Rank #57 · Middle East
Oman spends approximately $5.5 billion on defence — some 5.5% of GDP — maintaining one of the most capable armed forces per capita in the Gulf. Strategically positioned at the Strait of Hormuz, Oman plays an indispensable role as a neutral mediator between Iran and the West while operating a sophisticated mix of Eurofighter Typhoons, F-16s, and a growing maritime capability to secure the world's most critical oil shipping chokepoint.
Oman's defence and national security expenditure is funded primarily by hydrocarbon revenues and has remained elevated at 5%+ of GDP for over a decade — far above the GCC average adjusted for population. The Royal Air Force of Oman operates the Eurofighter Typhoon (12 aircraft, with an option for more under the 2012 contract) and F-16 Block 50/52 fighters, driving significant sustainment costs via BAE Systems and Lockheed Martin. The Royal Navy of Oman has invested in missile-armed corvettes, offshore patrol vessels, and amphibious capability to defend Musandam — the exclave controlling the narrowest point of the Strait of Hormuz. Post-2020 Vision 2040 economic reforms have created pressure to rationalise defence spending, though security requirements have constrained cuts.
The Sultan's Armed Forces (SAF) consist of the Royal Army of Oman (~25,000), Royal Air Force of Oman (~5,000), and Royal Navy of Oman (~4,200), with the Royal Guard (~6,400) operating as a parallel elite force under direct royal command. The Air Force operates Eurofighter Typhoon and F-16 Block 50/52 fighters alongside BAE Hawk trainers. The Navy fields Al Shamikh-class corvettes (Khareef class), Ruwwad-class patrol vessels, and amphibious ships for the Musandam peninsula operations. The Army is built around armoured brigades with Challenger 2 MBTs (38 acquired from the UK), M60A3 Pattons, and wheeled vehicles. Total active duty of ~42,600 is supplemented by a Royal Guard and extensive intelligence apparatus.
Oman has minimal domestic defence manufacturing, relying almost entirely on imports from the UK, US, and France. BAE Systems has a deep and long-standing relationship with the Royal Air Force of Oman, spanning Hunters (retired), Jaguars (retired), Tornados, Hawks, and Typhoons. The Oman Defence Services Group manages in-country maintenance and sustainment contracts, with some offset requirements that have driven light manufacturing investments. Oman has been exploring partnerships with UAE and Saudi defence firms under GCC industrial collaboration frameworks but has not committed to major domestic production programmes. The country's small population (5M) and high per-capita wealth make labour-intensive domestic manufacturing economically unattractive.
Oman's defining security role is as gatekeeper and mediator at the Strait of Hormuz, through which approximately 20% of global oil trade passes. Oman has historically maintained diplomatic channels with Iran — even during periods of maximum US-Iran tension — serving as a back-channel for US-Iran nuclear and prisoner negotiations, including the 2023 hostage exchange and 2025-2026 ceasefire talks following Operation Epic Fury. During the February-April 2026 US-Iran war, Oman hosted mediation talks at Muscat that contributed to the April 8 ceasefire. Oman was among the few GCC states not to formally align with the US coalition against Iran, maintaining its traditional neutrality. The Houthi threat in neighbouring Yemen — including ballistic and cruise missile launches — puts Omani territory, shipping, and air traffic at elevated risk.
Oman played a crucial backchannel role during the US-Iran ceasefire negotiations of March-April 2026, hosting multiple rounds of talks at Muscat between American and Iranian delegations. The Omani position as neutral mediator was credited in part for the April 8 ceasefire agreement. The Royal Air Force of Oman took delivery of additional Eurofighter Typhoon upgrade packages under a 2023 support contract. Oman concluded an agreement with the UK for Type 31 frigate-derived patrol vessels in late 2024 to reinforce the Royal Navy's Hormuz patrol capability. The SAF completed a major live-fire exercise, Exercise Seyf al-Arab, in March 2025 with GCC and US CENTCOM participation.
Approximately 5.5% of GDP — Oman's strategic location at the Strait of Hormuz, through which ~20% of global oil passes, demands a robust maritime and air defence capability. The country also borders Yemen (where the Houthi conflict continues) and maintains a sophisticated posture as a neutral mediator between Iran and the West.
Oman hosted secret and semi-public backchannel negotiations between US and Iranian delegations in March-April 2026, contributing to the April 8 ceasefire that ended Operation Epic Fury. This continued Oman's decades-long tradition of hosting US-Iran dialogue, including the 2013 nuclear back-channel and 2023 prisoner exchange talks.
Yes. The Royal Air Force of Oman ordered 12 Eurofighter Typhoons under a 2012 contract with BAE Systems, with deliveries completed by 2017. These operate alongside F-16 Block 50/52 fighters, giving Oman one of the most capable air forces per capita in the Arabian Peninsula.
Oman is a close US security partner with an access and cross-servicing agreement allowing US forces to use Omani bases. However, Oman maintains formal non-alignment and did not join the US coalition in Operation Epic Fury. This deliberate neutrality is what enables Oman's value as a mediator.