Oman & Turkiye: Fruitful March Of Economic Relations

Oman & Turkiye: Fruitful March Of Economic Relations

Muscat: The Sultanate of Oman and the Republic of Turkey are eagerly anticipating further achievements in their bilateral relations, encompassing areas such as trade, investment, cultural and academic cooperation, as they celebrate the milestone of fifty years since the commencement of diplomatic ties on June 18, 1973.

The establishment of the Omani Embassy in Ankara occurred in 1985, followed by the Turkish Embassy in Muscat in 1986. These diplomatic outposts serve as pivotal platforms for both nations to fortify their cooperative ties and deepen the historical friendship that stretches back to the sixteenth century.

The burgeoning bilateral relations between Oman and Turkey are marked by significant progress and substantial development across various sectors.

The forthcoming visit of His Majesty Sultan Haitham bin Tarik to Turkey, scheduled for this Thursday, is expected to further enhance the momentum of fruitful collaboration. This visit underscores the commitment of both countries' leaderships to bolster bilateral cooperation in diverse fields, all aimed at advancing shared interests.

The Sultanate of Oman has actively participated in numerous meetings in Turkey, including the Islamic Cooperation Meeting on Jerusalem, which took place in Istanbul on May 18, 2018, and the 40th Ministerial session of the Standing Committee for Economic and Commercial Cooperation (COMCEC) of the Organization of Islamic Cooperation, which was convened at the beginning of this month.

Trade between Oman and Turkey is experiencing steady growth, as evidenced by figures released by the National Centre for Statistics and Information. By the end of the first eight months of 2024, trade volume had surpassed OMR216 million ($561.6 million), an increase from OMR208 million ($540.8 million) recorded in the same period of 2023.

Turkey holds the 17th position among Oman's non-oil import partners and is the leading recipient of Oman's non-oil exports in Europe, as per the statistics from 2023.

The Sultanate of Oman has experienced a notable surge in the influx of Turkish businessmen and entities interested in investment and employment opportunities within its borders. By the close of 2023, the Sultanate had recorded 423 registered entities, predominantly Turkish-owned, with investments exceeding OMR100 million ($267 million) in total.

These Turkish entities have diversified their operations across various sectors, including construction, wholesale and retail, industry, and logistics. Their contributions have been instrumental in the execution of several major infrastructure projects within Oman, such as airports, ports, roads, dams, and additional initiatives.

Concurrently, the number of Omani entities established in Turkey stands at approximately 36, with investments totaling OMR75 million ($195 million) by the year's end, as per data from the Turkish Ministry of Commerce.

In December 2023, the Embassy of the Sultanate of Oman in Ankara, in collaboration with the Ministry of Commerce, Industry and Investment Promotion, and the “Invest Oman” lounge, organized a workshop focused on investment incentives in Oman. This event was attended by Turkish businessmen and members of the Association of Mediterranean Countries.

On the tourism front, both nations are working to enhance cooperation by organizing events and meetings aimed at attracting Turkish tourists to explore Oman's tourism potential. Furthermore, the number of Omani tourists visiting Turkey in 2022 surpassed 130,000, marking a significant increase following the visa waiver agreement between the two countries.

In the realm of higher education, a memorandum of understanding (MoU) was signed in October by the Sultanate of Oman and the Republic of Turkey. This agreement encompasses the exchange of scholarships, mutual recognition of higher education institutions, the transfer of science, knowledge, and technology, and the organization of various training courses, seminars, symposia, conferences, bilateral forums, and research collaborations.

Additionally, the establishment of the Yunus Emre Institute for Turkish Language in Muscat was formalized through a memorandum of understanding during the Omani-Turkish Joint Committee meeting held in Ankara in 2022. Moreover, an agreement was signed between Sultan Qaboos University and the Turkish Maarif Foundation in 2019, facilitating the inclusion of Turkish language as an elective course at the university.

In the year 2010, a memorandum of understanding was signed between the two nations, facilitating cooperation in the domain of archives. This agreement was represented by the National Records and Archives Authority of Oman and the General Directorate of State Archives of the Turkish Prime Ministry. The memorandum outlined the framework for collaboration in the field of archives, ensuring the Sultanate of Oman's access to copies of documents and archives from their Turkish counterparts.

On the 17th of May, 2023, the National Records and Archives Authority of Oman issued four new publications. These publications delve into the historical relations between Oman and the Ottoman Empire, spanning a remarkable 370 years. This period of historical connection was illuminated through the examination of Ottoman archives, with three volumes dedicated to this exploration. The fourth volume, titled "Omani-Turkish Relations in the Documents of the Turkish Republic," highlighted the profound relations between the two nations.

A documentary exhibition titled "Memory of a Nation" was inaugurated in Salalah, located in the Dhofar Governorate, spanning the period from August 5th to 21st, 2024. This event was graced by the presence of numerous officials from both Oman and Turkey. The exhibition aimed to shed light on the historical ties between the Sultanate of Oman and the Republic of Turkey.

Saif Rashid Al Jahwari, the Ambassador of the Sultanate of Oman to the Republic of Turkey, expressed that the state visit of His Majesty Sultan Haitham bin Tarik to Turkey marks a significant milestone in the historical trajectory of relations between the two countries. He further noted that this visit takes place amidst the celebration of the 50th anniversary of the establishment of diplomatic relations between the two nations, as well as the Turkish Republic's centenary of its founding.

Al Jahwari highlighted that the discussions to be held between His Majesty the Sultan and the Turkish President are poised to lay the groundwork for further strategic relations between the two countries, with the aim of serving the interests of their peoples.

