The Sultanate of Oman and the State of Kuwait have fostered strong ties in many areas, including finance and investment and have consolidated a robust partnership in the process.
Economic and trade relations between the two countries are experiencing significant growth and collaborative efforts. The commitments between the countries are driven by their leaderships resulting in signed agreements and memoranda of understanding (MoU).
This brotherly bond has resulted in cooperative ventures. Inauguration of the Duqm Refinery during the visit of Prince Shaikh Mishal Al Ahmad Al Jaber al Sabah, Emir of the State of Kuwait, to Oman last February, is one such example.
The successful launch of this strategic project not only augments bilateral cooperation but also holds promise for broader collaboration within the Gulf Cooperation Council (GCC), fostering development and economic initiatives crucial for global energy stability.
Dr Khamis bin Saif al Jabri, Head of the Oman Vision 2040 Implementation Follow-up Unit, emphasised the significance of the Duqm Refinery in realising national priorities outlined in the ‘Oman 2040’ Vision, particularly in advancing economic and developmental objectives.
Positioned to become a cornerstone of industrial and economic growth, the refinery is poised to transform Duqm into a key hub, offering manifold opportunities for both direct and ancillary projects.
The private sectors of both nations are actively seeking to capitalise on burgeoning investment prospects across promising sectors, endeavouring to deepen mutual collaboration to serve shared interests.
Hebah Abbas, Technical Adviser and Chairwoman Sustainability Committee Kuwait Water Association, underscored the multi-faceted and resilient nature of the economic and investment ties between Kuwait and Oman.
“The economic and investment relationship between Kuwait and Oman is multifaceted and robust, focusing on collaboration across several key sectors and both countries are at pivotal stages in their economic transformations, with Oman's "Vision 2040" and Kuwait’s "New Kuwait 2035" looking to innovate and diversify away from oil dependence. The Duqm Refinery project not only strengthens the economic ties but also plays a crucial role in both countries’ economic diversification plans,” she said.
“This visit is more than a formality; it is a vivid reminder of the power of longstanding diplomatic ties and their ability to foster regional stability and collective prosperity. As such, it should be seen as a beacon for future cooperation, not just between Oman and Kuwait but for the entire Gulf region,” she added.
Furthermore, the visit underscores the enduring strength of diplomatic relations, serving as a testament to the potential for regional stability and collective prosperity through continued cooperation. Both countries, as significant oil producers, are increasingly pivoting towards renewable energy projects while concurrently enhancing bilateral trade through streamlined customs procedures and reduced barriers.
Statistics from the National Centre for Statistics and Information (NCSI) highlight the increasing trade exchange between Oman and Kuwait, with trade volumes steadily rising over the past five years. The substantial investments of the Kuwaiti private sector in Oman underscore the depth of economic cooperation between the two nations, reflecting a commitment to mutual growth and prosperity.
The Duqm Refinery project stands as a symbol of the profound fraternal ties between Oman and Kuwait, epitomising one of the region's largest energy endeavours. It not only diversifies investment exchanges but also paves the way for expanded investments across various sectors. Both countries are poised to further bolster partnerships through small and medium enterprises, aligning with the visions of Oman and Kuwait, as they strive to elevate bilateral trade to new heights.
With the inauguration of the Duqm Refinery and petrochemical industries, Oman advances its strategy of enhancing the value of its oil and gas resources, bolstering exports and the balance of payments. This milestone marks a significant stride towards economic prosperity, underpinned by the enduring partnership between Oman and Kuwait.
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