عُمان والجزائر.. توافقٌ في الرؤى والمواقف وتعاون عميق بالمجالات الاقتصادية والاستثمارية

Oman and Algeria: Shared Vision and Deep Economic and Investment Cooperation

Strengthening Bilateral Relations: A History of Cooperation

The Sultanate of Oman and the People's Democratic Republic of Algeria have enjoyed a long-standing relationship characterized by stability, shared visions on regional and international issues, and extensive cooperation across various sectors. This collaboration extends to government and private entities alike, encompassing energy, renewable energy, mining, industry, petrochemicals, pharmaceutical production, transportation, logistics, food security, desert agriculture, and more.

Under the wise leadership of His Majesty Sultan Haitham bin Tariq of Oman and President Abdelmadjid Tebboune of Algeria, both nations are committed to further enhancing their commercial and economic ties. This commitment is evident in the upcoming state visit of President Tebboune to Oman, scheduled for Monday.

A Look Back at the Strong Bonds

The relationship between Oman and Algeria is deeply rooted in history. The late Sultan Qaboos bin Said's visit to Algeria in 1973 significantly strengthened the bond between the two nations. In 1990, the late Algerian President Chadli Bendjedid visited Oman, further cementing bilateral relations. This visit is considered a historical moment that fostered close ties.

In January 2020, Algerian Prime Minister Abdelaziz Djerad offered condolences on the passing of Sultan Qaboos bin Said, showcasing the depth of the relationship and mutual respect between the two countries.

Joint Committee for Enhanced Cooperation

The Joint Committee, established in 1991 between the governments of Oman and Algeria, plays a crucial role in advancing cooperation between the two nations. The committee's focus areas include energy, renewable energy, mining, industry, petrochemicals, pharmaceutical production, transportation, logistics, food security, desert agriculture, food processing industries, fertilizers, information technology, and tourism.

In a June 2024 meeting, the committee agreed to develop a framework for establishing a joint investment fund across various sectors. This signifies a shared commitment to exploring new avenues for collaboration and mutual growth.

Business Opportunities and Trade

The two countries have witnessed a robust trade exchange, with a total of 41 million Omani riyals recorded at the end of 2023. This figure is a positive indicator of their commercial cooperation, particularly compared to other Arab nations in North Africa. This strong foundation fosters an environment conducive to further growth and partnerships in various economic fields.

Key Projects: A Beacon of Shared Growth

One of the most significant projects in the economic partnership between Oman and Algeria is the joint venture between Sonatrach, Algeria's national oil company, and the Bahwan Group. This project involves the production of ammonia and urea in the Arzew region of Oran Province and represents an investment of approximately $3 billion USD, with the Bahwan Group holding a 51% stake. This project underscores the commitment of both countries to strengthening cooperation in the industrial and energy sectors.

Future-Forward Collaboration: Embracing New Opportunities

Efforts are underway to bring in companies like OQ and Abraj for substantial investments in the energy sector in Algeria. This initiative strengthens strategic cooperation and opens new doors for joint economic development. The pharmaceutical industry in Algeria has seen considerable growth. While previously meeting only 15-20% of its domestic demand, Algeria now covers approximately 80% of its needs, becoming a major exporter of advanced pharmaceuticals such as insulin. This presents a promising opportunity for collaboration between Oman and Algeria, allowing Oman to leverage Algerian expertise in pharmaceutical development and expand its export markets.

In the agricultural sector, desert agriculture in Algeria is a burgeoning field with a long-term goal of cultivating 3 million hectares. The current focus is on developing 1 million hectares, and the produce from Algerian desert regions boasts high quality. Algeria is a major producer of phosphate, exporting significant quantities to African nations, with an annual production reaching 1.5 million tons.

Harnessing Renewable Energy: Sustainable Solutions for the Future

Renewable energy is another area holding immense potential for collaboration. Algeria has embarked on major projects in this sector, working with the European Union. Both countries can exchange knowledge and technologies to develop renewable energy initiatives, particularly in solar and wind power. The pursuit of joint investment opportunities in this vital sector is a crucial step towards addressing sustainable energy needs for the future.

Cultural and Educational Exchange: Fostering People-to-People Connections

Algeria has offered 10 scholarships to Omani students this year, a result of a virtual meeting between the international cooperation departments of the two countries' higher education ministries. Oman's cultural and scientific cooperation program offers three scholarships to Algerian students, distributed across two study missions and one scholarship.

Oman's program is being expanded to include 10 additional scholarships for Algerian students. As of mid-2024, the Algerian community in Oman is estimated at 2,469 individuals, including approximately 400 engineers and technicians in the oil and energy sectors.

A Vision for a Stronger Future: Words from the Ambassador

Ambassador Saif bin Nasser al-Badai, the Omani ambassador to Algeria, highlighted the deep-rooted historical relationship and high level of political coordination between the two nations, particularly on Arab issues and global peace. He described this upcoming visit as a "historic visit" with the potential to significantly strengthen bilateral relations in the future, thanks to the guidance of the leadership of both countries.

The ambassador emphasized the continuous development of relations since the establishment of diplomatic ties in the early 1970s. He highlighted the Joint Committee, which has successfully convened eight sessions, the most recent being held in Algiers in June 2024. These sessions have resulted in the signing of 27 agreements encompassing essential areas, further bolstering the partnership and providing clarity for future collaborations.

Strengthening Economic Ties

The ambassador highlighted important agreements, including the Bilateral Investment Promotion and Protection Agreement (2000),the Agreement for the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to Income Tax (2000),and the Agreement for the Establishment of the Omani-Algerian Business Council (2006). Additional significant agreements are currently being discussed between the Ministries of Commerce, Industry, and Investment Promotion of both countries.

Cultural Bridge: Shared Heritage and Understanding

Ambassador al-Badai emphasized that culture plays a crucial role in the Omani vision. The ambassador highlighted Oman's efforts to establish a dedicated space for Omani culture within the Grand Mosque of Algiers, a distinctive cultural and religious edifice that opened this year. To symbolize this commitment, Oman recently donated valuable books, which were personally received by Sheikh Mohammed Mamoun al-Qasimi al-Hassani, the mosque's dean.

The ambassador emphasized the importance of promoting understanding between peoples through culture. He underscored that the Omani encyclopedia has been placed in the library of the Algerian High Council for the Arabic Language, and the embassy has previously facilitated a dedicated space for Omani books in the Algerian National Library. These actions pave the way for "Omani Days" in Algeria, a celebration of shared heritage and cultural exchange.