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.

One of the UN’s top humanitarian officials in Lebanon, Imran Riza, has warned that the situation will worsen if the conflict continues, calling for an immediate ceasefire between Israel and Hezbollah.

He stressed that the ongoing war is placing immense strain on both the UN and the Lebanese government, as over a million people have been displaced. He said current needs exceed $400 million, but only 12% of that amount has been raised so far.

Worsening Crisis

Riza, who is the UN Deputy Special Coordinator for Lebanon, UN Resident, and Humanitarian Coordinator for Lebanon, spoke to Asharq Al-Awsat. He described the past two weeks as “catastrophic” for civilians, with the crisis growing over the last year.

More than 600,000 people have been displaced and over a million affected, with 300,000 crossing the border, according to Riza.

Many of these people have been displaced more than once in search of safety. Riza emphasized that the war has severely impacted civilians, with more than a quarter of Lebanon's population affected.

The UN has been working to address the crisis, but Riza said resources are limited.

He stressed that the UN has been saying all year that it doesn’t have enough funds, even when there were only 110,000 displaced people.

Last week, the UN launched a $426 million appeal for urgent humanitarian aid, with 12% of the funding already secured.

Riza said more support is expected, with donor countries pledging additional help.

He also expressed gratitude for contributions from the Gulf Cooperation Council (GCC), which provided medical and relief supplies, and said the UN hopes to see more international assistance soon.

Working with the Government

The UN is working closely with the Lebanese government every day to provide shelter, food, healthcare, and water to those in need.

Cooperation with the government has been excellent, said Riza.

However, he acknowledged that the government’s capacity is weakened after five years of ongoing crises, which have also severely impacted the population.

People are less resilient than they were during the 2006 war, and the government and its institutions are weaker, affirmed Riza.

The UN is helping the government respond effectively, ensuring transparency and accountability, so that aid reaches those who need it, he added.

The UN is also collaborating with local and international NGOs that have gained experience from Lebanon’s recent crises, helping to ensure a more effective response. Shelters are also being monitored to prevent any abuse.

A Different Reality from 2006

The current situation in Lebanon is very different from the 2006 war. Politically, the country now has a caretaker government and no president, with much less international presence.

Back then, other countries were more involved, said Riza.

The 2006 war lasted only 33 days, but this conflict has dragged on for a year, he noted.

During recent visits to southern border areas, Riza said locals were asking when the war would end, as the situation has worsened significantly in the past two weeks.

Riza noted that, in the first week of the crisis, it was extremely difficult to respond, and even now, many displaced people remain without shelter.

The UN is working with the government to provide shelter, food, and healthcare, but it’s not easy, he noted.

Displacement Crisis

With winter approaching, Riza stressed the need to properly house displaced people, saying that people can’t be left without shelter.

There are also concerns over a lack of housing, clean water, and sanitation, as well as the risk of disease outbreaks. Despite these challenges, Riza praised the close cooperation between the UN, international organizations, and partners.

Many agencies are responding, he asserted.

Riza rejected any claims of discrimination between displaced groups, noting that both Lebanese and Syrians are currently staying in UNRWA schools. He added that talks with the government about sheltering displaced Syrians have been positive.

Riza also expressed concern about the school year and children’s education.

Prolonged Conflict

The United Nations sees no immediate solution to the humanitarian and military crisis in Lebanon, with Riza stressing that the solution must be political and diplomatic, but first, a ceasefire is needed.

While there is little optimism for an end to the conflict, Riza said, the UN is encouraged by the support from its partners, which helps the organization assist the displaced.

He mentioned the recent evacuation of 1,000 people from Ain Ebel and aid distribution in Tyre, emphasizing the need to ensure that they reach those in need.

Riza called on all sides to respect international and humanitarian laws, allowing safe access for aid workers.

He condemned violations, including the deaths of firefighters, health workers, civil defense staff, and UN personnel, adding that the toll on civilian and health infrastructure is growing.

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