UAE, Oman to boost trade and investment ties

The UAE and Oman are exploring investment opportunities worth 30 billion dirhams and will increase bilateral economic cooperation in strategic sectors, according to a statement released during President Sheikh Mohammed bin Zayed's visit to the Sultanate.

Considered one of the Gulf's weaker economies, increased trade and investment support from a regional heavyweight - the UAE is the Gulf's second biggest economy - will help the Sultanate progress with plans to diversify its economy away from oil.

During the visit, Abu Dhabi investment fund ADQ and Oman Investment Authority agreed to establish a 592 million dirham venture capital fund to invest in technology companies in Oman and explore 30 billion dirhams of investments in sectors across renewable energy, food and agriculture, communications, logistics and healthcare. No specific details or timeframe for new investments was given.

ADQ and OIA have previously signed a 10 billion dirham investment partnership agreement.

A new $3 billion joint railway company was also established to set up and operate a rail link between Oman's Sohar port and the UAE's network, cutting down transport time and boosting trade routes.

The UAE and Oman have committed to long term economic development plans to diversify revenue away from hydrocarbons.

"Today's engagement builds on our recent efforts and commitment to develop tangible investment partnerships in key markets, such as Oman, that complement our investment strategy and growth aspirations,' Mohamed Hassan Alsuwaidi, ADQ's chief executive officer, said in a statement.

Such investments are also key for Oman, which swung to a budget surplus in the first half of 2022 on the back of higher oil prices, easing pressure on public finances and improving the state's ability to meet its upcoming debt obligations.