Ambassador Saif Bin Nasser Al-Badai Highlights Strategic Opportunities for Algerian-Omani Cooperation Across Vital Sectors – Full Interview with EchoroukOnline
BY: Dr. Hana Saada
Algiers, Algeria | November 18th, 2024 — In a pivotal move reflecting the burgeoning potential of Algerian-Omani economic ties, Oman’s Ambassador to Algeria, Saif Bin Nasser Bin Rashid Al-Badai, has shed light on a transformative $3 billion private-sector investment in Algeria. Speaking in an exclusive interview with EchoroukOnline on the occasion of Oman’s 54th National Day, the Ambassador emphasized the immense untapped opportunities between the two nations, particularly in energy, green technology, and integrated project management.
A Landmark Investment: The Algerian-Omani Fertilizer Company
Ambassador Al-Badai underscored that the Algerian-Omani Fertilizer Company in Arzew, Oran, established through a partnership between Oman’s Bahwan Group and Algeria’s Sonatrach, represents Oman’s largest private-sector foreign investment. The $3 billion project serves as a benchmark for future bilateral ventures, exemplifying how collaboration can drive innovation and economic growth.
“This investment demonstrates the potential for new experiences to be built upon its success, forging stronger ties between our countries,” the Ambassador remarked.
Aligned Visions and Strong Political Foundations
The Ambassador acknowledged the contrast between the depth of political understanding and the current level of economic exchanges, stating, “While our economic ties remain below the potential of our political relationship, they are advancing steadily, thanks to the mutual commitment of both nations’ leadership.”
Oman, with its well-regarded political neutrality and stability, shares Algeria’s principles of sovereignty and cooperation. These shared values form a robust foundation for enhancing economic partnerships, particularly in strategic sectors such as energy, renewable resources, and agriculture.
Oman as a Thriving Investment Hub
Oman’s ascent in the 2024 Index of Economic Freedom, where it climbed 39 spots to rank 56th globally, reflects its growing reputation as a safe and lucrative investment destination. The Ambassador noted that this progress paves the way for deeper cooperation with Algeria, especially in hydrogen energy, a sector where Oman has achieved advanced applications.
Furthermore, he highlighted the proposal to establish a joint Algerian-Omani investment fund, aimed at financing projects in renewable energy, petrochemicals, desert agriculture, technology, and tourism. “The directives from our leaders are clear,” Al-Badai affirmed, “and preparations for actionable outputs are already underway.”
Rising Collaboration in the Private Sector
Significant strides have also been made in the private sector. By the end of 2023, 423 Algerian companies were registered in Oman, marking a 68.5% increase from 2022. This rapid growth highlights the private sector’s crucial role in fostering bilateral economic engagement.
The Ambassador disclosed ongoing talks between officials to forge agreements in key areas, such as pharmaceuticals, industrial zones, small and medium enterprises, commercial ports, and clean energy, with announcements expected soon.
Future Prospects in Oil, Gas, and Green Energy
With Oman’s leadership in hydrogen technology and Algeria’s extensive expertise in oil and gas exploration, companies like Sonatrach and Oman’s Abraaj Energy Services are poised for collaboration. Ambassador Al-Badai stressed the potential for integrated project management and knowledge-sharing, reinforcing the two nations’ roles as pivotal players in the Arab world’s energy transition.
A Shared Vision for Economic Leadership
Ambassador Al-Badai concluded on a note of optimism, citing the harmonious alignment between Algerian and Omani leadership in their aspirations for sustainable growth and regional cooperation. The ongoing efforts to expand trade and investments signify a promising trajectory, where bilateral economic relations could soon mirror the robust political rapport shared by the two nations.
This $3 billion investment in Algeria is just the beginning of a new era of cooperation, setting the stage for further strategic alliances that could redefine the economic landscapes of both nations.
Oman Celebrates Its 54th National Day: Ambassador Saif Bin Nasser Al-Badai Comments on the Sultanate’s Ongoing Progress
Interviewer: Today, Oman celebrates its 54th National Day under the leadership of His Majesty Sultan Haitham Bin Tariq. With global reports highlighting the sustained progress of the Omani people, particularly in the economic sector, what is your comment on this occasion?
Ambassador Al-Badai: Praise be to Allah, Oman’s achievements continue across its long history and distinguished journey, especially since the start of the Blessed Renaissance, the foundations of which were laid by the late Sultan Qaboos Bin Said—may he rest in peace. Today, as you mentioned, His Majesty Sultan Haitham Bin Tariq—may Allah preserve him—continues this journey with steady and deliberate steps.
