"Oman-China partnership must move beyond oil'

MUSCAT: China’s growing influence in global trade and industry presents Oman with an opportunity to expand a relationship that has long centred on oil exports, according to Omani academic Dr Mohammed bin Awadh al Mashikhi, an academic and researcher specialising in public opinion and mass communication. who believes closer engagement with Beijing could carry lasting economic and strategic benefits for the Sultanate.

Speaking exclusively to the Observer, Al Mashikhi said China’s economic progress, technological capabilities and expanding international influence had made it an increasingly important partner for countries looking to strengthen their economic relationships.

He described Oman’s engagement with China as a significant strategic move, particularly at a time when the balance of economic influence between major world powers is changing.

Al Mashikhi, who has visited China several times, said the country’s development had left a strong impression on him. He pointed to its ability to combine central economic planning with market activity, which he considers an important factor in its industrial expansion.

He also believes China could eventually surpass the United States as the world’s leading economy. That remains an uncertain prospect, but China’s position in global manufacturing and trade has already made it an important market and investment partner for Oman.

The two countries have maintained diplomatic relations since 1978 and established a strategic partnership in 2018. China is now Oman’s largest trading partner and its biggest market for exports.

The commercial relationship is substantial. Trade between the two countries reached RO 9.6 billion in 2025, according to the National Centre for Statistics and Information. Omani exports accounted for approximately RO 7.7 billion, compared with imports of RO 1.9 billion.

The resulting trade surplus of around RO 5.7 billion reflects the importance of Chinese demand for Omani energy. Crude oil, liquefied natural gas and related products remain among the Sultanate’s principal exports to China.

Preliminary figures for the first seven months of 2026 put bilateral trade at RO 5.4 billion, including RO 3.9 billion in Omani exports.

Investment is becoming another important part of the relationship. Chinese direct investment in Oman reached RO 903.8 million by the end of June 2026, compared with RO 866.2 million at the end of 2025 and RO 798.1 million a year earlier.

Although the figures show a growing Chinese investment presence, the longer-term economic benefits will depend on the industries receiving that capital and the business activity they generate.

One area attracting attention is manufacturing. In May, Khazaen Economic City signed an agreement with China’s Spruce Group to establish a vehicle assembly and production centre, with plans involving electric and hybrid vehicles for regional markets.

The agreement marks a proposed expansion into automotive manufacturing, although commercial production and its eventual contribution to employment and exports remain to be established.

The two countries have also examined opportunities in renewable energy supply chains, logistics and digital trade.

At the Oman-China Joint Committee meeting in Beijing in December 2025, officials agreed to establish a joint working group covering trade, investment and digital commerce. Discussions included potential industrial projects and distribution facilities in Oman’s economic and free zones.

Further talks with a delegation from China’s Hainan Province in September 2026 explored investment partnerships involving industrial cities and economic zones.

These initiatives show where cooperation may expand, but their economic impact will depend on projects securing financing, beginning operations and attracting customers.

Al Mashikhi views the relationship within the broader changes taking place in the world economy. In his assessment, China’s industrial strength and technological progress are giving countries compelling reasons to deepen their engagement with Beijing.

For Oman, which is seeking to diversify an economy still heavily reliant on hydrocarbons, the opportunity is to build on an established trading relationship while attracting investment into industries capable of producing goods for domestic and overseas markets.

That would require more than larger trade volumes. The contribution of new projects will also be measured by their demand for local suppliers, the skills they develop and the employment they create.

Oman already has strong commercial links with China. Whether those ties develop into a broader industrial partnership will become clearer as proposed investments move from agreements and discussions into operating businesses.