Oman, Belarus sign $1.4bn pulp and paper mill investment deal

08/10/2025 04:27 AST

Oman and Belarus have signed a memorandum of cooperation to establish a pulp and paper mill in Belarus, marking a significant milestone in the two countries' expanding economic partnership. The agreement, valued at $1.4 billion, was signed in the presence of His Majesty Sultan Haitham bin Tarik and President Alexander Lukashenko following official talks at the Palace of Independence in Minsk on Monday.

According to BelTA, Belarus' official news agency, the planned facility will have an annual production capacity of around 800,000 tonnes and an investment value of $1.4 billion. The project involves the Oman Investment Authority (OIA) and reflects Oman's strategic aim to diversify its global investment portfolio. The mill is expected to form the foundation for long-term, large-scale investment cooperation between Oman and Belarus, benefiting the economic development of both countries.

President Lukashenko said Oman's investment in Belarus' wood-processing sector would optimise the country's natural resources. He added that the project is expected to serve as a base for deeper investment cooperation and broader economic engagement between the two nations.

The leaders also oversaw the signing of several other agreements, including two deals, four memoranda of understanding, and one memorandum of cooperation. Both sides expressed satisfaction with progress in bilateral trade and the growing exchange of food products, industrial equipment, pharmaceuticals, and other goods. They also discussed initiatives to manufacture baby food and dairy products and assemble machinery in Oman.

Expanding bilateral ties
The two leaders agreed to accelerate joint projects and highlighted Oman's logistics capabilities and modern infrastructure as key advantages for industrial cooperation. They noted the establishment of a cooperation and investment committee in May 2025, tasked with coordinating ongoing initiatives.

President Lukashenko added that Belarus aims to establish a long-term supporting point in Oman - a hub for promoting Belarusian products in the Gulf and East Africa. He noted that initial contracts had already been signed to supply Belarusian medicines to Oman, which are currently undergoing certification.

"We are open to any initiatives from the Omani side and would be glad to contribute to the realisation of Oman Vision 2040," President Lukashenko said.

Discussions explore avenues for trade, investment
Senior Omani and Belarusian officials and business leaders met on Tuesday to review opportunities to strengthen bilateral relations and expand economic and investment cooperation, coinciding with the state visit of His Majesty Sultan Haitham bin Tarik to Belarus.

The Omani delegation was led by Qais bin Mohammed al Yousef, Minister of Commerce, Industry and Investment Promotion. Discussions focused on developing trade exchanges, stimulating joint investments, and identifying opportunities in key sectors, including manufacturing, technology, marketing, and food security.

Yousef reaffirmed Oman's commitment to deepening economic ties with friendly nations and highlighted the sultanate's efforts to improve the business environment and offer flexible investment incentives to attract quality investments and support economic diversification.

Belarusian officials welcomed the initiative, emphasising the government's and private sector's interest in advancing cooperation through regular delegation exchanges, joint economic events, and closer institutional communication.

Mikalai Barysevich, Director General of the National Centre for Marketing in Belarus, said: "We discussed expanding Omani investments in areas such as the industrial sector, timber, auto parts assembly, and other fields of mutual interest. Both sides agreed on steps to support these investments." He added that the centre would continue efforts to enhance trade cooperation between the two countries.

Abdullah bin Masoud al Harthy, Honorary Consul of Belarus to Oman, described the talks as laying the foundation for a new phase of cooperation based on mutual trust and shared interests. He noted recent developments in bilateral relations, including President Lukashenko's visit to Muscat in December 2024, the launch of direct charter flights between Minsk and Salalah in February 2025, the establishment of the Joint Committee for Cooperation and Investment in May, and the mutual visa exemption arrangement supporting tourism and cultural exchanges.

Both sides also discussed plans to hold joint business forums and trade delegations in sectors such as agriculture, industry, healthcare, and IT. There are also plans to establish a Belarusian trade centre in Oman to market products to the Gulf and East African markets.

The meeting was attended by Hamoud bin Salem al Towaih, Ambassador of Oman to the Russian Federation and non-resident to Belarus; Andrei Kuznetsov, Minister of Industry; Arthur Karpovich, Minister of Antimonopoly Regulation and Trade; and Mikalai Barysevich.

Muscat Daily