Oman ready to become region’s import, export hub

Oman has announced its readiness to become the import/export hub of the region.

The GCC member was one of the countries that stood to benefit from the Saudi-led blockade on Qatar after deciding to remain neutral during the regional crises that saw four of its Arab neighbours impose a siege on a fellow Arab state.

One of the measures taken by the blockading countries was to deny Qatar access to their ports. Typically, cargo for Qatar stops at the UAE’s massive port in Jebel Ali Port, Dubai, or in Abu Dhabi, then gets put on smaller boats heading to Doha. Following the blockade, international free trade zones like Jebel Ali in the UAE were cut off. Hundreds of containers destined for Qatar were seized in clear breach of the provisions and laws of the International Trade Organisation that safeguards the free flow of goods.

Qatar mitigated the impact of the blockade by deciding very early on to ship its cargo through Oman and bypass the ports of blockading countries.

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By allowing Qatar-bound ships to use its ports Oman stands to reap the rewards of becoming one of the region’s major shipping hubs. Muscat has announced that it has completed its preparations to become a regional import and export centre after investing billions of dollars in the construction of ports that are distributed along the Omani coast. Changes also made to the various customs service will encourage global importers and exporters to use Omani ports which will potentially lead to a dramatic increase in foreign investments into the country.

The country launched one of its boldest project; Bayan, which is the largest electronic system in the Sultanate. It is descried as a “mini electronic government” and one of the most important national systems that connect 42 government departments including: shipping companies, clearance companies, operating ports, airports and commercial banks. Director of Bayan, Lieutenant Colonel Mansoor Al Rahbi, stressed that it was part of the Sultanate’s process of modernisation and development for the future.

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Al Rahbi explained that the new system is one of the easiest and most comprehensive customs regulations in the region. He said that it enables investors and traders to complete the procedures of import and export clearance easily and from anywhere. It also allows international traders to obtain government permits and licenses quickly and efficiently.

Industry analysts believe that both Kuwait and Oman will reap the benefit of trade transactions that used to take place in countries like the UAE. Qatar Petroleum chief Saad Al-Kaabi told Al Jazeera that as the world’s largest exporter of liquefied natural gas (LNG) and producer of up to 77 million tonnes of gas each year, it had to move quickly to mitigate the impact of the blockade and secure alternative routes. While stressing that the blockade has made Qatar much stronger, Doha was unlikely to return to using ports of the blockading countries that previously served as the hub of its global export.