The volume of trade exchange between the Sultanate and the Kingdom increased by the end of 2020 to $2.5 billion, compared to about $1.4 billion in 2010, while the number of Saudi companies in the Sultanate increased to 1,235 in 2021, compared to 467 companies in 2010.
In a recent interview to a Saudi publication, Asharq al Awasat, Dr Said bin Mohammed al Saqri, Minister of Economy, said that the economic cooperation between Saudi Arabia and the Sultanate of Oman, has increased since the establishment of the Coordination Council in July.
He said, “The ‘Oman Vision 2040’ and ‘Kingdom’s Vision 2030’ seek to diversify the economy, reduce dependence on oil, create conditions for the private sector and investors to have a greater role in providing job opportunities, as well as seeking to attract foreign direct investment among others.”
Saqri called for improving the maritime link between Saudi Arabia and the Sultanate of Oman by transferring oil and gas exports in the region to the Arabian Sea through the Sultanate without passing through the Strait of Hormuz.
“Two countries are seeking to accelerate and increase the volume of trade and investment exchange between them through joint strategic projects, increasing investment opportunities, and offering more joint projects and mutual investments in various sectors,” the report quoting the minister said.
As it will reduce the travel time between two countries by 800km and the need to cross the neighbouring countries, the direct road link between the Sultanate and the Kingdom will contribute to facilitating trade exchange and transporting goods in a shorter time and at a lower cost, which will open the way for Saudi goods to enter the Sultanate and also access the Omani ports for exports to the rest of the world.
It will also facilitate the passage of pilgrims and tourists between the two countries, besides linking the city of Duqm in the Sultanate of Oman with NEOM in Saudi Arabia. The new land route will help Omani goods to access the Saudi ports located in the Red Sea for exports to the rest of the world.
“The Sultanate launched the construction of the Industrial City project in the Wilayat of Ibri in Al Dhahirah Governorate in 2020, with a total area of 10 million square metres. It is an important project and is located on the road leading to the crossing between the Sultanate and the Kingdom.”
The Sultanate and the Kingdom have also signed two memoranda of understanding (MoUs) in the fields of land and air transportation. The MoUs will increase mutual visits between engineers, experts, and professional technicians in the fields of land roads and air navigation.
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