Cultural Diplomacy and Intercultural Communication: An Approach to Achieving Economic Prosperity in the Global South and East — a Case Study of the Sultanate of Oman

Intercultural Communication and Economic Development

The concept of intercultural communication refers to a dynamic and recip- rocal exchange process between individuals fr om different cultural backgrounds, aiming to foster mutual understanding and build trust (Ratzmann, 2019). In the era of globalization and the knowledge economy, this type of communication has become a crucial factor in achieving economic prosperity. Effective cross-cultural communication helps build bridges of trust and enhances international coopera- tion, creating a favorable environment for trade, investment, and economic part- nerships (Chavash Bashi et al., 2020). Studies indicate that possessing cultural competence strengthens a country’s or institution’s competitive advantage in the global economy (Chavash Bashi et al., 2020). From this perspective, cultural diplo- macy has emerged as an essential tool within the soh power strategies of nations, wh ere countries utilize their culture and heritage to strengthen international rela- tions and achieve economic interests. This approach is rooted in modern interna- tional relations theories, such as Joseph Nye’s soh power theory (Nye, 2024), which argues that cultural attraction and persuasion can serve as effective alternatives to military or economic coercion in achieving strategic goals. Additionally, theoretical frameworks like Hofstede’s cultural dimensions theory (Hofstede, 2011) and Bour- dieu’s cultural capital theory (Bordeiue, 1986) provide insights into how cultural values and norms influence economic cooperation behaviors. In this paper, we explore the significance of intercultural communication in driving economic pro- sperity and the role of cultural diplomacy in fostering economic collaboration, with a particular focus on case studies fr om the Global South and East. We also present a detailed case study on the Sultanate of Oman as a pioneering model in leverag- ing cultural diplomacy to support economic growth, comparing Oman’s approach with experiences from other countries in the Global South and East. Finally, we will present a critical analysis and recommendations to maximize the benefits of intercultural communication in supporting economic development.
The Importance of Intercultural Communication for Economic Prosperity

Effective communication between different cultures has become a fundamen- tal requirement for business success and economic cooperation in today’s world. Understanding cultural differences and managing communication across cultures help overcome barriers to international trade and investment. For example, differ- ences in cultural values (as interpreted through Hofstede’s cultural dimensions, such as power distance, individualism versus collectivism) significantly influ- ence negotiation styles and decision-making processes in cross-border business (Gonzalez, 2021). Recognizing these differences and adapting to them reduces misunderstandings and conflicts, facilitating more successful business deals and fostering long-term partnerships. Theories of communication and international management indicate that institutions that adopt effective cross-cultural commu- nication strategies achieve better performance in global markets (Chavash Bashi et al., 2024). A recent study found that cultural factors play a crucial role in the success of economic relationships, influencing even material aspects of transac- tions. Economic actors are increasingly considering not only material gains but also identity- and value-based benefits (El Husseiny et al., 2024). In other words, when business partners from different countries feel that their cultures are respected and understood, it positively impacts mutual trust, which in turn enhances trade and investment flows. Therefore, intercultural communication has become a key fac- tor in fostering sustainable development and economic partnerships, particularly

among countries in the South and East, as they work towards shared economic prosperity (Sheng et al., 2023).
Cultural Diplomacy as a Tool for Economic Cooperation

Cultural diplomacy refers to the use of culture (including arts, heritage, language, and values) to strengthen international relations and achieve foreign policy objectives in a peaceful and appealing manner (Al-Khayri, 2024). It is considered a practical application of Joseph Nye’s (2004) soh power theory, which emphasizes attraction and admiration rather than coercion and force. Through cultural diplomacy, countries leverage their cultural assets to enhance their cultural distinction and build a positive national image in the minds of other nations, contributing to global cultural diversity and paving the way for deeper cooperation in various fields, including economy and trade (UNESCO, 2022). Culture can serve as a bridge for communication wh ere tradi- tional politics may fail, as it resonates with people’s emotions and shared values (Jora, 2013). Сultural diplomacy models require an interactive approach based on mutual exchange and dialogue. This contemporary perspective transforms cultural diplomacy into a two-way communication process: not only promoting a country’s own image and values but also ensuring an understanding of other nations’ cultures and perspec- tives, fostering mutual respect. As a result, cultural dialogue provides a foundation for building more complex and profound political and economic partnerships.
Fr om an economic perspective, cultural diplomacy can directly or indirectly
yield economic benefits for a country (UNESCO, 2022). When trust and under- standing are strengthened through cultural exchange, opportunities for trade and investment increase. Many countries now view cultural diplomacy as a means to boost exports, attract foreign investments, and promote tourism. For instance, since 2009, Vietnam has focused on cultural diplomacy as part of its national strat- egy to utilize culture for economic gains and global influence (Rawnsley & Ngac, 2016). Similarly, other nations have adopted economic soh power policies, such as using national cuisine and cultural products as diplomatic tools. This approach is known as “gastrodiplomacy”, wh ere countries promote their traditional cuisine to enhance their international image and attract global attention. Peru, for exam- ple, launched the “Peruvian Cuisine for the World” campaign to promote its gas- tronomy globally. This initiative not only fostered national pride but also increased exports of Peruvian food products, such as quinoa and cocoa, and led to the global expansion of Peruvian restaurants — creating new economic opportunities (Roc- kower, 2012). A similar approach was taken by Asian countries. At the turn of the millennium, Thailand launched the “World Kitchen” initiative, which supported the expansion of Thai restaurants internationally, contributing to increased tour- ism and food exports (Rockower, 2012). These examples highlight that cultural diplomacy is not merely a luxury in politics, but rather a powerful tool that inter- twines culture and economy to drive shared prosperity.

