Oman Exports and Imports: A Comprehensive Review of Its Most Important Commercial Goods

28 March 2020
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update in2020/04/19
In this article you will be discussed the importance of export to Oman, trade in goods in Oman, Oman's export and import trends from 2010 to 2016, Oman's most important trading partners, Oman's most important commercial goods, Iran's most important export commodities to Oman, and potentiality of export to Oman.

A Comprehensive Study of Export and Import Trends in Oman with a view toward Iran's Role.

As mentioned in previous articles, in recent years Oman has made all the reforms and changes in its export and import structure to one of the best countries in the region and the Middle East to start a business, including export and Import has become. According to figures released by international institutions, Oman is in a very good position in terms of trade facilitation index, making it one of the most attractive options for foreign investors. In this article, Sindbad aims to provide a comprehensive overview of Oman's exports and imports and its approaches with a view to Iran's contribution.

The Importance of Exporting to Oman

Today, international trade is regarded as one of the most important factors in the economic development and growth of countries through increased business opportunities and investment. Joining the global value chain and export promotion in developing countries will improve competitiveness in these countries and will increase product value added, R&D investment, foreign direct investment and job creation. In Iran, too, the importance of expanding non-oil exports is increasingly revealing the need for access to foreign markets. Given the geographical location of the country, there is a relatively significant consumer market in neighboring Iran such as Oman, whose export expansion requires identifying the import needs of these countries.

Trading goods in Oman

According to figures from the International Trade Center, Oman exported $ 5.24 billion in 2016 worth about 66 million tonnes and imports of $ 6.23 billion and amounted to about 42 million tonnes. Oman's exports are heavily dependent on oil, with a significant share of its exports each year being covered by the oil items listed in Chapter 27 of the Export and Import Regulation Book. Over the past 10 years, Oman's share of the value of exports has fluctuated between 60% and 80%. It should be noted, however, that this share has experienced a significant decline over the last three years, mainly due to the decline in oil value.

From 2010 to 2016, Oman's highest exports were in 2013, followed by a decline in oil prices since mid-2014. Oman's exports in 2016 were down about 23.23 percent from 2015, with the share of petroleum products down 14 percentage points. Oman's imports have declined in value over the past two years, and oil supplies appear to have been the main cause of the decline. In 2016, the value of Oman's imports fell nearly 22 percent from 2015, while the decline in imports of light oils and tariff products 271012 played a major role in the drop, with a share of 5.3 percent. Oman's exports have been at a very high level in recent years and before 2014, with a significant surplus in its trade balance, but in the last two years the country's export and imports gap has declined dramatically. It has declined and the trade balance has also fallen sharply despite its positive outlook.

Oman's most important trading partners

According to the International Trade Center, Oman had the highest exports to China in 2016, with exports of $ 7.10 billion, accounting for 6.43% of the total value of Oman's exports to the world. Almost half of Oman's import needs this year were provided by the UAE with $ 5.10 billion in imports. Among Oman's major import bases, Iran is in sixth place in terms of value.

The most important commercial goods in Oman

A survey of Oman's trade statistics for 2212 shows that among the commodity groups, Oman's largest volume of trade in 2016 relates to petroleum products, followed by types of reactors, industrial machinery and vehicles. Most of Oman's imports in 2016 were dedicated to a variety of reactors and industrial machinery. The commodity's share of Oman's total value of imports in 2016 was about 21%. Subsequently, the two commodity groups of land vehicles and petroleum products, with a share of 11% and 8% of the total value of Oman imports in 2016, are next in line. Oman's largest export value among commodity groups is oil products, accounting for more than 62% of Oman's total value. After petroleum products, land vehicle groups had the highest share of import value in 2016, excluding railroad vehicles and organic chemicals, accounting for 10% and 4%, respectively.

