Oman-China trade ties to deepen further

Oman will continue to deepen its bilateral ties with China, which remains the single largest buyer of Oman's crude oil, Fitch Solutions, a part of Fitch Ratings said in a report. 'The two countries have indicated their intentions to build on bilateral relations across a number of areas, deepening trade and investment ties, which have already been strengthening in recent years,' Fitch Solutions said.

The report added that due to China's enormous capacity Oman is likely to aggressively court Chinese investors over the coming years. In recent years, China has boosted its investment activity in the sultanate - most prominently in Duqm where numerous Chinese firms are funding a US$10bn China-Oman Industrial City.

'This will support both Oman's and China's long-term economic strategies. The Omani government remains committed to its agenda of economic diversifica- tion, having recently launched a new twenty-year development plan, Vision 2040,' the report said.

According to the Fitch Solutions report, Oman remains attractive from Chinese perspective for a variety of reasons. 'China's Maritime Silk Road Strategy, part of the wider Belt and Road Initiative, essentially seeks to create a continuous link of Chinese-controlled ports and industrial facilities throughout Southeast Asia, Oceania, the Indian Ocean and East Africa. Oman forms an important potential link in this chain, given its strategic location between India and East Africa outside the volatile Strait of Hormuz,' the report said.

China is also important for Oman as it is the largest customer of Omani oil, having taken 82.8 per cent of Oman's total crude exports in the first eleven months of 2018; this percentage has broadly increased over the past several years, the report added.