A high-level Omani delegation representing the Public Authority for Special Economic Zones and Free Zones (OPAZ) has travelled to Brazil to make a strong pitch for Brazilian investments in the large portfolio of SEZs, free zones and industrial cities administered by the Authority across the Sultanate of Oman.
Led by Dr Ali Masoud al Sunaidy, Chairman – OPAZ, the delegation made a series of presentations, encouraging Brazilian firms to capitalize on Oman’s strategic location to access markets across the Gulf and Middle East regions.
The visit – part of a series of ramped up efforts to boost investment and economic ties between the two countries – comes against a backdrop of celebrations marking 50 years of diplomatic relations between the Sultanate of Oman and the Federative Republic of Brazil.
Trade volumes have been significant between the two countries. In 2023, Oman exported $675 million worth of products to Brazil, which included $560 million worth of fertilisers.
Imports from Brazil have been dominated by bulk shipments of iron ore as feedstock for the iron ore pelletising plant of Brazilian-based mining conglomerate Vale at Sohar Port and Free Zone. Significant imports of meat were also part of total imports of $1.1 billion from Brazil last year.
At a forum held at the Sao Paulo headquarters of the Arab-Brazilian Chamber of Commerce (ABCC), Dr Al Sunaidy urged Brazilian businesses to consider the significant value proposition offered by SEZs and free zones in Oman for potential Brazilian investment. He also listed a number of multinational firms currently operating in these special zones to gain access to markets in major regions of the Middle East, Africa and Asia.
Investors setting up shop in these special zones are entitled to income tax exemptions for up to 30 years, tariff exemptions on the purchase of equipment and raw materials, and other incentives, he explained.
Brazil’s ANBA news agency also reported that Dr Al Sunaidy met with Brazilian business leaders, as well as representatives of the Federation of Industries of the State of Sao Paulo (FIESP).
In his interactions with them, the OPAZ Chairman outlined opportunities for Brazilian investment in medical equipment manufacturing, and food processing and storage hubs, underscoring the potential for Oman to serve as a distribution hub for Brazilian investors.
According to ANBA, ABCC President Osmar Chohfi and Secretary-General Mohamad Mourad noted in particular the potential for Brazil to source part of its huge fertilizer requirements from Oman.
Brazil currently depends on imports for around 85 per cent of its fertilizers necessary to sustain its massive agricultural and food sector. Fertilizer imports from Oman have been soaring, but necessitate a more sustained approach to developing this sector, they stressed.
Zawya
