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Observer
19-04-2025
- Business
- Observer
Oman's new foreign trade centre to bolster 2025 investment drive
MUSCAT: Oman has taken a decisive step to strengthen its global trade footprint with the launch of the new Centre for Strategic Partnerships and Foreign Trade. Announced under the directives of His Majesty Sultan Haitham bin Tarik, the centre is a cornerstone of Oman's 2025 investment strategy and a practical move to accelerate diversification under the Oman Vision 2040 agenda. The mandate is clear: Break down trade barriers, revitalize dormant agreements, and unlock new markets for Omani exports. More than just a trade push, this is about building meaningful international partnerships and turning Oman into a hub for foreign capital. Oman knows that economic resilience depends on integration with global markets. This new centre gives the Sultanate a sharper edge in trade negotiations and a mechanism to secure better terms for its exporters. 'This centre gives Oman the capacity to negotiate better market access in jurisdictions where access is currently restricted,' said Pankaj Khimji, Foreign Trade Adviser at the Ministry of Commerce, Industry and Investment Promotion. For non-oil sectors—from metals to fisheries—this is timely. As global trade tilts toward regional blocs, Oman is signaling it won't be left behind. The center's focus: modernize existing FTAs like the Oman–US deal, pursue new ones with growth markets in Asia and Africa, and deepen engagement with global trade bodies like the WTO and UNCTAD. Trade diplomacy alone isn't the endgame—investment is. 'We're not just talking about trade; we're talking about encouraging FDI, expanding exports, and building long-term partnerships,' Khimji noted. Better trade terms can attract global firms looking for regional bases. Oman's recent FDI growth—up 17.6 per cent in five years to RO 26.7 billion by late 2024—reflects reforms that have reshaped the investment landscape. The 2020 Foreign Capital Investment Law allowing 100% foreign ownership, plus the Invest Oman one-stop shop, has laid the groundwork. The new center is expected to work closely with these tools to bring in targeted investments across strategic sectors. Oman-India CEPA Negotiations on a Comprehensive Economic Partnership Agreement (CEPA) with India are already in motion, promising gains in services, goods, and capital flow. Similar deals with Southeast Asia and East Africa are on the radar. If executed well, Oman could become a competitive export base with privileged market access. This isn't just about trade or investment—it's about economic transformation. Vision 2040 aims to lift non-oil GDP to 90 per cent by 2040. To get there, Oman needs to open doors for its industries and draw in global expertise and funding. Over the next five years, policymakers are zoning in on sectors with real export potential: metals, green manufacturing, logistics. The goal is to develop specialized clusters and then use trade agreements to sell those strengths globally. Progress is already visible. Billions are flowing into free zones and industrial estates, from food processing to renewables. The center's job is to align external trade opportunities with these domestic growth engines. Oman's strategy unfolds in a competitive GCC landscape. The UAE has led the way with CEPAs, aggressively locking in trade ties with major economies. Saudi Arabia is leveraging oil wealth to drive mega-projects and reposition itself economically. Oman's approach is different: more measured, more focused on enabling private-sector growth through targeted deals and investor-friendly reforms. What Oman offers is stability, neutrality, and geography. Positioned between Africa, Asia, and the Gulf, and trusted by multiple powers, Oman can be a gateway to a complex region. That's a selling point no amount of capital can replicate. Bilateral deals, like CEPA with India, offer flexibility while GCC-wide pacts remain under negotiation. Oman is making sure it isn't stuck waiting for collective decisions—it's acting now to secure its own trade future. Benefits on the horizon If Oman plays this right, the upside is significant: • Higher export revenues: More markets, fewer trade barriers, and stronger demand for Omani goods. • Stronger FDI flows: Preferential trade access could bring manufacturers and service providers to Oman, feeding into regional supply chains. • Revived trade deals: Existing agreements like the Oman–US FTA can be better leveraged for real export gains. Still, the challenges are real: • Unbalanced deals: Oman must guard against being outmatched by stronger economies. • Implementation gaps: A center is only as effective as the action behind it. Coordination across agencies and support for exporters are essential. • Tough regional competition: Saudi and the UAE will continue to compete hard for investors. Oman must carve out a clear, differentiated value proposition. • Global volatility: Protectionism, recessions, or geopolitical shifts could stall trade and investment plans. The new trade center represents a smart, necessary pivot. It's bold, but grounded in realism. Oman isn't trying to outspend or outscale its neighbors. Instead, it's banking on access, openness, and targeted ambition. Execution will make or break this effort. But if the center succeeds in landing a flagship deal or attracting a major investment, it could prove to be the accelerator Oman needs. If Oman stays focused and keeps aligning policy with opportunity, the Center for Strategic Partnerships and Foreign Trade could become the engine that drives the next phase of the Sultanate of Oman's economic rise.
Observer
17-04-2025
- Business
- Observer
Oman establishes strategic trade centre to boost global market access
Muscats: In a bold step to elevate Oman's global trade position and deepen its international economic partnerships, the Sultanate of Oman has established the Centre for Strategic Partnerships and Foreign Trade. The center, formed under the directives of His Majesty Sultan Haitham bin Tarik and the Cabinet, will play a central role in unlocking foreign markets for Omani exports, removing trade barriers, and revitalizing key international agreements. Speaking exclusively to Oman Observer, Pankaj Khimji, Advisor for Foreign Trade and International Cooperation at the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), emphasized the centre's strategic mission: 'This centre gives Oman the capacity to negotiate better market access in jurisdictions where access is currently restricted. Reducing both tariff and non-tariff barriers is crucial to enabling the free flow of Omani products and services abroad,' said Khimji. At a time when global trade is increasingly shaped by regional blocs and strategic alliances, Oman's proactive approach aims to secure favorable trade terms and enhance the competitiveness of its non-oil exports. The centre also aims to revive and modernize existing Free Trade Agreements (FTAs) and initiate new negotiations with strategic trading partners. In parallel, Oman will strengthen its engagement with key multilateral institutions, including the World Trade Organization (WTO), UNIDO, OECD, and UNCTAD. 'Our FTAs need to be reactivated at a different level. We're not just talking about trade; we're talking about encouraging foreign direct investment (FDI), expanding export volumes, and building long-term partnerships,' Khimji noted. Looking ahead, Khimji highlighted the importance of aligning the center's work with Oman Vision 2040. The next five years will focus on attracting FDI into high-potential verticals, including metals, manufacturing, and industrial exports. 'We've identified three to four key verticals where Oman can truly become an export-oriented hub. We are already on solid regulatory footing, and our focus now should be on creating a business environment that welcomes investors and supports product clusters for export,' he added. Khimji stressed that Oman's regulatory frameworks are now more investor-friendly, providing a foundation for industrial diversification and integration into global value chains.
