A new era of economic cooperation is dawning between the Sultanate of Oman and the Italian Republic, solidified by the recent visit of Italian Prime Minister Giorgia Meloni to Muscat. This visit signifies a strategic move to maximize collaboration and forge a more diversified and sustainable partnership between the two nations. Building on strengthened political coordination in recent years, the focus is now shifting towards tangible economic benefits and long-term investment opportunities.
Strengthening Oman-Italy Relations: A Historical Overview
The foundations for closer ties were laid with a significant meeting last December between His Majesty Sultan Haitham bin Tarik and Prime Minister Meloni on the sidelines of the GCC Summit. This encounter served as a catalyst for discussions on expanding cooperation across a multitude of sectors, demonstrating a mutual commitment to a more robust relationship. Both countries recognize the potential for synergy and are actively working to unlock it.
Trade Exchange and Current Economic Landscape
Data from the National Centre for Statistics and Information reveals a substantial trade volume between Oman and Italy. In 2023, the total trade exchange reached approximately OMR184.3 million, with Omani exports to Italy totaling OMR33.6 million and imports from Italy amounting to OMR150.7 million. This indicates a strong demand for Italian products within Oman, while also showcasing Oman’s growing export capabilities.
Key Omani Exports to Italy
Oman’s export portfolio to Italy is diverse, encompassing crucial sectors like metals and their products, plastics and rubber, machinery and mechanical appliances, electrical equipment, vehicles, and transport equipment. These exports highlight Oman’s resource wealth and its developing industrial base. The increasing sophistication of these exports is a positive sign for the Omani economy.
Key Italian Exports to Oman
Conversely, Oman’s imports from Italy are primarily focused on chemical industry products, food industry products, and machinery, appliances, and electrical equipment. This demonstrates Italy’s strength in these manufacturing areas and its role in supplying Oman with essential goods and technologies. The demand for specialized Italian products is a key driver of this trade.
Tourism as a Bridge Between Cultures
Beyond trade, tourism is playing an increasingly vital role in fostering closer ties. By the end of December 2023, approximately 80,607 visitors arrived in Oman from Italy, signifying a growing interest in the Sultanate’s rich cultural heritage and stunning landscapes. The introduction of direct flights to Rome has been instrumental in boosting this influx, making travel more convenient for Italian citizens.
A Shift Towards Investment Partnerships
Faisal Abdullah Al Rowas, Chairman of the Board of Directors of Oman Chamber of Commerce and Industry, emphasizes that the relationship is evolving beyond traditional trade. He notes a “qualitative development” driven by converging strategic and economic visions, moving towards investment partnerships focused on value-added activities, knowledge transfer, and integration into global production chains. This shift is crucial for long-term sustainable growth.
This momentum is particularly timely, coinciding with the implementation of “Oman Vision 2040,” which prioritizes economic diversification, private sector empowerment, and sustainability. Italy’s own ambitions to expand its international economic presence and forge partnerships in promising markets align perfectly with these goals. The focus is now on deepening joint investments in productive and service sectors to improve the trade balance and enhance national economic competitiveness.
Promising Sectors for Collaboration
Several sectors hold significant potential for enhanced Oman-Italy economic cooperation. The energy sector, particularly renewable energy and green hydrogen, is a prime example. Oman’s advantageous geographical location and abundant natural resources, combined with Italy’s expertise in clean technologies, create a compelling synergy. This is already evidenced by the collaboration between Oman Oil Company Exploration and Production and Eni in Block 47.
Additionally, opportunities abound in value-added manufacturing, advanced industrial technologies, digital transformation, the circular economy, and the agriculture and food industries. Oman’s focus on food security and modern agricultural techniques presents a fertile ground for partnerships with Italian companies possessing relevant experience. These collaborations will be vital for achieving the objectives of Oman Vision 2040.
The Role of Business Forums and Institutional Support
Business meetings and bilateral economic forums are considered essential tools for translating potential into concrete projects. These platforms facilitate direct communication between investors, encourage the exchange of best practices, and build trust within the business communities of both countries. The Oman Chamber of Commerce and Industry is actively playing a strategic role in fostering this environment through organizing events, coordinating meetings, and providing support to the private sector.
Salma Ali Al Hashmi, Vice President of Marketing at The Wave, Muscat, and Board Member of the Omani-Italian Friendship Association, highlights the importance of these initiatives. She notes that the Association has already organized successful investment forums and bilateral meetings, aiming to establish commercial partnerships. Furthermore, she emphasizes the ongoing efforts to enhance tourism and preserve archaeological heritage, areas where Italian expertise can be particularly valuable.
Looking Ahead: Expanding the Scope of Investment
The upcoming visit of the Italian Prime Minister is expected to further accelerate this positive trajectory, transforming diplomatic relations and trade exchange into concrete investment plans and sector-specific partnerships. This will broaden the scope of investment beyond traditional sectors, encompassing renewable energy, advanced logistics, tourism assets, industrial supply chains, and high-value services. Ultimately, this strengthened bilateral trade relationship will contribute significantly to the economic growth and diversification of both Oman and Italy.