Indeed, the positivity reflected in these reports is no coincidence but rather the result of wise leadership, meticulous planning, and relentless efforts in executing government plans, even amidst the challenges Oman and the world have faced over the past decade. These challenges ranged from regional crises and fluctuating oil prices to the health crisis caused by the COVID-19 pandemic.
Interviewer: Can you provide us with some specifics about these positive developments?
Ambassador Al-Badai: The Omani government has succeeded in improving its economic and financial performance, reducing public debt, and increasing the gross domestic product (GDP). For example, by the end of August 2024, Oman’s public revenues reached approximately 8.106 billion Omani rials, an increase of about 183 million rials compared to the 7.923 billion rials recorded in the same period in 2023.
At the same time, great attention has been paid to social considerations. For instance, a comprehensive social protection system was launched, encompassing the unification of pension schemes, the merger of various funds, and the restructuring of benefits to better serve the people.
Interviewer: What are your aspirations for the next phase to achieve further gains and solidify Oman’s leadership vision both locally and regionally?
Ambassador Al-Badai:
Our country is guided by a comprehensive and cohesive strategy embodied in Oman Vision 2040, which serves as the primary compass for Oman’s aspirations across various sectors. This is a long-term plan spanning two decades, providing a foundational framework for planning efforts during this period. The vision is built upon an objective understanding of the current economic and social realities, combined with forward-looking perspectives. It is designed to adapt to local, regional, and global changes, granting it the flexibility required to achieve the ultimate goal of positioning Oman among the world’s most advanced nations in economic, social, environmental, governance, and institutional development domains.
The vision is structured around four main pillars, each encompassing several national priorities. These include:
- Human and Society Pillar: Addressing key areas such as health, education, scientific research, and citizenship.
- Economy and Development Pillar: Focusing on economic diversification, fiscal sustainability, investment, and international cooperation.
- Governance and Institutional Performance Pillar: Receiving significant attention in recent years through both material and human resource enhancements.
- Environment Pillar: Tackling current and future environmental challenges in all their dimensions.
All current and future government plans are aligned with these aspirations. We are witnessing tangible outcomes of this vision on a daily basis, reflected in global reports and indicators. For instance, Oman’s credit rating has seen remarkable improvements, capturing the attention of global observers and economic experts.
Notably, Standard & Poor’s raised Oman’s credit rating to BBB– from BB+, with a stable outlook, in its second assessment for the Sultanate. Similarly, Moody’s revised Oman’s outlook from stable to positive while affirming its credit rating at Ba1.
Interviewer: How do these credit ratings impact the investment climate in Oman?
Ambassador Al-Badai:
These ratings are critical indicators that affirm Oman as a safe and lucrative investment destination. The Sultanate has made remarkable strides, climbing 39 places in the 2024 Index of Economic Freedom by the Heritage Foundation, moving from 95th to 56th globally. Similarly, in the Global Entrepreneurship Index, Oman advanced 27 ranks, achieving 11th position worldwide compared to its standing in 2022/2023. Furthermore, the country improved significantly in the Environmental Performance Index, moving to 50th globally from 149th in 2022. These figures clearly demonstrate Oman’s rapid transformation into a globally attractive investment hub.
Interviewer: In quantitative terms, how have these improvements influenced foreign investments?
Ambassador Al-Badai:
The impact has been substantial. By the end of 2023, Oman recorded foreign direct investment (FDI) inflows worth 25.05 billion Omani Rials, reflecting a 21.6% increase compared to 20.59 billion Omani Rials in the same period in 2022. The Oman Investment Authority (OIA) has played a pivotal role in fostering partnerships with the private sector and international collaborators to position Oman as a prime investment destination and achieve sustainable economic growth.
In 2023, the OIA’s assets rose to 19.2 billion Omani Rials, up from 17.9 billion Omani Rials in 2022. It achieved profits exceeding 1.7 billion Omani Rials, contributed 800 million Omani Rials to the state’s general budget, and repaid 300 million Omani Rials in loans for its subsidiaries ahead of schedule. The OIA actively invests in 13 global funds, such as the Platinum Investment Fund and the Global Infrastructure Fund, and holds direct stakes in international companies like the U.S.-based Our Next Energy and Australia’s Hysata.
In addition to these global investments, Oman has launched several strategic projects, including the Duqm Refinery and petrochemical industries in the Special Economic Zone at Duqm. This joint venture between Oman and Kuwait, integrating Oman’s OQ Group and Kuwait Petroleum International, represents the largest shared investment project with a capital exceeding 3.5 billion Omani Rials. Moreover, Oman has made significant advances in renewable energy projects, further solidifying its position as a leader in sustainable development.
