In a major move to deepen economic cooperation, Oman and the Kingdom of Saudi Arabia have agreed to mutually recognise each other's certificates of origin. This strategic decision is set to significantly ease the flow of goods between the two nations, cut down operational costs for manufacturers, and open up new avenues for collaborative industrial ventures.
Accelerating Economic Integration
The landmark agreement was announced during a high-level committee meeting held in Riyadh on Tuesday. Officials from both countries convened to assess the progress of their joint integration programs. Out of 17 launched initiatives, six have been fully completed, with work actively progressing on the remaining eleven.
The Omani delegation was headed by H E Saleh bin Said Masan, the Undersecretary for Commerce and Industry at Oman's Ministry of Commerce, Industry, and Investment Promotion. The Saudi side was represented by Rakan bin Waddah Tarabzouni, Undersecretary for International Economic Affairs at the Ministry of Economy and Planning.
Key Industrial Milestones Achieved
The meeting spotlighted several critical achievements. Notably, the second phase of the Industrial Integration Project has been finalised. This allows products manufactured in Oman to enter the Saudi market using just an Omani Certificate of Origin, simplifying market access and procedural hurdles.
Another significant accomplishment is the completion of the 'Factories of the Future' initiative. This effort is complemented by 12 agreements that link supply chains between Omani and Saudi factories. These pacts are designed to foster new opportunities in joint manufacturing and value-added industrial operations, thereby strengthening the regional industrial ecosystem.
Trade Growth and Future Roadmap
Bilateral trade between the two Gulf nations has seen robust growth, surpassing the US$8 billion mark by the end of 2024. This reflects a rapidly expanding network of business partnerships. To support this growth, the committee also inked a memorandum of understanding focused on competition protection and anti-monopoly practices. Technical workshops were held to align regulations and build expertise in line with the long-term visions of both countries.
Eng Jassim bin Saif al Jadidi, Technical Director at the Office of the Undersecretary for Commerce and Industry in Oman, highlighted the second phase of industrial integration launched in July as a pivotal milestone. He stated it has advanced cooperation in industrial development, boosted local content, and harmonised government procurement processes.
Al Jadidi emphasized that collective efforts have already strengthened supply-chain integration. The next phase will concentrate on finalising a verification protocol for Certificates of Origin, aiming to further streamline the movement of goods and ease procedures for manufacturers in both kingdoms.
