Oman & Spain: Partnership amidst global opportunities
The Sultanate of Oman and the Kingdom of Spain share a relationship marked by growing economic cooperation, building on a foundation of strong diplomatic ties. While the economic partnership is still developing, it holds significant potential for both nations, particularly as they navigate evolving global challenges and seek new avenues for growth.
This analysis explores the multifaceted relationship between Oman and Spain, examining its historical context, current economic ties and future opportunities.
The relationship between Oman and Spain is rooted in a history of diplomatic engagement, with formal relations established in 1972.
This initial step has been crucial in fostering a climate of mutual respect and cooperation, setting the stage for increased collaboration across various sectors.
The establishment of reciprocal embassies in the mid-2000s further solidified this foundation, enhancing communication and facilitating stronger economic links. High-level visits and agreements, such as the significant visit by King Juan Carlos I of Spain in 2014, have underscored the commitment from both sides to expand their cooperation.
Examining the economic ties between Oman and Spain reveals a trade relationship with growth potential. While the overall trade volume has been described as 'relatively modest,' it has shown a general upward trend over the past decade.
In 2023, Spain recorded a trade surplus with Oman, amounting to $27 million. Data indicates Oman's exports to Spain were valued at $246 million, while Spain's exports to Oman totalled $249 million. However, more recent monthly data suggests a contraction in trade volumes, highlighting the influence of factors such as commodity price volatility.
Oman's exports to Spain are concentrated in mineral fuels, oils and aluminium, reflecting its resource-based economy. Spain's exports to Oman are more diversified, including machinery, transport equipment and manufactured goods. Specifically, Oman's exports to Spain include mineral fuels, oils ($33.57 million), aluminium ($32.48 million) and plastics ($19.10 million). Spain's exports to Oman feature ships ($31.83 million), aircraft ($24.93 million) and vehicles ($23.07 million).
Investment is a vital component of the Oman-Spain economic relationship. The Spain Oman Private Equity Fund (SOPEF), a joint initiative between the Oman Investment Authority (OIA) and the Spanish development finance institution COFIDES, is a key example.
SOPEF has allocated €300 million to support the internationalisation of Spanish companies and contribute to the economic development of both nations.
Spanish investments in Oman include Union Fenosa Gas's stake in Qalhat LNG and Indra Sistemas' provision of air traffic management systems.
These investments highlight Spain's involvement in Oman's energy and infrastructure sectors, while initiatives like SOPEF aim to foster broader economic diversification and collaboration.
For Oman, this economic relationship presents opportunities to advance its Oman Vision 2040 diversification goals. Collaboration with Spanish firms offers avenues for technology transfer, access to new markets and enhanced competitiveness.
Spain's membership in the European Union provides a strategic entry point for Omani products into the EU market. Omani companies, particularly SMEs, can explore niche markets in Spain, focusing on unique products and leveraging platforms like the Barcelona seafood expo to connect with Spanish partners.
Spain also benefits significantly from this partnership.
Oman represents a growing market for Spanish exports, including machinery, transport equipment and manufactured goods. Initiatives like SOPEF facilitate the internationalisation of Spanish companies and provide access to new investment opportunities in Oman and the broader Middle East.
Furthermore, Oman is a reliable supplier of LNG to Spain, contributing to Spain's energy security.
Several sectors have been identified as key areas for enhanced collaboration. These include renewable energy, where Oman's potential aligns with Spain's expertise; tourism, where Spain's experience can support Oman's growth plans; logistics and infrastructure, leveraging Spain's advanced capabilities; technology and digital transformation, fostering innovation and knowledge transfer; and manufacturing and agribusiness, promoting diversification and food security.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times of Oman
a day ago
- Times of Oman
Uzbek President receives Oman's Minister of Commerce
Tashkent - President Dr. Shavkat Mirziyoyev of the Republic of Uzbekistan, received Qais bin Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion, in Tashkent today. Al Yousef conveyed to the Uzbek President the greetings and best wishes of His Majesty Sultan Haitham bin Tarik. He stressed the depth of fraternal relations binding the peoples of Oman and Uzbekistan. Al Yousef also congratulated the Uzbek President on the historic sporting accomplishment made by the Uzbekistan national football team that qualified to the 2026 FIFA World Cup for the first time. He described this achievement a source of pride, not only for Uzbekistan, but also for the whole Central Asian region. The minister pointed out that the Uzbek government's decision to grant Omani citizens a 30-day visa exemption constitutes a step forward in promoting tourism and enhancing cultural and commercial relations between the two countries. He pointed out that Oman Air intends to operate direct flights to Tashkent in a bid to consolidate direct communication between the two countries in the near future. At the conclusion of the meeting, Al Yousef affirmed the Sultanate of Oman's full commitment to boosting bilateral relations and developing partnership between Oman and Uzbekistan on the basis of mutual respect, shared prosperity and a unified future vision. The meeting was held on the sidelines of the 5th session of the Omani-Uzbek Joint Committee for Trade and Economic Cooperation, roundtable meetings with the Uzbek side and the 4th Tashkent International Investment Forum. The visit is aimed to enhance bilateral cooperation and explore joint investment opportunities in a number of vital sectors. The meeting was attended by Assayida Wafa Jabr Al Busaidi, Ambassador of the Sultanate of Oman to the Republic of Uzbekistan, and a number of officials from the two countries.
