The state news agencies of Gulf states, Oman and Qatar reported that, both the countries signed agreements on military cooperation, taxation, tourism, ports, labour and investment, on Monday as Oman strives to revitalise its debt-ridden economy.
Oman is one of the Gulf oil producers with the lowest financial position. Since Sultan Haitham bin Tariq al-Said gained office over two years ago, following the death of his predecessor, who had ruled for half a century, the country has been pursuing broad reforms and austerity measures.
The agreements were inked during Sultan Haitham’s two-day state visit to Qatar, a small but affluent country that is one of the world’s leading producers of liquefied natural gas (LNG).
According to Qatar’s Amiri Diwan, the Emir’s administrative office, the deals included an agreement on double taxation and tax evasion on income and capital taxes, as well as an investment cooperation agreement between sovereign wealth funds, the Qatar Investment Authority and the Oman Investment Authority.
Oman, a country with a population of about 5 million people, has accumulated huge amount of debts since the 2014 oil price fall. It has lately begun a medium-term plan to repair its finances, which were badly impacted by the COVID-19 pandemic.
According to an October 2020 bond prospectus, Oman was in talks with some Gulf countries for financial assistance last year.
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