MUSCAT: The UK government is interested in diversifying foreign direct investment (FDI) into sectors beyond Oman's oil and gas industry, according to British Minister of State for Trade Policy and Economic Security, Douglas Alexander.

During a recent visit to Oman, the trade minister emphasized the UK’s interest in expanding its investment scope: "There's no denying that 96% of foreign direct investment (FDI) has historically been associated with oil and gas, which gave an extractive quality to Oman's economy. However, all the ministers and leading British business figures I've met today are committed to moving beyond a familiar transactional relationship to a more relational, win-win approach."

One of the key sectors recognised by the Minister was the renewable energy sector,"The capacity there to generate green hydrogen is immense, and the brave and inspired choice by the Omani government to establish a series of concessions and welcome international partners is a big bet being placed on the table in that regard."

According to the Minister, both nations can benefit from combining their strengths. "We've got much to learn from the Omani experience. We've got some tech expertise and some leading scientists, but we are all on this journey together."

Additionally, the Minister highlighted the potential of the minerals and mining sector.

“We talked this morning at ministerial level about critical raw materials and the minerals that are present here in Oman. One of the things we are learning globally is that the low-carbon economy is actually going to be a high-net economy. The minerals and the mining that's going to be required, along with the refining capability to actually translate those minerals into usable commodities, is going to shift and alter some of the resource extraction that’s been a feature of the 20th century, but middle of the 21st century.”

Additionally, the Minister expressed interest in investing in FinTech and technology, stressing the significance of international collaboration: “The truth is, no one country is going to crack FinTech or AI on its own. The pools of capital that are required for some of these new technologies are very considerable, but the countries that are gonna win in that marketplace and in that challenge is the country that knows how to partner effectively with friends.”

Moreover, the Trade Minister expressed the UK’s interest in strengthening trade and investment ties with Oman: "We are interested in lowering the barriers to effective investment and trade on both sides—both outbound investment and inbound investment, as well as exports and imports. In that sense, it requires a very granular, detailed, and careful consideration of what the tariff and non-tariff barriers are that act as frictions to trade.”

He emphasized the importance of addressing these barriers, adding, "If we want to reduce those barriers to trade, we need to be in the detail, and that's the work our negotiators will be taking forward."

The Minister’s visit to Oman was part of a larger visit to countries of the Gulf Cooperation Council (GCC) in an effort to advance the ongoing Free Trade Agreement (FTA) between the Council and the UK.

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