Opportunity Oman: Oman and East Africa Leveraging history for a prosperous tomorrow
Apromising economic partnership is blossoming between Oman and the East African Community (EAC), rekindling historical ties and unlocking a wealth of opportunities for both regions.
This strategic collaboration positions Oman as a vital gateway for the EAC to access Middle Eastern markets while simultaneously fostering economic diversification within Oman itself and EAC as a gateway for Oman to go to the hinterland of Central Africa— where Oman also has a historical connection and EA countries are busy investing in logistic corridors to Central Africa.
The opportunities are for both sides.
The EAC, a dynamic economic bloc with a population exceeding 283.7 million and a GDP of $312 billion, presents a significant market for Omani goods and services.
The partnership aims to stimulate economic growth, attract foreign direct investment (FDI), and create employment opportunities across diverse sectors by eliminating trade barriers and fostering regional integration.
The opposite is true: Oman provides a sink and re-export hub for EAC products, especially from the agriculture, industrial, and minerals sectors. Oman’s historical connections with East Africa, particularly Kenya and Tanzania, are a strong foundation for this collaboration. Shared cultural heritage, familial bonds and Swahili’s prevalence as a common language create natural bridges between the regions, facilitating communication and fostering trust.
To cultivate a conducive business environment, the partnership prioritises several key pillars:
• Tariff reductions: Lowering or eliminating tariffs on imported goods will incentivise trade flows and make products more affordable for consumers and businesses.
• Robust legal framework:a solid legal framework protects investments, ensures fair business practices and fosters investor confidence.
• Streamlined customs procedures: Simplifying customs regulations and documentation will expedite the movement of goods across borders, enhancing trade efficiency.
• Cultural exchange: Promoting cultural exchange programs will strengthen diplomatic ties, foster mutual understanding and build bridges between the people of Oman and the EAC.
• Investment protection: Implementing robust investment protection mechanisms will provide assurances to foreign investors, attracting muchneeded capital inflows, including ease of repatriation of foreign funds on both sides.
• Infrastructure development and logistics:
Collaborating on infrastructure projects, such as port development, air, land and sea transportation networks, storage facilities and energy initiatives, will enhance regional connectivity and facilitate trade flows.
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Economic diversification: Both regions stand to benefit from economic diversification efforts.
Oman can lessen its dependence on hydrocarbons, while East Africa can develop its industrial and agricultural sectors, fostering long-term sustainable growth.
Oman’s strategic location and well-developed infrastructure, including ports like Salalah, Sohar and Muscat, position it as a crucial trade gateway for the EAC.
This partnership presents exciting investment opportunities in various sectors, such as agriculture, manufacturing, tourism and renewable energy.
Real-world examples underpin the potential of this partnership. Oman’s Vision 2040 prioritises tourism development, agricultural modernisation and technology innovation, aligning perfectly with the EAC’S needs.
Additionally, its social protection laws and tax reforms show Oman’s commitment to social welfare and economic sustainability.
The East Africa-oman Strategic Partnership holds immense potential to bolster bilateral trade, generate new employment opportunities, catalyse economic growth across various sectors and open up market access for businesses in both regions.
Key provisions, such as the elimination of tariffs, robust protection of intellectual property rights, ease of people movement, and commitments to market access in the service and financial sectors, further enhance the prospects of this transformative collaboration.
This partnership presents a unique opportunity for Oman and the EAC to build upon their shared history, cultural bonds, and linguistic heritage.
The ongoing cultural exchange programs, facilitated by Omani support in recent years, have already made significant progress in supporting the restoration of historical Omani sites in Zanzibar, such as the old Sultan’s house, Bait Al Ajaib - both in Stone Town and many other historical places.
However, to truly capitalise on the potential of this collaboration, it is crucial to recognize the pivotal role that the private sector must play in further strengthening this partnership.
It is essential to empower the Omani private sector to penetrate the East African market and provide them with the necessary support to explore these new opportunities.
As venturing abroad and navigating new markets may be an unfamiliar experience for many Omani private sector entities, governments from both sides must go the extra mile in assisting them, drawing from the experiences of other countries that have supported their private sectors in similar endeavours.
Ease of movement, provisions of business visas and security of these business entities are crucial to building confidence for both sides.
While agriculture presents a viable investment option in Oman, more local resources may be needed, as demonstrated by the experiences of other countries investing in the entire supply chain.
Therefore, the most effective initial strategy would be to support the local Omani business community by appointing them as local agencies for Omani products, supplemented by export guarantee programs through the Development Bank, Credit Oman, etc.
Devising and implementing a comprehensive 3 to 5-year strategy that focuses on empowering the private sector, fostering cultural exchange, and leveraging historical ties can help achieve the dual objectives of supporting the wealth of the local Omani community and increasing exports, ultimately contributing to a more balanced trade relationship between Oman and the EAC.
As Oman and the EAC embark on this promising journey, they stand poised to write a new chapter in their shared history.
By harnessing the power of collaboration, innovation, and a shared vision for the future, this strategic partnership has the potential to unlock a new era of prosperity for both regions and usher in a brighter and more interconnected future for all.
THIS STRATEGIC COLLABORATION POSITIONS OMAN AS A VITAL GATEWAY FOR THE EAC TO ACCESS MIDDLE EASTERN MARKETS WHILE SIMULTANEOUSLY FOSTERING ECONOMIC DIVERSIFICATION WITHIN OMAN ITSELF AND EAC AS A GATEWAY FOR OMAN TO GO TO THE HINTERLAND OF CENTRAL AFRICA— WHERE OMAN ALSO HAS A HISTORICAL CONNECTION AND EA COUNTRIES ARE BUSY INVESTING IN LOGISTIC CORRIDORS TO CENTRAL AFRICA.