RAMADAN IN OMAN: SPIRITS ARE HIGH, BUT SO ARE PRICES

UNCLAS SECTION 01 OF 02 MUSCAT 001487

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: SOCI ECON MU
SUBJECT: RAMADAN IN OMAN: SPIRITS ARE HIGH, BUT SO ARE PRICES

REF: MUSCAT 01468

--------------
SUMMARY
--------------


1. (SBU) Omanis are in a generally positive mood as Ramadan draws
to a close. Seasonal goodwill, however, has been blemished by
complaints of price increases on basic foodstuffs and other items.
As elsewhere in the region, Omanis are watching Arabic-language
serial programs on television produced especially for Ramadan, while
the country's small Shia community may be increasingly tuning to
media outlets backed by Iran and Hezbollah. The fledgling Oman
Journalists' Association has provided an alternative to evening
parties by sponsoring unprecedented public fora featuring
presentations by government ministers. End Summary.

--------------
A POSITIVE MOOD
--------------


2. (U) The occasion of Ramadan tends to generate good feelings in
Oman, and this year is no exception. Despite sobering events in
other parts of the region, the mood at Ramadan gatherings is
generally upbeat. The "hubta," a traditional village market set up
sometime during the last week of Ramadan, is both the subject and
venue of much conversation. More than a market, the hubta is a
social event where Omanis - who use reduced work hours and the break
in routine to reinforce personal relationships - go to mingle with
friends and remember their traditions. According to some observers,
an increasing number of young Omani women are venturing out in
groups to smoke sheesha and enjoy the festive evening atmosphere.

--------------
ON THE AIRWAVES
--------------


3. (SBU) "Musalsallat," Arabic-language television programs
appearing in daily installments, dominate the airwaves during
Ramadan in Oman. This year, the Saudi program "Tash Matash" is a
favorite of many viewers, with its depiction of social issues in the
Arab world, including terrorism. Peak viewing time tends to be
after the daily iftaar (evening meal that breaks the fast),although
programs are repeated and run throughout the day. For news, many in
Oman's Shia community are turning to the Iranian Arabic-language
"Al-Alam" channel, as well as Lebanese Hezbollah's "Al-Manar." It is
believed that the popularity of both channels has increased this
year, in the wake of Israeli-Hezbollah combat over the summer.
(Note: Omani Shia comprise no more than 5% of the population, are
well integrated into Omani society, and in general hold no loyalty
to Iran. End Note.)

--------------
GRUMBLING ABOUT PRICES
--------------


4. (SBU) One of the major topics of discussion during this Ramadan,
and a primary source of complaints, is rising food prices,
particularly the cost of basic foodstuffs that are integral to
Ramadan celebrations and the Eid al-Fitr holiday. Sporadic
shortages of dairy products have added to grumbling. A kilo of meat
that was 1.5 Omani Riyals (OR) before Ramadan could rise to 2.4 OR,
with select cuts going for as much as 3.2 OR. (Note: Four major
meat distributors, all owned by government officials, effectively
dominate the Omani market. Meat vendors view the seasonal spike in
demand as an opportunity to boost profits. End Note.) As in
previous years, prices also have risen for fish, chicken, coffee,
sugar, rice, flour, fruits and vegetables, though they are expected
to gradually decrease after the Eid. As a result, some consumers
are settling for cheaper goods like dry, salted fish as they try to
save money for the next big holiday, the Eid al-Hajj (Eid al-Adha).
The food price increases are magnified by other holiday expenses
such as the tradition of buying new clothing, receiving visitors,
and funding extra entertainment for the household. Omanis grouse
that traditional Ramadan promotions on everything from automobiles
to trinkets are noticeably less generous than in the past.

--------------
AWAY FROM MUSCAT
--------------


5. (U) In provincial towns like Salalah in the far south, food
shortages and price rises tend to be felt more acutely than in
Muscat, since there are no large supermarkets and sellers' supplies
often cannot meet demand. This is offset somewhat, however, by the
small farms and livestock owned by Omanis outside the capital area,
which provide an alternate source of milk and meat. An additional
headache reported by many outside Muscat is irregular business
hours, which make shopping difficult. Some speculate that a
shortage of Omani workers in the retail sector, caused in part by
the government's "Omanization" program, may be one reason for
shortened and inconvenient store hours. Omani employees with young

MUSCAT 00001487 002 OF 002


children and heavy family obligations are also less disposed to keep
long hours at their place of business. In contrast, some businesses
in Muscat, including the Sultan Center - one of the larger
supermarkets - are open 24-hours daily during the holiday.

--------------
JOURNALISTS HOLD FORA
--------------


6. (U) One new development this Ramadan is the growing activism of
the fledging Omani Journalist Association (OJA). The OJA has
conducted well-received public forums with the Ministers of
Interior, Foreign Affairs, and Commerce & Industry about 2007
elections for the Majlis al-Shura (reftel),international relations,
and the newly signed U.S.-Oman Free Trade Agreement (septel),
respectively.

FONTENEAU