Iran's food exports to Oman exceeded 2,700 tons during April 5-19 via shipping lines established by Oman’s Port Operation and Management Company Marafi, said the chairman of Iran-Oman Chamber of Commerce.
Mohsen Zarrabi added that Omanis are seeking to create two new shipping routes for bulk carriers from Iran to import construction materials at reasonable prices, ILNA reported.
Referring to shipping routes linking the Iranian ports of Jask, Shahid Bahonar, Shahid Rajaee and Khorramshahr with Omani ports of Al Suwaiq, Shinas, Sohar and Sultan Qaboos, Zarrabi said, “Almost all countries closed their borders with Iran following the spread of the new coronavirus. However, Oman increased its shipping routes with Iranian ports to reduce the transportation costs of imports.”
He noted that before the outbreak, there were nine direct air flights from the Iranian cities of Tehran, Isfahan, Shiraz, Chabahar, Qeshm, Kish, Mashhad, Lar and Lamerd to Oman’s Muscat.
“Presently, Oman has closed all its air routes to control the spread of the virus,” he said.
Noting that Iran’s exports accounted for $149 million of the two countries’ $221 million trade in the fiscal 2013-14, said Oman has maintained and cemented its close economic, political ties with Iran in recent years despite US sanctions.
“Trade with the neighboring country increased fivefold over five years to March 2019. Iran’s share from Oman’s total imports has improved from 0.7% in the year ending March 2014 to 3.6% in the year ending March 2019,” he said.
Oman has cemented its close economic, political ties with Iran in recent years, despite US sanctions. Trade with the neighboring country increased fivefold over five years to March 2019. Iran’s share from Oman’s total imports has improved from 0.7% in the year ending March 2014 to 3.6% in the year ending March 2019
“Despite their close, friendly political relations, trade volume between Iran and Oman was hardly significant between March 2006 and 2013. This is while Oman relies heavily on imports to meet its demand for consumer goods; the neighboring country should have been an important export market for Iran but due to lack of proper infrastructures, our share of Oman’s import was meager over those years.”
Zarrabi noted that the formation of Iran-Oman Chamber of Commerce in the year ending March 2014 brought about remarkable developments in economic relations between the two countries, including improved non-oil trade through creation of new shipping lines and more regular flights.
“It is now much easier and cheaper for the Iranian citizens to obtain visa from Oman,” he said.
The official further said Iran’s imports from Oman increased from $70 million in the year ending March 2017 to $260 million in the year ending March 2018 to $413 million in the year ending March 2019, stressing that Omani ports are now transshipping goods to Iran much more than before.
“Oman can play a pivotal role for improving Iran’s exports. Despite the fact that some countries offer good markets, Iranians have been stripped of much of their potential revenues from exports due to poor political relations. Oman is a suitable place for the reexport of our products,” he said.
“Through Oman, we can also find access to export markets like Yemen and African countries, and create new export destinations. With a population of 28 million, Yemen is a favorable market for Iranian products.” Currently, the country meets its import requirements from Oman’s Salalah Port. African countries usually make long-term purchases. Iranians will be able to use letters of credit to export to these countries under the franchise of Omani companies.
Oman also has bilateral free trade agreements with 16 Arab, African and four European countries as well as the US and Singapore. Hence, Iran will be able to export its products via Oman to these countries and enjoy their zero import duty.”
The official noted that Iranian investors need to focus more on Omani’s free trade zones than its industrial towns, given the more generous tax benefits offered by them.
“Tax exemption in Oman’s free trade zones is for 15 to 30 years whereas in its industrial towns, investors are granted a five-year tax break. Oman requires foreign investors to employ 35% of their labor force from natives in industrial towns compared with 10-20% in FTZs,” he said.
Zarrabi said Iran and Oman can improve their cooperation in mining, tourism, transportation and industries.
“Iranian exporters of technical and engineering services have been present in Oman since 2002 and they have put in great, praiseworthy performance there. However, due to the decline in oil prices and our budget deficit, we cannot act as contractors. Most Iranian projects in Oman have transformed to build-operate-transfer, build-own-operate and engineering, procurement, construction and financing, which need investment," he concluded.
