Oman, Korea expanding relations and cooperation

The following was contributed by Oman Ambassador to Korea Mohamed Alharthy on the occasion of the 41st National Day of the Sultanate of Oman. ― Ed.


This Nov. 18, the Sultanate is celebrating its 41st National Day continuing its modern renaissance with strong steps to maintain the power to achieve its goals, of which the main ones are development and prosperity, the happiness for the Omani citizens, and enhancing the national joint between leader H.M Sultan Qaboos and his fellow Omani citizens across the nation.

With will and ambition, the road of the development in the Sultanate is entering new stages toward more development in the government’s modern institutes in order to fulfill the continuation of economic and social progress, according to the aims and the ambitions of the Omani citizens in the second decade of the 21st century. That makes the Sultanate a model referred to domestically and abroad.

Omani diplomacy

The Omani diplomacy is keen today and in the future for the world’s friendship in sowing good and equal relations with each country that approaching positively on the way of cooperation with the Sultanate. Oman is committed to the international conventions and principles of the United Nations to implement the progress and development and consolidate world stability. So Oman interacts with all events the region and the world witnesses, and is wise and aware and did not let these events affect it.

This foreign policy is based on wisdom, calmness and balance, so the Sultanate has a prominent international position, which enables it to be an important regional and international center. This position, which the Sultanate achieved due to its foreign policy, enabled it to play an active role in resolving numerous issues, and contribute to settling a number of issues on all levels with remarkable credibility, foresight, wisdom, and boldness in decision-making. For that, the Sultanate is rated the 41st place in the world in terms of the Global Peace Index, which is issued by the Institute for Economy & Peace, based in Sydney, Australia, and the index sets the Sultanate in the list of countries that enjoy a high level of peace.

Investment opportunities

The Sultanate of Oman has assumed a prominent position as a safe country that enjoys stable economic and political conditions, providing an economic and business-friendly environment, and represents a model for deliberate development. In 2011 the Sultanate has developed an economic policy praised all round the world, reflecting its infrastructure, economic stability, and high levels of welfare and education.

The Sultanate of Oman has ranked third in the Arab world in the Economic Freedom Index for 2011, published by the U.S.-based Heritage Foundation, and gained 34th place internationally. Also it maintained 34th place among 139 countries in the annual report of the World Competitiveness Index for the year 2010-2011, published by the World Economic Forum.

The Sultanate pursues an economic and financial policies aim to grant a greater role to the private sector in the process of economic development. It encourages local and foreign investment, and takes measures to enhance the abilities of the private sector. Oman aims to create an incentive investment environment for the private sector based on a stable and safe investment environment, transparent modern legislations and laws, financial measures and tax incentives, a transparent stock market with comprehensive control procedures, taxation rates regarded as the lowest in the world, few restrictions on the monetary system, with none of the obstacles that limit the movements of investors. It also looks to create modern infrastructure including roads, ports and communications, and provide financial and technical support to small and medium-sized businesses.

These results reflect the efforts been made by the Sultanate to create a suitable environment to attract both local and foreign investment, which contributes to creating new jobs, benefits from expertise and technology in various fields, and diversifies and expands the production base, according to the accredited polices. The concerned authorities are providing the necessary legal forms to attract the foreign investments, and signing agreements of promoting and protecting mutual exchange investments with sisters and friendly countries. These agreements are one of the factors that attracting the foreign investment as they provide some protection against non-commercial risks and present guarantees for fair solutions in cases of conflicts, and these guarantees also include the Omani investor when investing in those countries.

Oman has many investment advantages that helped attract local and foreign investment such as economic and political stability, adopting a free economic system, allowing foreigners to own the projects without any restrictions in transferring the capital and dividends outside of the Sultanate, and without individual income tax, offering soft loans with low interest rates and convenient repayment periods, as well as offering tax exemptions for companies for up to 10 years.

In 2011, the Sultanate has been able to move into a new phase in the banking sector, in which Islamic banks operating side by side with traditional banks, after H.M. Sultan Qaboos bin Said instructed in May to establish an Islamic bank, and allowing Sultanate-based banks to do so if desired, accordingly, in the same month, the Central Bank of Oman approved the establishment of Nizwy Islamic Bank as the first comprehensive Islamic bank.

