AGP Executive Report

Oman–Iran Pressure & Hormuz Risk: The White House is escalating pressure on Oman to sever diplomatic ties with Iran, citing intelligence that Oman may have helped impose fees on vessels transiting the Strait of Hormuz—an issue that could quickly lift shipping costs and ripple into global prices. Maritime Incident Off Oman: The US disabled the Palau-flagged tanker Marivex in the Gulf of Oman after it tried to head toward an Iranian port despite the blockade; 24 Indian crew were evacuated safely with help from Omani authorities. Investment Climate Boost: Oman’s Investment and Trade Court is being positioned as a key reform to improve dispute resolution speed and investor confidence. Duqm Deal Push: Oman signed RO 2.9bn ($7.5bn) in new Duqm Special Economic Zone agreements, including major green hydrogen downstream phases with ACME and new industrial, battery materials, chemicals, tourism and housing projects. Environment as an Economic Lever: Oxford Business Group and Oman’s Environment Authority released a report arguing stronger environmental governance can improve investment confidence and long-term resilience under Vision 2040. Hafeet Rail Progress: Track installation has started on the Hafeet Rail project linking Sohar Port to the UAE rail network, moving the 238-km build into the infrastructure phase. Oman–Kuwait Cybersecurity MoU: Kuwait and Oman signed an MoU to deepen cybersecurity cooperation, including training and incident-response coordination. Markets & Energy Backdrop: Oil prices eased after Iran and Israel said they halted attacks, but investors remain wary of renewed volatility.

Maritime Security: The US disabled the Palau-flagged tanker Marivex off Oman after it tried to evade the Iran blockade, following a fire that forced evacuation of 24 Indian crew members; Omani authorities coordinated rescue efforts as UKMTO said the incident was “suspicious.” Middle East Tensions: Israel and Iran appeared to step back from further strikes after renewed exchanges of fire, but both warned they could retaliate if provoked—keeping pressure on global energy and shipping. Strait of Hormuz Watch: With Hormuz still effectively shut and demining plans being discussed by US allies for a possible G7 push, markets remain on edge about when trade routes can normalize. Oman Policy & Finance: Oman’s central bank raised OMR38.1mn via treasury bills (91- and 182-day tenors), supporting short-term liquidity. Oman Governance: Operational control of the Marine Rescue Station shifted from the Civil Aviation Authority to the Civil Defence and Ambulance Authority to strengthen round-the-clock maritime emergency response. Oman-Net Zero: Oman is expanding Net-Zero efforts in agriculture and livestock, including smart irrigation and AI-based fertilisation to cut water and fertiliser use. Oman-Kuwait Ties: Oman and Kuwait reviewed ways to deepen bilateral cooperation through the 11th joint committee session.

Oil & Markets: Oil jumped more than 3% after fresh Iran-Israel exchanges, with Brent around $97 and WTI above $94, while Gulf stocks slid on renewed geopolitical risk and worries about global demand. Oman Energy & Gas: Oman reported natural gas output growth of 4.6% to 18.77bn cubic metres by end-April 2026, with higher associated and non-associated production and rising gas use in power generation. Water Infrastructure: Barka Water and Power invited expressions of interest to sell, dismantle and remove two seawater desalination plants (SWRO-1 and SWRO-2), after their water purchase agreements expired and operations ceased. Renewables Pipeline: Nama Power and Water Procurement Company opened bids for project management and supervision for the 300MW Marsa Solar IPP, with submissions due July 26. Trade & Standards: Oman marked World Accreditation Day, highlighting accreditation’s role in boosting SME competitiveness and trust in testing, inspection and certification. Business Events: Oman CX Forum & Awards 2026 is set for 10 June in Muscat, focusing on customer experience and digital-first engagement. Tech & Culture: Oman’s Oman Accreditation Centre and GCC-Stat-backed Youth Creativity Award in the World of Data saw Oman winners in statistical analysis and open-data solutions. Security Watch: The Strait of Hormuz and wider shipping risks stayed in focus as regional tensions threaten maritime routes and energy flows.

