Oman eyes closer economic ties with China through Belt and Road cooperation

Oman, historically a maritime nation, continues to prioritize trade as a cornerstone of its economy, with a particular focus on strengthening ties with China, said Sayyid Marwan bin Turki al Said, governor of Dhofar in Oman.

He made the remarks in an interview with China Media Group (CMG), stressing Oman's active role in the Belt and Road Initiative.

Synergy of BRI and Oman Vision 2040

As part of efforts to revive the ancient Silk Road, Oman has been actively engaged in collaborative programs with China, positioning logistics and trade as key pillars in its economic diversification strategy.

"The relations Oman has with different nations was built around that Silk Road," he said, "Oman was very supportive, and is already in a program with China, to really revive and work on that route."

This will help, not just Omani products or investments, but the different sectors taking part, the governor pointed out.

These efforts align closely with the Oman Vision 2040, a national strategy aimed at further diversifying the country's economy.

By focusing on these areas, Oman seeks to create a resilient and diversified economy that can thrive in the global market, with strong international partnerships, such as those with China, playing a crucial role in achieving these objectives.

Competitive edge and opportunities

The Dhofar governorate, a significant player in the endeavor of Vision 2040, is focusing on the development of the Salalah Free Zone and Salalah Port, aiming to attract foreign investment and enhance logistics, trade, and other related industries.

"We are working to attract more investment in the petrochemical and food sectors, as well as in gypsum mining, where raw materials are readily available in the region," Ahmed Mohammed Qattan, senior business development manager of Salalah Free Zone, told CMG.

The manager explained that the free zone offers numerous incentives, including a 30-year exemption from taxes, 100 percent foreign ownership, and one-stop services. Most importantly, he highlighted that Oman's advantageous geographic location in the region and its highly stable social environment provide investors with even greater confidence.

The manager also stated that the overall development of the Gulf region is actually a significant advantage for Oman. He expressed confidence that Oman can stand out due to its closer geographic proximity to Africa and more competitive pricing.

Cooperation ahead

China and Oman have embarked on numerous collaborative projects. Bilateral trade between Oman and China increased by eight percent in the first five months of 2024 compared to the same period in 2023, surpassing $15 billion.

At the Port of Salalah, officials said that some of the port's infrastructure were imported from China. Additionally, the port is looking forward to further collaboration with China under the Belt and Road Initiative.

Noting China as its main trade partner, the governor pointed out that Oman aims to leverage its geographical location to serve as a critical hub in the Belt and Road Initiative, further enhancing bilateral trade relations.