Team Melli had defeated Pakistan, India, and Jordan earlier in Group B.
They will meet the Maldives on Monday in the quarterfinals round.
The tournament is taking place at the Sultan Qaboos Sports Complex in Muscat, Oman, from May 6 to 15.
It is the second time that the competition will be hosted by the Oman Handball Association (OHA).
Additionally, the competition will serve as a qualification tournament for the Beach Handball World Championship.
Group A consists of Oman, Saudi Arabia, the Maldives and Hong Kong.