s, and minerals - and is highly dependent on
its oil production and international oil prices, with oil and gas
accounting for one-third of exports. Only Saudi Arabia and Russia
export more oil than Norway. Norway opted to stay out of the EU
during a referendum in November 1994; nonetheless, as a member of
the European Economic Area, it contributes sizably to the EU budget.
The government has moved ahead with privatization. Although
Norwegian oil production peaked in 2000, natural gas production is
still rising. Norwegians realize that once their gas production
peaks they will eventually face declining oil and gas revenues;
accordingly, Norway has been saving its oil-and-gas-boosted budget
surpluses in a Government Petroleum Fund, which is invested abroad
and now is valued at more than $250 billion. After lackluster growth
of less than 1% in 2002-03, GDP growth picked up to 3-5% in 2004-07,
partly due to higher oil prices. Norway's economy remains buoyant.
Domestic economic activity is, and will continue to be, the main
driver of growth, supported by high consumer confidence and strong
investment spending in the offshore oil and gas sector. Norway's
record high budget surplus and upswing in the labor market in 2007
highlight the strength of its economic position going into 2008.

Oman
Oman is a middle-income economy that is heavily dependent on
dwindling oil resources, but sustained high oil prices in recent
years have helped build Oman's budget and trade surpluses and
foreign reserves. Oman joined the World Trade Organization in
November 2000 and continues to liberalize its markets. It ratified a
free trade agreement with the US in September 2006, and, through the
Gulf Cooperation Council, seeks similar agreements with the EU,
China and Japan. As a result of its dwindling oil resources, Oman is
actively pursuing a development plan that focuses on
diversification, industrialization, and privatization, with the
objective of reducing the oil sector's contribution to GDP to 9
percent by 2020. Muscat is attempting to "Omanize" the labor force
by replacing foreign expatriate workers with local workers. Oman
actively seeks private foreign investors, especially in the
industrial, information technology, tourism, and higher education
fields. Industrial development plans focus on gas resources, metal
manufacturing, petrochemicals, and international transship