The United Kingdom has invested over $5 billion in Oman from October 2023 to September 2024, reinforcing its status as the largest foreign investor in the sultanate. This investment spree highlights the enduring economic partnership between the two nations, which is further supported by robust political and military ties.**
The latest data from the Oman News Agency (ONA) and the National Statistics and Information Centre (NSIC) reveals that the UK’s foreign direct investment (FDI) in Oman reached a cumulative total of 13.7 billion Omani rials ($35.6 billion) by the end of the third quarter of 2024. This marks a significant increase from the 11.5 billion OMR recorded at the same time in 2023, with UK investors funneling approximately $470 million monthly into Oman over the past year.
The UK’s economic footprint in Oman is prominently seen in its substantial investments in the oil and gas sectors. British companies such as Shell and BP play integral roles, with Shell being a key partner in Petroleum Development Oman and BP managing the expansive Khazzan tight gas project. This longstanding engagement in the energy sector underscores the UK’s strategic interest in Oman’s natural resources.
Additionally, the UK maintains a significant military presence in Oman, including a training ground and a naval logistics base at Duqm, highlighting the multifaceted nature of British-Omani relations.
Trade between the UK and Oman has also seen an uptick, with UK exports to Oman reaching approximately £1.2 billion ($1.46 billion) in the four quarters leading to Q2 2024, reflecting an 11% increase from the previous year. Meanwhile, UK imports from Oman surged to nearly £400 million, marking a significant rise of over 33% during the same period. These figures indicate a healthy and growing trade partnership between the two nations.
Despite the strong focus on hydrocarbons, British officials have expressed a commitment to diversifying their investments in Oman. Douglas Alexander, the UK’s Minister of State for Trade Policy and Economic Security, emphasized during a visit to Muscat that there is a concerted effort to expand investment beyond traditional sectors. “Nearly 96% of our investments currently focus on oil and gas,” Alexander noted. “However, the UK is committed to evolving our relationship with Oman into a more diverse and mutually beneficial partnership.”
Dr. Fatima Al-Mahrouqi, an economist specializing in Middle Eastern markets, observed, “The UK’s deep-rooted investments and strategic interests in Oman not only bolster economic growth but also fortify geopolitical ties in a rapidly changing global landscape. As both nations look to diversify, we can expect new opportunities in sectors like renewable energy, technology, and infrastructure.”