Oman Business Relations with Iran

According to customs statistics, in the last few years, the volume of trade, that is, total exports and imports of Iran's and Oman's commodities, has almost increased. In 2006, the volume of trade between Iran and Oman was $ 87 million, almost doubling to $ 612 million in 2016. On average, from 2006 to 2016, the value of Iran's exports to Oman has grown about 24% annually, and the value of its imports from Oman has experienced an average annual growth rate of 11% during this period.

The increase in the value of Iran's exports to Oman in 2015 was 45 percent, compared to 2015, with iron ore resulting from the direct revival of iron ore mines with tariff code 72031000 having the highest share, or 16 percent. The product was not exported to Oman in 2015, but it was exported to Oman in 2016 for approximately $ 61 million. Over the past 10 years, Iran's trade balance with Oman has been in deficit for some years. Especially in the years 2011 and 2013 when Iran has had a significant trade deficit with Oman. It should be noted that in these years, the dominant factor in Iran's trade deficit with Oman has been the relatively high increase in the value of Iran's imports from Oman. However, since 2013, the upward trend in the value of Iran's exports to Oman and the declining trend of Iran's imports from Oman have led Iran to trade with Oman with a significant trade surplus.

In terms of trade with Iran and Oman in terms of weight, statistics also show that in recent years Iran's exports to Oman have been moderately high in weight. According to statistics from 2011 to 2016, Iran's exports to Oman have doubled in weight. Iran's export to Oman was 4.1 million tonnes in 2016 and more than doubled in 2015. Looking at the details of Iran's export to Oman, it can be said that the addition of non-powdered cement called Clinker to Iran's export to Oman in 2015 is the main contributor to Iran's export growth to Oman with a growth rate of 7.62%. Non-powdered cement known as clinker tariff code 25231000, which is relatively high weight, was not included in the list of Iranian export items to Oman in 1365, but exported to Oman in 2015 and accounted for about 26% of total export weight. Iran has taken it to Oman.

Iran-Oman trade statistics show that over the past 10 years, the average price of Iranian exported items to Oman has been almost constant and has not fluctuated much. However, we have seen significant fluctuations in the average price of Iran's imports from Oman over the years. For example, in 2007, the average price of imported items from Oman was $ 7,000 / ton, while in 2009 it was only $ 756 / ton. Also in 1395 compared to 1394, the price of imported items from Oman has doubled. Among the items imported from Iran from Oman in 2016 and 2015, the highest price growth was the spectrometer that uses optical radiation such as ultraviolet, visible, infrared code 90273020. In 2016, the average price of exported goods to Oman was $ 388 / ton and the average price of imported items from Oman was $ 4,392 / ton, while the average export and import price of the whole country in 2016 was equivalent, respectively. $ 329 per ton and $ 1308 per ton. That is to say, this year, Iran has sold cheaper goods than Oman imports.

Iran's most important export commodities to Oman

Table 4 shows the list of 20 commodity groups that Iran exported most to Oman in 2016. In 2016, Iran's largest export to Oman was about $ 220 million worth of cast iron, iron and steel commodities. After that, live animals and all kinds of meat and other minerals are next. Of the 20 commodity groups that Iran exported most to Oman, no imports were made from Oman into Iran.

Export potentials to Oman

According to International Trade Center statistics, the total 6-digit tariff line that Oman imported in 2016 amounted to 4275 rows, of which 326 rows account for about 80% of its import value. Comparison of these items with those exported to Iran to Oman based on customs statistics shows that there was a record of 346 tariff lines exported from Iran to Oman in 2016. Also among Oman's imported tariff lines in 2016, which Iran failed to export to Iran in 2016, Iran has export potential in 2298 tariff lines.

Last word

The Oman market is expanding day by day, and this trend has been accelerated with government reforms. In recent years, I have struggled with the challenge of lowering oil prices in world markets, and have focused their efforts on using export and import revenues and have greatly facilitated these processes. The Oman market has great potential in all sectors and it is of great importance to investors in our country.

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