Hungary’s Minister of External Economic Relations and Foreign Affairs, Péter Szijjártó, has hailed the formal inauguration of his country’s embassy in the Sultanate, declaring that it bodes well for an upswing in bilateral relations between the two countries.
Speaking exclusively to the Observer, the visiting dignitary said a diplomatic presence underpinned by the opening of an embassy effectively “creates a platform for better cooperation” between Oman and Hungary.
“I really do believe there is no alternative to having a physical presence, especially as our countries are geographically far apart. It was very important for us to have a presence here keeping in mind the potential of our relationship,” the official said.
Szijjártó was in the city earlier this week to attend the embassy opening, as well as for talks with a number of Omani government officials focusing on opportunities spanning trade, energy, investment, and tourism, among other areas.
Cooperation in the energy sector, encompassing hydrocarbons as well as renewables, was particularly promising, according to the Hungarian official. “We have had very strong cooperation in the oilfield industry, as Hungary’s Number 1 energy company, MOL, has a strategic partnership with Oman Oil Company (OOC). OOC is a 7 per cent shareholder in MOL. Both have been working together to support the training of oilfield engineers from Oman. MOL is also involved in oil exploration projects in Oman. So cooperation in the field of Oil & Gas is very significant.”
These long-standing ties in the hydrocarbon sector provide a “good basis” for a further diversification of the bilateral relationship, said Szijjártó. “We have Hungarian companies that are very much interested in opportunities in solar energy, cyber-security, water management and Smart City operations — areas we understand (Oman) has big needs in order to diversify the Omani economy. These are areas in which we Hungarians have amassed a great deal of knowledge, knowhow and technology, which can be offered to countries like Oman.”
Also prospective are opportunities to build on a legacy of cooperation in the tourism sector, said Hungary’s Ministry of External Economic Relations and Foreign Affairs. “I’m delighted to inform you that the most prestigious hotel in Budapest — the Four Seasons — is owned by the SGRF (State General Reserve Fund — the sovereign wealth fund of the Sultanate of Oman). This presents an opportunity for Omanis to stay in an Omani-owned hotel when they visit Budapest.”
He further added: “In fact, Hungarians would definitely want to travel to Oman given that Hungarians adore natural beauty. Oman is uniquely blessed with mountainous, desert and seaside settings, which Hungarians tend to appreciate.”
Fruitful visit
On a day that he characterised as “busy”, Szijjártó met with a number of high-level officials of the Omani government, notably Yusuf bin Abdullah bin Alawi, Minister Responsible for Foreign Affairs, who joined his Hungarian counterpart at the inauguration of the Hungarian mission in the Sultanate.
Szijjártó also conferred with Dr Ali bin Masoud al Sunaidy, Minister of Commerce and Industry. “We finalised the text of the Agreement on Economic Cooperation, as well as the Agreement on Mutual Protection of Investments, which provides legal certainty for investors on both sides.”
Separately, the visiting dignitary met with the Secretary General of Oman’s Ministry of Finance, Nasser bin Khamis al Jashmi, and also discussed opportunities for further inward investments into Hungary during a meeting with high-level officials of the SGRF.
Talks with Dr Rawya bint Saud al Busaidiyah, Minister of Higher Education, were equally productive. “We agreed on a cooperation platform based on which we provide 50 state-financed scholarships for Omani students in Hungarian universities on an annual basis. Most of the scholarships are likely to be in the field of Oil & Gas,“ Szijjártó stated.
In the interview, the Hungarian minister also underlined his ministry’s commitment to trade and economic cooperation as an instrument of foreign policy — a philosophy enshrined in the unique title of his ministry. The aptly-called ‘Ministry of External Economic Relations and Foreign Affairs’ reflects this emphasis on trade and economic ties as an effective channel for pursuing better relations with countries around the world.
