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Iran, Oman Call For Deepening Economic & Banking Ties

By Orkhan Jalilov March 23, 2018

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Iranian President Hassan Rouhani, met Omani Foreign Minister Yousef bin Alawi bin Abdullah in Tehran on March 18. / Hemmat Khahi / IRNA news agency

The Iranian president and the Omani foreign minister have called for an expansion of bilateral ties related to the economy and banking sector.

“There are great opportunities and capacities in Iran for investment in various spheres, such as petrochemicals, energy, steel, aluminum, railroads and ports, that Omani investors can take part in related project. Iran is determined to boost all-out relations and cooperation with Oman,” President Hassan Rouhani said in a meeting with Yusuf bin Alawi, Oman’s Minister for Foreign Affairs on March 18, the Iranian president’s official website reported.

Alawi was on a visit to Tehran, leading a delegation with interests in energy, investment, trade and ports. He called for the endorsement of using local currencies, rather than the U.S. dollar, in order to develop banking and commercial sectors with Iran.

According to Iran's Commercial Attaché to Oman Abbas Abdolkhani, non-oil trade between Iran and Oman from March 21-December 21, 2017 reached 1.33 million tons and was valued at $393 million, showing a 24-percent growth in weight, according to the Trade With Iran website.

As neighbors across the Strait of Hormuz and Gulf of Oman, Iran and Oman are actively cooperating in shipping and logistics.

The first shipping route between Iran and Oman was put into service in April 2015, connecting the port of Bandar Abbas with the port of Sohar which is located midway between Dubai and Muscat. The Khorramshahr-Sohar shipping route between Iran and Oman was launched on December 30 of last year, and is expected to increase bilateral trade to $5 billion within the next four years.

Meanwhile, the two countries are still willing to launch more shipping routes using their ports.

During the meeting on March 18, Rouhani emphasized that the development of Chabahar and Jask ports, along with the Chabahar railway to Zahedan, will have positive effects on the development of both economies.

The head of the Iran-Oman Chamber of Commerce, Mohsen Zarrabi, announced on March 17 that the Central Bank of Iran has required banks to support those who want to launch factories in Oman and re-export Iranian goods to target markets, along with exporters of engineering and technical services who wish to receive loans from Omani lenders.

The Central Bank of Iran is trying to reconstruct banking relations and to regulate the Iranian banking system to operate in line with the International standards, after the removal of international sanctions beginning in January 2016 and following the implementation of the nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA).

Oman, which enjoys friendly ties with Iran, has been a long-time intermediary between Iran and the west. In 2013, Oman hosted talks between Iran and western powers that led to the landmark nuclear deal.