During recent years, the Sultanate has stepped up its quest to sign bilateral agreements with many countries in the world and promote the mutual investment. Furthermore, the Sultanate membership in World Trade Organization, Gulf Cooperation Council Custom Union, Greater Arab Free Trade Area, and the free trade agreement with the U.S., aimed to increase trade exchange with all countries of the world, and manage to open many outside markets for Omani exports, assisting the private sector to benefit from these trade and economic relations.

At the time when the Sultanate is strengthening its trade relations with various countries, it works toward facilitating investment procedures through a one-stop system.

Tourism development

According to the promotion and development strategy of the tourism sector, the Sultanate of Oman endeavors to build many projects and tourism facilities in many Omani provinces to provide tourism services. In 2011 the Sultanate laid the foundation stone of the Oman Center for Conferences and Exhibitions and Al-Balid ancient resort in the province of Dhufar. For tourism promotion, the Sultanate opened tourism representative offices in the overseas markets. The Sultanate attained first place in the world in terms of environmental tourism according to one German internet newspaper. This is considered recognition of the efforts made by the Sultanate.

The same specialized newspaper granted the best hotel award in terms of the world standards to the “Bustan Palace Hotel” which attained the largest percentage of votes. It also gave third place prize to the Sultanate as an Arab tourism destination. The same prize frame, the “Muscat Shidi hotel listed in the final list of the best five hotels at the Arab World Level. During 2010, “Khasab Fortress” attained the Oscar of best historical place; which was developed for tourism purpose in the world Level among 250 institutes, foundations and museums, which competed for the prize. The Sultanate is pursuing efforts to promote the geological tourism due to the various geological elevations and landscapes that the country enjoys, beside the adventure tourism for those who like climbing mountains, camping in the soft desert sand and diving in the beautiful beaches.

Moreover, Muscat has joined the top 10 cities in the world well worth a visit for 2012, according to the website guide “Lonely Planet,” Muscat ranked second after London. Muscat is one of the world famous places in the travel and tourism sector as it evaluated by the British Broadcasting Corporation. Fortunately, this estimation coincided with the nomination of Muscat as the Arabian Tourism Capital for 2012.

Oman, art and culture

The highlight of the Sultanate’s sustainable cultural development experience was the opening of the Royal Opera House Muscat ― an event which demonstrated the importance of culture under Oman’s Renaissance, as well as its role in bringing the world’s civilizations closer.

The Royal Opera House reflects contemporary Omani architecture, and has a capacity to accommodate a maximum of 1,100 people. This opera house is a masterpiece, a great achievement by Oman and considered the first in the world to be equipped with Radio Marconi’s multimedia interactive display seatback system. The complex consists of a concert theater, auditorium, formal landscaped gardens, cultural market with retail, luxury restaurants and an art center for musicals, theatrical and operatic productions. It is a theater, an opera house and, if need be, a cinema all rolled into one. It can also screen 3-D movies. 

The opera house built with inlaid marble, crystal chandeliers and hand-carved wood. One can also enjoy a performance in any language because each seat has a touch screen that lets patrons select subtitles in a variety of languages. You can even rate a performance through the touch screen panel. The inauguration of the Royal Opera House consists of series of performances from around the world including Universal Ballet from Korea which is scheduled to perform on Nov. 28.

Oman-Korea relations and cooperation

Oman-Korean relations go back more than thousand yearsa, when Omani merchants met their Korean counterparts on their way to China. In modern times, they established diplomatic relations in 1974. Since then, Oman-Korea relations witnessed a remarkable development in various fields.

Korea is regarded as a major trading partner of Oman, and at present both countries engage in numerous economical exchange and cooperation. Oman provides large quantities of crude oil and LNG to Korea which forms the major energy source for the Korean industries; on the other hand, Korea exports many industrial products, including automobiles, vessels, hi-tech electronics and electrics to Oman.

Moreover, many Korean companies contributing to the development of Omani infrastructure by constructing varies plants, ports and other major projects such as the above mentioned Duqum Port by DSME, Barka and Sohar plant by GS, Sur Plant by Daewoo, Duqum Airport by Hanjin, Musandam Gas plant by Hyundai, etc. Furthermore, the two nations are participating in some joint investment projects in Oman, Korea and other countries. All these kinds of cooperation have consequently resulted in the rise of high level visits between the two countries.

During 2010, Oman’s exports to Korea reached approximately $4.1 billion mainly oil, gas and aluminum. The Republic of Korea export has reached to approximately $664 million, mainly automobiles, electronics, electric items, petrochemicals and construction equipment.

