Oman Deepens Ties with Turkey, Advances Global Investment Strategy

Strengthening Bilateral Cooperation with Turkey

Oman has recently highlighted its strong and expanding cooperation with Turkey, a relationship underscored by a series of high-level diplomatic engagements and strategic agreements. This emphasis on bilateral ties was articulated by Ahmed al-Maskeri, head of the Gulf Cooperation Council and Regional Neighborhood Department at Oman's Foreign Ministry, during a National Day event in Muscat.

The cooperation spans various sectors, notably including the defense industry, with several active agreements in place. Recent discussions, including those during President Recep Tayyip Erdoğan's visit to Muscat in October 2025 and Sultan Haitham bin Tariq's visit to Ankara in November 2024, have also focused on strengthening mediation efforts on regional matters. Oman, known for its neutral diplomacy, positions itself as a 'reliable bridge' between East and West.

Economic relations have seen significant growth. Türkiye emerged as Oman's 11th-largest destination for non-oil exports in 2024, a notable rise from 17th place the previous year, with a trade volume reaching approximately RO 330.3 million. Turkish capital invested in Oman increased by 36.7 percent to nearly RO 56 million, and the number of Turkish-registered companies in Oman grew from 385 in 2023 to 597 by the end of 2024. The total trade between the two nations reached RO 196.8 million in the first seven months of 2025.

Key developments include:

• The establishment of the Omani-Turkish Coordinating Council to oversee bilateral agreements.
• The signing of six agreements and eight memoranda of understanding (MoUs) covering media, investment, information technology, food security, military cooperation, and mining.
• Advancing negotiations for a Free Trade Agreement (FTA) between GCC states and Türkiye.
• A proposed direct maritime shipping route to facilitate trade.
• The creation of a $500 million joint investment fund between the Oman Investment Authority (OIA) and the Turkish Armed Forces Assistance and Pension Fund (OYAK), with initial investments planned for a new container port in Iskenderun, Türkiye.
• A bilateral trade target of $5 billion was announced during President Erdoğan's visit.
• Mutual visa exemptions for ordinary passport holders from both countries.

Oman's Expanding Global Investment Strategy

In parallel with strengthening its bilateral ties, Oman is vigorously pursuing an expansive global investment strategy, spearheaded by the Oman Investment Authority (OIA). This strategy is integral to Oman Vision 2040, aiming for economic diversification, attracting domestic and foreign investment, and enhancing global integration.

The OIA currently holds investments in over 50 countries, diversified across companies, real estate, equities, and bonds. It maintains strategic partnerships with similar institutions in 10 countries, with plans to increase this number to 15 in the near future. Oman's investment approach focuses on modernizing its business environment, developing human capital, fostering innovation, and accelerating digital transformation.

The Sultanate's efforts have yielded significant results, with Oman ranking fourth globally for foreign direct investment (FDI) appeal in 2023. FDI inflows saw a substantial increase of 19.3 percent between Q1 2023 and Q1 2024. Key investment partners include China, which invested RO 1.4 billion in 2023, alongside India, Japan, South Korea, and Denmark.

To streamline investment processes, Oman is implementing a unified national model called 'Invest in Oman,' which consolidates efforts from both government and private sectors. Looking ahead, Oman aims to attract high-value companies in strategic sectors such as green hydrogen, metals, advanced technologies, logistics, tourism, and food security. The nation's long-term vision prioritizes reducing reliance on oil revenues by promoting sustainable sectors and developing green infrastructure.