Oman & US strike $500mn deal to promote bilateral trade & investment 

By Arya M Nair, Official Reporter
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US-Oman strategic dialogue
Image Courtesy; ONA

The Sultanate of Oman and the US have signed a Memorandum of Understanding (MoU) of $500 million to explore options for utilizing the Export-Import Bank of the United States’ (EXIM) financing and to promote trade and investment.

Both sides discussed and outlined areas of cooperation within three working groups including, trade and investment, clean energy and education, culture and science. Both countries underscored the importance of boosting trade and investments in strategic fields.

In a joint statement, the two sides pointed out that the first Strategic Dialogue coincides with the 190th anniversary of the signing of the Treaty of Amity and Commerce, which established commercial relations between the two countries. It was the first trade agreement the US signed with an Arab country.

Oman, whose bilateral trade with the US topped $4.22 billion in 2022, the highest ever and up 30 percent from 2021, will see US collaboration in strategic sectors of its economy, ranging from renewable energy to manufacturing, it was decided at the start of the inaugural session of the Strategic Dialogue between the Sultanate of Oman and the United States of America.

In trade and investment, participants from both countries discussed activating a working mechanism to maximize the benefits of the United States-Oman Free Trade Agreement (FTA), the issue of tariffs, promoting trade and investment in strategic areas such as mining, logistics, energy, fisheries, agribusiness, and telecommunications, and exploring possibilities for collaboration in the digital economy.

They also explored opportunities to collaborate on clean energy solutions such as carbon removal, clean hydrogen, industrial decarbonization, as well as clean energy policy, including Oman’s net-zero 2050 roadmap, methane emissions reduction and other short-lived climate pollutants, and Oman’s plans for COP28.

Both sides welcomed cooperation on education, culture, and science, and discussed a mechanism for resuming the Fulbright program for Omani students and scholars and developing programs in key areas discussed by both countries.

The two sides highlighted their close cooperation on issues that are central to the bilateral relationship, such as investment in innovation, higher education, and scientific research programs, including initiative programs in various fields.

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