The Sultanate of Oman and Saudi Arabia towards new horizons of trade exchange and economic cooperation

July 8, 2021

(See Translation in Arabic Section)

Sydney - M E Times Int'l: The Omani-Saudi relations are moving forward towards new horizons of cooperation between the two countries in various fields through the integration between Oman Vision 2040 and Saudi Vision 2030, which meet in many programs. Trade exchange and economic cooperation top the current stage of relations between the two countries. According to the Oman Chamber of Commerce and Industry, the trade exchange between the two countries is in the range of one billion Omani riyals only, as the trade exchange between the two countries represents 7.32% of the total volume of non-oil trade exchange between the Kingdom of Saudi Arabia and the Gulf Cooperation Council countries during 2020, and the total value of investments Saudi Arabia registered in the Sultanate is about 105 million Omani riyals.

The volume of trade exchange between the Sultanate and the Kingdom of Saudi Arabia in 2019 amounted to about $2.545 billion; the value of exports in that year amounted to $1.603 billion, a decrease of 3.5%, while the value of imports was $942 million, a decrease of 0.3%.

Ships, boats and floating facilities topped the list of the top four exported commodities for this year, with a value of $470.4 million, then metal ores with a value of $401.5 million, then iron and steel with a value of $157.7 million, then animal and vegetable fats and oils with a value of $69.3 million, while dairy products and bird eggs topped the list. Imported goods this year worth $183.9 million. This was followed by plastics and articles thereof, with a value of $109.2 million, then soaps and washing preparations, with a value of $81.7 million, and iron and steel products, with a value of $72 million.

 The Gulf region and its economic alliances

Saleh bin Ahmed Al-Badi wrote an article on Omani-Saudi relations, from which the following is excerpted:

The expected visit of His Majesty Sultan Haitham bin Tarik to the Kingdom of Saudi Arabia carries diplomatic weight and a special distinction in the bilateral relations. And an active interaction of the leaders of the two countries and their governments, which is based on the positive, love and peace interaction of the peoples.

We are going through a renewed era that enhances the economy and partnerships based on a long history of construction, not the first without a doubt, but the most important of what was made with the best intentions, which is the Gulf Cooperation Council, which was established by virtue of the two leaderships, integrating with the six countries of the Cooperation Council.

It is an historic moment in the relations of the two countries is the first country to be honored by Sultan Haitham with the first visit since he assumed the reins of power in the country and led the renewed renaissance of Oman. It takes its impetus due to the multiplicity of strategic files in the region that will be present in the discussion. Expectations of renewed economic files and a joint strategy between the two countries will be formed through the signing of strategic agreements and understandings between two great leaders in the region, renewing the Gulf's leaps towards a brighter tomorrow.

Because my articles deal with the economic aspect, a closer look at the complementarities between the two countries is very important. And because the economy is a huge file, focusing on six partnerships and common interests for the next 20 years will make integration more effective and successful. People change their major aspirations every 30-40 years.

The stage of major expansion in economic, investment and strategic integration, and raising the volume of exchange and investments between the two countries is now time, and it is the most important file regarding inter-economic relations. If we take the European Union as an example, its economic alliance turned into a very advanced stage when it was established. Because its trade exchange between countries has reached the limits of 60-80%, and this is an important stage with which natural strategic economic alliances are achieved. Therefore, from an economic perspective, this goal should be one of the performance criteria that it is agreed to achieve during the next 20 years. It is a basis for broader and greater cooperation that leads to the full realization of a real, inclusive and just economy that achieves the interests of both countries. And if we consider that in the year 2040, we will find that we have formed an economic union with abundant interests and high indicators, and in accordance with a correct approach to integration pushed by wise leaders in the two countries, and healthy and sound economic indicators that have been achieved, in line with the indicators of the European Union, which was a solid building in the interface and impact global economic.

A scene of the construction and development process in Saudi Arabia

The vision of "Oman 2040" has very high goals and doubled numbers within 20 years. Therefore, partnership with major economies is of paramount importance in its investment fairness and will contracts. The Saudi economy is one of these major economies that are relied upon for the growth and prosperity of the region. Undoubtedly, the Sultanate is a favorable harbor for major investments and welcomes major economies with love and warmth, interaction and balance that achieve real interests for many years.

Omani-Saudi relations open wide horizons for the region

Khamis bin Obaid Al-Qutaiti also wrote an article. The excerpt is as follows: The Omani-Saudi relations are of paramount importance in the security and stability strategy in the Arab Gulf region, and communication between the two countries is renewed for the good and stability of the region. It is noteworthy that the close relations that unite the Sultanate of Oman and the Kingdom of Saudi Arabia represent the balancing in the security and stability of the Gulf, and today there is a state of convergence and congruence in the views between Muscat and Riyadh in several political, economic and security files, and these joint files draw the most prominent headlines. The establishment of an economic link and an important vital artery between the two countries represented in the land road linking the Kingdom and the Sultanate, which shortens the distances between the two peoples, enhances commercial communication between the two countries, encourages investment between them, and opens several mutual outlets. The Sultanate represents the ship of peace that sails across the seas to spread goodness, peace and prosperity in the region, and these firm Omani values seeks to spread for the good and stability of the Gulf region and the Arabs in general, after a decade of confused policies that was the result of some wrong handling of various regional issues since the beginning of the so-called Arab Spring.

Today, we believe it is time to witness a breakthrough and positive changes in the reform of these files. At the forefront of which is the Saudi initiative for a cease-fire in Yemen, and the crystallization of positive Arab attitudes toward Syria, which may soon witness Syria's return to the Arab embrace. The Sultanate was not far from all this, and it is undoubtedly a benevolent position for the region in general. Riyadh and Muscat are aware of the importance of their positive results.

The Omani-Saudi popular welcome for the close cooperation between the two countries and political consultations, and the mutual visits between the officials of the two countries, and the translation of that cooperation into joint cooperation and coordination dispelled the state of mutual reproach in the past period, which is undoubtedly the reproach of the brothers as both are looking for the interests of the other, which is the interest of the Gulf And the Arab world in general. We are all in the Gulf region and the Arab world is undoubtedly one tissue. If a member complains of it, the rest of the body responds to it with fever and sleeplessness.