Eastern clues: Oman seeks Russian partners for the country's development
Oman is interested in attracting Russian investors in the sector of sustainable development, tourism, technology and other areas. The government of the sultanate told Izvestia about this. In order to create favorable conditions for foreign capital, a stimulating investment environment has been created in the country. Heads of special economic zones in Oman in a conversation with Izvestia pointed out the areas where the sultanate needs Russian presence. How promising this monarchy is for capital investments today - in our material.
Oman wants to see investors from the Russian Federation
The Russian Federation is becoming one of the desired partners of Oman. Here are interested in attracting Russian capital in such areas as sustainable development, tourism, high technology and industry. This was reported to Izvestia by the Omani government.
To meet the requirements of the global economy in recent years, the sultanate has begun to develop the investment environment. Privileges for foreign companies, free access to international markets through the Persian Gulf ports and developed infrastructure make Oman attractive for investments.
- We meet with Russian investors on a regular basis and there are mutual visits. There is a real appetite for investment in the sustainable development, tourism, technology and other sectors, including industrial. We are happy about this and believe that this is a big market with great opportunities. We hope that trade turnover will increase in the future," Khalfan bin Saeed Al-Shuaili, the Sultanate's Minister of Housing and Urban Planning, told Izvestia on the margins of the Oman and the World forum.
According to him, maritime infrastructure is considered an important area of concentration of Russian-Omani efforts.
Indeed, the Sultanate sees Russia not only as an investor, but also as a partner with high competencies and technologies. According to the heads of Omani special economic zones (SEZs), Russian companies can make a significant contribution to the country's development.
- We are open to cooperation with the Russian side. We really need to see Russian investors in the Duqm region. Especially in the field of technology, industry, innovation. Russia is strongly developed in these areas. There is legislation prepared for this cooperation, there are investment incentives, enough opportunities, all of this is available. Now the process is at the negotiation stage," Ahmed Ali Akaak, Director General of the Special Economic Zone in Duqm (SEZAD) shared with Izvestia.
At the same time, Oman places a special emphasis on the technological sphere of cooperation.
- We participated in the St. Petersburg International Economic Forum (SPIEF) and focused on know-how and AI. These are very important topics for us. The Russian side is cooperating with us," Khalid bin Suleiman Al-Salihi, CEO of Madayen Industrial Zones State Institution, told Izvestia. - We hope for cooperation with the Russian Federation in investment, industry (especially food), pharmaceuticals and in the information sphere. We have more agencies in constant contact with the Russian side. Investments from Russia are welcome here.
Investment climate in the sultanate
Oman, although late, followed the example of Saudi Arabia and announced in 2021 a program of socio-economic transformation "Vision 2040". One of the long-term goals of this strategy is to create a diversified and sustainable economy based on technology, knowledge and innovation. The plan implies improvements in basic and IT infrastructure that will empower all sectors of the economy.
However, the realization of Vision 2040 requires significant investment and financial resources. A regulatory environment and more flexible and updated legislation have been prepared for this purpose.
Special attention is paid to the development of special economic zones, which provide investors with tax preferences and simplified administrative procedures. This reduces risks and speeds up project implementation, especially in areas such as renewable energy, agro-technology and IT.
One such flagship project in Oman is considered to be the Duqm region, a city that covers about eight zones with heavy and fishing industries and an airport. Duqm is connected to both regional and global markets. Extensive supply chain development work is underway there.
Duqm FEZ also provides tax incentives and offshore banking services that will help provide access to emerging markets in East Africa, the economic zone's director general said at the Oman and the World Forum.
- Oil refineries are considered the most important projects in the zone, and there are also fishing and food processing industries. Along with renewable energy projects, the development of these industries attracts the population here and quality downtowns are formed," Ahmed Ali Akaak said.
Another advanced project of the country is the Sohar Free Trade Zone, established in 2010. Tax incentives, low prices for licenses and company registration, favorable leases, extending the residence period for investors to 10 years and a number of other relaxations have led to an increase in foreign capital here.
Sohar is connected by highways to the UAE and Muscat (220 km to the capital of Oman) and has a road link with Saudi Arabia, which provides quick and easy transportation and logistics.
Earlier, Oman's Minister of Trade, Industry and Investment Attraction Qais bin Mohammed Al-Yusuf, responding to a question from Izvestia, noted that Russia has a large number of products suitable for export to Oman.
- Bilateral ties between Russia and the Arab world have created a base for partnership agreements and strong arrangements in the economic field with a number of Arab countries, among them the Sultanate of Oman. "Omanis welcome the exchange of visits, the contacts that are taking place between the sides," Omani political analyst Khamis Al-Kuteiti told Izvestia.
According to him, Oman occupies an important geostrategic location, having access to the Arabian Sea, the Indian Ocean and East Asia. With a wide network of sea lanes, the sultanate can be a gateway to connect to markets in the region.
Against the backdrop of geopolitical changes, the dialog between Russia and Oman has gained new momentum, covering political, economic and cultural fields.
Russian President Vladimir Putin said at a meeting with the Crown Prince and Minister of Youth, Culture and Sports of Oman Ziyazin bin Haisam Al Said in 2023 that he saw good prospects for developing cooperation with the sultanate. At the same time, the head of state noted that he was aware of Oman's interest in logistics projects.
