Muscat – The bilateral annual trade between Oman and the United Arab Emirates reached nearly RO5.5bn in 2023, driven by the robust and expanding economic and trade partnership between the two countries.

The economic relations between Oman and the UAE are witnessing remarkable progress, thanks to the support and attention provided by the wise leaderships of His Majesty Sultan Haitham bin Tarik and Sheikh Mohammed bin Zayed al Nahyan, President of the UAE.

Sayyid Dr Ahmed bin Hilal al Busaidi, Ambassador of Oman to the UAE, said that His Majesty’s upcoming visit to the UAE will accelerate cooperation, integration, and partnership between the two nations.

In a statement to Oman News Agency, Busaidi highlighted the UAE as one of Oman’s most important trading partners, emphasising a significant leap in economic relations due to the focus given by the two countries’ leadership.

He pointed out that the continuous growth in bilateral trade and investment exchange reflects an advanced economic partnership with promising prospects.

According to to Busaidi, Omani exports to the UAE exceeded RO1bn mark in 2023, recording a 20.4% growth compared to 2022.

Statistics issued by the National Center for Statistics and Information (NCSI) show that the trade exchange value between Oman and the UAE totalled approximately RO5.439bn in 2023, compared to RO5.571bn in 2022.

Busaidi expects the upcoming period to witness increased joint investment cooperation, contributing to the consolidation and development of the existing economic partnership.

Key Omani investments in the UAE encompass sectors such as financial activities, insurance, manufacturing industries, real estate, professional and technical activities, wholesale and retail trade, and information and communications.

Meanwhile, major Emirati investments in Oman include industrial, financial, banking, tourism, power generation, real estate activities, retail trade, and construction sectors.

Official figures show that the UAE leads in attracting direct Omani investments abroad, amounting to RO960mn by the end of 2022, while direct Emirati investments in Oman reached roughly RO958mn during the same period.

Oman holds a prominent position in Emirati trade, ranking third in the Arab world and 10th globally in the list of trade partners of the UAE, accounting for 20% of the total trade of the Emirates. This is due to the ease of transporting goods and the smooth, free movement of national products between the two countries through land ports.

Private sector plays vital role

The private sector plays a vital role in economic development in both nations, contributing to economic diversification across various areas, including manufacturing industries, logistics services, mining, tourism, and fisheries.

Faisal Abdullah al Rowas, Chairman of Oman Chamber of Commerce and Industry (OCCI), said that the fraternal bonds between Oman and the UAE establish a solid foundation for an integrated partnership in the economic and trade sectors.

In a statement to Oman News Agency, Rowas emphasised the UAE’s importance as Oman’s primary trading partner through direct investments in numerous sectors such as manufacturing industries, real estate, commercial project activities, construction, financial intermediation, transportation, storage, hotels, and others. He noted that the UAE ranks first as a destination for direct Omani investments abroad.