Trade between Oman and Iran has surged since international sanctions were lifted against Iran earlier this year.
Oman’s imports from Iran shot up by 396.2% to 183.1 million Omani rials ($475.5 million) in the first half of this year, from 36.9 million Omani rials ($95.8 million) in the same period of last year, according to the latest data released by Oman’s National Centre for Statistics and Information.
Reexports from Oman soared by 23% to 63.2 million Omani rials ($164 million) in the first half of 2016, against 51.4 million Omani rials ($133.5 million) in the corresponding period of last year, the Omani newspaper Times of Oman reported on its website.
Iran is expected to emerge as a significant trading partner of the Sultanate following the end of trade sanctions.
According to experts, trade between Oman and Iran is likely to touch $5 billion within five years from the current $1 billion.
Omani companies, which have a strong position in the Iranian market, are involved in a number of high-profile projects, Amir Kordvani, the head of the Iran Desk and projects for the Middle East, CMS Cameron McKenna LLP, said recently at a conference on investment opportunities in Iran. Several projects, including the Iran-Oman gas pipeline, the Iran-Oman shipping line and a $250-million shopping mall in Iran, to be developed by Omani investors, are expected to further strengthen economic cooperation between the two countries.
Following the lifting of sanctions, Iran offers ample investment opportunities for foreign investors in sectors such as oil and gas, mining, energy, tourism, hospitality, transport, automobiles, infrastructure, and information and communication technology.
Iran has 136 billion barrels of proven oil reserves, which is equivalent to 10% of the world’s total reserves. Moreover, the cost of oil production in Iran is one of the lowest in the world.
Several projects are waiting to be re-initiated. Some 62% of the country’s natural gas reserves are located in fields that are not yet developed.
Iran has deposits of more than 68 minerals worth nearly $700 billion. It also has the world’s fifth largest reserves of zinc and the seventh largest reserves of copper. Almost 90% of the country’s mines are owned by the government.
Iran is also the eighth largest producer of energy and the 20th largest consumer in the world. The country is focusing on attracting investments in the renewable energy sector.
