Omani Minister to Asharq Al-Awsat: Time to Revive Transportation of Saudi Oil to Arabian Sea

Oman’s Economy Minister Said bin Mohammed al Saqri said the economic cooperation between Saudi Arabia and the Sultanate of Oman has increased since the establishment of the Saudi-Omani Coordination Council in July.

“The council aims to develop a common vision for deepening and sustaining relations between the two countries, in addition to raising the level of cooperation in political, economic, security, military, and human development fields,” al Saqri told Asharq Al-Awsat in an exclusive interview.

The minister emphasized that the Council is also tasked with developing a framework for joint agreements and projects between Oman and Saudi Arabia as well as providing facilities to investors.

Besides promoting investment, the Council follows up on the “implementation and facilitation of initiatives and projects between the Kingdom and the Sultanate.”

Al Saqri noted that the top three sectors in which Saudi investment is concentrated in the Sultanate are trade, construction, and services.

The upturn in economic cooperation stems from the common factors shared between the national visions launched by the Kingdom and the Sultanate.

Each of the Oman Vision 2040 and Kingdom’s Vision 2030 seek to diversify the economy, reduce dependence on oil and create conditions for the private sector and investors to have a more significant role in providing job opportunities, as well as seeking to attract foreign direct investment among others.

“We believe that there is a need for fruitful work from both sides in a way that contributes to enhancing integration and partnership between the two visions in all fields, especially cooperation in economic diversification projects,” al Saqri told Asharq Al-Awsat.

The minister emphasized that the two visions include substantial investment opportunities, especially in the fields of knowledge, innovation, and technology.

“The volume of trade exchange between the Sultanate and the Kingdom increased by the end of 2020 to $2.5 billion, compared to about $1.4 billion in 2010, while the number of Saudi companies in the Sultanate increased to 1,235 in 2021, compared to 467 companies in 2010,” revealed al Saqri.

He called for improving the maritime link between Saudi Arabia and Oman by transferring oil and gas exports in the region to the Arabian Sea through the Sultanate without passing through the Strait of Hormuz.

He stressed that it has become a strategic goal to extend the existing network in case obstacles arise in the Strait of Hormuz.

“The Strait of Hormuz is the main route for oil and gas exports in the region, and there is no doubt that the existence of a vital port for the transfer of oil and gas pipelines to the Arabian Sea through the Sultanate of Oman has become of paramount strategic importance,” al Saqri told Asharq Al-Awsat.

The minister stressed that setting up an oil pipeline across the Sultanate to the Arabian Sea is a project that dates back to the 1970s.

More so, he affirmed that Riyadh and Muscat are seeking to accelerate and improve the volume of trade and investment exchange between them through joint strategic projects and enhanced investment opportunities across various sectors.

The minister also talked about incentives, like tax breaks, offered by Oman to attract industrial sector investments.

“The Saudi investor will receive the same treatment as the Omani investor, and vice versa,” said al Saqri, highlighting that Saudi Arabia is a prominent trading partner of the Sultanate.

“Oman provides an integrated economic environment that is ready to establish strategic projects in multiple industrial and free zones designated for this,” he noted.

“The Sultanate gives investors in these areas special advantages and attractive exemptions from taxes and fees,” he continued.

Al Saqri listed types of tax breaks offered by Oman, such as a five-year income tax exemption for industrial projects.

When asked about the decision to open a new road linking the Sultanate to the Kingdom, he replied: “It will reduce the travel time between two countries by 800km.”

“The direct road link between the Sultanate and the Kingdom will contribute to facilitating trade exchange and transporting goods in a shorter time and at a lower cost, which will open the way for Saudi goods to enter the Sultanate and also access the Omani ports for exports to the rest of the world,” he added.

“It will also facilitate the passage of pilgrims and tourists between the two countries, besides linking the city of Duqm in Oman with NEOM in Saudi Arabia,” he added.

“The new land route will help Omani goods access the Saudi ports located in the Red Sea for exports to the rest of the world,” affirmed al Saqri.

“The Sultanate launched the construction of the Industrial City project in the Wilayat of Ibri in Al Dhahirah Governorate in 2020, with a total area of 10 million square meters. It is an important project located on the road leading to the crossing between the Sultanate and the Kingdom,” he noted.

As for the investment opportunities offered by Oman, he asserted that it provides many options that cover several fields and that are available for Saudi investors.

“Concerning investment opportunities in the Sultanate of Oman, there are many of them in all fields, the most important of which are the fields of energy, food industries, building materials, mining, electronics, information technology, and agriculture, in addition to the pharmaceutical industries that we seek to localize in some of our industrial areas, and all of these projects - undoubtedly - are available to the Saudi investor,” said the minister.

Moreover, al Saqri pointed to memorandums of understanding regarding food security cooperation between Oman and Saudi Arabia.

