Free trade with India a booster for Asia Oman keen on Agreement


One can feel the warmth with which he receives you. Even before one settles down, the tea he ordered is already there. With the cup of tea are fresh dates from the Sultanate of Oman - - the country which he represents as the Ambassador. H E Sheikh Humaid Ali Al-Maani makes you feel at home even in the first meeting. THE BLUE MOON Editor, Amit Mittal got an opportunity to speak to him on various bilateral subjects.Some excerpts:

“India and Oman enjoy a rich history and a cultural affinity which has been promoted by constant contact between the peoples of the two countries. We are the closest neighbours of each other, in fact we are in the Indian Ocean which contributes to a healthy growth of relations between the two countries. Historically speaking, people from Oman traded with India even before the Indus valley civilization and trade continues to grow in a positive environment today.”

The waters of Oman Sea wash the shores of the two countries and are a natural link between the two from immemorial times. The Sultanate of Oman is indeed the first Arabian nation when one sails out from the western shores of India.

“The trade between the two countries is growing. In terms of currency it stands at 2.7 billion US Dollars and, in terms of percentage, has achieved a growth rate of 40 to 45 per cent. In addition to the trade, we have many joint ventures in fields like petrochemicals. We have joint ventures in oil and gas sector with exploration rights in some ventures in India. Oman Oil has increased its investment by 250 million US Dollars to raise its share to 26 per cent in such a joint project of Bharat Oman Refinery.”

The six million ton refinery project estimated to cost 2.4 billion US Dollars is underway at Bina, Madhya Pradesh. The project is nearing completion and is expected to be commissioned early next year. Production at the refinery is expected to start in the second quarter of the next year. The ultra modern refinery shall process crude coming through a 935 kilometre long pipeline from the western coast in Gujarat.

“Oman has a 50/50 joint venture with the Indian fertilizer company IFFCO. Urea is one chemical that we export to India. There are many other projects with India which are in pipeline. Our partnership with India goes beyond economy. Oman wants to ensure that India’s energy needs are secure. Few people know that Oman held a joint air exercise with Indian Air Force recently. We have had several joint exercises with Indian Navy. The Navies of the two countries are in regular touch with each other. We want to ensure free trade.”

The first joint air exercise between IAF and RAFO codenamed ‘Eastern Bridge’ was held at the Royal Air Force of Oman base at Thumrait in October. Defence apart, Indian investors and businessmen can find good opportunities in Oman.

“Oman is one of the most liberal economies. We have a number of incentives for foreign investors in Oman; income tax holiday for a period of time being one. Oman also allows up to 100 per cent ownership for investors. We have free trade agreement with the United States, European Union and Singapore. Our liberal business rules and container ports like Salalah are an invitation to Indian investors to set up their own industry. In these turbulent times when many were affected by economic down turn, Oman has no financial problem, because our development plans are based on what we have and not what is projected.”

The Sultanate of Oman is keen on increasing trade with India continuously, a barrier free trade.

“The Gulf Cooperation Council (GCC), of which Oman currently holds presidency, has reached a volume of one Hundred billion US Dollar in bilateral trade with India. We are the first trade partner as a block to have achieved this. We look at it this way – India’s growth is our growth. We have positive feeling about India’s development.” “If we have a free trade agreement between Gulf and India, it will be a big boost to trade in Asia. India and GCC have already had two rounds of talks on the issue and, it is expected that the agreement will conclude soon. We expect that the FTA will be in place in 2010.”

It is expected that the free trade agreement will benefit business in a big way as Oman already has such agreements with the US and EU. At the official level, Oman has maintained a constant touch with several dignitaries and Ministers visiting each other.

“We have constant visits from both sides very frequently. There is a high level Parliamentary delegation coming from Oman next week. The Commerce Minister of India as well as the Minister of State for foreign Affairs are expected to visit Oman early next year. So there is a constant touch maintained at the highest level.”

With so much happening between the two countries, tourism ought to be growing too.

“We are developing tourism with modernity and culture. We hope to sign a Memorandum of Understanding with India on tourism. This will promote tourism between the two in a big way. We are also inviting joint ventures in this sector. The tourist movement at present is not up to our expectations. We want more Indian tourists coming to Oman. Our visa policy is liberal. We have developed online visa system so that visitors do not have to wait in que for hours. We value our relations and we wish to develop them and make things easier.”

There is a sizeable number of Indians going to Oman for jobs in the skilled sector.

“Yes we have a little over 600,000 Indians working in Oman and we have never had problems with them. As long as people respect and uphold rules, there is never a problem. We have about 1200 students from Oman in Indian educational institutions.”
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