Sweeping changes have recently taken place in the life and economic circumstances of nomadic peoples in the countries of the Islamic East. In this respect, the ‘small’ oil-rich Gulf states are in a somewhat different position. In contrast to many other countries with nomadic populations, the prospects for the integration of the non-sedentary elements of the population into the process of modern development are more favourable in the Gulf states, chiefly because of their wealth in oil. The Omani government has devoted special attention to the development of the nomadic environment in the southern province of Dhofar following the end of the Dhofar conflict. A speedy expansion of the technological and social infrastructure took place on the basis of a newly created central place system of government centres. This covered the extension or provision of transport facilities, water supply, education, rural health services, religious establishments, the distribution of basic requisites to the population and the stimulation of retail trade. Additional government measures comprised the construction of low-cost housing for refugees, the allocation of building sites, financial assistance to the socially deprived and subsidies to shaykhs, as well as various small-scale programmes for the improvement of agriculture, livestock and fisheries. A further essential contribution to modern development has been the creation of thousands of new jobs, above all in the state's public service sector. The effects of the new opportunities for employment, together with relatively high cash incomes now available for many nomadic families, can be seen in numerous changes. The most important new trends can be summarised as the decline of the caravan trade, the advent of motor transport, an increasing rate of permanent settlement accompanied by a switch to gardening, the practice of commuting to fixed employment instead of nomadism, dependence on external food and outside markets and economic dependence on allowances, standardized tents and stone houses in place of the traditional dwellings. It can generally be confirmed that the nomadic population of Dhofar has shared in modern development in a variety of ways. However, a marked gap in development exists between the coastal area in the south with its settled population and the nomadic living space in the interior of Dhofar. Only the speedy introduction of a development programme that caters for the specific interests of the nomads can satisfactorily achieve their ultimate integration. If such measures fail to materialise one must fear a long-term social and economic decline for the majority of nomads in Dhofar and their reduction to a marginal status.