Saturday 13 / September / 2025
Muscat: A Royal Decree No. (71/2025) was issued ratifying the Preferential Trade Agreement (PTA) between the Sultanate of Oman and the Islamic Republic of Iran, a step that will enhance economic and trade relations between the two countries and open new heights for joint investment, in line with the goals of Oman Vision 2040.
Dr Saleh bin Said Masan, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion (MoCIIP) for Commerce and Industry, affirmed that the agreement marks an important milestone in the course of bilateral cooperation between the two countries.
He pointed out that it will help stimulate trade exchange, increase investment opportunities, and enhance the competitiveness of national products in foreign markets, in support of the economic diversification objectives of Oman Vision 2040.
Removing non-tariff barriers
He explained that the agreement includes key objectives, most notably reducing and eliminating customs duties on goods of national origin, removing non-tariff barriers that limit trade flows, organising trade exchange mechanisms within a legal framework that guarantees the rights of companies and investors, ensures equality in trade treatment, expands avenues for industrial cooperation, and secures the sustainability of supply chains with neighbouring countries.
He further noted that the agreement is expected to strengthen joint investments in sectors such as industry, logistics, agriculture, and petrochemicals, in addition to expanding the presence of Omani products in Iranian and regional markets and accelerating trade flows through ports and maritime gateways.
For his part, Khamis bin Abdullah Al Farsi, Legal Affairs Advisor to the Minister of Commerce, Industry and Investment Promotion, stated that the agreement establishes a supportive legal framework to simplify customs procedures, provide greater protection for investors, and reinforce the principles of transparency and fairness in trade dealings, thereby creating a more attractive investment environment for capital inflows.
The Advisor pointed out that data from the National Centre for Statistics and Information (NCSI) showed that Oman’s trade balance with Iran recorded a surplus of OMR210.3 million (USD 546.8 million) in 2024, driven by a 69% increase in exports and re-exports which reached OMR361.2 million. Imports also grew by 22.7% to reach OMR150.9 million.
Meanwhile, the volume of trade exchange between the two countries rose from OMR335.8 million in 2023 to OMR512.1 million (USD 1.33 billion) in 2024, representing growth of 52%.
