TEHRAN - Iran and Oman have signed a memorandum of understanding (MOU) on preferential trade and customs cooperation.

According to IRIB, the MOU was signed during the 21st Joint Economic Committee meeting between Iran and Oman which was held in Muscat.

This meeting, described by the Iranian Minister of Industry, Mining, and Trade as distinct from the previous 20 gatherings, focused on three key agendas.

Mohammad Atabak, Minister of Industry, Mining, and Trade, highlighted the signing of the MOU and elaborated on the meeting's agenda.

The first agenda item addressed the establishment of a preferential trade agreement and the elimination of tariffs between the two countries. Atabak stated that this initiative had been approved, with implementation set to begin next week.

The second agenda item involved supporting joint investments between Iran and Oman. Atabak announced that both nations had reached an agreement on this issue.

The third agenda focused on necessary administrative and customs collaborations to facilitate trade. The minister noted that required planning and task allocation had been completed, and this initiative is expected to yield results shortly.

In meetings with Omani ministers of trade and energy and the chairman of Oman’s investment authority on the sidelines of the joint cooperation meeting, the two sides also explored avenues of cooperation in various areas.

Mousa Farhang, Iran's ambassador to Oman, stated that several agreements are in their final stages and are expected to be concluded during upcoming bilateral meetings.

Solutions to facilitate cargo transportation

In a meeting with Oman's Minister of Transport and Communications, Atabak explored strategies to facilitate the transportation of goods, passengers, and commercial exchanges. This discussion aimed to expand economic and trade cooperation between the two nations.

On Wednesday evening, Mohammad Atabak arrived in Oman as the Iranian head of the Joint Iran-Oman Cooperation Committee. The following morning, he held discussions with Oman's transport minister regarding enhanced logistics and trade.

In early July 2024, the former Head of Iran's Trade Promotion Organization (TPO) Mehdi Zeighami met the director of trade, industry, and investment development from the Sultanate of Oman to discuss areas of joint investment, industrial matters, and financial affairs between the two countries.

Zeighami said at the time that the first round of the talks to establish a Preferential Trade Agreement (PTA) between Iran and the Sultanate of Oman was held in Muscat.

The trade and economic relations between the two countries have been consistently improving in recent years, he said, adding that the conclusion of the Preferential Trade Agreement and the establishment of close trade and economic relations in all fields are of paramount importance.

He characterized the trade volume between the two countries in the last Iranian calendar year (ending March 19, 2024) as "unprecedented".

He noted that the initiation of the PTA between the two countries aligns with objectives like bolstering economic relations, augmenting trade volume, creating a safer environment for trade growth, diversifying traded goods, fostering greater competition among businesses, and eliminating trade obstacles faced by both countries.

Also, a business delegation from Oman visited Iran’s Imam Khomeini Port in southwestern Khuzestan province in early September 2024 during which they expressed interest in using the commercial capacities of the port for expanding economic ties with Iran.

According to Head of Ahvaz Chamber of Commerce Mohammad-Javad Amani, the business delegation, who arrived in Khuzestan on Saturday, visited Khorramshahr and Arvand Free Trade Zone in order to explore trade opportunities in the area, the portal of Iran Ports and Maritime Organization (PMO) reported.

During the visit, the two sides concluded several cooperation agreements, and the Omani side emphasized increasing cooperation between the private sectors of the two countries, Amani said.

Referring to the delegation's visit to the Special Economic Zone of Imam Khomeini Port as the country's largest grain trading center, he added: “Port capacities for the supply of goods, transit, the possibility of re-exporting, as well as making large private sector investments in this area were among the issues that were discussed during the visit.

According to the head of Ahvaz Chamber of Commerce, visiting the factories located in the special economic zone of Imam Khomeini Port, familiarizing with the processing products, and examining the available resources and investment requirements in this area, were also among the goals of this economic delegation's trip to Imam Khomeini Port.

During their trip to Khuzestan, the members of the Omani business delegation pointed out the activity of 14 free and special economic zones in Oman and emphasized the interest in developing economic cooperation with Iran, and called for the development of trade and commercial activities between the two sides.

The delegation also visited the loading and unloading operation site of the Imam Khomeini port and became familiar with the port capacities in this regard, according to Amani.

Iran shares land or water borders with 15 countries namely UAE, Afghanistan, Armenia, Azerbaijan, Bahrain, Iraq, Kuwait, Kazakhstan, Oman, Pakistan, Qatar, Russia, Turkey, Turkmenistan, and Saudi Arabia.

Expanding trade with the neighboring countries is one of the major plans that the Iranian government has been pursuing in recent years.

Iran and Oman have signed two memorandums of understanding (MOU) to boost bilateral cooperation and emphasize the importance of using their national currencies in mutual trade instead of the dollar.

The mentioned MOUs were signed during the two countries’ 20th Joint Economic Committee meeting in Tehran on December 6, 2023.

One of the MOUs was signed by Ali-Abadi, and Oman’s Minister of Commerce, Industry and Investment Promotion Qais Mohammed Al Yousef on supporting joint investment by the two sides.

Iran’s Ministry of Industry and Oman’s Chamber of Commerce also signed an MOU to boost cooperation in technology as well.

The two sides have also exchanged views on ways of expanding cooperation in the field of fishery and agriculture, deciding to hold a joint fishery exhibition soon.

During the joint committee meeting, Ali-Abadi announced Iran’s readiness to jointly implement key industrial projects with Oman including the construction of an industrial park, the establishment of power plants as well and cooperation in maritime transport projects among others.

The Omani minister on his part emphasized the importance of boosting economic and trade relations between Tehran and Muscat.

During his stay in Tehran, Mohammed Al Yousef also met with Governor of the Central Bank of Iran (CBI) Mohammad-Reza Farzin, and stressed the importance of using Iranian and Omani national currencies in mutual trade.

The Omani official said his country wants to have a strong presence in establishing the required infrastructure for banking and monetary transactions in Iran, implementing joint projects, as well as making investments in industrial and mineral projects. Omani investors are also keen to participate in energy projects and to develop Iran’s gas fields, he added.

The top Iranian banker also said that his country welcomes any measure that helps boost monetary and banking cooperation between the two countries.

Farzin stressed the importance of using national currencies by the two countries in their mutual trade instead of the dollar as well.

EF/MA