Oman & Turkiye: Fruitful march of economic relations

Oman Tuesday 26/November/2024 17:27 PM
By: ONA
Oman & Turkiye: Fruitful march of economic relations

Muscat: The Sultanate of Oman and the Republic of Turkiye look forward to achieving more accomplishments in bilateral relations and trade, investment, cultural and academic cooperation, as they mark fifty years of diplomatic relations that began on 18 June, 1973.

The Embassy of the Sultanate of Oman was opened in Ankara in 1985 and the Embassy of the Republic of Turkiye in Muscat was opened in 1986. Through the two embassies, both countries seek to strengthen the bonds of cooperation and consolidate the friendship relations that extend to the sixteenth century.

These advanced bilateral relations are witnessing remarkable growth and great development in many fields.

The state visit of His Majesty Sultan Haitham bin Tarik to the Republic of Turkiye this Thursday and his meeting with President Recep Tayyip Erdogan would boost the march of the fruitful cooperation. The visit reflects the keenness of the two countries’ leaderships on backing the bilateral cooperation in various spheres to serve joint interests.

The Sultanate of Oman has participated in several meetings held in the Republic of Turkiye, including the Islamic Cooperation Meeting on Jerusalem, which was held in Istanbul on 18 May, 2018, and the 40th Ministerial session of the Standing Committee for Economic and Commercial Cooperation (COMCEC) of the Organization of Islamic Cooperation, held in Istanbul at the beginning of this month.

The volume of trade exchange between the Sultanate of Oman and Turkiye is witnessing continuous growth, as statistics issued by the National Centre for Statistics and Information (NCSI) indicate that it reached more than OMR216 million ($561.6 million) by the end of the first eight months of 2024, compared to more than OMR208 million ($540.8 million) during the same period in 2023.

Turkiye ranks 17th among the Omani non-oil importers. It is also the largest recipient of Omani non-oil exports in Europe, according to 2023 statistics issued by the National Centre for Statistics and Information.

The Sultanate of Oman has also witnessed a significant increase in the number of Turkish businessmen and companies seeking to invest and work in the Sultanate of Oman, as the number of registered companies with Turkish participation by the end of 2023 reached 423. The total value of the invested capital amounted to more than OMR100 million (about $267 million).

The activities of Turkish companies in the Sultanate of Oman include various sectors such as construction, wholesale and retail, industry, and logistics. These companies have been contributing to the implementation of a number of the largest infrastructure projects in the Sultanate of Oman, including airports, ports, roads, dams, and other projects.

Meanwhile, the number of companies established by Omani citizens in the Republic of Turkiye is about 36, with an investment volume of about OMR75 million ($195 million) until the end of 2022, according to data from the Turkish Ministry of Commerce.

In December 2023, the Embassy of the Sultanate of Oman in Ankara, in cooperation with the Ministry of Commerce, Industry and Investment Promotion and the “Invest Oman” lounge organised a workshop on investment incentives in Oman. The event saw the participation of Turkish businessmen, members of the Association of Mediterranean Countries.

In the tourism side, the two countries seek to boost tourism cooperation by organising events and meetings that aim at attracting Turkish tourists to visit Oman and get acquainted with its tourism potentials. Meanwhile, the number of Omani tourists to Turkiye increased in 2022 to more than 130,000 tourists after visa waiver for both countries.

In the field of higher education, the Sultanate of Oman and the Republic of Turkiye signed a memorandum of understanding (MoU) last October, which includes the exchange of scholarships, mutual recognition of higher education institutions between the two sides, the transfer of science, knowledge and technology, and organising training courses, seminars, symposia, conferences and bilateral forums, as well as conducting research.

The two countries also signed a memorandum of understanding on the establishment of Yunus Emre Institute for Turkish Language in Muscat, during the Omani-Turkish Joint Committee meeting held in Ankara in 2022. Moreover, Sultan Qaboos University and the Turkish Maarif Foundation signed an agreement in 2019 to avail the Turkish language as an elective course at the university.

In 2010, the two countries signed a memorandum of understanding for cooperation in the field of archives, represented by the National Records and Archives Authority in Oman and the General Directorate of State Archives of the Turkish Prime Ministry. The memorandum provides for cooperation in the field of archives between the two countries and facilitates the Sultanate of Oman’s access to copies of documents and archives from Turkish archives.

On 17 May, 2023, the National Records and Archives Authority issued four new publications that talk about "Oman in Ottoman Documents: 370 Years of Historical Relations", as the Sultanate of Oman was linked to an extended history of historical relations with the Ottoman Empire throughout the reign of the Ottoman Sultans. The depth of these relations was revealed by examining the documents of the Ottoman archives, for which three volumes were devoted. The fourth part, entitled "Omani-Turkish Relations in the Documents of the Turkish Republic", underlined the advanced relations between the two countries.

A documentary exhibition titled “Memory of a Nation” was held in Salalah in Dhofar Governorate during 5-21 August 2024, in the presence of a number of Omani and Turkish officials. The exhibition shed light on the historical relations between the Sultanate of Oman and the Republic of Turkiye.

Saif Rashid Al Jahwari, Ambassador of the Sultanate of Oman to the Republic of Turkiye said that the state visit of His Majesty Sultan Haitham bin Tarik to Turkiye marks a new era in march of the historical relations between the two countries.

He told Oman News Agency (ONA) that this state visit coincides with the two countries celebrating the 50th anniversary of the establishment of diplomatic relations between them, as well as the Turkish Republic’s celebration of the centenary of the founding of the Turkish Republic.

