Photo by Linda Pappas Funsch Oil refineries dot the coastline of Oman. This precious resource has enabled the Sultanate to pursue an ambitious modernization program. SLIDE SHOW: More photos

A VIDEO INTRODUCTION AUDIO SLIDE SHOW: Drawing from her collection of photos, Linda Pappas Funsch compares her experiences in Oman more than 30 years ago to those of her most recent trip.

Oil, first discovered and extracted in commercial quantities in the 1960's, is the primary source of natural wealth in Oman. While not a member of the Organization of Petroleum Exporting Countries (OPEC) cartel, profits from this precious resource have enabled the Sultanate to finance its sweeping development programs.

The impact of oil revenue has been substantial. From 1970-2005, Oman's gross domestic product has leapt from $360 to $12,000 annually.

However, compared to its neighbors to the west and north, Oman's reserves are not plentiful. With reserves estimated at a mere 5.5 billion barrels, Oman's harsh and rugged terrain makes extraction difficult and costly. To put things in perspective, the cost of extracting Omani petroleum is seven times that of Saudi Arabia.

A centerpiece of Oman's national policy today is the government's commitment to diversify its economy, away from it its dependence on oil revenues. Toward this end, enormous effort has been directed toward improving the national infrastructure on all levels and toward promoting alternative industries.

Foremost among these are service-oriented industries, such as tourism. Within less than four decades, Oman's progress in this area has been impressive. Given its favorable location, relative ease of entry, stable political climate and host of attractions to suit many tastes, success in this market is almost certain.

In addition to economic diversity, the Sultanate has instituted a policy of "Oman-ization," which was designed to decrease dependence on expatriate workers from abroad. Toward this end, the government is actively encouraging all citizens, through education and training centers, to invest personally in shaping their country's future.