Muscat extended its economic engagement with the United Arab Emirates as the latter emerged as the Sultanate of Oman’s foremost trade partner for non-oil exports, re-exports and merchandise imports last year, underlining a deepening commercial integration across the Gulf. Data from Oman’s National Centre for Statistics and Information showed that non-oil goods shipped to the UAE exceeded 1.311 billion Omani riyal, reflecting a substantial year-on-year increase that affirmed the UAE’s dominant position as a destination for Omani products beyond hydrocarbons. Non-oil trade has been a focal point of Oman’s diversification strategy, anchored in policies such as Oman Vision 2040 designed to reduce dependence on oil and expand manufacturing, logistics and port services. Growth in non-oil exports was supported by a broader uptick in shipments of chemicals, metals and machinery, part of the Sultanate’s drive to leverage its industrial capacity and strategic location linking Asia, Africa and Europe.
Oman’s re-export activities, which involve the importation and onward shipment of goods, also underscored evolving commercial dynamics. The UAE accounted for more than a third of total Omani re-exports, valued at about 724 million riyal, signalling the strength of logistical and distribution linkages between the two economies. Merchandise imports from the UAE into Oman grew concurrently, exceeding 4.1 billion riyal, pointing to robust demand for a range of products across sectors.
Trade officials and economic analysts have described these developments as reflective of a broader regional shift in economic relations within the Gulf Cooperation Council. Enhanced connectivity across ports and free zones such as Sohar in Oman, coupled with integrated customs and documentation processes, have contributed to smoother flows of goods and facilitated greater supply-chain efficiency across borders.
Despite the strong performance in non-oil sectors, Oman faced headwinds on the hydrocarbon front last year. Official figures pointed to a notable decline in the value of oil exports, attributed mainly to lower global crude prices, even as production volumes remained broadly stable. This divergence has heightened the emphasis on non-oil trade activities as a buffer against volatility in energy markets.
Saudi Arabia, China, India, Iran and the United Kingdom also featured among Oman’s key trading partners, each with varying contributions across exports, re-exports and import categories. Non-oil shipments to Saudi Arabia and India recorded meaningful growth, with the former eclipsing prior figures to solidify its position as a significant regional destination.
Omani authorities have pointed to policy measures aimed at strengthening port infrastructure and boosting productive sectors as instrumental in sustaining the momentum. Enhanced capacity at deep-water ports, expanded free-zone operations and initiatives to attract foreign investment have been cited as catalysts for the performance of non-oil trade, enabling greater integration with global value chains.
The interplay between regional economic integration and broader global trade patterns was noted by experts, who observed that Gulf states are increasingly balancing their historical reliance on hydrocarbons with emerging non-oil sectors. This trend, they say, is reshaping commercial networks across the region and fostering more diversified trade linkages with both neighbouring and distant markets.
Growth in re-exports has particularly drawn attention, as traders tap into transit and distribution opportunities across the Gulf. Logistics investments and streamlined cross-border procedures have elevated the UAE-Oman corridor as a hub for goods moving to markets in Africa, Asia and beyond, bolstering the region’s competitiveness in non-oil trade flows.
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