Oman and China sign 14 MoUs and a currency swap during first Omani head-of-state visit since 1978

First Omani head-of-state visit since 1978

Sultan Haitham arrived in Beijing on Sunday 1 November and met Xi Jinping the next day, Al-Monitor reported. Pan Gongsheng, governor of the People's Bank of China, welcomed him on the tarmac, the Jerusalem Post reported. Before the trip, Chinese Foreign Ministry spokesperson Guo Jiakun said Beijing hoped to work with Muscat to "bring our strategic partnership to new heights," according to the Global Times.

Xi described relations as being at a "new historical starting point," Al-Monitor reported. A joint statement issued after the meeting said the two leaders agreed to strengthen the strategic partnership and expand cooperation in oil and gas and renewable energy. Both leaders witnessed the signing of instruments covering supply chains, digital finance and green energy, according to teleSUR.

What the package contains

The Central Bank of Oman and the People's Bank of China signed a local currency swap, which lets the two economies settle trade directly rather than routing every transaction through a third currency, teleSUR reported.

The same ceremony produced 14 memorandums of understanding and a health protocol covering the export of Omani dates to China. The pledges cover artificial intelligence, digital infrastructure, AI risk governance, space cooperation and support for technology startups. The renewable energy component extends to storage as well as solar and wind generation, areas where the two sides see room for joint industrial investment. Xi called for broader exchanges in high technology, artificial intelligence and industrial investment, saying the aim was to lift the relationship beyond its traditional energy focus. The declaration aligns the Belt and Road Initiative with Oman Vision 2040, teleSUR reported.

Oman Vision 2040 aims to reduce the economy's reliance on oil revenue. Ding Long, a professor at the Middle East Studies Institute at Shanghai International Studies University, told the Global Times that Chinese strengths in renewable energy equipment, infrastructure, digital technology and industrial supply chains offer the outside support that shift needs. The joint framework includes the BeiDou Satellite Navigation System, teleSUR reported, a sign Oman is willing to adopt Chinese technical standards in key infrastructure.

Trade, flights and a possible fighter jet deal

China is Oman's largest trade partner, the Jerusalem Post reported. Oman exports crude oil and energy products to China and has been looking to develop renewable energy supply chains and digital commerce. Tourism and business links have been boosted by direct flights between Beijing and Muscat since November last year, the newspaper reported.

Sultan Haitham said Oman was open to a preferential trade and investment agreement with China, saying such a deal would "open new avenues for trade and investment." He also emphasized cooperation between investment and financial institutions, the Jerusalem Post reported.

Oman is reportedly considering buying Chinese- and Pakistani-made JF-17 fighter jets as part of an effort to diversify its international partnerships, Al-Monitor reported.

Gulf diplomacy

Xi said the Middle East and Gulf must not become an arena for great-power rivalry and geopolitical conflict, according to China's Foreign Ministry. He added that China is willing to strengthen communication and coordination with Arab countries, including Gulf Cooperation Council states, to work toward restoring peace and lasting stability, the Jerusalem Post reported.

The joint declaration called for a comprehensive ceasefire between the United States and Iran and the restoration of safe navigation through the Strait of Hormuz, teleSUR reported. Both sides also stressed the importance of advancing negotiations on a free trade agreement between China and the Gulf Cooperation Council, according to Al-Monitor.