A Brotherhood Forged in Progress: The Enduring Ties Between UAE and Oman :

The Sultanate of Oman and the United Arab Emirates share a relationship deeply rooted in common heritage, cultural affinity, and mutual respect, which has consistently strengthened over the years. This profound connection is frequently highlighted by the leaders of both nations, underscoring a shared vision for regional stability and prosperity. Recent high-level visits have further cemented these fraternal bonds, leading to significant cooperative agreements that span various critical sectors. These partnerships are not merely transactional but represent a strategic alignment towards collective growth and development within the Gulf Cooperation Council (GCC).

Both countries recognize the imperative of fostering GCC unity and working collaboratively on pressing regional and international issues. Their joint efforts in diplomatic initiatives, counter-terrorism strategies, and humanitarian missions reflect a cohesive approach to ensuring security in the broader Middle East. Such robust political and social ties lay a solid foundation for the extensive economic and developmental collaborations currently underway. This enduring partnership serves as a testament to their commitment to shared progress and a stable future for their peoples.

Economic Synergy: Fueling Bilateral Growth and Trade :

The economic relationship between the UAE and Oman is experiencing remarkable growth, with non-oil trade serving as a primary driver. In the first half of 2024, non-oil trade between the two nations reached an impressive Dh27 billion, marking a 5% increase compared to the same period in 2023. This upward trend continued, with total non-oil trade hitting a record Dhs56 billion in 2024, a 9.8% increase from the previous year.

Oman holds significant importance as the UAE's second-largest Gulf trading partner, accounting for 17% of the UAE's non-oil trade with GCC nations. Conversely, the UAE stands as Oman's top trading partner, responsible for 26% of Oman's global imports and over 17% of its non-oil exports. This robust trade is facilitated by smooth movement of goods through land ports and is further boosted by strategic investments.

High-level economic engagements, such as Sultan Haitham bin Tariq's visit to the UAE in April 2024, have resulted in substantial agreements valued at Dh129 billion, signaling deeper economic integration. These agreements focus on pivotal sectors including renewable energy, green hydrogen, digital infrastructure, and vital rail connectivity. The commitment to enhance commercial ties is evident, aiming to solidify their positions as regional economic powerhouses.

Joint Ventures and Diversification: Beyond Oil Horizons :

Both the UAE and Oman are vigorously pursuing economic diversification strategies to reduce their reliance on hydrocarbon revenues, with significant joint ventures underpinning these efforts. Initiatives like Oman Vision 2040 and the UAE's various economic visions (2021, 2071, D33) emphasize innovation, sustainable growth, and expansion into non-traditional sectors. This shared strategic direction has led to collaborative projects designed to attract foreign direct investment and boost industrial output.

A prominent example of this collaboration is the Al Rawdah Special Economic Zone, a UAE-Omani joint venture in Oman's Al Buraimi Governorate. This zone is poised to become a modern ecosystem for trade and manufacturing, strengthening supply chains and re-export activities between Oman, the UAE, and international markets. Additionally, existing projects like the Duqm Special Economic Zone (SEZ) demonstrate a successful model of attracting investment and enhancing trade links.

Investment flows are robust, with the UAE being a significant investor in Oman, particularly in real estate, infrastructure, and hospitality. Oman, in turn, has invested in the UAE's banking, real estate, and logistics sectors. These mutual investments and strategic partnerships in renewable energy, technology, and logistics aim to position both nations as leaders in future-oriented industries.

Tourism: Unlocking Shared Potentials and Unique Appeals :

Tourism is emerging as a crucial sector for both the UAE and Oman, with strategic collaborations aiming to boost visitor numbers and diversify revenue streams. The Abu Dhabi Fund for Development (ADFD) recently broke ground on a substantial AED764.5 million integrated tourism complex in Salalah, Oman. This ambitious project, spanning 2.5 million square meters, will feature luxury resorts, a marina, and revitalized beachfront areas, significantly enhancing Salalah's appeal as a regional and global destination.

While the UAE is known for its grand, fast-paced tourism developments, Oman is pursuing a more 'calmer' approach, focusing on its rich heritage and pristine natural environment. Oman Vision 2040 aims to increase tourism's contribution to 10% of its GDP by 2040, targeting 11.7 million tourists and over $51 billion in investment. This strategy includes promoting unique attractions like the Khareef season and developing sustainable, heritage-focused experiences.

The shared investments and complementary tourism strategies mean that residents and international travelers alike will find increased opportunities to explore both nations. The UAE’s commitment to developing luxury hubs in Oman makes cross-border tourism more appealing, fostering a synergistic relationship that benefits both economies. Muscat, for instance, is also actively developing its infrastructure, including new roads and projects like the Hawiyat Najm Park and Muttrah Cable Car, to enhance its tourism offerings.

A Healthy Rivalry: The Spirit of Sportsmanship :

Beyond economics and diplomacy, the competitive spirit between the UAE and Oman often takes center stage in sports, particularly in football and cricket. These sporting encounters, while keenly contested, also reflect the deep-seated camaraderie between the two nations. Historical football rivalries have seen memorable matches in tournaments like the Arabian Gulf Cup, showcasing the passion of their respective fan bases.

Recently, the Asia Cup Rising Stars 2025 witnessed exciting cricket clashes between the UAE and Oman. One such match on November 16, 2025, was a nail-biting thriller where Oman edged out the UAE in the last ball, scoring 154 runs to secure a dramatic victory. These high-stakes matches capture national attention and highlight the growing talent in cricket within the GCC region.

Such sporting events not only provide thrilling entertainment but also serve as platforms for cultural exchange and strengthening people-to-people connections. The support for their national teams, whether on the football pitch or cricket ground, reflects a shared regional identity and a healthy competitive spirit.

Evolving Business Landscapes: Adapting to Global Shifts :

Both the UAE and Oman offer attractive business environments, but they also continue to evolve their economic policies to align with global standards and enhance competitiveness. Notably, both nations have implemented a 5% Value Added Tax (VAT), with the UAE introducing it in 2018 and Oman in 2021. Furthermore, as of January 2025, both countries are aligning with the OECD Pillar Two rules for global tax reforms, impacting large multinational corporations.

The UAE, with its extensive network of over 40 free zones, offers a fast-moving and incredibly diverse environment for international business setup, providing 100% foreign ownership and zero taxes within these zones. This infrastructure has solidified its reputation as a global trade and tourism hub. Oman, while making modest advancements in economic diversification, is accelerating reforms and selectively investing in high-potential sectors like logistics, renewable energy, and fisheries, which offer focused opportunities.

While the UAE introduced its first federal Corporate Tax in June 2023, Oman has a corporate tax rate of 15%, though incentives and tax holidays are available within its special economic zones. These policy adjustments reflect a commitment to sustainable growth and attracting diversified investment, ensuring both nations remain appealing destinations for entrepreneurs and investors alike.

Future Outlook: A Path of Enduring Partnership :

The trajectory of the relationship between the UAE and Oman points towards an even deeper and more integrated partnership in the coming years. With strategic initiatives like Vision 2040 in Oman and the UAE's continuous development plans, both countries are set on a course of sustainable growth and diversification. The focus on joint projects in renewable energy, digital infrastructure, and advanced industries ensures a future-proof economic relationship.

The continuous exchange of high-level visits and the signing of numerous agreements reflect a proactive approach to addressing regional challenges and leveraging mutual strengths. This collaborative spirit extends beyond economic ventures to encompass shared goals for regional security and prosperity, reinforcing the stability of the GCC. As both nations continue to innovate and adapt to global changes, their enduring brotherhood will undoubtedly serve as a cornerstone for progress in the Arabian Gulf.