Iran and Oman traded $647 million worth of goods during the first four months of the current Iranian year (March 21-July 22) to register an 83% year-on-year growth, according to the head of Iran-Oman Chamber of Commerce.
Iran’s exports stood at $415 million, registering a 134% growth.
“Bilateral trade is expected to exceed $2 billion by the end of the current [fiscal] year [in March 2023], of which Iran’s exports are estimated to stand at $1.2 billion,” Mohsen Zarrabi was also quoted as saying by IRNA.
Trade with Oman in the fiscal 2013-14 stood at $221 million, which grew to $1.34 billion in the fiscal 2021-22.
Iran’s exports to Oman increased to $716 million in the fiscal 2021-22 from $146 million in the fiscal 2013-14.
Oman’s total imports in the fiscal 2021-22 stood at $31 billion, of which 2.3% were imported from Iran.
Iran’s imports from Oman stood at $620 million in the fiscal 2021-22.
By regional standards, Oman has a relatively diversified economy, but remains dependent on oil exports. In terms of monetary value, mineral fuels account for the lion’s share of total exports.
Tourism is the fastest-growing industry in Oman. Other sources of income, such as agriculture and industry, are small in comparison, but diversification is seen as a priority by the government. Agriculture, often subsistence in its character, produces dates, limes, grains and vegetables, but the country is likely to remain a net importer of food.
Zarrabi says Oman is an ideal platform from which Iran can reexport its products.
“Due to the location of Omani ports and the fact that the country is free from any sanctions, we can export our products to this Persian Gulf littoral state for them to be reexported to European and North American countries. Oman has free trade agreements in place with 16 Arab and African countries, four European countries, namely Switzerland, Norway, Sweden and Liechtenstein, as well as with the US and Singapore, which can be of great help to Iranian exports,”
Iran's President Ebrahim Raisi visited Oman in May, as the two countries signed a string of trade deals and as international talks on Tehran's nuclear program hang in the balance, leaving the Islamic Republic under sanctions, AFP reported.
Raisi, on his second Persian Gulf visit since taking office in August, was greeted by Sultan Haitham bin Tareq at the airport and received a 21-gun salute at the royal palace, an Omani statement said.
The Iranian president's one-day trip came at a time when Iran-world powers’ talks on restoring a 2015 nuclear deal are lingering on.
Oman played a mediating role between Tehran and Washington in the build-up to the original agreement, which is known as the Joint Comprehensive Plan of Action.
Wide-Ranging Cooperation
The countries signed eight memoranda of understanding during the visit, including in the fields of oil and gas, transport, education, trade and investment, reported the official Oman News Agency.
"Trade exchanges between the two countries of Oman and Iran will improve definitely," Raisi said before departure, according to Iran's state news agency IRNA.
"Both countries are determined to upgrade the level of political and economic ties," he added.
A delegation of 50 Iranian businessmen travelled to Oman in June, IRNA said, adding that Iran's minister of roads and urban development has announced plans for a joint shipping line and tourist flights.
Oman is also seeking to import gas from Iran by building an offshore pipeline between the two countries, who are discussing the development of joint gas fields offshore.
The sultanate, which faces Iran across the Sea of Oman, endured economic pain during the pandemic, with its GDP dropping 6.4% in 2020 and government debt soaring. It saw rare protests over high unemployment and layoffs last year.
Two Iranian airlines, namely the flag carrier IranAir and Karun, recently received permits from Oman Civil Aviation Authority to launch direct flights to the Sultanate.
The new flights will have Tehran and Shiraz as their departure and the Omani capital Muscat as destination, IRNA reported.
Until now, Qatar Airways and Turkish Airlines operated passenger flights between Iran and Oman.
It’s been 18 years since no Iranian airline has operated flights to Oman.
Now IranAir and Karun are scheduled to resume the flights soon.
Oman facilitated Iranians’ travel to the Sultanate in December by relaxing entry conditions for stays of up to 14 days. It has also reduced visa fees for travelers from more than 100 countries, including Iran, the United States, the UK, Australia, China and India.
Oman Airlines has been operating two flights a week: one flight to Tehran and one flight to Shiraz since Jan. 21.
