Oman–China strategic cooperation: Anchoring the future through people, partnership, and purpose

Observer

3 days ago

As global markets shift and geopolitical dynamics evolve, Oman and the People's Republic of China have steadily forged a partnership that exemplifies strategic foresight, economic complementarity, and cultural affinity. This evolving relationship, grounded in history and propelled by shared ambitions, has grown into one of the most significant bilateral frameworks in the region. Recent developments—most notably the Third Session of the Omani-Chinese Friendship Forum 2025 in Salalah—reaffirm the commitment of both nations to elevate their cooperation into a model for sustainable and diversified development.
The transformation of this partnership is visible not only in its diplomatic momentum but also in the depth of its economic engagement. Foreign Direct Investment (FDI) from China into Oman has grown remarkably, rising from RO 627 million in 2022 to RO 1.1 billion in 2023, and further reaching RO 1.3 billion in 2024. With this upward trajectory, China now ranks fourth among Oman's top FDI source countries. These figures reflect an evolving economic synergy—one that is well-aligned with Oman Vision 2040's aspirations for greater diversification, industrial sophistication, and global integration.
Trade dynamics have also advanced in scope and complexity. In 2024, Oman's exports to China totaled RO 9.3 billion, making up 40% of the nation's total exports. Crude oil remained the dominant commodity at RO 9 billion, followed by liquefied natural gas (LNG) at RO 110 million and methanol at RO 44 million. Conversely, Omani imports from China stood at RO 1.8 billion, accounting for 11% of total imports, and included vital infrastructure materials such as oil pipelines. With such numbers, China holds the position of Oman's fourth-largest trade partner among Arab and global nations.
Yet beyond trade and investment, the true strength of the Oman–China relationship lies in its people-to-people connectivity and institutional cooperation. Partnerships do not thrive solely on numbers—they are sustained through dialogue, shared values, and collaborative learning. The forum in Salalah, held under the theme 'Chinese Modernisation and Oman Vision 2040: Our Work and Proposals,' was emblematic of this ethos. It brought together business leaders, experts, and institutional stakeholders to explore ways of aligning China's developmental experience with Oman's long-term vision. Importantly, the forum was not merely a ceremonial gathering; it was a platform for business-to-business engagement, project exploration, and cultural understanding.
Organisations such as the Oman-China Friendship Association (OCFA) are central to cultivating this connective tissue. Acting as an enabler of cross-sector cooperation, OCFA supports initiatives that span economic, cultural, and humanitarian domains. From business forums and bilateral exhibitions to cultural programs and exchange initiatives, the association ensures that the Oman-China relationship remains vibrant at both grassroots and strategic levels. By championing informal diplomacy and trust-building efforts, OCFA helps convert high-level agreements into practical, people-centered outcomes.
The private sector, in particular, stands to benefit immensely from this robust bilateral framework. Chinese investors have shown sustained interest in Oman's Special Economic Zones and Free Zones, particularly those in Duqm, Sohar, and Salalah, where joint ventures in manufacturing, logistics, and renewable energy are gaining momentum. Omani firms, in turn, are increasingly exploring opportunities to tap into China's manufacturing capabilities, technology ecosystem, and vast consumer markets. This mutual engagement is not only fostering economic resilience but also expanding the industrial base of the Sultanate.
One of the most promising sectors in this regard is manufacturing, which is fast becoming a cornerstone of Oman's economic diversification strategy. Over the past four years, the manufacturing sector has achieved an average growth rate of 7.3%, reaching a value of RO 3.6 billion in 2024, equivalent to 9% of Oman's GDP. Export figures from this sector are equally impressive, totaling RO 6.2 billion. Meanwhile, FDI into manufacturing surged from RO 1.7 billion in 2021 to RO 2.5 billion in 2024, and Chinese capital is expected to further catalyse this momentum. With enhanced collaboration in advanced manufacturing, industrial automation, and technology transfer, the sector is poised for accelerated expansion.
This dynamic is further supported by Oman's strategic location at the crossroads of major global trade routes, modern logistics infrastructure, and transparent investment frameworks. As China continues its outward economic engagement—driven by the Belt and Road Initiative—Oman is well-positioned to serve as a critical link between Asia, the Gulf, East Africa, and beyond. The alignment of China's manufacturing strength with Oman's logistics potential presents a compelling value proposition for businesses on both sides.
But even as the Oman-China relationship advances on commercial and strategic fronts, it is the human element that will ensure its endurance. Skills development, training programs, academic exchange, and joint innovation hubs are vital for fostering shared competencies. Thousands of Omanis have already participated in China-led capacity-building efforts, and expanding this cooperation to cover new fields—such as fintech, agritech, and AI—can build a knowledge ecosystem that supports long-term national transformation.
In a time marked by uncertainty and fragmentation in the global economy, partnerships with high-growth, high-capacity economies like China are not simply desirable—they are essential. China, with a GDP exceeding USD 20 trillion and a population of 1.5 billion, offers not only market access and investment capital, but also valuable developmental experience. Oman, with its unique geographic positioning and clear national vision, offers stability, opportunity, and an open invitation for strategic collaboration.
The road ahead calls for more structured cooperation—defined projects, clear timelines, and institutional partnerships that bring the private sector to the forefront. By weaving together economic opportunity with cultural understanding and human development, the Oman–China partnership is steadily laying the foundations for a prosperous, resilient, and forward-facing future.