Accelerating Trade Integration Between Oman and Saudi Arabia: Key Impacts for Investors and Businesses
RIYADH: Oman and Saudi Arabia are making significant strides in economic and industrial integration, as evidenced during the recent meeting of the Omani-Saudi Coordination Committee in Riyadh, dedicated to trade, industry, and economy.
Officials reported progress on joint initiatives under the Omani-Saudi Coordination Council, with six initiatives completed and 11 more nearing completion. These developments underscore the strategic alignment between the two economies and their commitment to establishing robust, interconnected value chains.
The Omani delegation was led by Dr. Saleh bin Saeed Masan, Under-Secretary at the Ministry of Commerce, Industry, and Investment Promotion for Trade and Industry. The Saudi side was headed by Engineer Rakan bin Wadhah Tarabzoni, Under-Secretary at the Ministry of Economy and Planning for International Economic Affairs.
In the industrial sector, officials celebrated the completion of the second phase of the Industrial Integration Project, a landmark achievement that allows Omani industrial products to enter the Saudi market with an officially recognized certificate of origin. This development enhances market access, cuts logistical and compliance costs, and boosts competitiveness for Omani manufacturers.
Another significant advancement was the finalization of the Future Factories Initiative, which aims to strengthen the industrial ecosystems of both nations. As part of this effort, 12 agreements were signed to establish connections between supply chains of Omani and Saudi factories, promoting joint manufacturing, technology transfer, and increased local value addition.
Trade relations between the two countries are robust, with trade volume projected to exceed $8 billion by the end of 2024. Officials attribute this growth to increasing business confidence, improved market integration, and efficient facilitation measures initiated by the coordination framework.
On the regulatory front, a memorandum of understanding was signed to protect competition and prevent monopolistic practices. Additionally, technical workshops have been organized to support regulatory harmonization, share expertise, and align legislation, fostering a more transparent and investor-friendly environment.
Engineer Jassim bin Saif al Jadidi, Technical Director at the Ministry of Commerce and Industry, provided a comprehensive report on the progress made over the past year. He highlighted that the launch of the second phase of industrial integration initiatives in July marked a significant turning point in bilateral industrial cooperation, especially in areas concerning local content and government procurement frameworks.
He further noted that both countries are making consistent progress toward finalizing the proof-of-origin verification agreement, which is expected to facilitate the movement of goods and lessen operational burdens on manufacturers.
Officials emphasized that deepening cooperation aligns with the objectives of Oman Vision 2040 and Saudi Vision 2030, positioning both nations to leverage stronger industrial partnerships, integrated supply chains, and sustained economic growth. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The deepening economic integration between Oman and Saudi Arabia signals a unique opportunity for local businesses to access new markets and lower operational costs. However, it also presents risks, such as increased competition from Saudi firms. Smart investors and entrepreneurs should prioritize aligning with the upcoming initiatives and developing strategic partnerships to leverage shared resources and bolster their market presence.
