Diplomatist Magazine Oman 2018 - Special Report | Page 9

the traditional dhows, and the Indian rupee
was legal tender in Oman till the 1970s - all
of these have served to create signifi cant
historical and emotional bonds between
the two countries. There are more than 250
direct fl ights per week between Muscat and
Salalah and a dozen destinations in India.
Oman has traditionally supported India’s
candidature for permanent membership in an
expanded UN Security Council and has been
consistent in collaborating with India at the
United Nations.
According to the Indian Embassy in
Muscat, bilateral trade between the two
countries reached $6.7 billion in 2017-18.
There are over 2,900 Indian enterprises
in Oman, and there are some sizeable
Indian investments in Sohar, Salalah, and
Duqm. These include sectors like iron and
steel, cement, fertilisers, textile, cables,
chemicals and automotive components.
Indian companies have a sound reputation in
executing projects in sectors like construction
and engineering, waste management, logistics,
manufacturing, fi nance and capital, software
solutions, communications, oil and gas, etc.
The India Oman Joint Investment Fund is a
joint venture between State Bank of India and
the State General Reserve Fund of Oman.
After fully utilising an initial capital of $100
million, it has raised another $220 million
for future investments in both countries.
The Oman India Fertiliser Company in
Sur is another fl agship joint venture worth
$969 million in Oman between IFFCO
and KRIBHKO of India and the Oman Oil
Company for production of fertiliser for the
Indian market.
Bilateral commercial relations and defence
exchanges are reviewed annually through the
mechanisms of a Joint Commission as well
as the Joint Military Cooperation Committee.
Institutional mechanisms exist for periodic
review of issues related to agriculture,
security, education, culture, manpower, etc.,
between the two countries.
India and Oman conduct bilateral exercises
between all three services. The Air force and
Navy undertake staff talks on a regular basis
and the Royal Navy of Oman personnel are
trained by Indian naval mobile training teams
in Oman. Regular biennial bilateral exercises
are conducted between all three services.
Indian naval ships visit Omani ports for
turnarounds during anti-piracy operations,
and Indian aircraft use Omani airports for
refueling. As a prominent member of the
Indian Ocean Rim Association, Oman is a
key country for India in the GCC, especially
since 65 percent of Indian oil supplies are
sourced from this region.
The recent visit of Prime Minister Modi
to Oman from 11-12 February 2018 has
given a huge boost to the relationship,
and focused on new areas of cooperation,
including space, cyber security, energy
security, renewable energy and food security.
Both sides understand each other’s concerns
on terrorism and the resultant threat, and
also now acknowledge the close interlink
between the security of the Gulf region with
that of the Indian sub-continent. India and
Oman are cooperating closely in the fi elds
of counterterrorism, information sharing
and capacity building. They have agreed to
boost their cooperation in law enforcement,
anti-money laundering and prevention of
smuggling of currency, drug trafficking,
human traffi cking, illegal migration and other
transnational organised crimes, as well as
cyber security.
Omani Sovereign Wealth funds, including
the State General Reserve Fund, and Omani
private businesses have been invited by
Prime Minister Modi to invest in India. The
India Oman Joint Investment Fund remains
an important mechanism for two-way
investments. The two governments have also
agreed to conclude ongoing negotiations on
the bilateral Investment Treaty to provide
a legal framework for promotion and
protection of investments. Recently, Indian
Oil has acquired a 17 percent stake in Oman’s
Mukhaizna oil fi eld, and this will further tie
India and Oman together in the energy sector.
An MoU on Space Cooperation signed
between the two countries needs expeditious
implementation, so that outer space and
new space technologies can be tapped for
developmental and other purposes. Indian
expertise in the IT sector can be tapped to
strengthen bilateral cooperation in the areas
India and Oman
conduct bilateral
exercises between
all three services.
The Air force and
Navy undertake
staff talks on a
regular basis and
the Royal Navy of
Oman personnel
are trained by
Indian naval mobile
training teams in
Oman.
2018 • INDIA-OMAN • 9