The map above shows the rather wild differences in wealth between Middle Eastern neighbours Yemen and Oman. You can see all the numbers below but why is Oman over 20x wealthier per capita than its neighbour?
| Yemen | Oman | |
|---|---|---|
| Population | 32,684,503 | 5,494,691 |
| Area | 455,503 km2 | 309,500 km2 |
| Density | 71.8/km2 | 15/km2 |
| GDP (PPP) | $70 Billion | $231 Billion |
| GDP Per Capita (PPP) | $2,053 | $42,010 |
| Life Expectancy (Years) | 69.3 | 80.03 |
| Official Language | Arabic | Arabic |
| Religion | 99.1% Islam | 95% Islam |
| HDI | 0.470 | 0.858 |
The main reasons Oman is much richer than Yemen come down to natural resources, governance, stability, and geography:
Oil and Gas Wealth
- Oman discovered and developed oil relatively early (commercial production began in the 1960s). While it is not as rich in oil as Saudi Arabia or the UAE, Oman has significant oil and natural gas reserves, which have financed infrastructure, education, and healthcare.
- Yemen has only small and declining oil reserves. Its production peaked in 2001 and has since collapsed, especially due to war damage. Without oil income, Yemen has far less state revenue.
Political Stability
- Oman has been under the rule of Sultan Qaboos (1970–2020) and now Sultan Haitham. The country has been relatively stable and avoided major wars, allowing long-term investments and development.
- Yemen has faced decades of instability: a civil war in the 1960s, unification in 1990, a civil war in 1994, chronic insurgencies, and the devastating ongoing civil war since 2014. This instability has wrecked infrastructure and scared away investment.
Geography and Trade
- Oman controls part of the Strait of Hormuz, one of the world’s most strategic shipping lanes. This geographic advantage gives it political and economic leverage. Oman also invested in modern ports (Salalah, Duqm, Sohar) that attract global trade.
- Yemen also has a strategic location on the Bab el-Mandeb strait, but instability, corruption, and war have prevented it from capitalizing on this advantage.
Governance and Institutions
- Oman invested heavily in building institutions, education, and infrastructure after 1970. Though not a democracy, it developed a functioning bureaucracy and relatively low corruption compared to the region.
- Yemen has suffered from weak governance, corruption, and tribal divisions. State institutions were fragile even before the current war.
Human Development and Investment
- Oman’s oil income funded broad improvements in literacy, healthcare, roads, and urban development. It also pursued diversification efforts in tourism, logistics, and fisheries.
- Yemen is one of the poorest Arab countries, with widespread poverty even before the war. The war has made things worse, leading to famine, collapse of services, and reliance on foreign aid.
So there you have it.
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