TEHRAN- Iran-Oman trade has been on an upward trajectory in recent years, and trade agreements between the two countries have opened new prospects for economic actors; however, banking and logistical obstacles remain.
According to a Mehr News Agency reporter, Iran-Oman trade in the current Iranian calendar year 1405 (started on March 21, 2026) has seen an upward trend in Iran’s exports despite regional developments and transportation difficulties on maritime routes. According to the Iran Trade Promotion Organization, the value of Iran’s exports to Oman in the first six months of the current year reached $1.164 billion, a 23% increase compared to $948 million in the same period last year.
These statistics indicate the continued capacity of the Omani market for Iranian goods. However, it should be noted that the announced figure relates to Iran’s exports to Oman and does not by itself show the total value of bilateral trade, including Iran’s imports from Oman.
Oman: export market and re-export route
Oman’s importance for Iran’s trade is not limited to the direct purchase of Iranian goods. The country’s geographical position south of the Strait of Hormuz, access to open waters, and possession of important ports have made it one of the key routes for regional trade.
Statistics from Oman’s National Center for Statistics and Information show that Iran was the largest destination for goods re-exported from Oman in the first eight months of 2026. The value of these re-exports reached 342 million Omani Rials by the end of August, a 69.6% increase compared to the same period last year.
Re-export means the sale of goods that are not necessarily produced in Oman and are sent to another destination after entering the country. Therefore, the figure of 342 million Omani Rials should not be equated with Oman’s exports of its own products to Iran or Iran’s direct exports to Oman. Nevertheless, these statistics show that Iran holds an important position in Oman’s distribution and re-export network.
During the same period, Oman’s total commodity exports reached more than 18.3 billion Omani Rials, which was 19.7% higher than the same period in 2025. The country’s commodity imports also grew by 4.4% to about 11.9 billion Omani Rials. Oman’s oil and gas exports were reported at 12.1 billion Rials, and its non-oil exports at about 4.9 billion Omani Rials.
Increased exchanges alongside trade agreements
The growing trend of Iran-Oman trade is being pursued while the two countries have taken steps in recent years to establish legal frameworks and facilitate economic exchanges.
According to information published by Oman’s Ministry of Commerce, Industry, and Investment Promotion, the volume of trade exchanges between the two countries in 2024 reached 512.1 million Omani Rials, equivalent to about $1.33 billion. This figure represents a 52% increase compared to 335.8 million Omani Rials in 2023.
Also, Oman’s trade balance with Iran in 2024 was recorded at about 210.3 million Omani Rials in favor of Oman. Oman’s exports and re-exports to Iran that year reached 361.2 million Omani Rials, and the country’s imports from Iran were reported at 150.9 million Omani Rials.
One of the important legal developments in the economic relations between the two countries was the signing of a preferential trade agreement on May 27, 2025, in Muscat. This agreement was ratified by royal decree in Oman in September of the same year. Under the terms of the agreement, reciprocal tariff concessions are envisaged for a group of goods originating in Iran and Oman, and specific rules for determining the origin of goods have been established. Effective implementation of this agreement can reduce the cost of entry for certain goods into the counterpart market and provide the ground for increasing exporters’ competitiveness.
The two countries also signed an agreement in May 2025 on mutual administrative cooperation and assistance in customs affairs, which was ratified by Oman in September of the same year. Facilitating the exchange of customs information and cooperation in clearance affairs are among the areas that can help reduce executive barriers to trade.
The structure of Iran-Oman trade, along with geographical proximity and transportation links, provides opportunities for developing exports of Iranian products. Food and agricultural products, construction materials and products, minerals, petrochemical and chemical products, medicine and medical equipment, machinery, and technical and engineering services are among the areas that can be considered in the program for developing trade cooperation between the two countries.
On the other hand, the Omani market is not merely a consumer destination for Iran; it can also play the role of a regional distribution center in certain activities. The high volume of re-exports from Oman to Iran indicates the existence of a significant trade flow between the two countries. However, using Oman’s capacity as a re-export platform to other markets requires a careful examination of rules of origin, customs regulations, and destination restrictions.
In the transportation sector, connecting the ports of the two countries and developing regular maritime lines can affect the cost and time of goods transfer. In the meeting of Iran’s President with traders of the two countries in Muscat in May 2025, the connection of economic corridors and ports and the facilitation of financial transfers were among the emphasized axes. At the same meeting, a target of increasing the trade volume between the two countries to $30 billion over three years was proposed—a goal whose realization depends on investment, removing executive barriers, and increasing private sector participation.
Mehr News Agency’s conversation with traders shows that banking restrictions and difficulties in money transfers remain among the most important obstacles to the development of Iran-Oman trade. Problems related to currency transfers, the lack of extensive banking correspondent relations, and the costs of using indirect payment routes can increase the settlement time of transactions and raise the final cost of exports. On the other hand, exchange rate fluctuations and changes in transportation and insurance costs also make long-term planning difficult for exporters and in some cases reduce the competitiveness of Iranian goods in the Omani market.
Alongside these issues, Iranian exporters face competition from companies from other countries that in some cases, due to easier access to banking networks, logistical infrastructure, and financing mechanisms, are able to offer goods at lower cost and with more suitable payment terms. Also, sustainable presence in the Omani market requires precise knowledge of import regulations, technical and health standards, packaging and labeling requirements, and having an appropriate distribution and after-sales service network.
Those active in economy sector believe that removing these barriers, facilitating financial exchanges, strengthening transportation infrastructure, and providing consulting and marketing services to exporters can help consolidate the position of Iranian goods and make greater use of Oman’s trade capacities.
Accordingly, Iran’s exports to Oman grew in the first half of the current year, and on the other hand, Oman’s official statistics also indicate an increasing role for Iran as a destination for the country’s re-exports. These two indicators, although not statistically identical, along with the preferential trade agreement and customs cooperation, are considered signs of the capacity to expand economic relations between the two countries.
To turn this capacity into sustainable growth, it is essential to focus on identifying the real needs of the Omani market, targeted introduction of Iranian goods, developing regular transportation lines, facilitating payments, and practically using the benefits of the preferential trade agreement. In such conditions, Oman can, in addition to maintaining its position as one of Iran’s export markets, also be a gateway for Iranian traders to access part of regional markets.
MA
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: tehrantimes.com
