Having first established diplomatic relations with Oman in 1972, Japan has contributed greatly to the sultanate’s impressive socioeconomic development and positive economic trajectory for over half a century via close fiscal and technological cooperation in key industries and projects.
Through the design and construction of crucial infrastructure such as roads, ports, harbors and oil and gas projects, the pair have enjoyed a close and mutually beneficial partnership that has aided Oman’s economic diversification. This drive toward expanding nonpetroleum sectors includes tourism and renewables. Indeed, the latter comprises a core part of the country’s efforts to achieve its plan for net-zero carbon emissions by 2050, a goal known as CN 2050.
Spearheading this collaboration since the 1960s is Saud Bahwan Group, a highly successful company that has represented several leading Japanese brands, such as Komatsu, Seiko and Toshiba, in Oman for many years. This strong track record helped it acquire the Toyota distributorship in the 1970s, a relationship that flourishes to this day, as illustrated by the long list of marketing and customer service awards presented to SBG by the automotive giant.
Such has been SBG’s importance to the growth and development of Japanese brands and products in Oman, that Chairman Sheikh Mohammed Saud Bahwan was awarded one of the most prestigious Japanese decorations: The Order of the Rising Sun, Golden and Silver Star. The honor was presented to the prominent businessman at a special ceremony at the Imperial Palace in Tokyo.
The prestigious award, one of the highest accolades bestowed upon a foreign national, was presented in 2018 in recognition of the entrepreneur’s substantial contributions toward promoting bilateral cultural relations and mutual understanding between the nations.
“The Sultanate of Oman and Japan share a very deep rooted relationship that dates back hundreds of years,” explained SBG CEO Abdullah Mohamed Bahwan, the chairman’s son.
“These remarkable bonds have been created through timeless shared values. Under the wise leadership of Sultan Haitham bin Tariq, Oman is on a path of rapid growth, with a firm focus on development, stability and good governance.
“The ambitious Oman Vision 2040 lays out a blueprint that will pave the way for Oman’s evolution into one of the most rapidly growing and diversified economies in the region. The government has already taken several initiatives, such as permitting 100% foreign direct investment in priority sectors, single window and fast-track clearances for investment proposals and new private-sector-friendly policies for mining — in which Oman holds good potential — among others,” he said. “Oman offers a very investment friendly and business-enabling policy framework. The country has a stable currency, very low inflation, excellent infrastructure, and an attractive tax regime. Several free zones are available at attractive rates with single window quick clearances for investment proposals. The government is unveiling more initiatives to attract FDI. Investors will find Oman a very rewarding and stable investment destination.”
Golden investment opportunities
According to the highly respected senior executive, while there are many areas where Oman offers openings for collaboration with Japan, the sectors that present the greatest potential are maritime logistics, renewables and tourism.
“Oman is advantageously located between the fast-growing Asian and African economies, making it ideal as a transshipment hub,” he added.
“Toward this, the Oman government has already made substantial investments in developing the port city of Duqm as well as Salalah, both of which allow free passage of marine traffic bypassing the Strait of Hormuz.
“In renewables, Oman is aggressively transitioning from hydrocarbons to clean energy generation. The country is blessed with natural resources, especially for harnessing solar and wind energy. The government has already announced many projects, several of which are being implemented. Of special focus is green hydrogen production, which is attracting global investment.
“Here too, leading Japanese conglomerates can offer technology and investments to help nurture the sector. Japan has aggressive targets for carbon neutrality and, as an energy importer, can serve as a good market for our green hydrogen.
“In tourism, Oman is one of the most attractive travel destinations in the Middle East. Endowed with amazing topography and landscapes straddling vast deserts, green wadis, extensive shoreline with pristine beaches, breathtaking mountain ranges, historic forts and diverse aquatic life. Japanese investments in this sector would also be greatly welcome and highly rewarding.”
Solid foundations for a growth platform
Although he wears two hats with his leadership role at SBG and position as chairman of the Oman-Japan Friendship Association, Bahwan’s goals have plenty in common and often overlap.
His firm was a national pioneer in embracing Japanese technology and goods many decades ago, meaning SBG was instrumental in fostering this international trade and commerce relationship, especially in the automotive industry.
“SBG represents many leading Japanese brands from the automotive sector and other products such as trucks, construction equipment and tires in Oman,” he said. “Toyota helped boost Oman’s economy by supporting small and mid-sized enterprises in the transportation, fisheries and agriculture sectors. The affordable price and service made Toyota popular and loved by Omanis.
“In addition, SBG is building a new Okura Hotel in Muscat to bring the best of Japanese hospitality to Oman,” he added. “This will be the debut of the famous Japanese hospitality brand in the Middle East. The hotel is located in the prime Al Mouj area overlooking the Arabia Sea and a golf course, and is expected to be inaugurated by early 2027.”
With sustainability being a growing focus globally, Japan is a pioneer in electric and hybrid vehicle technologies, while SBG is well-positioned to bring these innovations to Oman, thanks to its unmatched experience working with some of the blue-chip names in Japan’s auto industry.
The company has drawn up comprehensive plans for the introduction and promotion of electric and hybrid vehicles, as the group seeks to celebrate its 50th anniversary of working with Toyota by launching the latest high-tech models.
“Toyota has adopted a ‘multipathway’ strategy toward carbon neutrality,” Bahwan stated. “This emphasizes there are several paths to achieve our carbon neutrality goals through offering choice of carbon reduction mobility solutions to our customers. We are fully aligned with Toyota’s vision.
“We have launched a wide range of hybrid electric vehicles and are promoting them aggressively through customer education. These have been well received. We shall soon launch plug-in hybrid electric vehicles and battery electric vehicles for Toyota and Lexus models,” the CEO said.
High-tech challenges met head-on
While noting the availability of charging facilities is a “major challenge in our pivot toward electrified mobility,” the expert is confident such hurdles will be overcome. “We are exploring various partnerships to provide personalized charging solutions for customers and to expand the public charging infrastructure,” he said.”This is a key focus area for SBG in the future. Oman has aggressive plans for green hydrogen and this project dovetails well with Vision 2040 and our CN 2050 goals.”
With this year’s world expo being held in Osaka, leading Omani firms such as SBG will have the exciting chance to display their rich potential and promote Oman as a lucrative investment destination to major Japanese trading houses, as well as wider public- and private-sector audiences.
“Expo 2025 is a good opportunity to create awareness about Oman as a country among Japanese audiences,” Bahwan added. “Oman has a rich heritage and culture, with natural pristine beauty and other exciting attractions. Omanis are very friendly and are well known for their hospitality.”
In his role at OJFA, the experienced businessman is working to promote links in the fields of culture, society, the economy, arts and science. The entity plays a vital role in tightening the bonds among diplomatic, business and trade partners. Founded several decades ago, the association recently sponsored the Japanese Orchestra performance at the prestigious Royal Opera House in Muscat. “The event was graced by several high-profile dignitaries, including the Japanese ambassador to Oman, and was very well received,” Bahwan said.
He added that OJFA is dedicated to strengthening and fostering greater understanding and collaboration, with such events serving as a testament to the harmony between the nations and the potential for cultural and economic partnerships.
“We are conducting Japanese-language courses in Oman and a Japanese teacher has been hired specifically for this task,” he said. “Several Omani students interested in learning Japanese are benefiting from this facility.”
https://info.japantimes.co.jp/international-reports/pdf/20250625B-GI_Oman.pdf
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