NOURNEWS - Iran's economic diplomacy with the Persian Gulf countries has always had many ups and downs, and it has not been able to take full advantage of its potential.
The Sultan of Oman's visit to Iran this week along with an economic delegation promises to expand Iran's commercial and economic relations with its neighbors.
"Mohsen Sheraftinia", an expert at the Think Tank of Economic Diplomacy of Imam Sadiq University in his interview with Nournews said:
The neighborhood policy of the Islamic Republic of Iran and the Sultanate of Oman is important because of the geopolitical, political and security characteristics, cultural and religious commonalities, and the historical background of the two countries. The border between the two countries in the Makran coast and the Strait of Hormuz has made a part of the security and economy of the two countries dependent on each other.
The political and economic stability of Oman is the most important indicator of economic and commercial relations with this country. Oman has established good trade relations with almost all countries in the region and the world and is considered a safe region for exporting various goods and investing in various sectors.
The business climate index of this country is 48, and inflation in Oman is below 3 percent and the interest rate of Oman's banking facilities is also low. In addition to being a good market for Iranian products, Oman can be a suitable bridge for re-exporting to access markets that have cut ties with Iran due to political reasons.
Currently, due to the statements of the leadership regarding the increase of communication with African countries and the long history of Oman's trade with African countries, it is easier to access the African market through Omani businessmen.
East Africa has long been part of the territory of the rulers of Muscat, and for this reason there are good economic and cultural relations between the Sultanate of Oman and these countries. Iran can use Oman and especially the large port of Salalah as a bridge for easy access to these areas, which will be a virgin market for Iranian products.
*Promotion of e-commerce
One of the issues raised in the export of Iranian goods through the markets of Oman is the establishment of e-commerce between the two countries. Various agencies in the field of foreign trade, Ministry of Economy, Ministry of Security and Trade Development Organization, Customs, Private Sector and Chambers of Commerce and Ministry of Communications should make more efforts to improve and develop e-commerce.
* Increasing energy diplomacy with Iran
In comparison, Oman has more limited access to oil and gas resources in the Persian Gulf than Iran. For this reason, it needs its neighbors to compensate its energy needs. Currently, Oman supplies part of its gas needs through a pipeline that starts from Qatar and reaches this country by passing through the United Arab Emirates.
Political and border issues and disputes between the two countries of Oman and the United Arab Emirates have made Oman not consider this pipeline a safe place to meet its long-term needs, and the UAE can put pressure on Oman in this way.
With its commercial relationship with Iran, in addition to access to Iran's huge gas resources through the Caspian Sea, Oman has also tried to solve this problem by transferring gas resources from Turkmenistan and Russia through Iran. A contract has been signed between Iran and Oman in this field, and following it, not only will part of Oman's need for energy be met, but Iran's foothold in Oman's energy field will be opened in other fields, such as the power plant field, in which Iran has high expertise. Oman's proximity to Iran's gas projects will be very effective in facilitating this.
* Development of the transportation industry
The development of the rail and road transport industry and the expansion of the infrastructure of roads and roads in Iran through Oman to access the country's gas resources with regard to the export target points is one of the cases of increasing energy diplomacy interactions with Iran, which the Sultanate of Oman is looking for.
*Providing facilities to Iranian investors
Considering Iran's capabilities in technical knowledge, Iran can get facilities from Omani banks through investment and export of raw materials and technical and engineering services.
Omani banks are ready to provide 50-70% banking facilities to projects that Iranians invest in Oman. In 2015, the government of Oman presented a plan, according to which the economy of Oman will be transformed into a completely non-oil economy, and oil and the income of the oil industry will be replaced by other industries. This plan has been Attracting foreign capital in non-oil sectors.
* Food industry exports to Oman
Since Oman imports more than 90% of its food, another investment opportunity with Oman is the food industry. The export of food and dried fruits has the highest value and profitability for Iran, which is a suitable platform for increasing the export of this type of goods to Oman.
*Oman's comparative advantage in the fishing industry
In Oman, there are opportunities and capacities that are not available in other countries and other neighbors, and for this reason, Oman has a comparative advantage for Iran in the field of fishing industry. Since 2010, Oman has had various projects in the field of promoting the fishing industry, which can be used.
In 2015, Oman received an amount of 110 million dollars from the World Bank to strengthen its fishing fleet and renovate the fishing docks, which shows the development of the country's fishing industry since 2015. Most of the Iranian population in southern parts of Iran are experts in the fishing industry, because of this reason, Iran can Use fishing capacity of Oman.
And in the end that; In 2017, Iran exported more than 800 million dollars to Oman, which has now reached 630 million dollars, which is due to the infrastructure provided between the two countries in the areas of company registration, visa removal and issuance of visas at the points of entry, increasing sea shipping lines and Direct flights between Iran and Oman and the potentials of Oman to increase exports, re-exports of Iranian goods and imports through Oman, as well as the capacities that exist between the two countries in the fields of mining, fisheries and tourism, the possibility of increasing the volume of economic relations between the two countries has been provided.
Considering the 13th government's emphasis on the need for active economic diplomacy with its neighboring countries, Oman can be one of the countries that will be targeted for long-term cooperation in various commercial and economic fields.
BY: Pooya Mirzaei
NOURNEWS