The Sultanate of Oman has a long history of being a seafaring nation and a trade hub, connecting Asia, Africa and Europe. Eng Said al Maawali, Oman’s Minister of Transport, Communications and Information Technology, spoke to Bloomberg Media’s Managing Director for Europe, Duncan Chater, about how the country is using its strategic location and geopolitical neutrality to boost its economic growth and diversification.
Speaking at a conference hosted by Bloomberg on the theme ‘Foreign Direct Investment: Scaling New Heights’, Al Maawali said that the country has invested $26 billion in developing its logistics infrastructure, such as roads, ports and airports, to enhance its capabilities and reach more than 200 destinations worldwide.
“The country’s short-term goal is to maximise the utilisation of these assets and increase the contribution of logistics to the GDP from 5% to more than 10% by 2040,” he noted. He added that the country is pursuing five key sectors for diversification, namely logistics, manufacturing, tourism, fisheries and mining.
These sectors have high potential for value addition, job creation and export promotion. He said that Oman is also working on developing its digital economy and innovation ecosystem, as well as improving its human capital and skills.
Al Maawali also highlighted Oman’s role as a peacemaker and a mediator in the region, which has been plagued by conflicts and tensions. He said that Oman’s long-standing policy of neutrality and good relations with all parties has enabled it to attract investments, facilitate trade and bridge gaps between countries.
He said,” Oman managed to navigate this for a long time and will manage to stay the same for the next hundreds of years. That comes with responsibility ... and advantages when you are in good terms with your neighbours, with the rest of the world. That helps you bring in investments.”
The Minister also shared his vision for the energy transition and the green economy in Oman. He said that the country has announced a target of achieving carbon neutrality by 2050 and is working on various projects to reduce its emissions and promote renewable energy sources. “Oman has a competitive advantage in producing green hydrogen, due to its abundant solar and wind resources.” He said that Oman is also implementing measures to encourage the use of electric vehicles, such as tax exemptions, import waivers and charging stations.
He also said that Oman is exploring new opportunities in the marine sector, such as providing services to the ships passing through the Strait of Hormuz, which is a vital waterway for global trade. “The Strait of Hormuz, which is being supervised by Oman, there are 16,000 ships in and out every year. So that's 32,000 movements going in a very small stretch. We have not tapped into this, but we are now setting the right policies in line with international law, to provide the best services for the users of this Strait.”
He also said that Oman is improving its road sector, by using AI and other technologies to optimise the efficiency and sustainability of trucking. He added that Oman is aiming to reduce the carbon emissions from road transport by introducing more regulations and incentives for green vehicles. He said that Oman is also enhancing the environment for truckers and the trucking community by providing better facilities and services.
Al Maawali expressed his optimism about Oman’s future and said that the country is well-positioned to take advantage of the opportunities and challenges in the post-pandemic world. He said that Oman is open for business and welcomes investors from all over the world to join its journey of transformation and growth.
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