Analysis of Agricultural Water Allocation and Returns in the Sultanate of Oman

Abstract

Water is the most important determinant of agricultural production in Oman. Remarkable public and private investments have been drawn into water resources development and into the modernization of the farming techniques in order to strengthen the contribution of agriculture to the national economy. In spite of these technological improvements and significant investments, water allocation remains a major policy issue. This paper discusses current water use and explores alternatives for improved allocation of agricultural water. Available data suggest that physical and economic returns to water are low. Improvement of returns to water resources could come from producing higher quality and higher value crops for domestic and foreign markets using improved irrigation techniques. This trend needs to be enforced by stringent water conservation measures in order to reach a long-term sustainable water use.