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Japan’s
trade cooperation with
Oman, which developed initially in the energy sector especially through
purchase of oil and gas, has continued to grow steadily over the past
decades. The trade exchange between Japan
and Oman
had reached at its peak about $10 billion in
2008 due to historic oil price hike and rapid economic growth
experienced in Oman. In 2009,
the trade exchange had been reduced 40% with
affected by the decline in the oil price attending the world finance
crisis, Japan
’s export to
Oman
recorded $2.35 billion while its import from
Oman
marked $3.32 billion. The
inclination in 2010 has, however, shown a return to the level before the world
finance crisis.
Japan
is the largest trade partner to Oman in substance.
While
Japan’s major imports from Oman
are dominated by crude oil, natural gas (LNG). Aluminum came at 3rd,
after the aluminum refinery started operations in Sohar in 2009. Petroleum
related products as 4th, cuttlefish, green beans and tuna
(frozen) make entry at 5th, 6th and 7th
respectively in the list of imported items. It is worth mentioning that
green beans, which are harvested in winter in Oman, are particularly successful in Japan
’s winter market registering 90% of the share.
Japan’s major exports to
Oman include automobiles, machinery and electric
appliances. Japanese cars are spotted everywhere in the streets of Oman, and local consumers swear by Japanese machinery and electric
appliances for their quality and reliability. It is not well known but,
interestingly,
next to Hong Kong, Oman
is the second largest importer of Japanese sweet melons (musk melons)
though the volume may not be too big yet.
●Economic
and Technical Cooperation with
Oman
Japan
is
a long time partner of Oman
in the field of development assistance and
technical cooperation.
Furthermore, it is also the largest provider of official development assistance
to the country.
Japan’s assistance is disbursed mainly in the forms of technical
cooperation
and training programmes conducted by JICA (Japan International
Cooperation Agency), and it has been highly appreciated in Oman
for its contribution to human resources
development,
systems building and socio-economic development of the country.
In
this context, more than 500 Omani government officials have been invited
to take part in JICA training programme in
Japan. Today many of them, including H.E. Ali Al-Sunaidy, Minister of Sports
Affairs, have been promoted to important positions in both public and
private sectors, playing active role for further advancement of the
country.
Also
as part of the technical cooperation, JICA dispatches Japanese experts
in various areas that are considered important to the country’s
progress. As the result of the collaborative research project with Japan
Cooperation
Center, Petroleum (JCCP), the pilot plant for the treatment of oil field
produced water was completed in 2010, and an opening ceremony attended
by
H. E. Dr. Mohammed
bin Hamad bin Saif al Rumhy, Minister of Oil and Gas, was held at
Petroleum Development Oman (PDO). They have been successful in
transferring much required knowledge and expertise in such areas as
environmental safety assurance and human resources development to their
counterparts in Oman.
"an
opening ceremony for the pilot plant for the treatment of oil field
produced water (November, 2010)"
Japan's
ODA Data
●Strengthening
of Economic Relations
Rapid economic growth backed by strong oil revenue has accelerated
Oman's
economic development in recent years.
As a result,
Oman
will graduate from the status of ODA
recipient nation shortly and consequently
Japan
will have to discontinue its long lasted
technical cooperation and training programme for
Oman. However, considering the high regard for
significant contribution Japanese technical cooperation has made towards
the socio-economic development of Oman, discussions are in progress looking at
the possibility to conduct Japan’s technical cooperation, including
training programmes, to Omani trainees on a non-grant basis.
Meanwhile,
economic diversification in Oman
has been advancing in its course calling for increased Japanese
participation in wide-ranging development projects for its advanced
technologies. Japanese enterprises have been involved in a number of
major industrial projects of Oman
including those related to oil and gas, LNG,
and shipping, and more recently in construction of a refinery, a
chemical fertilizer plant, and an iron direct reduction plant in Sohar
heavy industrial area to contribute to economic development of Oman. Japan’s further participation is also expected in upcoming projects in Duqm
industrial area. Recently, Japanese
companies has been interested in power station business, and the consortium which
Japanese enterprises participate in received IPP projects in Barka 3 and
Sohar 2 (each capacity of power generations is 744MW) in March 2010.
Reflecting its keenness to go for renewable energies, Oman
is also highly interested in Japan’s environmental engineering technologies
which could be used to tap its vast potential to develop alternative
energies including solar energy.
The
Government of Japan wishes to further strengthen existing good economic
relations between Japan
and Oman
fostering more conducive environment for Japan-Oman investment and trade
cooperation. In order to achieve this goal, it is hoped that early
conclusion of Japan-GCC Free Trade Agreement and Japan-Oman Treaty on
Avoidance of Double Taxation will be realized, and Japan
will continue to exert its maximum effort with this regard.
(renewal
in April 2011)
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