Renewables Tender: Oman’s Nama Power and Water Procurement Company has invited bids for project management and supervision for the 300MW Marsa Solar IPP, covering construction, testing, commissioning and handover, with submissions due July 26. Industrial Upskilling: The Ministry of Commerce, Industry and Investment Promotion launched the first phase of the Kafaah Competence Programme for Manufacturing, with nine factories signing up to apply Lean Six Sigma projects before qualifying workshops and Green Belt certification. Energy Transition Governance: Muscat Municipal Council reviewed net-zero progress via the Oman Net Zero Centre, including updates to national emissions pathways and the “Meezan” platform for inventory and carbon market regulation. Food Safety Push: Oman marked World Food Safety Day, stressing traceability systems and faster market withdrawal of non-compliant products to protect public health and support food security. IMF Check-in: An IMF staff mission began in Oman for the 2026 Article IV consultations, meeting CBO, Finance Ministry and private-sector representatives through June 15. Oman in Global Labour Rankings: Oman retained a top labour-rights position, ranking 3rd in the 2026 International Labour Rights Index. OPEC+ Oil Outlook: OPEC+ agreed a July output increase of 188,000 bpd (including Oman’s 5,000 bpd), though analysts warn it may have limited impact while Strait of Hormuz disruptions persist.

Cybercrime Crackdown: Oman issued a new Law on Combating Cybercrimes (Royal Decree 61/2026) with harsh penalties for online drug trafficking, including death penalty or life imprisonment for digital promotion/trafficking of narcotics and psychotropics. Medicines Enforcement: A separate legal framework targets the unauthorized online promotion and sale of unlicensed medicines and herbal products, with jail terms and fines up to OMR 100,000, and doubled penalties for adulterated/counterfeit/expired items. Energy Deals: OQEP signed an MoU with Libya’s Investment Authority to explore joint oil and gas investment opportunities. Trade Route Talk: Turkey’s minister says a modernised Hejaz Railway could be extended to Oman to offer an alternative route to Hormuz. Oman Business Pulse: Muscat Stock Exchange trading stayed above 1bn Omani rials for a fourth straight month in May; Global SWF praised OIA’s role in boosting state-asset profitability. Jobs & Mobility: 600 private-sector vacancies were announced in Muscat, while Oman accelerates EV charging rollouts at hotels. Hydrogen Corridor: Gasunie backed a hydrogen trade corridor linking Duqm with Northwest Europe, with support for Oman’s hydrogen transport network.

Muscat Stock Exchange: MSX kept trading value above OMR1bn for a fourth straight month in May, with OMR1.0478bn traded and more than 107,000 transactions; activity stayed concentrated in OQ Basic Industries, Bank Muscat, Bank Sohar International, OQ Exploration and Production and Omantel. Banking lift: The financial sector index rose during the week as National Bank of Oman, Oman Arab Bank and Ahli Bank gained, even as the main index slipped. Jobs & labour: Oman’s Ministry of Labour announced 600 private-sector vacancies in Muscat, while Oman strengthened ILO ties in Geneva and retained its Tier 3 labour-rights position. Electric mobility: Oman is pushing EV adoption via more charging stations at hotels and growing tourism-linked infrastructure. Corporate law: A new explainer outlines the legal process for share-capital increases in limited liability companies, including unanimous shareholder approval and preemptive rights. Sustainability push: Oman advanced climate action and aviation sustainability efforts, while also marking World Environment Day with a focus on conservation and resilience. Energy & industry: Track installation has started on the Hafeet Rail project linking Oman and the UAE; Gasunie backed an Oman–Europe hydrogen corridor; Duqm Refinery reported RO 106m EBITDA for 2025. Public health: Oman’s obesity levels are rising, with a 2025 national survey cited as showing 64.7% of the population overweight or obese. Geopolitics: US and Iran tensions around the Strait of Hormuz continued to rattle oil and shipping sentiment, with Oman reporting normal operations at Mina al Fahal after earlier explosion reports.