He pointed out that the talks to take place between His Majesty the Sultan and the Turkish President would lay that foundation for further strategic relations between the two countries, in a manner that serves their peoples.

“During the visit, a number of agreements and memoranda of understanding will be signed to boost cooperation between Oman and Turkiye in many areas, including political and diplomatic fields, economic, commercial, financial and investment cooperation, military cooperation and defence manufacturing, transportation, communications, energy and emergency management, culture, higher education and scientific research, media and news agencies, in addition to the fields of health and medical sciences, labour and SMEs development,” added the Ambassador.

The Omani-Turkish Joint Committee held many meetings, the last of which was the 11th meeting held on 3 November, 2022 in Ankara.

During the meeting, a cooperation protocol was signed between the two countries.

In this context, the Ambassador pointed out that the Joint Committee is the main driver of economic, trade and technical relations between the two countries. Its next meeting is scheduled to be held in Muscat next month, under the chair of Qais Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion from the Omani side, and Dr. Mehmet Simsek, Minister of Treasury and Finance from the Turkish side. It will follow up on strengthening aspects of economic, trade, technical and investment relations between the two countries in a manner that benefits the Omani and Turkish peoples.

As for the Omani investments in the Republic of Turkiye, the Ambassador said that Oman Investment Authority owns a major stake in the strategically located Kumport Port on the European side of Istanbul since 2011. The port represents the main gateway for consumer goods to the city of Istanbul, and provides a range of services such as handling containers and general cargo, rolling services, in addition to storage and unloading services.

He pointed out that the agreement signed by Oman LNG and BOTAŞ Petroleum Pipeline Corporation has a great importance to Oman and Turkiye, as it is the first agreement to export Omani gas to a new market, namely the Turkish market.

“Many Turkish officials have underlined the importance of this agreement to their country, as it comes at a time when Turkiye is working to renew many of its contracts in the energy sector. Omani liquefied gas will contribute to increasing the diversification of Turkish energy sources during the next decade, which will allow for further cooperation between the two countries in the energy sector in its various traditional and renewable aspects,” said the Ambassador.

On his turn, Mehmet Hakimoğlu, Ambassador of the Republic of Turkiye to the Sultanate of Oman underscored the historic state visit to be made by His Majesty Sultan Haitham bin Tarik to Turkiye on 28-29 November 2024, as it is the first visit of its kind for an Omani Sultan to Turkiye since almost 40 years.

“On this occasion, we look forward to signing many agreements in the political, economic, commercial, defence, cultural and many other fields. This visit would definitely contribute to promoting bilateral relations and cooperation between our two countries in all fields,” said the Turkish Ambassador.

He stressed to Oman News Agency (ONA) the deep-rooted Turkish-Omani relations, that reached their peak during the Ottoman era, where this strategic partnership prompted the sultans of the two countries to exchange messages of friendship and respect.

He pointed out that this partnership between the two countries has led to strengthening the rapprochement between the two peoples as a result of this cultural and social interaction.

He affirmed that the state visit of His Majesty the Sultan would open new horizons in the relations between the two countries and opportunities for joint cooperation through the signing of a number of agreements and memoranda of understanding. These pacts, said the Ambassador, would provide the two countries with wide opportunities for cooperation in various fields such as education, health, defense, and energy.

He added that within the framework of the agreement signed between Oman LNG and BOTAŞ Petroleum Pipeline Corporation, one million tons of liquefied natural gas will be supplied annually from Oman starting in 2025 for a period of 10 years. This agreement contributes to enhancing energy security in both Turkiye and Oman, in addition to achieving the vision of diversifying energy sources, which enhances the existing cooperation between the two countries, said the Ambassador.

Meanwhile, Faisal Abdullah Al Rowas, Chairman of the Board of Directors of Oman Chamber of Commerce and Industry (OCCI), pointed out that the Omani-Turkish relations are based on long years of friendship and joint cooperation in many fields, including the economic cooperation, which has witnessed a significant growth over the past years.

He affirmed to Oman News Agency (ONA) that His Majesty’s state visit to the Republic of Turkiye would constitute a qualitative shift in supporting these relations, as the talks between His Majesty and the Turkish President will set the necessary frameworks to push these relations towards wider horizons.

He added that the private sector in both countries has worked to crystallize this cooperation through the Omani-Turkish Business Council, which plays a major role in providing the appropriate environment for businessmen from both sides to discuss investment cooperation opportunities and contribute to raising the value of trade exchange between the two countries.

OCCI Chairman stated that this state visit underscores the deep historical ties between Oman and Turkiye. It also embodies a sincere desire from the leaderships of the two countries to open wider horizons for cooperation in all commercial and investment fields, said Al Rowas, who added that the state visit also aims to enable both sides to benefit from promising opportunities and sign a number of agreements and memoranda of understanding that will establish joint strategic projects that contribute to raising the levels of mutual investment.

He pointed out that the visit will allow the Omanis and Turkish companies to explore opportunities for fruitful cooperation within a facilitated economic and investment framework, which supports the two countries’ aspirations towards sustainable economic growth, generating job opportunities and enhancing innovation.

He affirmed that the Sultanate of Oman seeks to attract more Turkish investments to the special economic zones and free zones that offer highly competitive incentives and advantages, which contribute to diversifying the Omani economy and raising the level of trade exchange between the two countries.

This visit, he said, confirms the interest of both sides in enabling the private sector to play a pivotal role in supporting economic cooperation by providing an appropriate environment for investment and partnership.