Muscat: The economic, trade and investment relations between the Sultanate of Oman and the People's Republic of China are underpinned by a framework of agreements and memoranda of understanding that has established a basis for joint cooperation and expanded partnership opportunities across a wide range of sectors.
China has emerged as a key partner in advancing trade, investment, industry and energy, opening broader horizons for diversifying the national economy, attracting quality investment, boosting trade exchange and elevating bilateral ties to a more expansive and sustainable economic partnership.
Recent years have seen growing momentum in economic relations between the two countries, reflected in the staging of economic and investment forums, the exchange of trade delegations and joint meetings aimed at widening cooperation and strengthening the private sector's role in building sustainable trade and investment partnerships.
Oman-China Economic and Trade Exchange Forum
Notable events include Oman-China Economic and Trade Exchange Forum, hosted in Muscat in August 2024; Khazaen Economic City investment forum held in Beijing in September of that year; Oman's participation in Gulf-China Industrial and Investment Cooperation Forum in Xiamen; and trade visits by Omani delegations to China, which provided exposure to industrial practice and modern technologies and explored opportunities for joint ventures in industry, logistics, technology and innovation.
Oman-China Joint Committee
Oman-China Joint Committee traces its institutional origins to the Trade Agreement signed in Beijing on 14 October 1980 and ratified by Royal Decree No. 4/81. The Committee is mandated to promote economic, trade, investment and industrial cooperation between the two countries.Its tenth session convened in Beijing on 29 December 2025, chaired by the Undersecretary for Commerce and Industry at the Ministry of Commerce, Industry and Investment Promotion on the Omani side and by the Assistant Minister at the Chinese Ministry of Commerce on the Chinese side.
Chinese investment forum in Oman
The session focused on increasing the volume of Chinese investment in Oman, particularly in industry, in support of economic diversification; forming a joint Omani-Chinese working team to prepare an executive roadmap for the Committee's work; examining a proposal to establish an integrated industrial complex for renewable energy supply chains as a flagship project; developing cooperation in digital and cross-border e-commerce through smart warehouses and distribution centres in the special economic and free zones of Duqm, Sohar and Salalah; supporting the conclusion of negotiations on a free trade agreement between China and the Gulf Cooperation Council states; and signing memoranda of understanding to link industrial production chains and deepen investment interlinkage.
Efforts continued in 2026 through discussions on economic and investment cooperation between Oman and China's Hainan Province, reflecting a shared interest in widening cooperation, leveraging the two countries' investment and logistical assets and opening new prospects for Omani and Chinese companies to undertake joint projects that advance economic diversification, knowledge and technology transfer and the competitiveness of products in regional and global markets.
Record trade balance
Statistics from the National Centre for Statistics and Information show that the trade balance between Oman and China recorded a surplus of RO 5.7 billion in favour of Oman in 2025, with total trade between the two countries reaching RO 9.6 billion.
Omani exports to China totalled approximately RO 7.7 billion in 2025, while Omani imports from China stood at about RO 1.9 billion.
Preliminary statistics indicate that total trade during the first seven months of 2026 reached RO 5.4 billion, with Omani exports to China of about RO 3.9 billion and imports from China of approximately RO 1.4 billion.
Imports from China
Imports from China accounted for 13.73 per cent of Oman's total commodity imports over the same period. China remains Oman's largest trading partner, while Oman is China's fourth-largest trading partner among Arab countries.
Oman's principal exports to China are crude oil, liquefied natural gas and certain petroleum, petrochemical and chemical products.
Imports from China include machinery, equipment and electrical appliances; batteries; iron and steel products; construction materials; solar cells; technology products; textiles; and vehicles and components.
Statistics show that direct Chinese investment in Oman continues to grow, rising from RO 798.1 million in 2024 to RO 866.2 million in 2025 and reaching RO 903.8 million by the end of the second quarter of 2026. The number of enterprises with Chinese investment stood at approximately eight in 2025.
