MUSCAT - The Sultanate of Oman and the Kingdom of Saudi Arabia have taken a decisive step in reshaping Gulf economic integration with the mutual recognition of certificates of origin. This breakthrough removes barriers to the smooth movement of goods across borders, giving Omani exports easier access to Saudi Arabia’s vast market and cementing Riyadh and Muscat as central players in the region’s industrial transformation.

Trade figures underscore the impact. Omani industrial exports surged 39% by July 2025, reaching RO 733 million, while Saudi exports to Oman climbed 10% to RO 762 million. Bilateral trade hit RO 1.575 billion — a 20% increase compared with the same period in 2024.

The agreement goes beyond customs simplification. It lays the foundation for joint supply chains, equal treatment in government tenders and streamlined registration of products with regulators. A fast-track conformity system is being introduced to cut costs and time for exporters, enabling Omani companies to embed themselves more deeply in Saudi supply chains.

Officials on both sides view this as a milestone in aligning Oman Vision 2040 and Vision 2030. Qais bin Mohammed al Yousef of Oman’s Ministry of Commerce, Industry and Investment Promotion (MoCIIP) stressed that partnerships will focus on technology transfer and joint projects that deliver in-country value and create jobs.

The Omani Industrialists Association hailed the agreement as a “strategic turning point” in Gulf industrial cooperation. Shaikh Dr Hilal bin Abdullah al Hinai, Chairman of Oman Manufacturers Association, noted that the deal will stimulate local industries and encourage joint investments in high-value supply chain projects.

From heavy industries to food manufacturing, Omani companies are moving to capitalise. Sohar Aluminium is partnering with Saudi counterparts on low-emission technologies and recycling, while Areej Vegetable Oils sees expanded access to the Saudi market as a driver for regional growth.

The pact is the result of sustained coordination — from the Omani–Saudi Business Forum in February 2025 to the Riyadh launch of Phase II of industrial integration in July and the Omani–Saudi Franchise Exhibition in October. Saudi authorities also amended regulations in September 2025, officially recognising Omani certificates of origin as sufficient for customs clearance.

For Oman, the development is both economic and strategic. It reinforces the Sultanate of Oman’s role as a reliable partner in regional supply chains while anchoring its diversification agenda under Oman Vision 2040. For Saudi Arabia, it secures industrial inputs and builds scale for its Vision 2030 ambitions.

By transforming a procedural certificate into an economic instrument, Oman and Saudi Arabia have set a new benchmark for Gulf industrial integration. The agreement not only strengthens bilateral ties but also signals the emergence of a more competitive, interconnected Gulf economy.

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