Muscat – Oman and Hungary are in talks to strengthen bilateral relations, with a focus on liquefied natural gas (LNG) exports and establishing direct flights between Muscat and Budapest. The upcoming opening of an Omani embassy in Budapest is seen as a pivotal moment for economic, educational and commercial collaborations between the two nations.

Peter Szijjártó, Hungary’s Minister of Foreign Affairs and Trade, has underscored the robust relationship between Oman and Hungary. “Establishment of an Omani embassy in Budapest will mark a turning point, boosting relations, especially in economic and educational fields.”

A Royal Decree, issued in May, directed the establishment of an Omani embassy in Hungary.

Emphasising Hungary’s eagerness for economic cooperation, Szijjártó noted that Oman’s strong and steadily growing economy is an appealing factor for Hungarian businesses. The two countries signed a memorandum of understanding in the field of low-carbon and renewable hydrogen last week on the sidelines of the 27th GCC-EU Ministerial Council meet in Muscat.

The two countries are also discussing possible agreements in water management, leveraging Hungary’s advanced technology and expertise in the sector. Szijjártó revealed that discussions are underway for partnerships in LNG, aiming to include Omani gas in Hungary’s energy imports by 2026.

He pointed to ongoing collaborations between OQ Group and the Hungarian National Oil Company in renewable energy, sustainable biofuels and innovative chemical products.

“Exports are the backbone of Hungary’s economy, necessitating strong international relations. We are particularly interested in forging ties with countries experiencing consistent economic growth, like Oman.”

The minister highlighted the importance of establishing direct flights between Muscat and Budapest. Talks are underway with airlines from both countries to make this a reality. Additionally, a Hungarian tourism company will operate charter flights between Budapest and Salalah from November 2023 to May 2024.

Szijjártó expressed optimism for future trade cooperation, particularly following the upcoming embassy and direct flights. He informed that last year’s trade volume between the two countries stood at US$60mn and invited Omani businesses to explore investment opportunities in Hungary. He described Oman Investment Authority’s ownership of the Four Seasons Hotel in Budapest as a positive example of current investments.