TEHRAN – The capital city of the Sultanate of Oman hosted a grand business forum on Tuesday in which opportunities and challenges for expanding trade between Iran and the Sultanate were explored, the portal of Iran’s Trade Promotion Organization (TPO) reported.

The event was attended by senior officials from the two sides, including TPO Head Alireza Peyman-Pak and Chairman of Oman Chamber of Commerce and Industry (OCCI) Readh Juma Mohammed Ali Al Saleh, as well as the representatives of the two countries' private sectors.

Speaking in this meeting, Peyman-Pak referred to the strategic position of Iran and Oman in the region and noted that the two countries can use their geopolitical capacities to expand their economic ties especially through transiting goods.

The official also mentioned Oman’s free trade agreements with other countries and the region’s $1.5 trillion trade capacity, saying that the two countries should take necessary measures to increase their share in the regional market by developing trade infrastructure and activating the North-South corridor.

The OCCI chairman for his part referred to the recent increase in trade between the two countries, saying "Despite the banking and transportation problems, with the efforts of both sides, trade relations between Iran and Oman will continue to improve."

Establishing a joint shipping company

Prior to attending the business forum, Peyman-Pak met with the chief executive officer of Oman Shipping Company.

During this meeting, the two sides discussed various issues including the establishment of a joint shipping company.

The officials stressed the need for activating the transport capacities of the two countries in order to develop bilateral and multilateral relations, especially in the fields of transit.

Developing transit co-op a prerequisite for boosting trade

Peyman-Pak also held talks with Omani Minister of Transport, Communications, and Information Technology Saeed Bin Hamoud Al-Mawali during his visit to the Sultanate.

In this meeting, the officials had also emphasized the development of transportation infrastructure in order to facilitate trade between the two countries.

The two sides decided that Iran and Oman will consider long-term and joint cooperation in the field of transportation and transit and will have the necessary follow-ups in order to implement their mutual projects in this regard.

It was also decided that the two sides would hold a joint working group on maritime transport to carry out research, discuss the challenges and find the necessary technical solutions for expanding cooperation in this field.

Alireza Peyman-Pak, who is also a deputy industry minister, led a 30-member trade-marketing delegation to Muscat on Monday, as Iranian President Ebrahim Raisi is due to visit the Arab country in the near future.

The head of the Export Guarantee Fund of Iran (EGFI) and the deputy head of the Iranian Ports and Maritime Organization (PMO) also accompanied Peyman-Pak on this trip.

As previously announced by the head of the Iran-Oman Joint Economic Committee, the value of trade between Iran and Oman hit a record high in the past Iranian calendar year 1400 (ended on March 20), from its previous year.

Mohsen Zarrabi put the annual trade between the two countries at $1.336 billion in the past year, showing 53 percent growth year on year.

The official also said that Iran’s export to Oman rose 63 percent to stand at $716 million in 1400, from $438 million in 1399.

Iran shares borders with fifteen countries, namely the United Arab Emirates (UAE), Iraq, Turkey, Afghanistan, Pakistan, Russia, Oman, Azerbaijan, Turkmenistan, Kuwait, Qatar, Kazakhstan, Armenia, Bahrain, and Saudi Arabia.

Expansion of trade with these neighbors, especially increasing non-oil exports to them, is one of the major plans that the Iranian government is now pursuing.

Among the mentioned countries, Oman is one that the Islamic Republic has attached priority in this due, as the two neighbors enjoy an old history of good political and economic relations as well as many religious and cultural commonalities.

As stated several times by the officials of the two countries, the ground is completely prepared for the expansion of trade relations between Iran and Oman.

Emphasizing that the basic infrastructure is prepared for the development of trade relations between Iran and Oman, the head of the Iran-Oman Joint Chamber of Commerce, had previously said that with the beginning of sanctions and the severance of some countries' relations with Iran, the government of Oman not only did not cut its trade relations with Iran but also they are trying to increase economic relations with the Islamic Republic in the framework of international relations and with a win-win approach.

Oman not only did not close its borders during the pandemic, when most countries closed their borders to Iranian goods but also increased shipping lines to Iran, Zarrabi further noted.

EF/MA

Photo: TPO Head Alireza Peyman-Pak (C) and OCCI Chairman Readh Juma Mohammed Ali Al Saleh (2nd R) attend an Iran-Oman business forum in Muscat on Tuesday.