Air connectivity
Air connectivity has been strengthened by the launch of direct flights between Beijing Daxing International Airport and Muscat International Airport on 30 November 2025, operating twice weekly in support of tourism, business and people-to-people exchange. China granted Omani citizens visa-free entry for one year from June 2025, permitting stays of up to 30 days for tourism, business and family visits. A draft memorandum of understanding on mutual visa exemption for ordinary passports is under preparation. Promotional workshops were held in Beijing, Shanghai and Guangzhou to raise Oman's profile in the Chinese market.
In support of closer economic and trade ties, Oman Chamber of Commerce and Industry has signed a number of cooperation agreements and memoranda of understanding with Chinese institutions active in trade, investment and private sector development.
Chinese investment in Oman
Faisal Abdullah al Rowas, chairman of the Board of Directors of Oman Chamber of Commerce and Industry (OCCI) said the state visit of His Majesty Sultan Haitham bin Tarik to China opens important horizons for elevating Omani Chinese relations to a broader economic partnership grounded in the two friendly countries' deep-rooted historical ties and mutual interests, noting that China is a major trading partner of Oman.He said that Chinese investment is growing across a number of sectors of the Omani market. China ranks fourth among the five largest investing countries in Oman by foreign direct investment stock and second among the countries from which Oman imports.He noted that continued negotiations on a free trade agreement between China and the Gulf Cooperation Council states represent an important step towards strengthening trade and investment cooperation and facilitating the flow of trade between the two sides.Al Rowas explained that cooperation opportunities extend to key sectors, including manufacturing and advanced industries, renewable energy and green technologies, information technology and artificial intelligence, transport and logistics, food security and agricultural technologies, and smart cities and infrastructure. These fields, he affirmed, offer scope to expand investment, exchange expertise and leverage the capabilities of both countries, supporting the diversification of economic cooperation and delivering added value to the private sector.He noted that the Chamber is working to strengthen links between Omani and Chinese companies and to widen access to information on markets, projects and investment opportunities in both countries. He stressed the importance of sustained trade meetings, delegation exchanges and closer communication between private sector institutions in building long-term practical partnerships and strengthening companies' presence in both markets.
Oman-China Friendship Association
Meanwhile, Oman-China Friendship Association was inaugurated on October 31, 2010, to serve as a platform for communication between institutions and individuals in the two countries and to promote cultural, economic, scientific and sporting cooperation and people-to-people exchange. Its work complements that of China-Oman Friendship Society, whose establishment was announced in China in 2007.
The Association strengthens informal partnership through events such as Oman-China Friendship and Cooperation Forums - including the third edition, held in Salalah in July 2025 under the theme "Chinese Modernization and Oman Vision 2040" - as well as meetings with Omani students in China and other cultural seminars and events.
Lujaina Mohsen Haider Darwish, Honorary President of Oman-China Friendship Association, said that she views the state visit of His Majesty Sultan Haitham bin Tarik to China with great interest, given what it signals about the strength of Omani Chinese relations and the opportunity it presents to elevate them to broader levels of cooperation and partnership.
She expressed the hope that it will inaugurate a new phase serving common interests and opening promising horizons for both countries.She explained that the coming phase offers wide scope for building quality, long-term partnerships founded on mutual investment, knowledge and technology transfer, the exchange of expertise and the leveraging of both countries' assets to advance sustainable development. She noted multiple opportunities and promising potential in logistics, industry, renewable energy, technology, tourism, food security and the green economy - fields that can form important pillars of the future partnership.
She said that she looks forward to the visit giving more momentum to Chinese investment in Oman and helping to attract quality, sustainable projects that draw on the Sultanate of Oman’s strategic location and investment assets, supporting economic diversification and delivering added value to both sides.
