Oman Trade Corridor Could Link Kazakhstan to Indian Ocean

Kazakhstan could gain a new trade route to the Indian Ocean through Oman’s ports, offering an alternative to its traditional northern and Caspian corridors. Haitham bin Tariq Al Said, the sultan of Oman, raised the proposal during talks with President Kassym-Jomart Tokayev in Astana on October 6. He arrived in Astana on October 5, becoming the first Omani sultan to visit Central Asia “We look forward to developing cooperation in transport and logistics, including the development of a trade corridor through Oman’s ports, as well as strengthening air links between our countries,” the Sultan said. For landlocked Kazakhstan, Omani ports would provide another potential route to the Indian Ocean. Kazakhstan is already developing the Middle Corridor across the Caspian Sea and the South Caucasus, while Kazakhstan, Uzbekistan, and the United Arab Emirates are studying the CASA railway project through Afghanistan to Pakistani ports. No route, transit countries, cargo volumes, costs, or launch timetable have yet been announced for the Omani proposal. The talks came immediately after Kazakhstan signed an agreement aimed at settling a long-running dispute over Dunga, an oil field in western Kazakhstan near the Caspian coast. KazMunayGas controls a 60% interest in the project through Dunga Operating GmbH, while Oman Oil Company Limited and Thailand’s PTT Exploration and Production Public Company Limited (PTTEP) each hold 20%. The dispute concerned costs accumulated under the production-sharing agreement that Kazakhstan considered non-recoverable. On October 5, the Energy Ministry and KazMunayGas signed an agreement to resolve the disputed issues. The agreement will now be sent to the foreign partners, Oman Oil Company Limited and PTTEP, for signature. A new development plan for 2026-2039 provides for production of 67.4 million barrels of oil, as well as capital and operating investment. Omani capital is also present in Kazakhstan’s gold industry. Maaden International Investment, an Omani state-owned investment fund, held 31.7% of Solidcore’s voting rights as of March 31, 2026, making it the company’s largest shareholder. Solidcore operates gold-mining assets in Kazakhstan. Kazakhstan and Oman have assembled a portfolio of five major joint projects worth around $3 billion. Two projects totaling approximately $1.1 billion have already been implemented in the energy and railway sectors, while others, including ore-processing projects, are at various stages of development. Oman Investment Authority and Kazakhstan’s sovereign wealth fund Samruk-Kazyna are among the main partners. During the visit, Samruk-Kazyna and the Oman Investment Authority exchanged an implementation agreement on establishing a joint investment fund and a term sheet for a Rixos hotel project at Blue City in Oman. KazMunayGas and OQ Exploration and Production also agreed to cooperate on investment opportunities in oil and gas exploration and production. The package of agreements covered areas including transport, agriculture, technology, healthcare, mining, and renewable energy. Despite a joint investment portfolio measured in billions of dollars, merchandise trade between the two countries remains modest. On October 5, the Chamber of International Commerce of Kazakhstan and the Oman Chamber of Commerce and Industry signed a memorandum of understanding. Kazakhstan proposed expanding exports of grain, meat, and...