Models fr om the countries of the South and East in Utilizing Cultural Communication for Development

Countries in the South and East have implemented various initiatives show- casing the impact of cultural communication on economic development. Many of these nations ohen share historical experiences of colonialism or economic mar- ginalization, which have driven them to enhance cooperation among themselves through mutual cultural understanding rather than relying exclusively on the North or Western economies. Below are some notable examples:
Moroccan Cultural Festivals: Several North African countries have leveraged their cultural heritage to attract tourism investment and enhance their interna- tional image. Morocco, for instance, hosts major international festivals, such as the Marrakech International Film Festival, and the Mawazine Music Festival in Rabat. These events attract global artists and international audiences, strengthening the position of Morocco’s cities on the global cultural map. They positively impact the local economy by stimulating tourism and visitor spending, while also promoting Morocco as a culturally open country. Additionally, such cultural activities align with Morocco’s national agenda, including its bid to host the 2030 FIFA World Cup (Ministry of Youth, Culture, and Communication, 2022).
Asian Cultural Cooperation. Several Asian nations have also launched col- laborative initiatives based on their shared cultural heritage. For example, South Korea and North Korea, despite their political tensions, in 2018 jointly registered the traditional Korean wrestling sport “Ssirum” as part of UNESCO’s Intangible Cultural Heritage List (UNESCO, 2018). Such cooperation demonstrates the power of culture in bridging narrow interests and can pave the way for future economic cooperation by improving the overall climate of relations.
Cultural Partnerships in East and South Asia. Rising Asian powers are increas- ingly integrating culture into their international development strategies. China, for example, has established hundreds of Confucius Institutes worldwide (with their number exceeding 500 institutes in over 160 countries by the late 2000s) (Li & King, 2024). This rapid expansion of these institutes has made them a cornerstone of China’s strategy to enhance its economic presence through what is known as language diplomacy, aiming to win the friendship of nations and peoples by intro- ducing them to its civilization. Although some of China’s cultural initiatives have faced political challenges, they have helped pave the way for large-scale economic projects, such as the Belt and Road Initiative, by fostering the concept of friendship and mutual understanding with participating countries.
Arab-Asian Cultural Cooperation. In the Middle East and South Asia, countries such as the UAE and Qatar have invested in hosting and organizing major cultural events (including book fairs, art exhibitions, world-class museums, and international universities) to attract talent, investments, and boost cultural tourism. South Asian countries, such as India, have also sought to leverage elements of their soh power,

such as cinema (Bollywood) and yoga, as a means of fostering closer ties with other nations. This has enhanced its image as a country with a rich heritage that contrib- utes to the well-being of people — a factor that also yields tourism and economic benefits (USC Center on Public Diplomacy, 2014). These various models highlight that countries in the Global South and East now consider cultural diplomacy an inte- gral part of their development strategies, utilizing it to strengthen regional cooper- ation, attract resources, and enhance their economic standing on the global stage.
Case Study: The Sultanate of Oman as a Model for Cultural Diplomacy

