Saudi Arabia’s PIF plans $5bn investments in Oman
Riyadh, Muscat agreed to boost cooperation in various economic sectors
Saudi Arabia’s Public Investment Fund is planning to invest SR18.7 billion ($5 billion) in Oman, according to a statement from the two countries.
The plan was announced after the visit of Saudi Crown Prince Mohammed bin Salman to his Middle East neighbor.
There are no details yet as to what industries or companies the money will be invested in.
The announcement comes after the two countries signed 13 memoranda of understanding, reportedly worth more than $30 billion and covering a number of sectors. The agreements were signed by Omani companies fully owned by the sultanate’s investment authority, the Saudi Press Agency and Omani state TV reported on Monday.
The two countries announced on Tuesday the opening of the first land crossing between the two Gulf neighbors.
“The 725 kilometer Saudi-Omani road ... will contribute to the smooth movement of citizens of the two countries and the integration of supply chains,” a joint statement released following an official visit by Saudi Crown Prince Mohammed bin Salman said.
The road runs from Al-Batha road intersection near the capital, Riyadh, to the Empty Quarter crossing on the Saudi-Omani border, costing over SR1.9 billion.
The project to link the two countries, implemented by the Ministry of Transport and Logistics, is considered an engineering marvel given the difficult terrain and harsh climate in the Empty Quarter. It is also considered one of the ministry’s most important projects due to the role it plays in promoting trade exchange between the two countries, and facilitating the movement of pilgrims and tourists.
The opening of the road also completes the Kingdom’s direct links with all the countries of the Gulf Cooperation Council, and is expected to contribute to increasing the volume of trade exchange between the two countries, which exceeded SR10 billion last year.
Saudi Arabia and Oman also agreed to cooperate in the field of energy and climate change and to work jointly within the framework of the Middle East Green Initiative regionally and globally.