Wednesday 30 / October / 2024
Muscat: The bilateral trade between Oman and Iran is expected to touch $5 billion within five years, from merely $1 billion now.
The volume of trade between Oman and Iran is growing and the Sultanate is in a better position to benefit from opening of Iranian market after the recent lifting of sanctions, said Dr Amir Kordvani, head of Iran desk and projects for the Middle East, CMS Cameron McKenna.
Dr Kordvani, while addressing a seminar on foreign investment in Iran here, said that Omani companies are in a strong position to benefit from opportunities in the Iranian market and are currently involved in a number of high-profile projects. International law firm CMS, operating in Oman, in exclusive cooperation with Amur Al Rashdi and Benjamin Ewing Advocates and Legal Consultants, conducted the seminar on foreign investment in Iran.
He emphasised that Oman’s participation in the Iranian market is well deserved after its role as facilitator and negotiator in the Joint Comprehensive Plan of Action (JCPOA) talks. Dr Kordvani said that Omani investors can look at investment opportunities in hotels in Iran as the local businessmen here have a lot of experience in the hospitality sector.
He pointed out that several projects, including Iran-Oman gas pipeline, Iran-Oman shipping line and a $250 million worth of shopping mall (to be developed by Omani investors in Iran) are expected to further strengthen economic cooperation of both countries.
With the lifting of sanctions, Iran offers ample investment opportunities for foreign investors, which include sectors like oil and gas, mining, energy, tourism, hospitality, transport, automobile, infrastructure facilities and information and communication technology.
Iran has 136 billion barrels of proven oil reserves, which is equivalent to 10 per cent of world reserves. Also, oil production cost is one of the lowest in the world. Several projects are waiting to be re-initiated. Around 62 per cent of natural gas reserves are located in fields, which are not yet developed.
Further, Iran has deposits of more than 68 minerals worth of $700 billion. The country has fifth largest zinc reserves and seventh largest reserves of copper. Almost 90 per cent of mines are owned by the government.
As far as energy sector is concerned, the country is the eight largest producer of energy and twentieth largest consumer in the world. Iran is focusing on attracting investment in renewable energy sector.
The seminar brought together senior diplomats, banking executives, commercial management teams and market strategists from across the Gulf Cooperation Council (GCC) and Europe. International experts shared their knowledge and experiences on the Iranian market, market entry and applicable sanctions.
In his opening remarks, Dr Hafez Kamal Hedayat, vice-president of the Iran Oman Chamber of Commerce, gave an overview of the Iranian economy and the wealth of opportunities in Iran for foreign investors.
Dr Hedayat commented that Oman is central to the international business community’s success in building business and creating profitable investments in Iran.
