Latest news with #SOPEF
Observer
19-05-2025
- Business
- Observer
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.
Observer
19-05-2025
- Business
- Observer
HM's Spain visit reflects friendship between two nations
The upcoming visit of His Majesty Sultan Haitham bin Tarik to the Kingdom of Spain from May 20 to 22, marks a pivotal moment in the relationship between Oman and Spain, which spans over five decades whose diplomatic relations were established in 1972. The relationship has been characterised by mutual respect and constructive cooperation, leading to a robust partnership across various fields, particularly in politics and economics. Oman and Spain share collaborative efforts in numerous sectors to enhance economic and investment cooperation. These sectors include renewable energy, tourism, food security, infrastructure, technology and defence. Economic and investment ties have flourished since the 1980s. A significant outcome of this partnership is the Spain-Oman Private Equity Fund (SOPEF), established in 2018 through a collaboration between the Oman Investment Authority and Spain's state-owned COFIDES. The fund was bolstered in 2023, reaching a total value of approximately RO 133 million, with investments in 11 Spanish companies across sectors such as food industries, renewable energy, technology, healthcare and marketing. Recent years have seen a significant expansion in agreements between the two countries' sovereign wealth funds. Oman has become the third-largest recipient of Spanish investments in the GCC, amounting to around RO 37 million, positioning it as a reliable and attractive partner for Spanish economic sectors. Over 30 Spanish companies are developing strategic projects in Oman. Examples include Aqualia collaborating with Majis Company in managing water facilities at Sohar Port, Elecnor implementing solar and wind energy projects, and Técnicas Reunidas involved in the new Duqm refinery. Efforts to strengthen economic cooperation were further highlighted by the first Oman-Spain Business Forum held in Madrid and Barcelona in October 2024, organised in collaboration with the two countries' chambers of commerce. The Spanish market is seen as a gateway for Omani investments into Europe. Trade between the two nations reached nearly RO 94 million by the end of 2024. Oman's exports to Spain totalled RO 33.8 million, while imports from Spain amounted to RO 60.4 million. Key imports from Spain include ships, aircrafts, vehicles, foundry products, flooring and ammunition. Oman's primary exports to Spain consist of aluminium, plastics, electrical materials, organic chemical products and frozen fish. Omani-Spanish relationship extends beyond commerce into the cultural and historical realms, with deep-rooted historical connections dating back to the Arab migration to Andalusia. Oman is committed to promoting its cultural, heritage, tourism and academic wealth in line with Oman Vision 2040. This was showcased at the FITUR International Tourism Fair, where Oman's pavilion won the award for best innovative design. The importance of learning the Arabic and Spanish languages is stressed to strengthen academic relations and long-term people-to-people exchanges. There is a growing sense of closeness between the two peoples, with increased travel between the countries for business and tourism. Bilateral and multilateral coordination between Oman and Spain is crucial in promoting regional and global stability through joint efforts in security, mediation and conflict resolution. Their political stances align closely, as seen in their unified votes at the UN General Assembly on key issues, including ending the occupation of Palestinian territories, recognising the State of Palestine and supporting the two-state solution. This reflects a shared commitment to protecting international order, multilateralism, and peoples' right to self-determination and peaceful coexistence. The bilateral relationship is described as exceptionally friendly and robust, marked by mutual respect and strong institutional ties. Both Oman and Spain take pride in their joint efforts to promote global understanding and cooperation, alongside advocating dialogue and adherence to international law in conflict resolution.
