Oman can be India’s gateway to West Asian markets

India’s relations with Oman are historical and deep-rooted. In the past, there was constant sea trade between the two countries.

‘Economic diplomacy will further strengthen ties’

INTERVIEW — KHALIFA BIN ALI AL HARTHY

In an interview with Huma Siddiqui, Oman’s ambassador to India, Khalifa Bin Ali Al Harthy, says Oman will open its doors wider for foreign investors. Excerpts: How do you view India’s economic diplomacy drive? Any sort of economic diplomacy will help strengthen relations. If this diplomacy is implemented, it will be reciprocated by Oman and other Gulf countries. It would attract more investors from that part of the world, and to encourage Indian companies to invest in Oman. In Oman, we are now setting up a free trade area in Salalah where foreign investors can own 100 per cent in the service sector, small and medium-scale industries and in the information technology sector. In biotechnology, many incentives are being given, and these are exempt from all sorts of taxes. Investors can also get soft loans from FIs. What is the status of trade? Indian exports to Oman are steady but Oman’s exports to India are fluctuating, basically non-oil exports. There was a time when copper was the main export item, but that has been declining. In the gold and precious stone sector there has been decline. However talks are on and with India to improve these areas of trade. Oman is setting up an infotech and biotech park in consultancy with Bangalore. An IT college with co-operation from Manipal University is coming up. Oman is also inviting investors to use this park as the gateway to West Asia. IT specialists from India will train and set up a university in Oman. We would also like to share our expertise in agriculture. A business delegation from Oman was here three weeks ago and had extensive discussions with Ficci, Nasscom, CII. Three areas were identified—food processing, tourism and IT. By the end of this year or early next year, a business delegation from India will visit Oman. At present, diary products and sweets are coming into India. Indian investors are being encouraged to invest in parks, restaurants and hotels. Oman is also encouraging private training institutions where Indians are invited to invest. How strong are links in travel and tourism? For the Omanis, India is a major destination. From Kochi, we were the first to introduce the first international flight. We are looking at Delhi and Bangalore as possible destinations in future. Oman Air is trying to promote India as a destination. In fact, the Kerala government is promoting itself as a tourist attraction and is investing in Oman and Gulf countries.

There has also been considerable migration of business families from the Kutch area in India to Oman during the past 250 years. The ruling family of Oman had close links with India. Sultan Taimur, the present Sultan’s grandfather, spent over 30 years in Bombay till his death in 1967.

Sultan Said, the present Sultan’s father, studied at Mayo College, Ajmer. There is also evidence of Tipu Sultan having close relations with Sultan bin Ahmed of Oman to the extent that he sent an impressive diplomatic delegation in four ships in 1786 with 900 persons and cargo of merchandise and four elephants. The ships docked at Muscat for several months and then visited Sohar Port in the north before leaving to Basra.

There are roughly 311,000 Indian expatriates in Oman (1999 figures), which form a majority (over 58 per cent) of foreign nationals there.
India-Oman relations have been marked by expanding high-level contacts in recent years which have helped in fostering closer understanding and goodwill.

The visit of the Indian Prime Minister to Oman in June 1993 launched a number of joint initiatives, particularly in the hydrocarbon sector. These included proposals to set up a joint venture fertiliser project in Oman and a refinery in India. During the visit of late President Shankar Dayal Sharma in October 1996, a memorandum of understanding (MoU) on combating crime was signed. Oman is the first country in the Gulf to have signed such an MoU.

India’s bilateral trade with Oman during 1999 was $187 million with Indian exports amounting to $159 million while Oman’s exports were $28 million. Among the items exported from India are rice, spices, textiles, meat and manufactured goods. India imports dates, non-ferrous metals, metal scraps, organic chemicals, etc.