She pointed out that the Association seeks to act as an effective bridge between the two peoples by promoting cultural and social exchange, bringing the two business communities closer together and encouraging joint initiatives and opportunities, in support of official efforts and in contribution to cementing friendship and cooperation between Oman and China.Bilateral meetings between Omani and Chinese businesspeople provide scope to explore cooperation in priority sectors and build strategic partnerships between the two private sectors, helping to expand trade, attract quality investment and open new horizons for economic cooperation in line with the objectives of Oman Vision 2040 and the common interests of the two friendly countries.
Faisal Alawi al Dheeb, an Omani businessman, investor and real estate developer, said the state visit of His Majesty Sultan Haitham bin Tarik to China represents an important milestone in strengthening economic and investment relations between the two countries and opening new horizons for Omani businesspeople to build quality trade and investment partnerships with their Chinese counterparts, supporting economic diversification and the objectives of Oman Vision 2040.
He affirmed that such visits will give a strong impetus to cooperation between businesspeople in the two countries, particularly given Oman's competitive investment assets, foremost among them its strategic geographical location, its ports and economic and free zones, and its advanced infrastructure and incentivizing investment environment.
He noted that China is among the world's foremost economic and industrial powers, with extensive expertise in manufacturing, technology, infrastructure, real estate development and renewable energy - offering substantial opportunities for Omani companies to benefit from these capabilities and establish partnerships founded on mutual interest and economic integration.He added that the real opportunity for Omani businesspeople lies not only in increasing trade with China but in building direct industrial and investment partnerships, attracting Chinese companies to establish factories and joint production projects in Oman, and thereby localizing modern industries, transferring technology and knowledge and creating quality jobs for national talent.He stressed the importance of Omani businesspeople being ready to seize the opportunities presented by high-level visits and meetings by preparing well-studied, implementable projects and presenting them to Chinese companies within clear models for partnership, financing and operation, so that investment interest is translated into concrete agreements and projects.
He said that, as a businessperson, he views the future of Omani-Chinese economic relations with considerable optimism, as His Majesty's Royal visits are an important cornerstone for building confidence and opening new horizons for economic and investment cooperation. Omani businesspeople, he added, bear a responsibility to build on these efforts, seize the opportunities available to establish genuine partnerships with their Chinese counterparts and turn them into productive, sustainable projects that diversify the national economy and enhance Oman's competitiveness and investment standing.
Sean, a Chinese investor who established his company in Sohar Free Zone in 2022, affirmed that Oman offers an attractive and secure business environment for foreign investors, supported by government facilities, flexible procedures and incentive policies that help accelerate project establishment and sustain commercial activity.
He said that his company's registration was completed within a short period thanks to the support and cooperation of the Public Authority for Special Economic Zones and Free Zones and the Ministry of Commerce, Industry and Investment Promotion, which enabled him to complete establishment requirements and settle in Sohar Free Zone.
He added that, after the company was established, the Free Zone management referred him to Invest Oman office to learn about incentives and preferential policies available to foreign investors, noting that the office plays an important role in supporting investors and helping companies across sectors benefit from the advantages and facilities offered by Oman's investment environment.He explained that the cooperation of Omani government entities with investors reflects the Sultanate of Oman’s keenness to create an incentivizing and flexible business environment, affirming that establishing projects in free zones is a suitable investment option given the advantages on offer, including tax incentives and policies supportive of economic activity.He noted that these facilities deliver mutual benefits, enabling companies to develop and expand their activities while contributing to local economic development and job creation, thereby strengthening the role of foreign investment in supporting the national economy.
Sean affirmed that Oman is a promising investment destination in the region, given its secure and welcoming business environment, distinguished geographical location and extensive coastline that offers important logistical advantages for companies and projects in trade, transport and services.
He pointed to government policies supportive of foreign investment, together with Oman's high levels of public safety, as factors that reinforce investor confidence and encourage companies to establish projects and expand their presence in the Omani market, expressing his conviction that investing in the Sultanate of Oman is a strategic choice for capitalizing on the economic and logistical opportunities it offers.
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