Iranian Banks Allowed to Guarantee Investments in Oman

EghtesadOnline: The Central Bank of Iran has allowed lenders to issue guarantees for Iranian businesses planning to invest in Oman or those who seek to take out loans from Omani banks, the head of Iran-Oman Chamber of Commerce announced.

News ID: ۷۴۵۱۰۰

17 March 2018

“Iranian investors were not able to put their money into Omani projects mainly due to lack of bank guarantees … However, CBI’s deputy for foreign exchange affairs now allows lenders to issue the guarantees,” Mohsen Zarrabi was also quoted as saying by Otaghonline.ir on Friday.

CBI has required banks to support those who want to launch factories in Oman and reexport Iranian goods to target markets, along with exporters of engineering and technical services who wish to receive loans from Omani lenders and sign BOT or BOO contracts.

The promotion of Iranian business activities in Oman and Qatar is in line with plans for replacing its traditional hub for trade activities, Dubai, with Doha in Qatar and Muscat in Oman, according to Financial Tribune.

The Omani side has also developed various incentives for Iranian investors, especially for those who put money in Sohar Port. Iranian investments in the port are exempted from customs duties and investors enjoy tax exemption for 25 years.

Close political and cultural ties between Iran and Oman have also boosted Oman’s prospects of attracting a high number of Iranian businesses in the coming years.

In another move last month, CBI permitted Iranian banks to purchase Qatari riyal from traders.