Muscat: The Sultanate of Oman and the United Arab Emirates (UAE) share a strong bond of brotherhood and strategic partnership. These bilateral relations have been progressing remarkably, thanks to the support and attention given by the wise leadership of His Majesty Sultan Haitham bin Tarik and Sheikh Mohammed bin Zayed Al Nahyan, President of the United Arab Emirates (UAE).
Both leaders are committed to expanding these relations to new horizons, with the aim of serving the interests of their respective peoples and ensuring security and stability in the region and the world.
The exceptional relations between the two countries are built on a foundation of economic and trade partnership.
Since the first meeting between the late Sultan Qaboos bin Said and Sheikh Zayed bin Sultan Al Nahyan, these relations have been unique. Both countries share a common vision on issues of mutual concern, embodying the true essence of fraternity and harmony over the past five decades.
The state visit of His Majesty Sultan Haitham bin Tarik to the UAE on Monday, and his meeting with Sheikh Mohammed bin Zayed Al Nahyan, hold great significance. The visit aims to enhance bilateral relations and propel them towards broader horizons. During their meeting, the two leaders will exchange views on regional and international developments.
Oman and the UAE are committed to strengthening their cooperation in various fields based on the principle of mutual interest.
The joint supreme committee established in 1991 between the two countries aims to strengthen cooperation and coordination in various economic, commercial, cultural, and educational fields. It also focuses on connecting electricity and communications networks, coordinating land transport services and transportation procedures at border crossings, as well as enhancing joint investment opportunities for the mutual benefit of the Omani and Emirati people.
Ambassador of Oman to the UAE, Sayyid Dr. Ahmed bin Hilal Al Busaidi, highlighted that His Majesty's upcoming visit to the UAE will further enhance cooperation, integration, and partnership between the two nations. He emphasized the significance of recent mutual visits between the leaderships of both countries, resulting in the signing of 16 agreements and memorandums of understanding across various sectors.
Sayyid Al Busaidi noted a significant advancement in economic relations between Oman and the UAE, attributing it to the commitment of both countries' leaderships. He anticipated increased joint investment cooperation in the future, strengthening the existing economic partnership between Oman and the UAE.
The key Omani investments in the UAE encompass financial activities, insurance, manufacturing industries, real estate, professional and technical services, wholesale and retail trade, as well as information and communications. On the other hand, prominent Emirati investments in Oman include industrial, financial, banking, tourism, power generation, real estate, retail trade, and construction sectors.
Sayyid Ahmed emphasized the significant role of the UAE as a key trading partner for the Sultanate of Oman. He highlighted the continuous growth in trade volume and investment exchange between the two countries, which reflects their strong economic partnership and promising prospects.
During 2023, Omani exports to the UAE surpassed OMR1 billion, indicating a notable increase of 20.4 percent compared to the previous year.
Sayyid Ahmed, while affirming the commitment of the Embassy of Oman in the UAE, stated that they actively work towards enhancing economic and investment cooperation. This is achieved through consistent communication with relevant government agencies, chambers of commerce and industry, as well as investors in the UAE. The embassy encourages them to take advantage of the available investment opportunities in Oman.
According to statistics released by the National Centre for Statistics and Information (NCSI), the trade exchange volume between Oman and the United Arab Emirates reached approximately OMR5.439 billion by the end of 2023, compared to OMR5.571 billion by the end of 2022.
The statistics further revealed that Omani products exported to the UAE in the previous year exceeded OMR291.7 million. These exports primarily consisted of metal products, chemical industry products, related industries, and various other commodities. On the other hand, the value of products imported from the UAE amounted to over OMR837.7 million, including machinery, appliances, electrical equipment, and other goods.
The data indicates that the United Arab Emirates is the top recipient of direct Omani investments abroad, totaling OMR960 million by the end of 2022. Conversely, Emirati investments in Oman reached approximately OMR958 million by the end of last year.
The Sultanate of Oman holds significant importance as a market for Emirati trade, ranking third in the Arab world and tenth globally among the UAE's trade partners. This accounts for 20% of the Emirates' total trade, facilitated by efficient transportation and the seamless movement of goods between the two countries through land ports.
Both countries' private sectors are crucial for economic development, focusing on diversification across industries such as manufacturing, logistics, mining, tourism, and fisheries.
Faisal Abdullah Al Rowas, Chairman of Oman Chamber of Commerce and Industry, emphasized the strong economic and trade partnership between Oman and the UAE. He highlighted the UAE's role as a key trading partner for Oman, with direct investments spanning various sectors like manufacturing, real estate, commercial projects, construction, finance, transportation, hotels, and more. The UAE stands out as the primary destination for Omani investments abroad.
The joint venture "Oman and Etihad Rail" was established by the Sultanate of Oman and the United Arab Emirates in September 2022, with equal ownership between the two countries. The project aims to create a railway network connecting Sohar Port to the UAE national railway network, with a total investment of $3 billion. The joint company will develop a detailed work plan for the project, including financing methods and a timeline, and will oversee the design, construction, and operation of the railway network.
This initiative will link the Wilayat of Sohar in the Governorate of North Al Batinah with the capital Abu Dhabi, enhancing the efficiency of the supply chain system and facilitating cross-border trade. It will also connect commercial ports and economic zones to the railway network, improving commercial and social ties between the two nations and enhancing logistics services.
Direct transport lines between Omani and Emirati ports facilitate the movement of various products and exports, leading to mutual economic benefits. These ports serve as crucial gateways linking Asia, Europe, and Africa, accommodating transiting ships.
The Duqm Dry Dock, offering marine solutions and ship maintenance services, saw a 43% increase in projects from the UAE market in 2023, with over 350 projects completed.
In the tourism sector, facilities in both countries attract numerous tourists from each nation, with joint tourism investments contributing to increased tourist numbers.
The Sultanate of Oman, through collaboration between the Ministry of Culture, Sports and Youth and the Ministry of Information, actively engages in cultural exchanges with the United Arab Emirates. This includes regular participation in book fairs in Abu Dhabi and Sharjah, as well as hosting institutions from the UAE at the Muscat International Book Fair. Such initiatives serve to strengthen the fraternal bonds and historical ties between the two countries.
