed a deal with Westland helicopters for 16 Super Lynx 300 helicopters, for its navy, 'within the context of efforts to modernise and enhance the Sultan's armed forces' capabilities

Omani and US military relations have latterly become far more extensive. Post September the 11th, the US has declared Oman one of the key nations in the Fight Against Terrorism.

One consequence is that Oman will receive a lot of money, military equipment and long-tern stay Americans. The US is building up its airbases and military resources in every Gulf state - such that its military options are flexible in its the current face-off with Iraq, and also to hedge against a Saudi Arabian refusal over US use of its Saudi bases.

In May 2002 the US and Oman signed a $825 million foreign military sale, following a meeting between the US Defense Secretary, Donald Rumsfeld, and Sultan Qaboos of Oman. The deal will include twelve Lockheed Martin F16 fighter aircraft, and air-to-air and air-to-ground weapon systems, support and training. The missiles include the AIM-9M sidewinder and Raytheon's GBU-10 and GBU-12, and Boeing's AGM-65G and JDAM.

At a rough price, F-16s can be bought for as little as $8 million each if they are Block 10 or block 15 models. A Block 20 or 50 plane will set you back $25 to $30 million each - which is what Bahrain and Egypt provisionally paid. A Block 60, however, is really something, at $50 million. The UAE, for example, got those.

According to a member of staff of the Royal United Services Institute, Nigel Vinson, "The price of these aircraft depends on the country, its profile and what the US wants to get out of the deal." According to Oman Economic Review Online (3/2/02), "In some cases the US has given these aircraft for free, charging only delivery costs, to gain access to new markets."

Oman is to get 100 Raytheon Paveway II 500lb laser-guided bombs for the F16s; also 50,000 20mm high-explosive projectiles, 300 Mk 82 500lb 'general-purpose' bombs. They are also to receive a Lockheed Martin FPS-117 long-range air-defence radar, worth $22 million.

At some point in the next few years Oman is also to decide on a replacement for two squadrons of Jaguars. The US looks well placed to make the sale. It is thought that Oman, as with many other nations nowadays, is looking to establish a Oman-based licensed production deal for more planes, boosting their manufacturing sector.