Interviewer: Let’s return to bilateral cooperation. How would you assess the current state of economic and trade relations between the two countries, given the available opportunities and the political proximity?
Ambassador Al-Badai:
You journalists always challenge us with such comparisons! Relying solely on numbers might not do justice to the broader picture you mentioned. The relationship between our two brotherly nations is deeply rooted, with high-level political alignment and coordination, especially on Arab causes and global peace issues.
That said, the economic and trade relations are not yet on par with our political and historical ties. This doesn’t imply they are weak or inadequate; rather, they are on an excellent trajectory, particularly following the historic state visit of His Excellency President Abdelmadjid Tebboune to Muscat, accompanied by a high-level official delegation.
During the visit, the two leaders held discussions marked by a spirit of fraternity, mutual understanding, and a strong commitment to further developing bilateral cooperation across various fields to serve the shared interests of both countries and their peoples.
One of the most significant outcomes of this visit was the mutual satisfaction expressed by both sides regarding the progress made in advancing relations and their shared aspiration to elevate them to broader horizons.
Here, I must highlight something deeply important to me: the overwhelming popular reaction from both nations. This was evident in the media and across social media platforms, reflecting the genuine bonds of brotherhood between the two peoples. In my view, this is a fundamental achievement that reinforces our ties.
Interviewer: You mentioned critical sectors, such as renewable energy, petrochemicals, desert agriculture, technology, and tourism. What are the anticipated avenues of cooperation in these areas?
Ambassador Al-Badai:
The groundwork for cooperation between the two brotherly nations has been firmly established, with both leaders reaffirming their commitment to advancing joint initiatives. They instructed all relevant agencies to intensify communication, exchange visits, and ensure rigorous follow-up. Furthermore, they directed the execution of all shared programs, emphasizing enhanced private sector engagement and the promotion of trade and industrial exchanges.
In terms of petrochemicals, for instance, both nations have a precedent of highly successful collaboration. One notable example is the Algerian-Omani Fertilizer Company in Arzew, Oran Province, a joint venture between the Omani Bahwan Group and Algeria’s Sonatrach. This project, valued at approximately $3 billion, stands as a significant model for future large-scale investments in other strategic sectors.
Similarly, negotiations between Oman’s Abraj Energy Services and Algeria’s Sonatrach have progressed notably, culminating in a memorandum of understanding (MoU) signed last April. This agreement sets the stage for cooperation in oil and gas field services and integrated project management. Additionally, OQ Exploration & Production, another prominent Omani company, signed a MoU with Sonatrach to explore collaborative opportunities in upstream exploration and production activities.
In renewable energy, the potential for joint ventures is immense. Both nations can share expertise and technologies to advance solar and wind energy projects and explore investment opportunities in this transformative sector. Oman has already made significant strides in green hydrogen and clean energy technologies, positioning itself as a leader in the Middle East. This experience presents a unique opportunity for Algeria and Oman to collaborate on sustainable energy solutions that address future energy needs.
With such promising prospects, we are optimistic that the ongoing efforts between the two sides will yield fruitful results, paving the way for enhanced economic collaboration and shared prosperity.
Interviewer: Regarding the private sector, is there a clear vision for enhancing its partnership and leveraging the markets of both countries to boost trade exchanges?
Ambassador Al-Badai:
The response to this question encompasses several levels. There are ongoing discussions between the relevant official entities in both countries, and we may witness their outcomes materialize into agreements and partnerships in the near future. These discussions involve sectors such as small and medium enterprises, industrial zones, commercial ports, and other areas like pharmaceutical industries, among others.
One notable development is the Algerian Ministry of Industry and Pharmaceutical Production’s announcement in July 2024 regarding progress in negotiations with Omani investor Sheikh Salem bin Suhail Bahwan to establish a Hyundai manufacturing plant in Algeria. This project aims to set up a production line for vehicle body structures and a separate line for painting operations. In its initial phases, the project is expected to produce three models of passenger cars, two models of utility vehicles, and one electric vehicle model.
Furthermore, according to official statistics from Oman, the number of registered companies with Algerian participation reached 423 by the end of 2023, compared to 251 in 2022—a growth rate of 68.5%. These are highly encouraging indicators, reinforcing our optimism about the future of economic partnerships. Additionally, the Omani-Algerian Business Forum held in Algiers in June 2024, coinciding with the eighth session of the Omani-Algerian Joint Committee, resulted in significant and promising outcomes that we hope will lead to a substantial leap in trade exchanges.
