Historical Context
Oman-Germany relations have developed around industrial cooperation, engineering expertise, and more recently green energy partnership. Germany has long been a source of technology imports, engineering services, and vocational training models for Gulf states. The relationship, while not as historically deep as Oman’s ties with Britain or the US, has grown in strategic importance as Germany seeks to diversify energy imports following the Russia-Ukraine conflict and Oman positions itself as a green hydrogen exporter.
Economic Partnership
Bilateral trade reaches approximately USD 1-2 billion annually, with Oman exporting hydrocarbons and petrochemicals and importing German machinery, vehicles, medical equipment, and industrial technology. German engineering companies have been involved in Oman’s oil and gas sector, petrochemical projects, and infrastructure development. The German-Omani Business Council facilitates trade and investment connections. Germany is an important source of industrial technology that Oman needs for its manufacturing diversification strategy, from precision engineering to chemical processing.
Strategic Dimensions
The green hydrogen partnership has elevated the relationship to strategic significance. Germany needs to import vast quantities of green hydrogen to meet its climate targets, and Oman has the solar resources, land availability, and port infrastructure to become a major exporter. Government-to-government agreements on hydrogen cooperation have been signed, and German companies including HYPORT and Uniper are involved in Oman’s hydrogen project development. Germany’s Hydrogen Diplomacy office has identified Oman as a priority partner country.
Future Outlook
Green hydrogen trade could transform the Oman-Germany relationship into one of Oman’s most economically significant partnerships by the 2030s. If large-scale hydrogen production at Duqm and Salalah is realised, Germany could become a cornerstone off-taker. Beyond hydrogen, German vocational training models (the dual education system) are relevant to Oman’s skills development challenge. Industrial technology transfer, renewable energy equipment supply, and environmental technology cooperation represent additional growth areas. The relationship’s trajectory depends heavily on whether green hydrogen technology and economics mature as projected.