Oman and Qatar – towards greater economic cooperation
A new path for bilateral relations between the Sultanate of Oman and the State of Qatar will be laid out this week when His Majesty Sultan Haitham bin Tarik receives Sheikh Tamim bin Hamad Al Thani, the Emir of Qatar on a state visit to Oman.
The visit reflects the commitment of the two countries to take their distinguished relations to new levels, marking a new milestone in relations and advancing bilateral economic and trade links.
The common vision that unites the two countries is reflected in ongoing political coordination, whether at the regional level between the GCC countries and the Arab League, or at the global level through international organisations. It is also reflected in their backing for all efforts to achieve stability and to resolve conflicts in the region and the world through peaceful dialogue and understanding.
This has been demonstrated through the convergence of the two countries' stances and their coordination between on regional and international issues, most notably on the Palestinian cause.
The Oman Qatar Joint Committee, established in 1995, contributes to enhancing cooperation between the two countries. The Committee, which has held 23 meeting so far, explores opportunities and sets up investment projects that serve the common interests of Oman and Qatar.
Data issued by the National Centre for Statistics and Information shows that trade between Oman and Qatar reached OMR 1,113 million by the end of 2023. Omani exports to Qatar were OMR 285m. Omani imports from Qatar were OMR 829m.
By the end of November 2024 trade between the two countries reached OMR 951m, with OMR 206m in Omani exports to Qatar, (0.9 % of total Omani exports), and OMR 755m in Omani imports from Qatar (5% of Oman's total imports).
Qatari investments in Oman grew by 12% at the end of 2023, reaching OMR 730m, compared to OMR 652m in 2022. Omani exports to Qatar up to October 2024 were about OMR 140m, while Omani imports from Qatar were about OMR 709m.
It is clear that the trade balance favours of the State of Qatar. The value of Qatari investments to the end of the third quarter of 2024 was about OMR 488m, with 15 Qatari companies investing in Oman. In contrast, direct Omani investments in Qatar increased from OMR 4.1m in 2022 to OMR 4.3m in 2023.
Sayyid Ammar bin Abdullah Al Busaidi, Ambassador of the Sultanate of Oman to the State of Qatar said that the state visit of Sheikh Tamim to Oman is an important step that reflects the distinguished relations between the two countries and will contribute to enhancing cooperation in the political, economic and cultural fields.
He said that the visit will open new possibilities for boosting the strategic partnership between Oman and Qatar, based on their long history of fruitful cooperation.
He added that relations between Oman and Qatar reflect the shared vision of His Majesty and Sheikh Tamim to expand the scope of cooperation between the two countries in order to serve the interests and well-being of their peoples.
He explained that a joint investment fund, the Al Hosn Investment Company, was established between Oman and Qatar in 2007. Headquartered in Muscat, it is a partnership between the Qatar Holding Company, affiliated to the Qatar Investment Authority, and the Oman Investment Authority, each holding a 50 percent share. The Company invests in various sectors, including banking, industry, communications and technology, food, healthcare, education, tourism, and oil and gas.
He said the Oman Qatar Business Council was established under the umbrella of the Oman Chamber of Commerce and Industry (OCCI) and the Qatar Chamber of Commerce and Industry (QCCI) to boost trade relations and open areas of joint investment between the two countries.
Ambassador Albusaidi said that with regard to renewable energy, Oman and the Qatar have a unified vision to encourage investment and set up clean energy projects. Oman is attracting major companies to set up projects to produce green hydrogen and generate clean electricity through solar and wind energy, opening the way for the two countries to set up joint projects.
Th Ambassador said that Oman and Qatar are working continuously to enhance cooperation in facing global and regional challenges, whether political, economic or environmental. These efforts include working together to maintain regional security, to sustain natural resources, and to address the challenges of climate change. They are also cooperating to meet health, educational and social challenges.
Sheikh Mubarak bin Fahad Al Thani, Ambassador of the State of Qatar to the Sultanate of Oman, noted that relations between the two countries are witnessing remarkable growth and development in all fields, especially in joint investments. He added that there are many Qatari investments in the Sultanate of Oman, including the Karwa Motors project and the Qatari Diar Ras Al Hadd project.
The Ambassador said that the state visit of Sheikh Tamim to Oman will open an important chapter in the history of relations between the two countries.
He added that the visit will provide an opportunity to exchange views on global challenges and current issues. It will also contribute to furthering mutual understanding and strategic partnerships between Oman and Qatar, taking these partnerships to new heights by boosting bilateral cooperation.
The Ambassador said that during the visit, various agreements and memoranda of understanding will be signed between the two countries. These will provide great opportunities for cooperation in various fields between companies and business executives, as well as the establishment of joint investments with economic benefits for the people of both countries.
Faisal Abdullah Al Rowas, Chairman of Oman Chamber of Commerce and Industry (OCCI) said that the distinguished relations between the two countries have resulted in fruitful cooperation in various economic and commercial fields. This, he added, embodies the vision of the two leaderships to strengthen cooperation in order to realise their shared aspirations for growth and prosperity.
He said that Qatar has become a strategic partner for Oman in many economic fields, boosting trade and opening up new opportunities for investment in priority sectors. Trade and investment relations between the two countries focus on energy, industry, tourism, logistics services, he added.
The OCCI Chairman said that relations between Oman and Qatar represent a model for fraternal and economic cooperation, adding that they are key to joint action to achieve GCC economic integration.
Sheikh Khalifa bin Jassim Al Thani, Chairman of Qatar Chamber of Commerce and Industry (QCCI), said that the state visit of Sheikh Tamim reflects the commitment of the leaderships of the two countries to strengthening fraternal bonds. It also constitutes a move towards opening up broader cooperation in all fields, at a time when the region is witnessing important developments.
The QCCI Chairman said that for the private sector, this visit represents a strategic step towards expanding cooperation, deepening strategic ties between the two countries, and enhancing their ability to face global challenges. The visit will enhance economic cooperation, facilitate mutual investments and develop trade, he added.
He noted that growth rate in trade between Oman and Qatar reached 20 percent in the past two years.
He said that Qatar Chamber of Commerce and Industry supports closer cooperation between the private sectors of the two countries. QCCI, he added, is ready to support Omani business owners wishing to enter the Qatari market by introducing them to the opportunities available, and by arranging meetings that bring them together with Qatari business owners to discuss establishing partnerships and joint projects, both in Oman and Qatar.