Muscat: Hungary will invest €10 million in a proposed solar power plant in Oman, as part of the two countries’ efforts to effect a transition towards clean and renewable source of energy.

The agreement represents the close relationship between both the nations, as was announced by Peter Szijjarto, Hungary’s Minister of Foreign Affairs and Trade, who arrived in Muscat with representatives of a number of Hungarian companies, to boost economic cooperation.

“Oman has been a pretty successful destination for Hungarian investors, and the biggest Hungarian company, MOL, has a strategic cooperation with Oman Oil Co., and this is basically the backbone of our bilateral cooperation,” said Szijjarto, during a joint press conference with Oman’s Foreign Minister, Sayyid Badr Al Busaidi.

“As the global energy industry is entering a new, more innovative phase, our energy cooperation has to enter a more innovative phase also,” he added. “MOL has had a big role in Oman to upgrade the traditional carbon-hydrogen industries and now we are ready that with the support of the Hungarian government, Hungarian companies will take part in building up the renewable energy sector of Oman.

“An agreement has been signed by a Hungarian company with the financial support of the Hungarian government to construct a solar power station in Oman,” the minister said. “This investment will have a range of 10 million Euros and the Hungarian government is lending its financial support to this investment.”

During his visit to Oman, Szijjarto also oversaw the financial and legal basis for the safe and secure investment of Hungarian companies in Oman. An agreement was also signed on the mutual protection of investment interests.

“The interest of the Hungarian business sector is proven by the fact that the representatives of 24 Hungarian companies have accompanied me here,” he added.

During his press conference, Szijjarto also stressed the importance of wider regional cooperation between the European Union – of which Hungary is a member – and the Arabian Gulf.

“We encourage the European Union to enter into tighter cooperation with the Gulf countries,” he said. “I think the EU would be stronger in case of successful cooperation with this region. The first step would be people-to-people contact. That is why Hungary supports the visa-free regime to be established for Oman, on behalf of the EU. We see no risks in that: Only advantages and possible profit.”

Szijjarto also warmly welcomed Oman’s efforts as a peacemaker in the region, saying the country’s efforts to defuse conflict had earned his respect.

“We would like to express our respect towards the approach represented by the foreign policy of Oman, namely, sticking to tradition, sticking to heritage and sticking to values,” he said. “I think that is extremely important. On the other hand, I have to tell you that for us Europeans, the security situation in this part of the world is vital.

“That is why resolving conflict, pacifying violent activities and preventing further wars and armed conflicts are among the strategic security objectives of the European Union,” he added. “That is why all efforts, including those of Oman, to defuse tensions and create peace in the region are pretty much respected.”

“This is also why we opened our embassy here a few years ago in order to pursue tighter cooperation and to increase respect towards this nation,” explained Szijjarto.

The minister went on to say that Hungary actively seeking investment in Oman and other countries will be mutually beneficial for both his own country as well as the one receiving the investment.

“We had two complicated years behind us, but the Hungarian economy proved to be successful, regardless of the crisis, which gives us a good basis to upgrade it to the next level,” said Szijjarto. “But the Hungarian economy can only be upgraded in case Hungarian companies successfully complete investments outside the country.

He added: “The profit made there could contribute to further success for domestic economies. The Gulf area is supposed to offer great opportunities for those Hungarian companies that are technology- oriented.”