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Thailand businesses aiming for global market expansion will find Oman an exemplary destination among the Middle Eastern countries. Its strategic location at the crossroads of major trade lanes, connecting the East and West, and Asia with Africa, serves as a crucial gateway for Thai products to enter the Middle Eastern markets.
Such strategic proximity has made it the fastest-growing economy among the Gulf Cooperation Council (GCC) countries in 2023. This economic growth in Oman is evidenced by a Gross Domestic Product (GDP) that soared to an estimated THB 5.8 trillion (US$164 billion) by the end of 2023, according to data from World Economics. Such growth signals a thriving and solid ground for market entry and expansion.
To further capitalise on this emerging market in the Middle East, dive into our comprehensive shipping guide from Thailand to Oman below.
Much like its Middle Eastern counterparts, Oman's economy is predominantly fueled by the oil and gas sector, accounting for 30% of Oman’s total GDP. However, in a move towards economic diversification, Oman has been channelling efforts into manufacturing, mining, logistics, fishing, and tourism sectors. This strategic pivot diversifies Oman's economic base and positions it as a vibrant arena for international trade.
During a previous discussion, Minister of Commerce Jurin Laksanawisit and His Excellency Mr. Issa bin Abdullah Al-Alawi, the Ambassador of the Sultanate of Oman to Thailand, reached an agreement to foster an enhanced trade partnership between their respective countries.
This agreement has positively impacted trade, leading to Thailand's total value of exports to Oman reaching THB 16.5 billion (US$460.67 million) in 2022, as reported by the United Nations COMTRADE database on international trade.
For international businesses looking to contribute to and benefit from Oman's diversification, explore these major Oman imports that you can tap into:
Leading the charge in Oman's import volume are machinery and mechanical appliances, which are essential for developing the country’s construction, manufacturing, and transportation sectors. These imports, valued at approximately THB 125.37 billion (US$3.5 billion), present a substantial opportunity for Thai businesses in the sector looking to enter the Omani market.
Another top import in Oman is electrical machinery and equipment, with nearly THB 71.64 billion (US$2 billion) spent on these imports. This category is crucial for powering the nation's ambitious infrastructure projects and pushing the envelope in technological innovation.
Vehicles and automotive parts also constitute a significant portion of Oman's imports, valued at approximately THB 65.5 billion (US$1.8 billion). This reliance on imports caters to the domestic demand for automobiles, ensuring a steady supply of vehicles and parts.
Since establishing diplomatic ties in 1980, Thailand and Oman have developed a strong bilateral relationship. Both parties continue to work towards enhancing trade partnerships and economic cooperation across various sectors, as well as promoting the Oman Vision 2040 initiative.
This initiative focuses on creating a diversified economy and a business-friendly environment through beneficial tax policies and investor-friendly laws, facilitating smooth overseas shipping.
Such initiatives enable Thai businesses to access the Omani markets and potentially expand their reach to other emerging market examples in the Middle East, such as Qatar, Saudi Arabia, and the United Arab Emirates.
However, to fully leverage these global trade opportunities, it's crucial for Thai businesses to familiarise themselves with the customs regulations and restrictions when exporting to the Middle East, particularly Oman:
Exports from Thailand benefit from a zero-rated value-added tax (VAT) policy, with certain goods and services exempt (e.g. education, groceries, healthcare, and real estate transactions). This policy aims to support business marketing expansion strategies, facilitating smoother global trade and enhancing the competitiveness of Thai products and services.
Meanwhile, taxes and import duties in Oman are calculated based on their Harmonised System (HS) Code. Notably, the general tariff policy caps imposed duties at a maximum of 10% (for goods from outside the United States (US) and GCC), ensuring a standardised approach to imports.
Additionally, the Oman Tax Authority levies an excise tax on specific items such as:
For successful international shipping to Oman, understanding specific prohibitions and restrictions on certain goods is a must. This knowledge ensures compliance with both Thai and Omani regulations.
While adhering to Thailand's laws on prohibited and restricted goods, it's equally important to consider Oman's import regulations:
After you’ve familiarised yourself with the list of restricted and prohibited items for Thailand and Oman, make sure also to review, compile, and submit these essential documents needed for exporting goods for smooth shipping to the Middle East.
As we’ve tackled above, Oman's strategic position fronting the Arabian Sea, at the intersection of important trade routes, establishes it as a vibrant and potential-rich market. Employing a marketing expansion strategy that includes entering the Omani market is a pivotal move towards broader Middle Eastern market penetration.
Leveraging DHL Express Thailand's logistics services unlocks these vast opportunities, providing smooth and efficient trade lanes in shipping. Our team of customs experts assist customers with required documentation and ensure shipments comply with all regulations to streamline the export process. With DHL Express Thailand, businesses can confidently navigate the complexities of cross-border shipping and trade, ensuring their products are transported swiftly and compliantly.
Elevate your business to a global scale by opening a business account with DHL Express Thailand today.