The Sultanate of Oman is located in Southwest Asia, on the southeast coast of the Arabian Peninsula. It borders the United Arab Emirates in the northwest, Saudi Arabia in the west and Yemen in the southwest. The coast is formed by the Arabian Sea in the south and east, and the Gulf of Oman in the northeast.  In 1970 Oman had only three primary schools, 10 kilometers of paved roads, two health centers, no infrastructure to speak of, and a per capita income of less than $50 a year. Oman is now a middle-income developing country with the 18th most liberal economy in the world, free universal welfare service and impressive infrastructure.