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Oman says it will spend about 1 billion rials ($2.6 billion) to address demands by protesters for more jobs and state aid.
The spending boost announced Sunday is a centerpiece of efforts to quell two months of sporadic demonstrations for more jobs and a greater political voice in the tightly ruled monarchy.
Oman's ruler, Sultan Qaboos bin Said, has promised 50,000 new civil servant posts and bigger stipends for job seekers. Gulf states also have given $10 billion each to aid Oman and violence-wracked Bahrain.
Oman and Iran share control of the Gulf's strategic Strait of Hormuz, the route for 40 percent of the world's oil tanker traffic. - Sapa-AP