Oman, India deepen economic ties through multiple MoUs

The economic and trade relations between Oman and India are set to strengthen further as both nations recently signed multiple agreements and memorandums of understanding across various sectors.

The deals were formalized during the visit of the ruler of Oman, Sultan Haitham bin Tariq, to India on Dec. 16, where he held discussions with Indian Prime Minister Narendra Modi, as reported by Oman News Agency.

According to the report, both leaders conducted a comprehensive review of bilateral relations, encompassing political, security, defense, trade, economic, and cultural sectors.

Among the notable agreements signed during the visit was an MoU between Oman’s Ministry of Transport, Communication, and Information Technology and India’s Ministry of Electronics and Information Technology, aimed at fostering cooperation in the field of information technology.

Another significant MoU was inked between India’s Financial Intelligence Unit and Oman’s National Center for Financial Information to enhance collaboration in exchanging intelligence related to money laundering, associated predicate offenses, and terrorism financing.

On the sidelines of the visit, the Oman Investment Authority expanded its collaboration with the State Bank of India by launching the third Omani-Indian Joint Fund. This fund is expected to direct investments into rapidly growing sectors in India, including technology, health, and pharmacy.

Abdulsalam Al-Murshidi, president of Oman Investment Authority, said that the establishment of the third fund is a result of the success of the two previous mutual funds with the Indian side, which yielded favorable returns.

According to Oman News Agency, the size of the third fund is $300 million, with the authority contributing $50 million.

The first Omani-Indian joint fund was established in 2011 with a value of $100 million, while the second fund was launched in 2017 with $230 million.

Economic and trade relations between Oman and India have consistently strengthened, with bilateral trade reaching $9.98 billion in the financial year 2021-2022, representing a nearly 90 percent increase compared to the previous year, according to data released by the Indian Embassy in Oman.

Prime Minister Modi highlighted that both Oman and India are progressing toward signing a comprehensive economic partnership agreement.

He emphasized the substantial presence of Indians in Oman as evidence of the robust relationship between the two nations.

“Our proximity is not just geographical and indeed reflects in our thousands of years old trade and cultural links. This also reflects in the way, we always give first priority to each other,” Modi remarked during his speech welcoming the Omani ruler.