CEPA with India Opens Vast Markets and Investment Opportunities for Oman

Experts: Omani-Indian Economic Partnership to Accelerate Growth and Diversification

Muscat: A number of experts, economists, and business leaders have affirmed that the Comprehensive Economic Partnership Agreement (CEPA) between the Sultanate of Oman and the Republic of India represents a qualitative leap in bilateral economic relations, offering wide-ranging opportunities to expand trade exchange, open new markets for Omani exports, and stimulate joint investments in vital sectors beyond traditional frameworks of cooperation.

They noted that the agreement is expected to support economic growth, diversify sources of national income, and enhance the competitiveness of the Omani economy, while enabling Omani companies—particularly small and medium-sized enterprises—to access one of the world’s largest markets. The agreement is also seen as strengthening food and pharmaceutical security and reinforcing Oman’s position as a regional hub for trade and supply chains, in line with the objectives of Oman Vision 2040.

Dr. Saeed bin Mubarak Al-Mahrami, Member of the Board of Directors of the Central Bank of Oman and Professor of Finance at Sultan Qaboos University, stated that the agreement marks an advanced stage of economic partnership between the two countries. He explained that such trade agreements do not only generate government revenues but also benefit consumers through lower prices, while supporting business environments and creating wider economic gains.

He added that reducing or eliminating customs duties will facilitate the flow of goods and services, open the Indian market to Omani products—including oil derivatives, minerals, fisheries, and light industries—and encourage Indian investment in sectors such as petrochemicals, renewable energy, manufacturing, and information technology. This, he said, will support technology transfer, job creation, GDP growth, and economic diversification.

For his part, Sheikh Dr. Hilal bin Abdullah Al Hinai, Chairman of the Omani Industrialists Association, described the agreement as a strategic milestone that opens broad prospects for Omani industries to access Asian markets. He emphasized the Association’s role in helping industrialists benefit from the agreement through awareness, market access guidance, and direct engagement with Indian counterparts.

He highlighted promising opportunities for sectors such as manufacturing, petrochemicals, building materials, food industries, metals, and pharmaceuticals, noting that tariff reductions will lower production costs and enhance the competitiveness of Omani products. He also stressed that maintaining Omanization controls ensures a balance between attracting investment and protecting the national labor market.

Meanwhile, Mustafa bin Ahmed bin Salman, Chairman and CEO of United Securities Company, said the agreement provides an advanced framework for economic cooperation by liberalizing trade in goods and services and encouraging joint investments. He noted that bilateral trade reached about US$10.61 billion in the 2024–2025 fiscal year and is expected to grow further with the agreement’s implementation.

He added that the agreement will diversify Omani exports beyond oil and petrochemicals, strengthen non-oil sectors, expand access to the Indian market of around 1.4 billion people, and enhance Oman’s role as a logistics and re-export hub through its strategic ports.

Legal advisor and economic expert Dr. Qais bin Dawood Al-Sabi’i stated that free trade agreements are a key strategic tool for diversifying economies, increasing investments, creating jobs, and improving consumer welfare. He described the Omani-Indian agreement as a major strategic turning point that will diversify exports, support SMEs, promote innovation, and enhance sustainability-focused industries such as clean energy and green hydrogen.

He emphasized Oman’s qualifications to serve as a regional and global trade hub, supported by advanced ports in Duqm, Sohar, and Salalah, and noted that the agreement supports environmentally friendly industries and low-emission supply chains in line with global sustainability trends.

Engineer Saeed bin Nasser Al-Rashdi, CEO of Bait Al Takaful Company, said the agreement strengthens Oman’s attractiveness for investment and enables deeper integration with Asian markets. He highlighted the expected benefits for manufacturing, metals, petrochemicals, and food sectors, stressing the importance of readiness in production, logistics, and supply chains to translate preferential access into sustainable export growth.