Oman is seeking to deepen and diversify its economic partnerships in Asia, building on a longstanding history of maritime trade dating back to the 8th century. The country’s Foreign Ministry highlights the early voyages of Abu Ubaydah Abdullah bin Al Qasim, an Omani merchant who reached China around 750 AD, as a foundation for today’s evolving ties with the region.
Since ascending to the throne, His Majesty Sultan Haitham bin Tarik has made nearly 25 visits to China and Brunei, signaling a strategic emphasis on strengthening connections amid shifting global economic dynamics. Omani officials note that growing political and commercial complications with Western markets, such as Europe and the United States, underscore the importance of broadening alliances.
In particular, Europe’s recent trade and environmental policies present new challenges for exporters. The European Union implemented its Carbon Border Adjustment Mechanism in January 2026, imposing emissions reporting and carbon-related costs on imports including iron, steel, aluminium, cement, fertilisers, electricity and hydrogen. While framed as climate policy aimed at leveling the playing field, these measures add administrative complexity and financial burdens for trading partners. Additionally, the EU maintains countervailing duties as high as 35.3% on Chinese electric vehicles, citing concerns over unfair subsidies, exemplifying the rising industrial trade barriers at international borders.
Political developments in the United States have further complicated relations. During the 2024 presidential campaign, Donald Trump’s use of “Palestinian” in a derogatory context while criticizing Joe Biden drew condemnation from human rights advocates, highlighting sensitivities that can affect Arab identities within political discourse.
Against this backdrop, Oman views China as a key partner with significant economic potential. China ranks tenth on the 2026 Global Innovation Index and hosts leading innovation hubs such as Shenzhen, Hong Kong, and Guangzhou. In 2024, bilateral trade between Oman and China reached $36.73 billion, with crude oil as the primary export from Oman. Beyond energy, Oman aims to expand collaboration into sectors including technology, artificial intelligence, industry, education, and culture through nearly thirty planned agreements.
These partnerships could facilitate the integration of investment with equipment manufacturing, storage, engineering services, and local supply chains. Joint technology initiatives may also foster research and development in areas such as Arabic AI applications, port operations, water management, and industrial efficiency.
Oman is also pursuing closer ties with Brunei. Since establishing an investment partnership in 2009 with a capital size of $200 million, the two nations have explored cooperation in education, tourism, and product exchanges through a joint committee. This foundation provides scope for further mutually beneficial commercial ventures.
Officials emphasize that the success of these agreements depends on effective implementation, including clear accountability, achievable milestones, and inclusive participation by Omani ministries, investors, academia, and entrepreneurs.
Drawing on a heritage of maritime trade and openness, Oman seeks to leverage new opportunities in Asia to foster stronger industries, expand international partnerships, and enhance its economic independence amid a transforming global landscape.