Interviewer: Considering the current favorable business climate in Algeria, what message would you like to convey to Omani investors about exploring opportunities in the national market?
Ambassador Al-Badai:
Everything we have discussed so far serves as a strong incentive for entrepreneurs from both sides to invest and collaborate. The embassy, in coordination with the relevant Algerian Foreign Ministry entities, focused on this idea during the Omani-Algerian Business Forum. We firmly believe that prioritizing Arab-Arab partnerships is a strategic choice that should always be encouraged.
The forum, which brought together the Oman Investment Authority, several CEOs, and Omani business leaders alongside their Algerian counterparts, was instrumental in showcasing promising opportunities in both countries. It facilitated face-to-face “B2B” meetings to explore potential joint projects and agree on several recommendations for follow-up and implementation.
We remain confident that the favorable business environment in Algeria, coupled with the robust support from both governments, will pave the way for mutually beneficial ventures and a stronger economic partnership between Algeria and Oman.
Interviewer: In another Arab context, there is much discussion about the “day after” the war in Gaza. Algeria has emphasized that the final word should belong to the Palestinians without external guardianship. What is Oman’s perspective on this issue?
The Sultanate of Oman’s position on this matter is crystal clear, and I believe that anyone who views this issue through the lens of justice aligns with it. Both Oman and Algeria, at the leadership level, have underscored “the necessity of an immediate cessation of ‘Israeli’ aggression against Palestinian territories, Lebanon, Syria, and Iran,” with a particular focus on “the inalienable right of the Palestinian people to end the illegitimate occupation and establish an independent Palestinian state with East El Quds as its capital, based on the two-state solution, and for Palestine to gain full membership in the United Nations.”
This vision was among the key outcomes of President Abdelmadjid Tebboune’s visit to Oman. Prior to that, during the recent Omani-Algerian Joint Committee meeting in June, both countries reaffirmed “the need for Arab unity and joint efforts in facing the challenges confronting the Arab region, foremost among them the just Palestinian cause.” They also condemned “Israeli aggression and its occupation of Palestine, deeming such actions as war crimes and acts of genocide.”
Furthermore, both nations emphasized “their categorical rejection of any attempts to undermine the Palestinian cause or compromise the legitimate rights of the Palestinian people, reaffirming their unwavering support for the establishment of a sovereign Palestinian state within the 1967 borders, with East Jerusalem as its capital.”
Interviewer: During the visit, both sides stressed the importance of cooperation and coordination in regional and international organizations. How is this being pursued?
Ambassador Al-Badai:
Oman and Algeria have long agreed on the importance of enhancing joint Arab action. A key outcome of President Abdelmadjid Tebboune’s visit to Muscat was the agreement with His Majesty Sultan Haitham bin Tariq—may God preserve him—on the necessity of “cooperation and coordination between the two countries in regional and international organizations to serve their interests and contribute to strengthening joint Arab action and fostering security, peace, and stability in the region and the world.”
This includes a shared commitment to “supporting efforts aimed at promoting peaceful orientations and enhancing the pillars of security and stability through upholding international law, respecting international legitimacy, and adhering to principles of justice and equity.”
I would also like to highlight that Oman’s core principles in foreign policy resonate strongly with Algeria’s vision. These include “steadfast commitment to the just Palestinian cause,” “firm support for multilateralism and joint Arab action through the United Nations, the Arab League, and the Organization of Islamic Cooperation,” “adherence to the rule of law and respect for the authority of international institutions such as the United Nations and the International Court of Justice,” and “advocating disarmament and nuclear non-proliferation.”
This alignment underscores the depth of the strategic partnership between Oman and Algeria, particularly in fostering regional and global stability and justice.
Interviewer: Finally, Your Excellency, President Tebboune’s invitation to His Majesty Sultan Haitham bin Tariq to visit Algeria was met with great enthusiasm, according to the joint statement. When can we expect this visit to take place, and what is hoped for in terms of furthering the previous agreements?
Ambassador Al-Badai:
The invitation was warmly welcomed by His Majesty Sultan Haitham bin Tariq—may God preserve him—as we all know from the joint statement. We hope that all the necessary conditions will align from both sides, allowing us to witness a new historical meeting between the leadership of our two brotherly countries. As always, the hope for these meetings is that they will contribute to serving the interests of both nations and their peoples, strengthening the strategic relationship between them, and ultimately bringing benefits to our region, both Arab and Islamic.
The Source Text:
Translated by: Dr. Hana Saada
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