Remarkable growth in economic ties between Oman and Kuwait
Economic and trade relations between the Sultanate of Oman and the State of Kuwait are witnessing remarkable growth, thanks to the efforts made by the leaderships of the two countries to activate the agreements and memorandums of understanding signed between them.
The private sector in both countries seeks to take advantage of the investment opportunities available in lucrative sectors to expand and deepen areas of cooperation and mutual investment to achieve their common interests.
Statistics issued by the National Center for Statistics and Information (NCSI) indicated that the volume of trade exchange between the Sultanate of Oman and the State of Kuwait has been growing increasingly over the past five years, which stood at about OMR115.4 million in 2019, to reach OMR789.3 million by the end of November 2023.
Statistics showed that the volume of Kuwaiti private sector’s investments in the Sultanate of Oman amounted to about OMR922.3 million by the end of the third quarter of 2023.
A number of Omani businessmen and their Kuwaiti counterparts confirmed that the Duqm Refinery Project - a joint investment project shared equally between the Sultanate of Oman and the State of Kuwait - is one of the manifestations of the depth of the fraternal relations that bring together the Omani and Kuwaiti peoples. The project is considered one of the largest energy projects in the region, which reflects diversified investment exchange between the two countries and opens the way for enhancing investments in different sectors.
Faisal bin Abdullah Al Rowas, Chairman of the Board of Directors of the Oman Chamber of Commerce and Industry (OCCI) said that the Duqm Refinery and
Petrochemical Industries Project represents a qualitative leap towards the promising future aspires by the Wilayat of Duqm and the Special Economic Zone at Duqm (SEZAD).
He added that this major project complements the Sultanate of Oman’s approach to enhancing the added value of oil and gas by converting crude oil into fuel products and petrochemical materials, thus enhancing Omani exports and the balance of payments.
Al Rowas said in a statement to Oman News Agency (ONA) that the official operation of the project will reflect positively on the rest of the projects in the SEZAD in general and projects related to the logistics sector in particular. It will also increase the pace of work at the Port of Duqm through the export of refinery products in addition to other sectors related to services.
More partnerships
OCCI Chairman stressed that the private sector in both countries is looking forward to concluding more partnerships through small and medium enterprises (SMEs), as shared by the visions of both Oman and Kuwait.
He pointed out that the two sides seek to increase trade exchange between the two countries during the upcoming period by holding trade exhibitions for national products. He explained that the National Committee to promote the Omani product will organize during the coming period an exhibition of Omani products and an investment forum in the State of Kuwait aimed at increasing trade and investment exchange between the two countries.
For his part, Sheikh Mubarak Abdullah Al Mubarak Al Sabah, Vice Chairman of the Board of Directors of Action Group Holdings, commended the fraternal, historical and economic relations between the Sultanate of Oman and the State of Kuwait.
He also praised the two countries’ keenness to develop areas of cooperation and partnership under the royal patronage of the leaderships of the two countries, especially the opening of the joint investment project between them, the “Duqm Refinery”, within the framework of the visit of His Highness Sheikh Mishal Al Ahmad Al Jaber Al Sabah, Emir of the State of Kuwait to the Sultanate of Oman.
Sheikh Mubarak Al Sabah said in a statement to ONA that the business environment in the Sultanate of Oman is a safe, encouraging and attractive environment for investment. This was evident through the investment of the Kuwaiti Action Group Holdings in several projects in the Sultanate of Oman, especially in the tourism sector, represented by a group of hotels, including the Holiday Inn Muscat, the Ibis Hotel Muscat and the Mercure Hotel Sohar, in cooperation with Accor International and InterContinental
International, in addition to many projects under study and implementation in various fields.
He said, “The amendments made by the Sultanate of Oman to the laws related to investment in the recent period and the provision of encouraging incentives will contribute to attracting investors from abroad”. He aspired to provide more attractive incentives to investors.
He confirmed that the visit of His Highness Sheikh Mishal Al Ahmad Al Jaber Al Sabah, Emir of the State of Kuwait to the Sultanate of Oman will enhance the establishment of joint ventures, build relations among businessmen in the two countries and activate the cooperation agreements and memorandums signed between them.
Sheikh Mubarak Abdullah Al Mubarak Al Sabah, Vice Chairman of the Board of Directors of Action Group Holdings, commended the fraternal, historical and economic relations between the Sultanate of Oman and the State of Kuwait.