Oman–India Trade & Ports: With the Oman–India CEPA in force from June 1, Oman’s Sohar, Salalah and Duqm ports are being positioned as gateways for Indian exporters and investors into West Asia, North Africa and East Africa, supported by nearby free zones and fast sea links. Mina Al Fahal Update: PDO moved to calm markets after reports of an explosion near the Mina Al Fahal export terminal, saying operations were proceeding normally and crude loading was not broadly disrupted. Hormuz Security & Oil Impact: US forces reported shooting down four Iranian drones aimed at the Strait of Hormuz and striking coastal radar sites, while Iran-linked tensions continued to rattle shipping and energy prices. US Sanctions on LPG Smuggling: The US Treasury’s OFAC sanctioned a network accused of disguising Iranian-origin LPG as Omani fuel and shipping it to South and East Asia, citing front firms, shadow fleet activity and shadow banking links. Marsa LNG Solar Plan: Oman is preparing a solar independent power project for the Marsa LNG bunkering development at Sohar, with consultancy bids due July 26 and an expected start around 2028.

Oman Energy & Trade: Petroleum Development Oman says operations at the 800,000-bpd Mina al Fahal terminal are proceeding normally after reports of a drone attack and a brief crude loading scare, helping steady crude sentiment tied to Strait of Hormuz disruption. US-Iran Maritime Tensions: Iran’s navy claims it fired warning missiles and drones at US destroyers in the Gulf of Oman, while the US denies any attack and says it continues maritime enforcement; the standoff keeps shipping risk premiums elevated. Oil Prices Watch: WTI held above $90 amid demand-destruction concerns and stalled US-Iran talks, with traders also weighing conflicting signals on Hormuz reopening. Sanctions & Shadow Finance: The US Treasury announced new sanctions on an Iranian-linked LPG smuggling and “shadow banking” network using front firms in the UAE and China and falsified shipping records, including alleged mislabeling of Iranian LPG as Omani fuel. Regional Food Security: The UN World Food Programme warns the West Asia conflict is pushing millions toward hunger as fuel, transport and aid funding shortfalls bite. Oman Finance & Markets (related): Oman’s capital-market momentum continues in the wider region, with Botswana in talks with Oman and the UAE for a De Beers stake, underscoring Gulf-linked investment interest.

Oman Energy & Shipping: Mina Al Fahal’s main crude export terminal resumed Omani loadings after an explosion temporarily halted some shipments, keeping the port’s role critical amid Strait of Hormuz disruption. Water Infrastructure: Nama Water Services said the Wadi Al Sahtan water transmission and distribution network hit 46% completion, with RO 17.2mn invested so far. Financial Regulation: Oman’s Financial Services Authority set a 30-day deadline (from 2 June) for accounting and auditing licence applicants to update procedures after regulatory responsibility shifted to the FSA. Islamic Finance: Dhofar Islamic closed its inaugural RO5mn sukuk series under a RO250mn programme, while Oman Sovereign Sukuk Company launched a RO100mn local sovereign sukuk (5-year, 4.2% profit) with a June 10 subscription close. Logistics Expansion: Asyad Group completed a controlling-stake acquisition in Uzbekistan logistics platforms, aiming to link Oman’s ports to Central Asia via rail/road/warehousing. Digital Payments: OMPAY launched JEEL, a parent-controlled digital wallet for children aged 7–17 with spending limits and prepaid card access. Capital Markets & Funding: Oman plans a new RO/US$ sovereign sukuk fundraising round (reported as $260mn) as it taps markets for financing needs. Regional Business Context: India signalled faster FTA rollouts (including Oman) and Oman’s logistics upgrades continue as global trade routes face Hormuz-related pressure.