The Sultanate of Oman presents a unique example in the Arabian Gulf region of leveraging cultural communication and diplomacy to advance development and stability. Oman’s model is shaped by its geographical location, historical heritage, and visionary political leadership. For centuries, Oman has served as a meeting point for traders and diverse communities on the shores of the Indian Ocean and the Arabian Sea, granting it a rich cultural heritage that extends to East Africa and South Asia (Jones & Ridout, 2013). During the 19th century, Sultan Said bin Sultan established a maritime empire connecting Oman to East Africa, even making Zan- zibar his capital for a period to expand trade and economic influence (Al Balushi, 2024). This maritime and cultural past has made Omani society open to diversity and exchange with others. By promoting the values of tolerance and moderation, Oman has been able to embrace a wide range of religious and cultural groups (including Muslims of different sects, Hindus, Christians, and others) within its social fabric (Jones & Ridout, 2013). This internal diversity has been reflected in Oman’s foreign policy, which was shaped for decades by Sultan Qaboos bin Said. The Sultanate adopted a policy of positive neutrality and quiet diplomacy, focus- ing on building bridges of friendship and understanding with all nations rather than engaging in regional alliances and conflicts (Al-Hinai, 2022). Sultan Qaboos reinforced Oman’s identity as a nation of tolerance and openness by incorporat- ing provisions into the constitution, the “Basic Law of the State,” that emphasize respect for cultural and religious diversity and the protection of places of worship for all faiths. Additionally, Oman has established dialogue centers such as the Sul- tan Qaboos Higher Center for Culture and Science and has utilized institutions like the Ministry of Heritage and Tourism and the Ministry of Culture, Sports, and Youth to organize Omani cultural weeks abroad and exhibitions that introduce the world to its rich cultural and civilizational heritage.
Within the framework of economic cultural diplomacy, Oman has leveraged
its reputation as a peaceful and culturally diverse nation to attract investment and tourism. The Sultanate has successfully built a strong soh power presence with high credibility, evident in several key aspects: first, Oman has positioned itself as a neutral regional mediator, accepted by all parties. This reputation is largely built on its commitment to non-interference in the internal affairs of other nations, its

avoidance of ideological rhetoric, and its respect for the sovereignty and cultures of other states. This approach has elevated Oman’s global standing, making it a reliable economic partner and encouraging international cooperation. Secondly, Oman has actively promoted its unique cultural heritage on the global stage. For example, it suc- ceeded in registering the Frankincense Land sites in Dhofar1 on UNESCO’s World Heritage List (National Museum, n.d.) and promoting them as a cultural tourism des- tination. The Sultanate also organizes annual festivals, such as the Muscat Festival and the Dhofar Tourism Festival, which introduce Gulf and international visitors to Omani culture through music, traditional arts, and handicrahs, supporting domestic tourism sector. Thirdly, Oman invests in education and cultural exchange as long- term economic bridges. The government sponsors Omani students for international scholarships, welcomes foreign students, and runs Arabic language programs for non-native speakers. This strategy fosters human and cultural ties, which can later evolve into economic partnerships, academic collaborations, and business ventures. As part of Oman Vision 2040, the cultural and creative industries are recognized as a key sector to diversify income beyond oil and generate employment opportunities. In 2021, His Highness Sayyid Theyazin bin Haitham Al Said approved the National Cultural Strategy 2021-2040, which aims to enhance Oman’s cultural scene as a hub for creativity and global cultural diversity. The strategy includes 11 focus areas, covering identity and heritage, arts, translation and publishing, and cultural com- munication (Omandaily, 2021). A new trend in Oman’s strategy is digital cultural diplomacy, which strengthens cultural and trade cooperation with other countries. A prominent example is the Oman-China Digital Cultural Exchange Week, organized by the Ministry of Culture, Sports, and Youth in collaboration with China’s Minis- try of Culture and Tourism during the COVID-19 pandemic. This event provided an interactive platform for young people, entrepreneurs, and artists from both nations, enabling direct engagement and collaboration despite travel restrictions. The ini- tiative enhanced cultural exchange and opened new opportunities in creative and commercial sectors (Omandaily, 2021). These efforts reflect Oman’s strategic use of cultural communication to enhance its global image, attract economic partners, and preserve its cultural identity. By embracing innovative and modern channels, the Sultanate continues to build bridges with other nations, reinforcing its role as a cul- turally rich and economically dynamic player on the world stage.
Comparative Approaches Between Oman and Other Countries in the South and East

