The joint venture will increase “sustainable trade” and investment between Iran and Oman, says Mohammad Nahavandian, president of Iran’s Chamber of Commerce, Industries and Mines.

Iran and Oman are investing some $7bn in the Kish gas field, near Iran’s Kish island in the Persian Gulf. The two countries could invest up to $12bn depending on the amount of gas that they can extract from the field.

Iran has struggled to attract companies willing to invest in either its oil and gas sector or the rest of the economy, in part due to US sanctions against Tehran.

Tehran’s budget for the Iranian year calls for the Iranian Privatisation Organisation to raise some $30bn by selling off state-owned enterprises (MEED 7:3:08).