Oman-India CEPA Momentum: India’s CEPA with Oman kicked in on June 1, giving immediate duty-free access on 945 textile and apparel tariff lines and removing a 5% MFN duty for most exports, a boost expected to help Indian textile, apparel and handicrafts firms compete and expand into Oman and onward GCC/East Africa markets. Oman Logistics Push: Oman’s transport and logistics sector is in “transformation mode,” with road upgrades, logistics access roads and maintenance spending highlighted by the Ministry, while OCCI and the transport ministry ran a workshop focused on improving Oman’s competitiveness in global transport and logistics rankings. Capital Markets Signal: State Street and Jadwa plan to expand their offerings in Oman, adding to Muscat’s push to deepen capital markets via the Oman International Financial Centre. Banking Deal: Oman Arab Bank listed a $400m Additional Tier 1 bond on the London Stock Exchange, attracting over $1.1bn in orders. Energy Update: Masirah Oil said the start date for its three-well Block 50 Yumna development drilling program will be updated later, with timing changes amid ongoing offshore operations. Regional Trade Corridor Idea: Turkey renewed plans to modernise the Hejaz Railway and extend it toward Oman as an alternative route to reduce reliance on the Strait of Hormuz. Bilateral Cooperation: Oman and Belarus discussed expanding economic, trade and investment cooperation during a business forum visit.

Oman Trade & Customs: Oman will mandate pallet use for many incoming shipments to speed up trade flow, with rules starting July 15, 2026 for land ports and fully applying to all imports by Sept 15, 2026 (with exemptions for items that can’t be palletised). Standards & Compliance: Oman’s ministry has made updated Gulf rules for lubricating oils mandatory from Sept 1, 2026, requiring importers and manufacturers to meet GSO 1785-1:2024 and complete conformity checks before sale. Food Safety Recall: Oman recalled GODIVA Kunafah & Pistachio Milk Chocolate Bars after an undeclared egg allergen was found on labels. Energy & Trade Disruption Watch: With the Strait of Hormuz still heavily affected, oil and shipping leaders warn that even a deal won’t quickly normalise markets; energy costs and supply-chain strain could linger for months. Oman-India Business: India-Oman CEPA entered into force on June 1, granting immediate duty-free access on all 945 textile/apparel tariff lines and opening new export opportunities for Indian MSMEs and artisans. Oman-Belarus Links: Oman and Belarus discussed expanding economic, trade and investment cooperation, including MoUs covering AI, food security and industrial collaboration. US Trade Pressure: The US proposed 12.5% Section 301 tariffs on multiple countries, including Oman, over forced-labour enforcement failures—raising compliance pressure for exporters. Maritime Security: Iran claimed it struck a US command ship in the Gulf of Oman, while the US denied any hit, underscoring ongoing uncertainty for regional shipping.

Oman–India CEPA Boost: India’s CEPA with Oman came into force on June 1, giving duty-free access on 945 textile and apparel tariff lines and zero duty on handicrafts, with officials saying it should lift India’s exports and deepen supply-chain links. US Forced-Labour Tariffs: The U.S. Trade Representative proposed new Section 301 duties of 10–12.5% on 60 economies, including Oman, citing failures to enforce bans on forced-labour imports. Oman Energy & Finance Moves: Oman launched a local sovereign sukuk issue worth OMR100mn (4.2% profit, 5-year maturity) and National Finance signed an MoU with AB Energy to expand sustainability-linked financing. Logistics Expansion: Asyad Group completed a controlling-stake acquisition in Uzbekistan logistics platforms to strengthen trade corridors connecting Oman ports to Central Asia. Regional Trade & Security Watch: Iran–US tensions continued to rattle markets and shipping around the Strait of Hormuz, keeping energy and logistics risk in focus for the region. Oman–Belarus Cooperation: Oman and Belarus signed seven MoUs in Minsk covering food security, AI for water/agriculture/soil, and smart-city solutions.

Oman Capital Markets: Oman Arab Bank marked a major milestone with the successful listing of its $400mn AT1 bond on the London Stock Exchange, drawing strong demand (orderbook above $1.1bn) despite tough global conditions. Oman IPO Watch: Oman India Fertiliser Company (OMIFCO) plans to float 25% of its shares on the Muscat Stock Exchange, with subscription expected to open in June 2026 and listing targeted for July. Oman Energy & Industry: Hunan Zhongke Electric is moving ahead with a Sohar Port and Freezone anode materials plant, targeting 200,000 tonnes per year in two phases, as Oman pushes deeper into battery supply chains. Tourism Investment: Oman’s Ministry of Heritage and Tourism signed usufruct agreements for a four-star resort in Al Hamra and a five-star hotel in Mirbat, with combined investment above RO12mn. Geopolitics & Trade: Fresh Iran-US tensions flared across the Gulf, lifting oil prices more than 1% early on Wednesday and keeping shipping risk front and centre for regional commerce. Oman-Regional Links: OQ Group and Libya’s Libyan Investment Authority signed an MoU to explore investment and cooperation, including energy and clean-energy projects.

