His Highness Prince Faisal bin Farhan bin Abdullah, the Saudi Minister of Foreign Affairs, announced the launch of the second phase of industrial integration initiatives between the Kingdom of Saudi Arabia and the Sultanate of Oman. This strategic step aims to enhance economic cooperation and solidify the investment partnership between the two brotherly nations. This announcement culminates the ongoing efforts of the Saudi-Omani Coordination Council, which works to overcome obstacles and unify visions to serve the interests of both peoples.
Historical context and deep-rooted relationships
This step builds upon a long legacy of strong fraternal relations between Riyadh and Muscat, which have witnessed a qualitative and historic transformation since the auspicious visit of His Majesty Sultan Haitham bin Tariq of Oman to the Kingdom in 2021, and the visit of His Royal Highness Prince Mohammed bin Salman, Crown Prince and Prime Minister, to the Sultanate of Oman. These reciprocal visits resulted in the establishment of the Saudi-Omani Coordination Council, which laid the foundation for a new phase of institutional cooperation and saw the opening of the direct land route across the Empty Quarter, a vital artery for enhancing trade and logistics, shortening distances and reducing transportation costs between the two countries.
Vision alignment: 2030 and 2040
The second phase of industrial integration initiatives gains its paramount importance from the alignment of Saudi Arabia’s Vision 2030 and Oman’s Vision 2040. Both visions aim to reduce reliance on oil as the sole source of income and focus on diversifying the economic base by empowering the industrial sector, developing logistics zones, and supporting innovation and technology. Industrial integration in this phase focuses on vital sectors including petrochemicals, renewable energy, mining, and food industries, thus opening up significant opportunities for the private sector in both countries to forge strategic partnerships and joint ventures.
Expected economic and strategic impact
Domestically, these initiatives are expected to create thousands of job opportunities for young people in both countries and localize advanced industrial technologies. Regionally and internationally, this integration strengthens the position of the Gulf Cooperation Council (GCC) countries as a unified and powerful economic bloc. Furthermore, the industrial and logistical link between the Kingdom and the Sultanate, particularly by leveraging Oman's strategic location on the Indian Ocean and the Kingdom's advanced ports on the Red Sea and the Arabian Gulf, will transform the region into a global logistics hub connecting East and West, thus enhancing global supply chains and attracting foreign direct investment to the entire region.