During the visit, a multitude of agreements and memoranda of understanding were set to be signed, aimed at enhancing cooperation between Oman and Turkey across various sectors, including political and diplomatic affairs, economic, commercial, financial, and investment cooperation, military and defense manufacturing, transportation, communications, energy, and emergency management, culture, higher education, scientific research, media and news agencies, and health and medical sciences, as well as labor and small and medium-sized enterprise (SME) development.

The Omani-Turkish Joint Committee convened numerous meetings, with the most recent one being the 11th meeting held on November 3, 2022, in Ankara.

During this gathering, a cooperation protocol was formally signed.

The Ambassador highlighted that the Joint Committee plays a pivotal role in fostering economic, trade, and technical relations between the two nations. The committee's forthcoming meeting is scheduled for Muscat in the coming month, chaired by Qais Mohammed Al Yousef, Minister of Commerce, Industry, and Investment Promotion from Oman, and Dr. Mehmet Simsek, Minister of Treasury and Finance from Turkey. This meeting is anticipated to further strengthen the economic, trade, technical, and investment ties between Oman and Turkey, benefiting the populations of both countries.

Regarding Omani investments in Turkey, the Ambassador mentioned that the Oman Investment Authority holds a significant stake in the strategically located Kumport Port on the European side of Istanbul since 2011. This port serves as the primary gateway for consumer goods to Istanbul and offers a variety of services, including container and general cargo handling, rolling services, and storage and unloading services.

He also emphasized the importance of the agreement between Oman LNG and BOTAŞ Petroleum Pipeline Corporation, noting its significance for both Oman and Turkey. This agreement marks the inaugural step in exporting Omani gas to a new market, the Turkish market.

"Many Turkish officials have underscored the significance of this agreement for their country, particularly at a time when Turkey is in the process of renewing numerous contracts within the energy sector. The liquefied gas from Oman will contribute to diversifying Turkey's energy sources over the next decade, thereby facilitating further cooperation between the two countries in the energy sector, both in traditional and renewable forms," stated the Ambassador.

During his turn, Mehmet Hakimoğlu, the Ambassador of the Republic of Turkey to the Sultanate of Oman, highlighted the significant historical event that is set to occur on November 28-29, 2024. This visit is of paramount importance as it marks the first-ever state visit by Sultan Haitham bin Tarik of Oman to Turkey, a visit that has been over three decades in the making.

"On this auspicious occasion, we anticipate the signing of numerous agreements across various sectors including politics, economics, commerce, defense, and culture. This visit is poised to significantly enhance bilateral relations and cooperation between our nations in all spheres," stated the Turkish Ambassador.

He emphasized to the Oman News Agency (ONA) the profound historical ties between Turkey and Oman, which have deepened during the Ottoman era. This strategic alliance fostered a culture of mutual respect and friendship among the sultans of the two countries.

He further highlighted the role of this partnership in fostering a stronger bond between the peoples of Turkey and Oman, through cultural and social exchanges.

He confirmed that the state visit of His Majesty the Sultan would pave the way for new avenues in the bilateral relations between the two countries, opening opportunities for joint endeavors through the signing of various agreements and memoranda of understanding. These agreements, according to the Ambassador, would offer the two nations extensive opportunities for cooperation in sectors such as education, health, defense, and energy.

He further elaborated that the agreement signed between Oman LNG and BOTAŞ Petroleum Pipeline Corporation stipulates the annual supply of one million tons of liquefied natural gas commencing in 2025, spanning a duration of ten years. This pact is instrumental in bolstering energy security for both Turkey and Oman, in alignment with the objective of diversifying energy sources, thereby strengthening the existing bilateral cooperation, as highlighted by the Ambassador.

Concurrently, Faisal Abdullah Al Rowas, the Chairman of the Board of Directors for the Oman Chamber of Commerce and Industry (OCCI), underscored the foundation of Omani-Turkish relations, which is built upon a longstanding friendship and collaborative efforts across various sectors, notably in economic cooperation, which has experienced notable growth over recent years.

He confirmed to the Oman News Agency (ONA) that His Majesty's state visit to Turkey will mark a significant advancement in the support for these relations. The discussions between His Majesty and the Turkish President are expected to lay the groundwork for broadening the scope of these relations.

Furthermore, he mentioned that the private sectors from both nations have played a pivotal role in fostering this cooperation through the Omani-Turkish Business Council, which is crucial in creating an environment conducive for businessmen from both countries to explore investment opportunities and enhance the value of trade exchanges between them.

Al Rowas concluded by stating that this state visit highlights the deep historical ties between Oman and Turkey. It also reflects a genuine commitment from the leadership of both countries to expand cooperation in all commercial and investment domains. The visit aims to leverage promising opportunities and conclude several agreements and memoranda of understanding that will lay the groundwork for joint strategic projects, thereby elevating the levels of mutual investment.

He emphasized that the forthcoming visit will enable both Omani and Turkish entities to delve into potential avenues for mutually beneficial collaboration within a structured framework that fosters economic and investment growth. This framework is designed to support the mutual ambitions of both nations for sustainable economic development, which includes the creation of employment opportunities and the promotion of innovation.

He stated that the Sultanate of Oman is eager to attract increased investments from Turkey to its designated special economic zones and free zones. These zones are distinguished by their competitive incentives and advantages, which are instrumental in diversifying the Omani economy and elevating the volume of trade between the two countries.

Furthermore, he noted that this visit underscores the mutual interest of both parties in empowering the private sector to play a critical role in facilitating economic cooperation. This role is to be achieved by providing an environment conducive to investment and partnership.

 

Related Stories

See All