OMIFCO IPO Plans: Oman India Fertiliser Company (OMIFCO) says it will offer a 25% stake via an IPO on Muscat, with subscription expected this month and listing in July, as fertilizer prices stay elevated amid Strait of Hormuz disruption. Capital Markets: Oman Arab Bank has listed $400mn Additional Tier 1 bonds on the London Stock Exchange, with a 6.75% fixed resettable yield and strong demand (order book over $1.1bn). Clean Energy Manufacturing: Oman launched a $1bn lithium-ion battery anode materials plant in Sohar Free Zone, targeting up to 200,000 tonnes annually as part of clean-energy supply chain expansion. Digital & Entrepreneurship: The Ministry of Transport launched “Sas for Excellence” to back Omani tech companies, while the Ministry of Education and Oman Broadband signed a “Young Merchant” programme for entrepreneurship training for grades 7–11. Trade & Diplomacy: Oman and Belarus discussed deeper industrial cooperation during Belagro 2026 participation, including food security and manufacturing links. Geopolitics & Shipping Risk: Iran-US talks remain uncertain as Gulf shipping faces renewed threats, including reports of projectile strikes on MSC vessels near Iraq, keeping logistics costs and insurance pressures in focus.

Oman-India CEPA: India’s Comprehensive Economic Partnership Agreement with Oman kicks in from June 1, with duty-free access for most Indian exports and a focus on sectors like gems, jewellery, textiles, engineering and processed goods, while Oman’s location outside the Strait of Hormuz is being touted as a resilience boost for India’s trade and energy security. Oman finance: Dhofar Islamic (Bank Dhofar) issued OMR 5m sukuk via private placement under a new OMR 250m Sukuk Al Musharaka Programme, to be listed on the Muscat Stock Exchange, with further tranches possible. Renewables in Oman: O-Green achieved financial close for a 93MW solar project at Sohar Industrial City, targeting commercial operations in September and supplying clean power to 200+ industrial facilities. Energy cooperation: OQ Exploration and Production signed an MoU with Libya’s Investment Authority to explore joint oil, gas and renewables investment opportunities. Shipping risks in the Gulf: Iran-linked claims and UKMTO reports point to another incident involving the MSC Sariska V near Iraq, as Hormuz tensions keep disrupting regional logistics and markets. Corporate exports: Alara Resources dispatched multiple copper concentrate shipments from Sohar Port, supporting ongoing Oman mining exports.

US-Iran Escalation & Hormuz Disruption: Iran says it has halted all message exchanges with the US and vows to close the Strait of Hormuz, after fresh US strikes on radar/drone sites and renewed fire involving Kuwait; oil jumped above $94 as markets priced in longer disruption. Maritime Fallout: Despite a ceasefire, thousands of seafarers remain stranded in the Gulf, with the UN shipping agency warning conditions are still too dangerous for crew changes; separate reports also flag attacks on commercial vessels near Iraq. Oman’s Trade Advantage: India-Oman CEPA starts today, with duty-free access for most Indian exports and customs duty concessions kicking in; India also sent a $1.8m shipment as the pact begins, and the deal is framed as a reliable Gulf gateway during Hormuz stress. Oman Investment Push: Oman is shifting to demand-led industrial projects backed by guaranteed offtake agreements, aiming to reduce investor uncertainty. Oman Capital Markets: Muscat Stock Exchange reforms and OIA activity are boosting liquidity as Oman targets emerging market status; CBO also allocated RO 61.4m in 91-day treasury bills. Energy & Industry Links: OQ Exploration & Production and Thailand’s PTTEP signed an MoU to expand upstream cooperation, while Oman’s Al Batinah North touts $30bn investment plans and logistics/industrial growth.