The Iranian government continues on its path to decarbonise its industry through these plans and announces a new special trading system between the two countries

Iran's non-oil exports to Oman increase by 168%

photo_camera AFP/ ATTA KENARE - Shahid Beheshti port in the south-eastern Iranian coastal city of Chabahar, on the Gulf of Oman

Trade between Iran and Oman continues to increase. The latest data published by the Islamic Republic of Iran Customs Administration (IRICA) states that, in the first quarter of this year, non-oil exports to the Omani Sultanate have soared. In particular, they have grown by 168% more than usual compared to the same period last year in relation to the Persian country.

According to Ruhollah Lafitit, spokesman for IRICA, Iran has exported around $331 million worth of commodities to Oman. This is quite a large figure, as these sales have been spread over a three-month period. In this way, Iran is beginning to decarbonise its industry through exports of other resources and products that meet the Iranian government's plans. In recent years, the executive has pursued these projects, from which, above all, countries neighbouring the Islamic Republic are benefiting.

Contenedores en el puerto de Kalantari en la ciudad de Chabahar AFP/ATTA KENARE

But the plans with Oman do not end there. Mohsen Zarabi, head of the Iran-Oman Joint Chamber of Commerce, announced that, in line with the good relations between the two regions, a special trade system is to be established between the two sides. Iran and Oman will use the barter technique to exchange goods, so there will be no need to pay for anything, but rather goods or services will be offered in exchange for other goods or services.

This is because, according to the diplomat, the growth of trade between the two countries has increased by 145% in the first two months of 2022. Zarabi expects trade to continue to grow further and estimates that by 2023, $2 billion will have been raised.

Puerto de Chabahar, en el Golfo de Omán, al sureste de Irán AP/EBRAHIM NOROOZI

"Considering the upward trend of trade with this country [Oman], we are expected to record $1.2 billion in exports and $2 billion in trade by the end of the year," Zarabi said after remarks at the annual regular general assembly of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA).

In order to further increase these figures, the diplomat assured that both countries have signed a series of agreements in which they are committed to increasing the volume of exports between the Islamic Republic and the Sultanate. In addition, a strategic plan has been drawn up to achieve the desired goals. "One of the ways to increase trade is to introduce Iranian commodities to Omani traders and make them known; this is possible by sending trade delegations and holding exhibitions in Oman," Zarabi said.

Buque de en el puerto Shahid Beheshti en la ciudad costera del sureste de Irán de Chabahar, en el Golfo de Omán AFP/ ATTA KENARE

These agreements were signed at the end of May, coinciding with a meeting between the head of Iran's Trade Promotion Organisation (TPO), Alireza Peyman-Pak, and Oman's Minister of Trade, Industry and Investment Promotion, Qais bin Mohammed al-Yousef. From this event, it was agreed to create a new roadmap to expand trade relations between the two zones, in addition to the establishment of an Iranian trade centre in Muscat, the Omani capital.

The roadmap was welcomed by both sides as a sign of good understanding between the diplomats and the countries. Peyman-Pak also took the opportunity to put his institution and the Iranian Ministry of Industry, Mines and Trade at Oman's disposal in the construction of infrastructure needed to expand trade between the two areas.

The meeting also facilitated rapprochement between the two countries and the conversation provided an opportunity to discuss and resolve the common challenges they face. The economic cooperation between Tehran and Muscat has to remain on the path of development and anything that is a hindrance has to be fought. The Iranian official mentioned that, to this end, ministries and private institutions of the two countries are opening the dialogue table to find a solution to put an end, mainly, to the problems related to transport and banking relations of Iranian-Omani trade.

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