Iraqi Prime Minister Mohammed Shia Al Sudani met Oman's Sultan Haitham in Salalah on Wednesday, at the start of a visit to the country.
The Iraqi leader is seeking to bolster trade and economic ties, as Baghdad takes a keener interest in Gulf partnerships.
An official reception was held at Al Hosn Palace, in which Mr Al Sudani “expressed Iraq's desire to develop co-operation with Oman”, according to a statement from his office.
Mr Al Sudani praised Oman's “distinctive stance towards Iraq in various challenging times”, said his office.
Both sides discussed regional developments in a meeting attended by their respective delegations, it said. Later, the two leaders held a bilateral meeting, said the Iraqi leader's office, without giving details on what was discussed.
Sultan Haitham emphasised his country's “willingness to develop bilateral relations in various fields and open us to fruitful exchanges with Iraq,” the Iraqi statement said.
Oman and Iraq signed two agreements and 24 memorandums of understanding to boost their ties, the Oman News Agency said.
It said the two agreements were on avoiding double taxation, and relaxing visa rules for people with diplomatic and other special passports. The other 24 texts covered issues such as energy, tourism, education, banking and defence industries.
“Today, Iraq represents an oasis of stability and security, and also an attractive environment for all investments, standing on a solid foundation of social peace,” Mr Al Sudani said before leaving Iraq. “It is now a key axis for stability in the region.”
Oman’s state news agency reported the visit will last for two days, with discussions involving trade, investment and broader co-operation.
Beyond bilateral ties, the visit carries regional weight. Oman has long been viewed as a discreet and trusted broker, hosting indirect talks between the US and Iran this year and facilitating dialogue in conflicts from Yemen to the Gulf.
Muscat’s neutrality gives it unique influence at a time when tension over Iran’s nuclear programme and US sanctions remains unresolved. For Mr Al Sudani, Oman represents a valuable partner as Iraq manoeuvres between its two most powerful allies – the US and Iran.
Baghdad relies on US support to stabilise security and attract investment, while also accommodating Iran-aligned groups that wield significant sway inside Iraq.
It is a delicate balancing act that has become increasingly difficult when militias launched attacks on US interests, and as calls to end the presence of US troops in the country continue.