Despite Oman’s unique experience, it shares similarities with other coun- tries in the South and East in leveraging culture to support the economy, while differing in approach based on each nation’s context. Conducting compar- isons can be valuable in understanding the strengths and challenges of each approach:
Oman and China — Between Mutual Exchange and Broad Promotion: The Sultanate of Oman relies on mutual interaction and cultural understand- ing to strengthen its international relations, benefiting from its long history of cross-cultural exchange. In contrast, China adopts a broader approach, dedica- ting large resources to spreading its culture globally through Confucius Institu- tes, cultural centers, and major international events. Despite differences in scale and strategy, both nations aim to enhance their soh power and international rela- tionships. While China focuses on large-scale initiatives, the Sultanate of Oman relies on specific cultural initiatives with a sustainable impact, such as restoring heritage sites in East Africa and hosting international students at its universities, reinforcing its image as a cultural and developmental partner.
The Sultanate of Oman and its Gulf Neighbors — Between Authenticity and Marketing: Compared to Gulf states like the UAE and Qatar, Oman uses differ- ent diplomacy tools. The UAE has invested heavily in global cultural institutions (e.g., branches of the Louvre and Guggenheim in Abu Dhabi), hosted large-scale international events (Expo 2020), and even launched a Ministry of Tolerance to promote its image as a global cultural hub. Qatar, on the other hand, has focused on media influence (Al Jazeera), hosting major sporting and cultural events (the 2022 World Cup and contemporary art exhibitions) as tools for building interna- tional reputation and soh power. These strategies are supported by significant financial resources and calculated investments, helping diversify their econo- mies through tourism and cultural services. The Sultanate of Oman, however, has chosen a different path — one that emphasizes cultural authenticity and heritage preservation while maintaining moderate openness. Instead of hosting branches of Western museums, Oman has focused on developing its national museums and archaeological sites, such as the National Museum and the Museum of Oman Across Ages, appealing to cultural heritage enthusiasts. Rather than organizing massive international events, it has prioritized festivals that celebrate Omani culture, making its own heritage a primary attraction. This does not mean that one approach is superior to the other: both have yielded positive results: the UAE and Qatar have successfully gained rapid global recognition and transformed their cities into regional business and entertainment hubs. Oman has succeeded in building a sustainable cultural tourism industry with a loyal audience while avoiding involvement in regional competition for cultural dominance. In the long run, Oman’s model may prove more sustainable for preserving national identity and achieving balanced development, while the Gulf’s high-profile strategies have achieved quick success in image-building and investment attraction but may face challenges in cultural sustainability.

Analysis and Recommendations

Despite the notable successes of using cross-cultural communication and cultural diplomacy to support the economy in the Global South and East, several challenges remain that must be addressed to maximize benefits. One of the key challenges is translating cultural influence into tangible and sustainable economic returns. Some cultural initiatives may have only temporary effects or an impact too indirect to measure accurately. Therefore, it is essential to adopt evaluation tools to assess the impact of cultural diplomacy on trade, investment, and tourism over time, allowing resources to be directed toward the most effective initiatives.
Additionally, cultural exchange should not be misused for propaganda or ide- ological imposition. Cultural diplomacy loses credibility if the other party perceives it as cultural indoctrination or an attempt to impose values. For this reason, inter- national organizations such as UNESCO recommend that cultural cooperation be mutual and participatory, ensuring benefits for all parties involved.
To strengthen cultural diplomacy, countries in the South and East should invest in building human capacities in cross-cultural communication. This includes training diplomats and trade officials in intercultural communication skills and enhancing their cultural intelligence. Understanding the cultural backgrounds of economic partners (whether they are nations or multinational corporations) helps prevent misunderstandings and build stronger, long-term relationships.
Moreover, it is essential to integrate cultural efforts regionally among the South and East. Cooperation in joint cultural initiatives — such as traveling art exhibitions or reciprocal tourism seasons — can create cultural blocs that attract tourists and investors from around the world. Gulf countries, including Oman, along with Asian nations, can organize shared cultural events that appeal to a broader international audience and promote a South-South narrative of collaboration.
Finally, the role of culture must be strengthened in national development strategies. Despite the growing recognition of the value of cultural and creative industries, the budgets allocated to these sectors in many South and East coun- tries remain limited. Increasing investment in arts, cultural tourism, translation, and academic exchange would not only lead to direct economic returns, but also build cultural capital, enhancing a country’s global standing and strengthening its national identity. As Bourdieu suggested in his theory of cultural capital, cultural value can eventually transform into other forms of value (whether social or eco- nomic) over time if it is developed systematically (Bourdieu, 1986).
Conclusion

Culture may not be the sole solution to economic development challenges, but it is undoubtedly a strategic lever that has proven effective in promoting sus- tainable and ethically acceptable prosperity. The experiences of Global South and

East countries — including Oman as a case study — demonstrate that investing in intercultural communication and cultural diplomacy can generate multi-dimen- sional benefits. On one hand, it fosters peace, mutual understanding, and conflict resolution, while on the other, it facilitates trade, investment, and tourism expan- sion, ultimately contributing to more diverse and resilient economies. Perhaps the most crucial lesson to be learned is the need for each country to crah its own cul- tural approach, one that draws from its historical strengths and national aspirations while genuinely engaging with the world in a spirit of partnership. By doing so, the Global South and East can offer a unique model for international cooperation, wh ere cultural diversity is embraced as a shared asset, and economic prosperity is equitably distributed among all partners.