“Fisheries Development Oman (FDO) has signed a Memorandum of Understanding (MoU) with the National Aquaculture Group (Naqua) of Saudi Arabia centering on cooperation in the development of the former’s shrimp farming project at Al Jazer on the Sultanate’s Al Wusta coast,” reminded the minister.

Total investment in the venture, covering an area of 1,650 hectares, is estimated at $137 million across multiple phases. At full capacity, shrimp production is projected at 18,000 tons per annum.

Al Saqri said noted that “sectors that will receive priority investment are the promising sectors and activities that achieve integration between the two countries.”

Investments will focus on sectors characterized by high feasibility and speed of implementation, in addition to projects that can achieve quick gains for both countries.

The sectors whose projects were reviewed between the two sides include energy, petrochemicals, maritime transport, mining, shipping and transport services, agricultural industry, and fish farming, in addition to the postal services sector.

“These sectors are expected to contribute to the growth of Saudi investments in the Sultanate during the next period,” said al Saqri.

Since 2012, the United Nations Resident Coordinator's developmental role in Syria has been put on hold by the UN. However, the fall of former president Bashar al-Assad’s regime has revived this role.

In an interview with Asharq Al-Awsat, Adam Abdelmoula, the UN Resident and Humanitarian Coordinator in Syria, outlined plans for reconstruction in partnership with the new government in Damascus.

Abdelmoula expressed “great optimism” about Syria’s rebuilding but stressed that the key to rapid recovery is the “success of the transition.”

He explained that this means the transitional period—until a new constitution is agreed upon and an elected government is formed—must be secure and supported by consensus among all Syrians.

Additionally, momentum is building for Syria’s reconstruction, with Gulf Cooperation Council (GCC) countries proposing an international donor conference next spring to raise funds.

Abdelmoula said the UN is consulting with the new Syrian administration to prepare projects and cost estimates for the event.

The UN is preparing aid and technical support for Syria’s new administration, along with a development plan focusing on rebuilding infrastructure, restoring electricity, reviving health services, and supporting agriculture and irrigation to boost the economy.

“We’ve informed the new administration of our work through a letter sent to the foreign minister,” said Abdelmoula.

He told Asharq Al-Awsat that the UN’s “early recovery strategy,” launched last November, is still in place, though its fund has yet to be registered with the trust fund office in New York.

He promised to prioritize its registration and said: “When reconstruction begins in Syria, we will work to establish a dedicated reconstruction fund.”

As for relying on donors for rebuilding Syria, Abdelmoula said: “The UN doesn’t have the billions of dollars needed, but lessons from similar crises show the importance of focusing on strategic priorities, especially rebuilding the economic foundations.”

Abdelmoula noted that UN agencies can secure funding from donors who support development activities in various countries, a process that had been stalled in Syria for over a decade.

“Since the fall of the Syrian regime, many countries, particularly Arab and neighboring ones, have provided significant aid, and this is expected to increase,” he said.

“There are also positive signals from donors, especially Europeans, about boosting humanitarian aid, including continuing the annual Brussels Conference to support Syria,” added Abdelmoula.

He revealed that the mission has learned the European Union will resume hosting the conference this year, despite the fall of Assad’s regime.

The UN official addressed Syria’s sanctions, stating that those harming the Syrian people should be lifted.

He noted that the recent Riyadh meeting showed a strong intention from key international players to ease or fully lift the sanctions.

Abdelmoula pointed out the US decision to suspend some sanctions for six months and mentioned an upcoming EU foreign ministers' meeting to discuss either lifting or easing sanctions to support Syria’s economy, humanitarian aid, banking, and market access.

He explained that some sanctions are imposed by countries like the US, Germany, France, and the UK, which are discussing the best way forward. However, he said fully lifting sanctions may take time due to laws like the US Caesar Act.

Abdelmoula stressed that efforts should focus on reducing the impact of sanctions under the Caesar Act and working to pass new legislation to cancel it. He said this should also apply to sanctions from other countries in the form of laws.

He explained that lifting sanctions would make it easier for the UN and help both the Syrian government and people. A direct benefit would be Syria’s ability to access direct funding, concessional loans from international funds and the World Bank, and grants.

Abdelmoula explained that the UN’s humanitarian work in Syria focuses on helping people in need, regardless of which political group controls the area.

“Our efforts have included people in regions outside the former regime's control in northwestern and northeastern Syria,” he said.

As the UN Resident Coordinator, Abdelmoula represents the UN in the country.

“The government recognized until December 8 was Bashar al-Assad’s, which is why my credentials were sent to it, as is the usual practice,” he noted.

Abdelmoula also pointed out that the UN’s development work in Syria was halted since 2012 due to a UN decision.

“After the regime fell, we announced that we would resume our development work,” he affirmed.

Omani Minister to Asharq Al-Awsat: Time to Revive Transportation of Saudi Oil to Arabian Sea