Oman is located in the Middle East, bordering the Arabian Sea, Gulf of Oman, and Persian Gulf. It has a hot, dry climate over most of the country except along the coast. The majority of Oman's population lives in cities located along the northern and southeastern mountains, where the climate is more moderate. Oman has a monarchy government and its economy was traditionally dependent on oil exports, but is now diversifying into other industries like tourism and manufacturing to compensate for declining oil reserves. The population is a mix of Ibadhi and Sunni Muslims and most speak Arabic as their primary language.