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DUBAI, Sept 28 (Reuters) – The UAE and Oman are exploring investment opportunities worth AED 30 billion, according to a statement issued during President Sheikh Mohamed bin Zayed’s visit to the Sultanate. Bilateral economic cooperation in strategic areas will be strengthened.
Considered one of the weaker economies in the Gulf, increased trade and investment support from regional heavyweights – the UAE is the Gulf’s second-largest economy – will help the sultanate advance its plans to diversify its economy away from oil.
During the visit, Abu Dhabi Investment Fund ADQ and Oman Investment Authority agreed to set up a Dh592 million venture capital fund to invest in Omani technology companies and explore Dh30 billion to invest in renewable energy, food and agriculture, communications, logistics and other fields and healthcare. No specific details or timeline for the new investment were given.
ADQ and OIA previously signed a Dh10 billion investment cooperation agreement.
A new $3 billion United Rail Company was also established to build and operate rail links between the Port of Sohar in Oman and the UAE network, reducing transit times and facilitating trade routes.
The UAE and Oman have pledged to implement long-term economic development plans to diversify income away from hydrocarbons. Through funds such as ADQ, the UAE has stepped up regional investments in sectors deemed strategic to the domestic economy.
ADQ CEO Mohamed Hassan Alsuwaidi said in a statement: “Today’s engagement builds on our recent efforts and commitment to develop tangible investment partnerships in key markets such as Oman to complement our investment strategy and Growth desire.”
Such investments are also critical for Oman, which posted a budget surplus in the first half of 2022 thanks to higher oil prices, easing pressure on public finances and improving the country’s ability to meet its looming debt.
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Reporting by Rachna Uppal; Editing by Chizu Nomiyama
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