“Since I have been in office, I have completely changed the focus of Hungarian diplomacy from politics to economy,” said Szijjártó. “I really do believe in the fact that foreign policy is an instrument, and the goal must be the economic wellbeing of the country and its people – manifest through the creation of prestigious, well-being jobs, for example. Since we have a small economy – and a very open one — a lot depends on whether we are able to build strategic cooperation with important countries — with important economies like Oman. That’s why we have been keen to open an embassy here, because I consider the Omani economy as a diversifying one, with a consideration given to energy issues, especially gas and oil.”
European powerhouse
Indeed, the Hungarian economy has evolved into an emerging powerhouse of Europe, according to the Minister. “Figures show that we have broken inward investment and export records year on year over the past five years. Currently, we are ranked 92 globally in terms of population size, but 34 globally in exports. Our most important export products are related to the automotive industry — accounting for 27 per cent of all exports.
Additionally, 29 per cent of all industrial output comes from the automotive sector. We are the flagship of the automotive industry in Europe employing around 170,000 people. Besides, we have five OEMs present in manufacturing, and 16 of the world’s top 20 Tier 1 suppliers as well.” With electric mobility gaining traction in Europe, some of the biggest electric auto companies are moving into Hungary, said Szijjártó. “So it’s not only the traditional combustion era, but the modern electric era as well (that is taking root in Hungary). Some of the biggest facilities in the world and the biggest capacities of the world are being established in Hungary,” he noted.
The food and agriculture industry in Hungary is thriving as well, Szijjártó pointed out. “We are the only country in Europe that has written into its own constitution that agriculture and food industry must be free of GMO. So whatever Hungarian food product you buy, you can be sure it is not only healthy but delicious as well.”
Hungarian exports have soared across a number of key sectors, the official explained. The country has been ranked 18 globally in automotive exports, 18 in pharmaceutical exports, 15 in cereal exports, and 6 in seed exports.
Brexit ramifications
Offering his assessment of the ramifications of Brexit for the European Union in general and Hungary in particular, Szijjártó warned that Britain’s imminent departure from the EU would potentially pose “economic, security and political challenges”.
With the UK accounting for 14 per cent of Europe’s economic output, its exit from the bloc would undoubtedly have adverse impacts, he noted. Similarly, the UK’s traditional role in supporting security missions in conflict zones in Africa and parts of the Middle East would create “security” challenges once Brexit takes effect — a gap that will have to filled by other member states. From the political standpoint, Brexit will also skew the debate on the ongoing debate on state sovereignty versus subordination to Brussels.
“There is this heavy debate going on about how the EU should move forward: A strong European Union made up of strong member states, or an empire based in Brussels — something we reject. In this debate, the UK has been calling for a strong EU based on strong member states. Now that the British are leaving, this debate becomes unbalanced as the biggest member of the camp is leaving the EU.” Hungary, for its part, is committed to a strong EU, said the Minister. “Our interest is to see the EU becoming stronger in the future. We are deeply integrated into the European economy — our Exports to GDP ratio is 86.5 per cent while 79 per cent of Hungarian exports go to EU member states. Germany is the number 1 investor in our country, with around 60,000 German companies currently operating in Hungary, employing more than 300,000 people. So it’s really vital for us to see a stronger Europe.”
Anti-immigration stance
Asked about Hungary’s response to the refugee crisis that engulfed the EU a couple of years ago, Szijjártó said his government was vehemently opposed to immigration. “We represent a very strong anti-migration policy. We preserve the right to decide who will enter the territory of our country. We do not let anybody else interfere in this. We preserve our right to make decide who we want to live with and who we don’t want to.
This should not be decided in Brussels or New York. We are nation that (takes pride in) its national identity and its cultural, religious and historical heritage. The only way to come to Hungary is the legal way. We have also made clear to Brussels that we will not take part in any kind of so-called resettlement mechanism. We reject the quota system, the settlement mechanism, and the distribution of migrants because we want to preserve Hungary’s (national identity).”
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