Iran, Oman Resolute to Raise Bilateral Trade to $5 Billion

In a meeting with Chairman of the Oman Chamber of Commerce and Industry (OCCI) Qais Mohammed al-Yusuf in Tehran on Sunday afternoon, Chairman of Iran's Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Qolamhossein Shafeyee referred to the target of $5 billion bilateral trade between Iran and Oman for the year 2020, saying that the target can be fulfilled.

He added that Iran and Oman can reach $5 billion bilateral trade volume by 2020 provided that the necessary infrastructures are provided and banking problems are resolved.

The Omani business official, for his part, expressed his gratitude to efforts made by Iranian public and private sectors to remove barriers to the development of bilateral relations between Iran and Oman.

He believed that trade and investment relations between Iran and Oman are improving, and the two sides are working to develop mutual relations, and the chambers of commerce of the two countries are working to provide facilities.

In addition to government officials, Oman's private sector activists are also serious about economic cooperation with Iran, according to al-Yusuf.

He said that the investment and trade relations between Iran and Oman are improving, suggesting that the two countries can establish a barter mechanism. He also proposed forming a committee comprising representatives of private sectors of Iran and Oman to work on the barter mechanism.

On Sunday, Iranian First Vice President Eshaq Jahangiri, in his Sunday meeting with visiting Omani Minister of Commerce and Industry Ali bin Masud al Sunaidi, hailed the high level of political relations between the two countries, adding that Tehran sees no limitation in developing relations with Muscat.

On Saturday, Tehran and Muscat signed three Memoranda of Understanding (MoUs) to increase joint efforts in areas of maritime transportation, standard, and sports.

The Head of Iran Trade Promotion Organization Hamid Zadboum said on Saturday that trade, investment, industry, chambers of commerce, free zones, the environment, electricity and gas are some common areas of cooperation between Iran and Oman.

According to Head of Iran-Oman Joint Economic Committee, Iran's exports to Oman reached $728 million this year, while the two countries’ trade turnover hit $1.16 billion, indicating a 5.3 percent increase in trade between the two countries in about five years.

Last month, Head of Iran-Oman Chamber of Commerce Mohsen Zarrabi said that the volume of Iran's annual exports to Oman has skyrocketed from $146 to $728 million in the past year which indicates a fivefold jump, hailing the rise also in the volume of imports from the Arab country.

In a meeting with Omani Ambassador to Tehran Saud bin Ahmad Khalid al-Barwani on November 12, Zarrabi said that the economic interactions between Iran-Oman joint chambers are expected to increase, citing that Iran’s exports to Oman stood at $146 million in the Iranian year of 1396 (March 21, 2017-March 20, 2018) but the figure increased up to $728 million in the Iranian year of 1397 (March 21, 2018-March 20, 2019).

He went on to say that Iran's imports from Oman has also reached $433 million resulting in increasing of trade volume to $1.1 billion.

Thanks to its good political relations with various countries, having free trade agreement with them and its membership in World Trade Organization, Oman can be a good target for exporting Iranian products to various markets in the world, Zarrabi noted.

He reiterated that the best way for entering into Oman's market is to attend eight exhibitions which have been established through Omani government's efforts.

The Omani envoy, for his part, said, “Omani officials seek expansion of economic ties with Iran.”

“It is vital for delegations from both countries to attend Iran-Oman joint economic summit to prepare the ground for development of mutual economic relations,” he added.

Late in October, Tehran and Masqat announced that they are eager to boost their trade ties up to $1bln.

"The volume of trade exchanges between the two countries are expected raise to $1bln by the end of this year," Head of Iran-Oman joint chamber of commerce Mohsen Zarrabi told FNA on October 28.

He also added that the volume of Iran's exports to Oman had increased by 57% in the first six months of the Iranian year of 1397 (March 21, 2018- August 20, 2019) compared with the corresponding period in 2017.

Zarrabi said that imports of goods from Oman to Iran have also shown a 264% increase in the past six months of the current year.

Iran and Oman have had good economic relations from old times and the ties have even expanded in recent years due to extended bank cooperation between the two countries.