Saudi Arabia’s Public Investment Fund (PIF) recently announced that it intends to establish regional investment companies in five Arab countries, including the Sultanate of Oman, in various economic sectors. Investment companies will also be established in Jordan, Bahrain, Sudan and Iraq. This decision comes within the framework of the expansion witnessed by the Saudi sovereign wealth fund and its investments in various economic sectors with the aim of strengthening economic relations between Arab countries on the one hand, and supporting economic integration, on the other.
There is no doubt that such investments will generate job opportunities for Arab citizens, while output from agricultural investments will strengthen food security in the region at a time when world markets are witnessing inflationary pressures impacting the prices of imported foodstuff and other goods.
Omani-Saudi relations have witnessed many positive developments at various levels over the past years, following the official visits of the leaders of the two countries and representatives of government agencies and the private sector. Such steps support joint cooperation in various fields, especially since both sides are working to strengthen economic cooperation in line with the visions of the Kingdom 2030 and Oman 2040. These visits have resulted in positive and fruitful decisions between the two countries, as a number of bilateral memoranda and agreements were signed that support political, economic and technical goals. This will raise the pace of joint economic cooperation and stimulate the public and private sectors to achieve the visions of the two countries.
Undoubtedly, the opening of the 725-kilometre Saudi-Omani land road is contributing to the movement of citizens, enhancing economic integration and foreign trade. It also opens up new investment opportunities for citizens of the two countries and other GCC nations. Additionally, the new overland route is helping reduce the cost of goods traded between the two countries, while also bringing down transportation costs, and facilitating the movement of tourists and pilgrims. Booming relations will unlock opportunities in various fields, including the oil and gas sector, petrochemicals, energy, technology and others.
The new PIF company will provide the necessary funding for proposed projects, whether in the fields of renewable energy, electricity and other projects, that will enhance the exchange of intra-regional trade, transportation and mobility in the future. It will also strengthen cooperation in the field of food security, manufacturing industries, logistics, technology and finance, and other areas. Besides contributing to GDP growth, this latest initiative will enhance the diversification of income sources, both at the level of the two countries or the among the Gulf Cooperation Council countries.
Indeed, the establishment of a Saudi investment company in the Sultanate of Oman will work to strengthen the economic partnership and achieve the ambitions set forth in their respective national visions. Today, Oman and Saudi Arabia, with their diverse natural resources, have become a key driver of economic growth in the region and internationally as well, supported by key infrastructure and logistical projects.
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