Opinion: co-operation with Oman benefits Belarusian economy

The working visit of the President of Belarus, Aleksandr Lukashenko, to the Sultanate of Oman ended with the signing of a number of documents. Prospects for bilateral development of relations were identified, and the heads of state released a joint statement. Aleksei Belyaev, the Dean of the Journalism Department at the Belarusian State University, commented on why this eastern region is of interest for Belarus.

“Belarus is now making a turn to the East – which is slightly but at the same time foreseen by the President and started a long time ago,” the expert told Alfa Radio. “Relations with the states of the Asian, Pacific, and African regions are very important for Belarus today, especially given the unfriendly policy pursued by the countries of the global West, Europe and the United States towards the republic. We need to diversify our product sales markets, trade and logistics routes, and also to diversify our partners – including on technological and financial issues. Therefore, Oman is another point that Belarus’ President focused on more than a decade ago. At that time, good friendly relations were established with the Sultanate, which was already demonstrating an understanding of new trends emerging in the world.”

Mr. Belyaev continued, “It is worth remembering that Oman is an oil state, and it is primarily engaged into the extraction and sale of oil (which quickly brought it much profit). At the same time, the leadership of Oman is far-sighted: in the Sultanate’s strategy for further development, they decided to take the path of diversifying the economy in order not to be an exclusively raw-material state. We already see that Oman uses its advantageous geographical and geopolitical location in this regard, being a trading hub.”

As recalled by the expert, a large port was opened in Oman, and it occupies an important position on international trade routes in the Indian Ocean. Being in a convenient location from the point of view of international maritime logistics, the Sultanate began to use this advantage. Oman's economy is moving away from focusing exclusively on oil production, and the country is investing seriously in the development of its own industry and agriculture. Such a profitable area as tourism is also being improved. The logic of the Omani leadership's actions is quite clear: they know that, at some point, the country’s raw material resources will run out, and it will need to further maintain the high standard of living achieved over the past few decades.

“Belarus and Oman have points of intersection: the republic follows approximately the same principle, though it has no so seriously developed raw material possibilities. Belarus is not a state that has the same serious resources (with the exception of potash salt) which make it rely on the raw rent,” the expert added. “At the same time, over the past decades, Belarus has also managed to build a state comfortable for citizens – with high social standards and a level of social life against limited resources. Belarus actually uses the opportunities it has: the country has preserved its industrial facilities, developed new areas of activity (pharmaceuticals, medicine), strengthened the petrochemical cluster. Despite the lack of its own oil, the country boasts serious successes in processing of mineral raw materials and is ready to develop this branch.”

According to Mr. Belyaev, Oman is opening up a possibility for Belarus not only to enter its market, but also to use it to further spread the republic’s technological and industrial capabilities around the world. “Oman is a very advantageous country in terms of geographical location. By supplying goods there, Belarus will actually face the situation when Oman itself, using its trade opportunities and established ties, will be able to sell Belarusian products (primarily industrial and agricultural) further around the world. In this regard, the countries co-operate on a mutually beneficial level: Belarus sells its goods and makes a profit, while Oman – with its trade skills and many years of experience in interacting with the neighbouring states – knows how to export Belarusian products further,” he explained.

Actually, it is only one side of the current bilateral co-operation. “Belarus can liaise with Oman as a creator of joint ventures. It may provide technologies, build enterprises in the Sultanate at the expense of Omani money – i.e. focusing on the assembly of Belarusian agricultural machinery, provide maintenance service, share patents, and so on. Oman, in this case, may finance and develop its agricultural sector, which requires much investment (since it is rather challengeable to process desert lands). Actually, certain traditional plants are already grown in Oman, but – in addition to date palms that generate good profit – the Sultanate’s leadership aim at growing agricultural crops. i.e. wheat that requires complex care, watering, and special equipment,” Mr. Belyaev said.

“Belarus can supply its equipment to Oman, which can be further used in the Sultanate and sold to other countries. For example, such co-operation can be beneficial to the countries of Africa (with which Belarus has established good relations) and to the states of South Asia. In this regard, Oman is quite profitable and important for the republic. Given that Belarus has good relations, for example, with Iran, it can use the logistical routes through Russia and the Caspian Sea to deliver goods to Iran, through the Persian Gulf – to Oman, and from there – to the whole world,” the expert added.

All trade routes are open. This state of affairs has been building for a long time. As noted by Mr. Belyeyev, great diplomatic efforts have been made, including personally by President Aleksandr Lukashenko. “This is very important, given that Belarus has no access to the sea, as it is cut off from the Baltic Sea. However, the republic has opportunities to get around these obstacles. Transport is developing in Russia, railways and highways are being built here, while Belarus is extending this path further to the East, continuing the policy of interaction with a number of countries in Southeast Asia, the African continent, and the Arabian Peninsula,” the expert noted. “This is all in the spirit, in line with our modern policy of transition to the eastern vector of relations. Such development of events should bring direct benefits to our economy.”