Oman ( oh-MAAN; Arabic: عمان ʻUmān), officially called the Sultanate of Oman (Arabic: سلطنة عُمان Salṭanat ʻUmān), is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates (UAE) to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the southeast and the Gulf of Oman on the northeast. The Madha and Musandam enclaves are surrounded by the UAE on their land borders, with the Strait of Hormuz and Gulf of Oman forming Musandam's coastal boundaries.
For a period,[when?] Oman was a moderate regional power, formerly having a sultanate extending across the Strait of Hormuz to Iran, and modern day Pakistan, and far south to Zanzibar on the coast of south-east Africa. Over time,[when?] as its power declined, the sultanate came under heavy influence from the United Kingdom, though Oman was never formally part of the British Empire, or a British protectorate. Oman has long-standing military and political ties with the United Kingdom and the United States, although it maintains an independent foreign policy.
Oman is an absolute monarchy in which the Sultan of Oman exercises ultimate authority but its parliament has some legislative and oversight powers. In November 2010, the United Nations Development Programme (UNDP) listed Oman, from among 135 countries worldwide, as the nation most-improved during the preceding 40 years. According to international indices, Oman is one of the most developed and stable countries in the Arab world.