Observer
2 days ago
- Observer
Funding secured for solar project at Barka V desalination plant
MUSCAT: Madrid-headquartered GS Inima has secured financing to build a 6.3MWp photovoltaic plant at the Barka V desalination facility in Oman, marking a significant step toward integrating renewable energy into critical infrastructure. In a statement, the company said the project aligns with its commitment to a sustainable water management model, particularly in regions like Oman where solar potential is high and water demand is critical. 'The financing of the Barka 5 photovoltaic plant culminates the development of this project, which began in 2022. In addition to reaffirming its environmental commitment, GS Inima optimises the profitability of the Barka 5 desalination plant project, 100% owned by GS Inima, and consolidates its presence in the Middle East. COFIDES' support in the investment of this project has been decisive, and we want to express our gratitude to the entire COFIDES team that has collaborated with GS Inima during this phase of the project,' said Juan José Benayas, CEO of GS Inima Barka 5 Desalination Plant. The new solar facility, intended for self-consumption, will supply approximately 11% of the desalination plant's energy needs through 2044. Spanning 40,000 square meters, the solar installation will be designed, built, operated, and maintained entirely by GS Inima Barka V Desalination Co SAOC, a wholly-owned subsidiary of Spanish-based international water infrastructure company GS Inima Environment. Funding support came from COFIDES, a Spanish public-private entity that helps promote sustainable international investments by Spanish companies. Their backing was key to advancing the solar integration effort, which further cements GS Inima's presence in the Middle East. Barka V, which became operational in June 2024, is GS Inima's first project in the region. The plant produces 100,000 cubic meters of potable water per day—enough to serve more than 800,000 people in Oman's Muscat and Batinah regions. This will be GS Inima's second project in Oman to incorporate solar power into the desalination process, reinforcing the company's role in pioneering hybrid solutions that reduce carbon emissions and enhance resource efficiency. The solar-powered desalination model is particularly relevant for Oman, where abundant sunlight, high temperatures, and growing water demands make clean energy solutions both practical and strategic. GS Inima says the Barka V project will not only reduce the plant's carbon footprint but also contribute to Oman's broader sustainability goals. With this new milestone, GS Inima continues to expand its global leadership in integrated water cycle solutions, while promoting resilient infrastructure that supports long-term environmental and operational sustainability.
Times of Oman
2 days ago
- Times of Oman
Dhofar readies for biggest Khareef with 100 hotels for 100 days of tourism
MUSCAT: Dhofar Governorate is preparing to host its most ambitious Khareef season yet, with 100 licensed tourism establishments (hotels) ready to serve visitors over an extended 100-day period, from 21 June to 10 October. The 2025 Khareef marks a milestone not only in infrastructure but also in the duration of the season, which has been extended by nearly three weeks compared to last year's conclusion on 21 September. To accommodate growing tourist demand, the Ministry of Heritage and Tourism has inaugurated several key projects ahead of the season. These include the Dhofar Private Museum, a new 84-room three-star hotel in Mirbat, and a luxury serviced apartment complex in Salalah offering 216 rooms. A newly opened tourist information centre at Al Haffa Beach Market aims to streamline visitor services. With these additions, Dhofar now boasts over 8,000 hotel rooms after the latest opening of the 100th hotel, significantly enhancing the region's ability to cater to both domestic and international visitors during the peak monsoon months. Extended season, expanded strategy Khalid Abdullah Al Abri, Director General of Heritage and Tourism in Dhofar Governorate, emphasised the strategic importance of the Khareef season. 'This is more than a seasonal influx — it's a cornerstone of Oman's tourism calendar. Extending the season to 100 days gives us more room to welcome visitors and promote sustainable tourism,' he said. The ministry has structured the season into three distinct phases: an early period starting 21 June, a peak season from mid-July to late August, and a post-peak stretch until 10 October. This staggered approach is designed to manage crowd flow and maximise the tourism window, including during school holidays and shoulder periods. Targeted promotions and connectivity As part of its tourism growth strategy, the ministry has conducted an aggressive promotional campaign across key markets. This includes participation in Arab Travel Market 2025 in Dubai, where Dhofar Municipality unveiled this year's Khareef programme. Additional workshops and roadshows in Saudi Arabia and Kuwait highlighted Dhofar's offerings and new direct flight routes. Airlines including Flynas, Flyadeal, Kuwait Airways, and Jazeera Airways have added seasonal direct connections to Salalah Airport, greatly enhancing access from the GCC region. Al Abri noted that the ministry is particularly focused on attracting GCC families and repeat visitors, with special travel packages and school holiday-aligned promotions now in place. The extended season and new infrastructure build on the momentum of Khareef 2024, which saw 1,048,000 visitors, a 9% increase from 2023 when the arrival was 962,000 visitors. Officials are optimistic that the 2025 season will surpass this, driven by improved air connectivity, diversified offerings, and broader international visibility. Collaborations with private sector partners are also expected to play a major role in offering competitive experiences throughout the season, even during traditionally lower-traffic periods. With 100 hotels, 100 days, and a refreshed focus on sustainable growth, Khareef 2025 is poised to cement Dhofar's status as a premier regional destination for nature, culture, and monsoon magic.
