Muscat – The Sultanate of Oman and the United Arab Emirates (UAE) continue to strengthen their fraternal bonds and strategic partnership under the guidance of His Majesty Sultan Haitham bin Tarik and Sheikh Mohammed bin Zayed al Nahyan, President of the UAE. This collaboration is driving notable progress in both economic and cultural spheres, fostering stability and prosperity in the region.

Economic and trade integration

The late Sultan Qaboos bin Said and the late Sheikh Zayed bin Sultan al Nahyan laid the foundation for the robust relationship that has flourished over the past five decades, focusing on mutual interests and shared visions. The commitment to enhancing this partnership is evident in the state visit of His Majesty the Sultan to the UAE, where discussions with Sheikh Mohammed bin Zayed will focus on regional and international developments and ways to propel bilateral relations towards broader horizons.

The economic cooperation between Oman and the UAE is comprehensive, encompassing a variety of sectors. The joint supreme committee, established in 1991, plays a pivotal role in advancing cooperation in economic, commercial, cultural, and educational fields, as well as in linking electricity and communication networks, coordinating transportation services, and promoting joint investment opportunities.

Sayyid Dr. Ahmed bin Hilal al Busaidi, Ambassador of Oman to the UAE, highlighted the dynamic nature of these bilateral relations, noting that recent leadership visits have resulted in the signing of 16 agreements and memorandums of understanding. These agreements span several key sectors including finance, insurance, manufacturing, real estate, and trade, underscoring a deep economic interconnection.

Trade and investment growth

The trade exchange between Oman and the UAE reached approximately RO5.439bn by the end of 2023, with Omani exports to the UAE marked at over RO291.7mn and imports from the UAE exceeding RO837.7mn. 

The UAE remains the top destination for direct Omani investments abroad, with figures amounting to RO960mn until the end of 2022, while the Emirati investments in Oman amounted to about RO958mn.

The sectors benefitting most include industrial, financial, banking, tourism, power generation, real estate, retail trade, and construction.

Strategic infrastructure and cultural cooperation

The establishment of Oman and Etihad Rail in September 2022 stands as a testament to the strategic infrastructure collaboration between the two nations. This US$3bn project aims to connect Sohar Port to the UAE national railway network, enhancing the supply chain efficiency and facilitating cross-border trade.

Cultural exchanges also play a significant role in the bilateral relationship. Oman and the UAE actively participate in joint cultural events and activities, reflecting their shared heritage and historical ties. Participation in international events such as Expo Dubai 2020 and continuous involvement in regional book fairs in Abu Dhabi and Sharjah are prime examples of this enduring cultural partnership.

Tourism and Marine Industries

The tourism sector has seen reciprocal growth, with tourist facilities in both countries drawing visitors from each other’s markets. Joint tourism investments have further attracted international tourists, contributing to the sector’s expansion. The marine industry, particularly at the Duqm Dry Dock, has also witnessed significant activity attracting 350 projects from the UAE, with a 43% increase in projects from the UAE in 2023.