A new era in Oman-Iranian bilateral relations
Observers foresee that the recent official visit of Iran’s President Dr Hassan Rouhani to the Sultanate and his meeting with His Majesty Sultan Qaboos will enhance existing bilateral cooperation between the two countries and the region in various disciplines, especially economic affairs.
Businessmen in the region believe the next phase will witness political and economic convergence between Iran and countries in the region.
Regarding economic relations between the Sultanate and the Islamic Republic of Iran, there are several scheduled economic projects alongside, promoting commercial cooperation and re-export under maritime and aerial traffic and communications between the two countries. These relations also expand to include industry and tourism.
A few days ago, Ismail bin Ahmed al Balushi, Deputy CEO of Special Economic Zone Authority in Duqm, noted that negotiations for setting up a factory for Iranian cars in the Special Economic Zone in Duqm are at an advanced stage. The Iranian company is looking for an Omani strategic partner to strengthen cooperation and negotiate with sovereign funds in the Sultanate.
Meanwhile, the Special Economic Zone Authority in Duqm is seeking to attract major Iranian companies to invest in the region. From the viewpoint of Omani businessmen, the next phase will witness further cooperation between Iran and the Sultanate not only at the political level, but also in economic relations. It will take the lead due to the proximity of the two countries and the presence of large investment opportunities.
The Ministry of Commerce and Industry forecasts an RO 2 billion worth of trade exchange between the two countries in the current year thanks to developments in imports and exports on one hand, and the common desire for a brighter future of Omani-Iranian economic ties in the upcoming phase.
Oman Chamber of Commerce and Industry recently formed business councils between Omani businessmen and other countries, including the Omani-Iranian Business Council.
The council officials believe Oman and Iran enjoy excellent relations, and there are promising mutual investment opportunities in shipping, logistics and tourism sectors as well as relations in the oil and gas sectors.
Iranian investments can be part of the development of these sectors and in other industries famous in Iran. Benefit can also be drawn from their experiences in those industries with the current gas pipeline project, which will commence in the upcoming years.
The Iranian market is massive and thus needs a myriad of other commodities and products. It is also surrounded by a number of Islamic states that can be promising markets for Omani and other goods re-exported from the Sultanate to those countries through Iran.
Strenuous efforts have been exerted to divert Iranians towards purchasing their goods through Omani ports and boost re-export along with promoting tourism. These activities, according to Omani businessmen, require significant review of currently enforced laws and policies between the two countries. This is in addition to preparing Omani markets to be a hub for re-export of Iranian products to nearby markets and African countries.
It also requires conducting of a careful study on how both sides can benefit from their potential, promoting private sector capabilities, facilitating the tasks of companies and enterprises and enabling Omanis to benefit from the Iranian experience in establishing joint SMEs, especially food industry.
Omani businessmen affirm that to facilitate re-export operations between the two countries, a special port must be established and equipped to handle small boats as well as large ships and vessels and for carrying out operations like loading and offloading commodities arriving from and to the Sultanate, which can allow the transfer of those goods to African countries, which are also a promising market for both Omani and re-exported products.
The next phase requires utilisation of capabilities of both countries and creation of an integration process that serves the interests of both parties, especially since the Sultanate is considered a commercial route for countries in the region, Iran, Asia and Africa, and has a direct link and age-old political and economic relations.
This allows Oman to attract more Iranian companies for the establishment of factories in the Omani free zones and offer incentives and privileges to these companies as well as facilitate visa, accommodation and employment procedures and other requirements.