British Financial Control in Oman in early 20th century

Abstract

After the death of Said b. Sultan in 1856, a dispute arose between his sons as to the possesion of Oman and Zanzibar. In consequence of the British arbitration in the dispute which severed Zanzibar from Oman, the British influence on the administration of Muscat became preponderant. However, the declaration of 1862 between Great Britain and France, engaging reciprocally to respect the independence of the Sultans of Muscat and Zanzibar, required the British government to abstain from establishing a direct control on the Sultanate administration. Thus, since 1862 the British government was obliged to maintain a influence on the Sultanate administration mainly by granting an annual subsidy.
Toward the end of the 19th century, the French government again developed its involvement in Muscat affairs. Owing to this renewal of French influence in Oman, the British government started to consider the possibilities of establishing a direct control on the Sultanate administration.
In consequence of the civil war in Oman which started in 1913, the Sultanate fell into the financial difficulties. Eventually, the Sultan owed a heavy debt to the Indian merchants in Oman. To pay off his debts the British government offered to grant loans to the Sultan on the condition of the British financial control on the Sultanate. And the reform in the structure of the administration was also one of the important conditions of loans. Thus in return for British loans granted since 1918 the Sultanate came to be under the British control.