Saturday 10 / May / 2025
Muscat: 8th May 2025: Oman represents an increasingly strategic economic partner for Italy in the MENA region. In 2024, bilateral trade reached €708.9 million, a significant increase from €537.9 million in 2023.
Italian exports to Oman totalled €692,296,413, marking a 31% rise from €527,064,548 the previous year. Key Italian export sectors include machinery and mechanical equipment for the oil & gas industry, processed products in iron, steel, and aluminium, electrical components, and various chemical products.
Omani exports to Italy also saw a substantial increase in 2024, from €103,905,260 to €243,370,202. Italy maintained a trade surplus of €448,926,211. Globally, Italy was Oman’s 18th largest supplier and 27th customer.
Among major European economies, Italy ranked second (1.09% market share) after Germany (1.71%), followed by the UK (0.98%), Spain (0.59%), and France (0.43%). Italian business presence in Oman is concentrated in energy (e.g., ENI, Saipem), telecommunications (Prysmian, Sparkle), infrastructure and construction (engineering firms such as F&M Middle East and Renardet), and defence (with key Italian players active in the sector).
Despite its relatively small population of around 5 million (40% expatriates), Oman offers a high-spending elite market, traditionally drawn to premium Made in Italy products (fashion, footwear, jewellery, luxury goods, and shipbuilding). Italian technical expertise is also in high demand, particularly within the country’s long-term development strategy, Vision 2040.
To further enhance trade ties, ICE (Italian Trade Agency) reopened its Country Desk in Muscat in March 2024, following its temporary closure due to the pandemic. Within this context, the most promising business opportunities for Italian companies lie in Oman’s Vision 2040, the national roadmap for economic diversification. Of particular interest are Oman's ambitious investments in the green hydrogen sector, where several international consortia are already exploring collaboration with Italian firms.
Oman’s energy sector is central to its economy, heavily dependent on natural gas (88.1%) and oil (11.5%), yet increasingly open to renewable energy. The country has committed to reducing greenhouse gas emissions by 7% by 2030 and aims for renewables to account for 30% of its electricity mix.
Currently, around 70% of Oman’s annual budget stems from oil & gas revenues, which contribute 30% of its GDP. Oman continues to increase production—expecting an additional 50,000–100,000 barrels per day in coming years—through advanced technologies in heavy crude extraction.
The post-2020 recovery in oil prices has strengthened government revenues, with notable opportunities remaining in upstream exploration and production. Oman actively seeks foreign expertise in drilling, hydraulic fracturing, and enhanced oil recovery technologies. Given the aging infrastructure, there is demand for modern equipment (pipelines, wellheads, pumps, seismic tools), and offshore exploration—initiated in 2017—also offers promising prospects. ENI holds exploration and development rights for two onshore and one offshore block.
The government’s pledge to eliminate routine gas flaring by 2030 aligns with its sustainability goals and encourages further energy investments. To diversify its energy mix, Oman is preparing two major gas-powered Independent Power Producer (IPP) projects for 2025.
In parallel, green hydrogen and ammonia initiatives are being developed at Duqm Port with a planned capacity of 1.2 GW. The country aims to generate 20% of its electricity from renewablesby 2 030 and 35–39% by 2040 under Vision 2040. In 2022, total electricity production stood at 41,747.4 GWh, of which only 14 GWh came from renewables.
Oman is therefore accelerating solar and hydrogen investments, targeting 163 MW in installed renewable capacity by 2025 and 3,631 MW by 2030.
Pierluigi D’Elia, Ambassador of Italy to the UAE, said: “Italy and the OMAN have been enjoying a steadily growing cooperation on sustainable projects. Italian companies are willing to share technologies, expertise, and innovation with their Omani friends and the Sustainability week is the right occasion to further strengthen our collaboration and create new opportunities. Italy and Oman are fully committed to a sustainable future and their trade relationship is showing a positive dynamic also in the private sector at this regard.”
Valerio Soldani, Italian Trade Commissioner to the UAE and Oman, commented “Italy’s renewable energy and sustainability sectors are uniquely positioned to offer innovation, expertise, and long-term value, fully aligned with Oman’s Vision 2040 and its ambition to become a leader in the green economy. Oman Sustainability Week 2025 marks a significant milestone: for the first time ever, Italy is participating with an official delegation of 17 companies, coordinated by the Italian Trade Agency (ITA). ITA’s dedicated office in Muscat, working in close collaboration with the Italian Embassy, is committed to supporting bilateral trade relations and fostering strategic partnerships in sustainability, energy transition, and innovation, deploying an effective toolkit of services and promotional activities in the Omani market.’’
The Oman Sustainability Week 2025 marks a historic milestone in the economic relations between Italy and the Sultanate of Oman: for the first time ever, the Italian Trade Agency (ICE/ITA) is present with its own official national pavilion at a trade fair in the country.
This unprecedented institutional participation reflects Italy’s growing interest in Oman as a key strategic partner in the Gulf region, particularly in sectors linked to sustainable development, energy transition, and technological innovation.
The initiative is not only a symbolic step forward in bilateral relations, but also a concrete platform to foster new commercial partnerships, promote Italian excellence, and support small and medium-sized enterprises in penetrating a promising and dynamic market.
The presence of the ICE/ITA stand at Oman Sustainability Week 2025 is the result of a broader effort to relaunchItaly’s trade diplomacy in Oman.
After the reopening of the ICE Country Desk in Muscat in March 2024, this official pavilion represents a further consolidation of Italy’s commitment to supporting its national companies in exploring the opportunities offered by Oman’s Vision 2040.
Seventeen Italian companies will be featured in the national catalogue, representing sectors such as renewable energy, water and waste management, advanced engineering, and green technologies.
The ICE stand will serve as a coordination and visibility hub for Italian firms, facilitating networking with Omani institutions, business counterparts, and regional stakeholders.
This pioneering presence not only showcases Italy’s capabilities in sustainability and innovation, but also underscores the shared ambition of both countries to build a future rooted in responsible growth, energy diversification, and environmental stewardship.
