His Majesty Sultan Haitham bin Tarik’s state visit to China on November 1–2, 2026, is widely viewed by officials and business leaders in both countries as a pivotal step toward expanding and diversifying economic cooperation beyond traditional energy trade. The visit, at the invitation of Chinese President Xi Jinping, arrives at a time when Oman is advancing its Eleventh Five-Year Development Plan, aimed at fostering growth in manufacturing, tourism, and the digital economy.
Chinese investors and business representatives expressed optimism that the high-level meetings between the Sultan and senior Chinese officials will reinforce economic and trade ties established since the strategic partnership formed in 2018. China currently stands as Oman’s largest trading partner, with bilateral trade valued at $32.87 billion in 2025 and RO 5.4 billion recorded in the first seven months of 2026 alone. Chinese direct investment in Oman reached RO 903.8 million by mid-2026, reflecting growing Chinese involvement across multiple sectors.
The engagement is expected to stimulate deeper collaboration in areas aligned with Oman Vision 2040 and China’s Belt and Road Initiative, emphasizing sustainable economic development, industrial integration, and technological innovation. Stakeholders highlighted four principal sectors for cooperation: energy, infrastructure and logistics, digital economy and technology, and diversified non-oil industries.
In the energy sector, plans include strengthening partnerships in petrochemicals, renewable energy, green hydrogen, and clean technologies, alongside value chain development tied to oil and gas. Infrastructure cooperation focuses on leveraging Omani ports and special economic zones in Sohar, Duqm, and Salalah to support maritime transport, industrial complexes, and supply chains, consolidating Oman’s role as a regional hub for markets in the Gulf, Africa, and the Indian Ocean.
The digital sector is positioned as a growth area, with projects involving artificial intelligence, smart cities, digital infrastructure, fintech, and research innovation slated to enhance Oman’s technological capabilities. Additionally, investments targeting mineral processing, aquaculture, modern agriculture, food industries, healthcare, and sustainable tourism are expected to contribute to economic diversification and job creation.
Several major industrial projects equipped with Chinese technology and financing illustrate the broadening scope of bilateral cooperation. In Sohar, manufacturing facilities such as United Solar Polysilicon’s $1.6 billion polysilicon plant and Zhongke Electric’s $1 billion lithium-ion battery anode materials factory are advancing renewable energy supply chains. Additional solar cell manufacturing projects by JA Solar and Jietai Solar, alongside investments in iron ore processing and cloud computing infrastructure, reflect ongoing efforts to develop export-oriented industries.
In the Duqm Economic Zone, the proposed Oman Wanfang–China-Oman Industrial City, valued at $10.7 billion, aims to integrate renewable energy production with manufacturing and logistics, although the scale and timing of investment remain uncertain. Other initiatives include green steel production and composite pipe manufacturing for oil and gas.
A notable project in Khazaen Economic City involves China’s Spruce Group planning an electric and hybrid vehicle assembly facility, which could extend Oman’s industrial base into the automotive sector.
Analysts emphasize that the future success of these initiatives depends on transforming announced investments into sustained industrial output, including developing local supplier networks, building technical expertise, and securing markets beyond Oman. The Oman-China Joint Committee meeting in Beijing in late 2025 underscored this strategic direction by agreeing to establish a working group focused on trade, investment, and digital commerce, and discussing integrated industrial complexes and smart logistics hubs.
Observers note that while the current relationship is heavily shaped by trade in hydrocarbons, evolving cooperation seeks to add more value through manufacturing and technology transfer. With ongoing efforts to align Chinese technological and industrial strengths with Oman’s diversification ambitions, the bilateral partnership is poised to deepen its impact on Oman’s economy in coming years.