It is important to mention here that the Oman-Korea Joint Committee is playing a very pivotal role in promoting and developing the cooperation between the two nations. During the meetings, of the second round which was held in Oman last year, a memorandum of understanding has been signed between Omani businessmen and their Korean counterpart, an agreement to set up the Omani-Korean Joint Businessmen Council which is expected to accelerate the cooperation and investment between Oman and Korea. In addition, other MOUs are under discussion in various fields including the capital market and small and medium-sized businesses. Also, many other topics have been discussed which opens new horizon of cooperation such as renewable energy, education, health, information security, tourism and cultural exchange.

To reflect the strong ties between Oman and Korea, H.E Sayyid Badr bin Saoud AlBusaidy, minister responsible of defense affairs paid an official visit in late October through the invitation extended to him by the government of Korea where he attended the ADEX2011 and met with the minister of national defense and discussed cooperation between Oman and Korea. In addition of His Excellency’s visit a number of high level visit were exchanged between the two countries including H.E Mohamed Al-Toobi, minister of environment and climate affairs, participation in the UNCCD.

To promote cultural exchange, the Embassy of Sultanate of Oman in Korea is keen, in participating in many events and exhibitions to highlight the cultural, tourism and civilization landmarks of the Sultanate of Oman. In this context, a photo exhibition entitled “Feature from Oman” has been organized by the Embassy of Oman in Korea in coordination with KAS and Oman Journalist Association at COEX, attracting thousands of visitors. The exhibition comprises 200 photographs selected in order to reflect various environment of Oman including social, civilized life aspects and daily life. It also contained Oman natural features with spectacular scenes of different perspectives of nature, geography, topography and tourism aspects.

Oman Embassy in Korea also organized a Fashion Show showcasing Omani traditional and modern costumes while displaying a collection of selected heritage and traditional products made of silver, fabrics, pottery and palm leaves, handicrafts that reflect the deepness of Oman civilized and artistic history. The colorful Oman costumes where performed by Korean model which gave splendor and beauty to the show through the harmony of the Omani and Korean culture.

On the other hand, the Embassy of the Republic of Korea in the Sultanate of Oman held a Korean traditional dance performance. The event is hosted by the Korea-Arab Society and held as a part of the 4th Korea-Arab Friendship Caravan in Oman. The dance troupe consists of members of Jeju Special Self-Governing Province Dance, which performed a fan dance and a drum dance. These cultural events provide people of both nations the opportunity to promote understanding and friendship between the two countries.

Due to the importance of cultural exchange program, coordination is taking place with concerned authorities in Oman and Korea to schedule numbers of exchange visits of students and employees to promote the understanding of culture, tourism and explore further opportunities of cooperation between Oman and Korea.

Cultural exchange is an important factor in bridging civilization and enhancing understanding. The sphere is opened for both countries to work together to explore the cooperation opportunities in this field by participation in the tourism exhibition, exchange visits and cultural and art festivals, beside investment in tourism projects in both countries.

The potential of cooperation is wide and spacious between the two countries, and there are new horizons for strengthening and enhancing the inter-trade between the Sultanate and the Republic of Korea. The Sultanate of Oman welcomes the Korean investments particularly in the field of technology-based manufacturing and petrochemical industries, in addition to, the fields of mining, oil exploration, telecommunications, services and machinery, as well as heavy and small equipment beside renewable energy. In addition, the area of cooperation is widely opened to enter into many joint ventures projects and investment whether in Oman or in Korea or any other country, and it is hoped that the Business Council which was formed last year will play a major role in this partnership.

In conclusion, I would like to say that during these blessing days of the 41st National day, Oman is proudly witnessing the achievements made by the hands of its people under the wise leadership of H.M Sultan Qaboos.

On this occasion, I would like to take the opportunity to congratulate the Korean government and people for the achievements that have been made in various areas, which are being felt everywhere, and the role of Korea in addressing issues of local, regional and international level besides hosting international events and conferences.

Also, I would like to express my thanks and appreciation to the Korean people and government for their cooperation, kindness, generosity and hospitality they have extended to us since our arrival in this great and beautiful country. Thanks and appreciation also extended to the sponsor and The Korea Herald, which made this supplement possible.

Last but not least, I would like to invite the Korean people to visit Oman, explore the culture and tourism landmarks, and also invite Korean companies to participate in the investment opportunities of various projects. I’m confident that our relations and cooperation in the coming days will witness further enhancement and development. Ultimately, my heartfelt wishes to Korea for further success and progress and for Oman-Korea relations’ further development and prosperity.