Muscat: The Sultanate of Oman and the People's Democratic Republic of Algeria share stable relations and consensus in visions and stances towards many regional and international issues.
Relations between the two countries are marked by solid cooperation between government and private sectors in many fields, including energy, renewable energy, mining, industry, petrochemicals, pharmaceutical production, transport, logistics, food security and desert farming.
The Sultanate of Oman and the People's Democratic Republic of Algeria join hands in developing commercial and economic relations under the wise leadership of His Majesty Sultan Haitham bin Tarik and Algerian President Abdelmadjid Tebboune, who will begin a three-day state visit to Oman tomorrow Monday,October 28, 2024.
It is hoped that the two sides will discuss means to step up cooperation in the fields of investment, energy and mining. It is expected to unveil lucrative opportunities, including the prospects of establishing joint projects.
The relations between Oman and Algeria are deep-rooted. The visit made to Algeria by the late Sultan Qaboos bin Said in 1973 contributed to strengthening ties, which were further consolidated through the visit of late Algerian President Chadli Benjedid to Oman in 1990.
As part of mutual respect, Algerian Prime Minister Abdelaziz Ben Djerad visited Oman to offer his condolences on the death of the late Sultan Qaboos bin Said in January 2020.
Meanwhile, the joint committee formed by the governments of the two countries (on February 23, 1991) is expected to play a greater role in developing bilateral cooperation, notably in the fields of energy, renewable energy, mining, industry, petrochemicals, pharmaceutical production, transport, logistics, food security, desert farming, food processing industries, fertilizers, information technology and tourism.
During a meeting held in June 2024 in Algeria, the two sides agreed to prepare a joint vision for establishing an investment fund to operate across diverse sectors.
Within the framework of the 8th session of the Joint Committee, a symposium was held for the Omani business people and their Algerian counterparts. The symposium saw the participation of Oman Investment Authority (OIA), a number of CEOs and representatives of “Invest Oman Lounge”. The session included B2B meetings during which the two sides explored scopes for establishing joint projects. They also approved a number of recommendations and agreed to follow up their implementation.
The volume of trade exchange between the Sultanate of Oman and the People's Democratic Republic of Algeria amounted to about RO 41 million by the end of 2023. This figure reflects a good level of trade cooperation compared to other Arab countries in North Africa. It is also an incentive for further growth and partnership in various economic fields.
The total exports of Oman to Algeria until the end of July 2024 amounted to (RO 37,348,252), while the value of Oman’s imports from Algeria during the end of July 2024 amounted to (RO 509,272), and the value of re-exports to Algeria until the end of the same month stood at (RO 375,063).
There are a number of joint ventures that represent the economic cooperation between the two sides, such as the cooperation between Algerian National Hydrocarbons Company “Sonatrach” and Bahwan Group to produce ammonia and urea in the Arzew city in the Oran Province, with total investments amounting to approximately USD 3 billion, as the contribution of Bahwan Group stands at 51 per cent.
This project is considered the most important in the economic partnership between Oman and Algeria, and it reflects the commitment of the two countries to upgrade cooperation in the fields of industry and energy.
In addition, “Abraaj" and "OQ” are striving to set up investment projects in the energy sector in Algeria.
The Sultanate of Oman and the People's Democratic Republic of Algeria are keen to boost the trade and economic relations, including exploring investment in areas of energy and mining, as well as pharmaceutical industries, taken into consideration the remarkable development witnessed by the pharmaceutical sector in Algeria. Previously, Algeria covered only 15 to 20 per cent of its pharmaceutical needs, but this figure has now risen to about 80 per cent, making it one of the countries exporting advanced medicines such as insulin. This sector represents a promising opportunity for cooperation between Oman and Algeria, as Oman can benefit from Algerian expertise in developing pharmaceutical industries and expanding export markets.
In the agricultural sector, desert farming in Algeria is one of the sectors with promising growth, as 3 million hectares have been prepared for agriculture in the long term, and the current project aims to cultivate one million hectares.
Agricultural products in the Algerian desert are characterized by high quality. As for fertilizers, which represent a strategic product for the Algerian economy, Algeria exports quantities of them to African countries, in addition to a huge project to produce phosphate, which makes it one of the largest producers of phosphate in the world with an annual production of up to 1.5 million tonnes.
In the field of renewable energy - one of the promising areas of cooperation between the two countries - Algeria has recently begun setting up major projects in this field in cooperation with the European Union. Therefore, the two countries can exchange expertise and technologies in developing renewable energy projects, such as solar and wind energy, and explore joint investment opportunities in this vital sector, which represents one of the most prominent future solutions to meet sustainable energy needs.
On the cultural and scientific side, Algeria offered for the first time this year 10 PhD scholarships and 25 Bachelor's scholarships for Omani students. Meanwhile, the Omani Programme for Cultural and Scientific Cooperation offers 3 study seats for Algerian students. The Omani programme is currently being developed to increase the number of scholarships allocated to Algeria to 10 seats.
The number of Algerian community members in the Sultanate of Oman is estimated at about (2469) until mid-2024, including about 400 engineers and technicians in the oil and energy sectors.
Saif Nasser al Badaai, Ambassador of Oman to Algeria said: “The relations between Oman and Algeria are deep-rooted, and the two countries have insightful political visions and coordination on Arab and international issues. Therefore, this visit, the first of its kind, can be described as a "historic visit" and it would strengthen bilateral relations in the future and open up wider horizons, thanks to the directives of His Majesty Sultan Haitham bin Tarik and President Abdelmadjid Tebboune and their keenness to push the bilateral partnership forward”.
He told Oman News Agency (ONA) that this visit will boost the relations between the two countries in a way that serves their peoples.
The Ambassador added that since the establishment of diplomatic relations between the two countries in the early 1970s, they have been witnessing a continuous development, as the agreement to establish the joint committee was signed between the government of the Sultanate of Oman and the government of the People's Democratic Republic of Algeria.
He explained that the committee held 8 sessions, the last of which was in the Algerian capital last June.
The Ambassador stated that in July 2024, it was announced that negotiations were progressing to establish a Hyundai factory in Algeria. The project aims to establish a line for manufacturing vehicle bodies and a line for painting operations. The project is scheduled to produce, in its first stages, three models of passenger cars, two models of utility vehicles, and one model of electric cars.
The number of companies registered in the Sultanate of Oman with Algerian participation until the end of 2023 amounted to (423), compared to (251) companies in 2022, marking a growth rate of (68.5 per cent), he further added.
Saif Nasser Al Badaai, Ambassador of the Sultanate of Oman to the People's Democratic Republic of Algeria, concluded his statement saying: “Culture is the essence of the Omani vision, and we are keen to place the presence of Oman in all Algerian cultural institutions and spaces as one of our most important goals. Therefore, we sought to allocate a special corner for it in the library of the Grand Mosque of Algiers, which was opened this year (2024). Oman also recently presented valuable books for the mosque. We were keen to have the Omani Encyclopedia placed on the shelves of the library of the Algerian Supreme Council for the Arabic Language this year as well”.
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