MUSCAT: The Sultanate of Oman and the Islamic Republic of Iran have maintained distinctive historic relations that were underpinned by geographical proximity and common interests. This opens broad prospects for the growth of economic, commercial and investment cooperation between the two countries.
Official figures indicate that the volume of trade exchange between Oman and Iran reached $1.336 billion as of last year. The previous period witnessed the opening of direct trade lines between the ports of the two countries, bringing the trade movement between them to the rate of 5 to 7 daily trips.
Businessmen in the two countries are eyeing more cooperation to raise the volume of trade exchange to greater levels in light of the political relations and common interests that unite them with the aim of establishing a joint investment firm, exchanging experiences and enhancing investments in various sectors such as nanotechnology, tourism, industry, education and health, among others.
Businessmen affirmed to the Oman daily that the Sultanate of Oman boasts an attractive investment environment supported by appropriate legislation, incentives and facilities that are available for foreign investment. This includes full ownership of projects by foreign investors. This is in addition to the absence of restrictions on currency exchange, and the absence of income tax for individuals. There are industrial and free zones, and there are dozens of readily available investment opportunities offered by the government to investors.
Eng Ridha bin Jumah al Saleh, Chairman of the Board of Directors of the Oman Chamber of Commerce and Industry (OCCI), said that the Iranian president’s visit to the Sultanate of Oman would enhance economic and investment cooperation and provide opportunities for Omani and Iranian businessmen and investors to hold bilateral meetings and discuss the forging of partnerships in promising sectors which, in turn, increases trade and investment exchange in the upcoming period.
The business environment in Oman constitutes an attractive factor for investors and businessmen as it provides many advantages and incentives such as national treatment for investments, legal transparency in the business environment and full ownership. In addition, Oman has no restrictions on currency exchange, and income tax for individuals, Al Saleh said.
Mohammed bin Abdulhussain bin Baqer al Lawati, head of Oman-Iran Businessmen Council at OCCI, aspires for greater Omani-Iranian trade relations in the coming years by increasing Iranian investments in the Sultanate of Oman and raising the volume of trade exchange between the two countries.
Al Lawati added that despite the strong political relations between the two countries, Iranian investments in Oman are still limited. He expressed his hope that there would be an increase in the volume of investment, especially in tourism, industry, oil and gas and nanotechnology sectors. He noted that Iran possesses great experiences in these sectors and that Oman can benefit from them.
Omani businessmen hope that the first visit of the new Iranian president will result in the establishment of a joint investment company between the two countries to organise import and export and financial transactions. This will raise the volume of trade exchange between the two countries to more than $5 billion, Al Lawati said.
Al Lawati noted that the most important challenges facing Iranian investors doing business in Oman are the sanctions imposed on Iran which occurred during the period of the flow of investments to Oman, adding that the commercial banks of the two countries cannot conduct direct transactions due to the sanctions.
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