Arabia reaches out to Oman with investment fund
Riyadh to strengthen its commerce and industry ties with Muscat
Saudi Arabia and Oman yesterday agreed to establish a joint investment fund and strengthen ties, as Riyadh seeks to counter Iranian and Qatari influence in the region.
The agreement was reached at a meeting between the Saudi interior minister, Prince Abdulaziz bin Saud, and his Omani equal, Yusuf Alawi, in Muscat.
“The talks focused on strengthening trade ties between the two sides with a plan to establish an Oman-Saudi Arabia Investment Fund,” a political source close to both governments told The National.
The source said that Prince Abdulaziz also discussed security issues and regional developments.
Saudi Arabia said last week it would invest US$120 million (Dh440.7m) in developing Oman’s Duqm port into a major industrial centre, which Muscat hopes will drive non-oil revenue.
“It is a clear sign here that Saudi Arabia needs to reach out to Oman through investments,” the source said.
“The Saudis don’t want Oman to side with Qatar, especially since the Qataris are now investing heavily in the sultanate. At the same time, Saudi Arabia feels it must contain Iran’s influence on Oman and Qatar.”
Qatar has agreed to invest $400m in Sohar port in the north-east of Oman, while its national airline, Qatar Airways, has moved all of its Dubai operations to Sohar International Airport.
Iran, meanwhile, is building a car making company in Duqm, in the east of the country, and a hospital in the northern Al Batnah region.
Saudi Arabia, the UAE, Bahrain and Egypt have been boycotting Qatar since June last year over its support for extremists and interference in the affairs of its neighbours. Oman has remained neutral in the dispute.
Muscat does not play a role in the Saudi-led coalition fighting in Yemen on behalf of the internationally recognised government of president Abdrabu Mansur Hadi.
Pro-government and coalition forces are battling to regain control of the country from Iran-backed Houthi rebels.
The two countries agree to establish a SaudiOmani investment fund, after Riyadh announced it would invest $120m in developing Duqm port into a major industrial centre