Oman is a small, Arabic-speaking country located in the southeast of Iran. The strategic geographical location of this country near the Strait of Hormuz has made it one of the active commercial areas in the Middle East. Oman has both sea and land borders. This country's access to open waters and strong political and military relations with the United States have brought many benefits to it.
Oman communicates with countries through the sea borders of the Persian Gulf, the Arabian Sea and the Sea of Oman and through the land border of Yemen, Saudi Arabia and the UAE. Although it has more limited oil reserves than most of the Persian Gulf countries, the main source of annual income of this country is from the export of crude oil to other countries.
Politically, the ruling system of this country is a monarchy, but the decisions of the parliament also affect the country's administration. At the beginning of the 20th century, the influence and dominance of Great Britain in the Persian Gulf countries also affected Oman. With the efforts of the rulers of Oman at the time and with the prevention of liberal policies, the actions of the British were not completed.
Today; Oman is known as one of the oldest and most advanced countries in the Arabian Peninsula, which is a good destination for foreign investors and economic activists. In the following; While describing the economic situation of Oman and its trading partners, we will examine the country's trade relations with Iran and the export of goods to Oman, and at the end we will discuss the problems and laws facing Iranian businessmen.
Economy of Oman
The economy of Oman, like other countries in the Persian Gulf, relies on oil and gas reserves. Currently; Nearly 70% of Oman's annual income comes from oil and natural gas exports. Oman ranks 22nd in the world in terms of oil reserves and produces an average of 1 million barrels of crude oil per day.
Japan, South Korea and China are the main importers of oil and gas from Oman. By establishing favorable relations with powerful countries such as the United States of America and England, Oman has been able to improve the country's economy in addition to attracting foreign investors and concluding trade agreements.
According to published official statistics; Oman is one of the few countries in the Middle East and the region, which has a very low unemployment rate and a zero percent inflation rate. During recent decades; The country of Oman has attracted many investors by granting large loans and facilitating the acquisition process of foreign partners. These investors are active in various sectors such as industry, agriculture, equipment, etc. in Muscat. Currently; Oman intends to build several petrochemical complexes and refineries in partnership with Kuwait Oil Company in order to develop crude oil storage tanks.
Many countries export their goods to European countries using Oman's strategic position. In addition to the export of petroleum products, Oman is also active in the field of agriculture and fishing, which form another part of the country's income.
right now; China is the main destination of Oman's export goods, and most of Oman's imported items come from the United States, China, and Japan.
Business relations between Iran and Oman
throughout history and in all eras; The relationship between Iran and Oman has always been without tension and conflict. These stable relations have led to the fact that in many cases, Oman, in the role of mediator in the region, has controlled the situation to some extent and prevented the continuation of disputes between Iran and other Middle Eastern countries.
In fact, it can be said; Among all the countries of the Persian Gulf and Arab regions, the relations between Iran and Oman have enjoyed relative stability both politically and economically. According to world trade statistics; The amount of relations between Iran and Oman has increased over the past several years. according to this; In 2017, the value of Iran's export of non-oil goods to Oman was about 330 million dollars, which in 2018 reached about 2 billion dollars with a significant jump.
Most of the goods are exported to Oman through the sea border and by cargo ships. Currently, Bandar Jask and the two cities of Bushehr and Bandar Abbas are the best routes for exporting products. Khasab port in Oman is also the closest destination for receiving Iranian goods.
Due to the hot and dry climate of Oman, this country is facing shortages in the production of food and agricultural products. Despite Iran's commercial opportunity in terms of fruit and agricultural products export, but for various reasons including; Low standards and unfavorable packaging, the export of such products has not been able to attract the satisfaction of foreign customers. Fortunately; With the measures taken in the past several years, this issue has been resolved to some extent.
The most important export items of Iran to Oman are: fruits and vegetables, citrus fruits, grains, dried fruits, cement, construction materials, live livestock, fossil fuels, iron and steel, coal, etc.
Challenges of exporting to Oman
One of the most important issues that most traders and merchants face is obtaining a license to clear goods from customs. Because according to the rules of the Oman Customs Department; All imported items must have a customs green permit for customs clearance. Laws and complex issues surrounding obtaining this license are one of the main problems for exporters. Among other issues and problems faced by traders is the long period of keeping the goods in the customs office and various documents for the clearance of the goods. If the imported goods are not cleared from the Oman customs for some reason, they will be returned to the border of Iran. This issue will bring many financial losses for producers.
Customs rules and tariffs
According to the laws of import of foreign goods to Oman, all traders are required to make arrangements for export through companies registered in Oman in order to make arrangements and obtain a license to export goods. Also exporters of goods such as; Electrical equipment and appliances that require after-sales service must also be cleared by a lawyer according to the law.
The customs tariff rate of Oman is different depending on the type of goods. According to the rules set by the Oman Customs Department; The tariff for agricultural products, fruits and dried fruits is about 7%. Some other food items including; Meat, tea, wheat, flour, etc. are not subject to customs fees.