Higher global oil prices and Oman's increasing demand for heavy machinery and construction equipment have driven up bilateral trade between the sultanate and China by almost 50 per cent to record levels.
Trade between the two countries surged 49.6 per cent to RO5.9bn in 2011 compared to RO3.92bn in 2010, according to the latest figures posted on the website of the erstwhile Ministry of National Economy.
Oman's total exports to China grew 53.2 per cent to RO5.4bn in 2011. Oil accounted for 89 per cent of the exports.
Oman's non-oil exports to China increased a robust 79.1 per cent to RO332mn, while re-exports jumped 156 per cent to RO234mn in 2011.
Yao Xiaozhao, first secretary, economic and commerce at the Chinese embassy, told Muscat Daily that higher oil prices and increasing demand for Chinese heavy machinery and other construction equipment in the sultanate are the main reasons behind the surge in bilateral trade.
He said, "The volume of oil exports to China has grown, but the jump in the value of exports to China is mainly due to higher oil prices. The demand for petrochemical products like methanol and polypropylene is growing in China which Middle Easternß countries like Oman are able to export at relatively lower prices."
Oman's exports to China accounted for 30 per cent of its total exports in 2011, making it the largest export destination for sultanate.
Oman mainly imports steel pipes, mobile phones, excavation and other construction equipment and spare parts from China. The value of goods Oman imported from China grew 14.3 per cent to RO421mn in 2011 as compared to RO368mn in the previous year.
Yao said the demand for cost-effective Chinese construction equipment and heavy machinery is growing on the back of booming infrastructure and construction activities in the sultanate.
He said, "China has a competitive advantage in terms of pricing for these products and Chinese companies have improved the quality of products in recent years. Some Chinese companies are also sending their technicians and engineers to Oman for the implementation of technology and equipment."
© Muscat Daily 2012
