Although Oman has recently partnered with Iran regarding new diplomatic and economic projects, they have done so with the Saudi Arabia as well. Bank Muscat of Oman recently hosted a conference featuring infrastructure and small business projects with Saudi Arabia. Bank Muscat also seeks to strengthen its economic investment among other Gulf nations as well.
The largest joint infrastructure project currently underway between Oman and Saudi Arabia is the Oman-Saudi Arabia highway project. This $5.3 billion dollar project is aimed at promotion of trade and tourism and transfer of petrol products between Oman and Saudi Arabia. It bypasses the expansive Empty Quarter desert, cutting the distance from cities in western Saudi Arabia to Oman’s coast nearly in half.
Although vital to the region, Oman’s regional influence has its limits. Tension regarding Iranian nukes, and the ISIS conflict challenges Oman’s ability to maintain its current alliances. The West, Saudi Arabia and other Gulf nations will have to find alternatives in gaining access to the Indian Ocean. In 2012, U.A.E. in preparation of this possibility, constructed a pipeline to the Gulf of Oman in order to bypass tensions in the Persian Gulf.
Although Western involvement in the Omani port of Duqm poses potential limits, its benefits outweigh its setbacks. Oman, wary of the possibility of conflict to its north, is developing infrastructure and pipelines at the port of Duqm, hundreds of miles south of the Persian Gulf, and the ISIS conflict. Oman is talking to U.A.E. and Saudi Arabia about construction of connecting pipelines to Duqm. Now is the time for the U.S. and Saudi Arabia to optimize relations with Oman. For the sake of a better, more conflict-free global economy, a pipeline connecting Oman with Saudi Arabia and India presents the perfect opportunity.