AGP Executive Report

Oman Policy & Industry: Sultan Haitham backed specialised industrial clusters for pharmaceuticals and medical devices in Oman’s economic zones and free zones, aiming to boost national drug security and deepen localisation of biomedical production. Regional Energy & Trade: As US-Iran tensions dominate the UNGA, Trump said the US and Iran held three-hour talks and hinted a settlement is near, while Iran signalled it could reopen the Strait of Hormuz within days if pressure eases—keeping a close watch on shipping and energy costs. Aviation Sanctions Impacting Oman: Iran said flights to Baghdad and Muscat will be cancelled ahead of new US aviation sanctions, with negotiations underway to reroute services. Oman’s Digital Push: Oman launched a national fintech strategy and fintech portal to accelerate the sector. GCC Business & Logistics: Gulf Warehousing Company expanded in the UAE with new subsidiaries and partnerships, strengthening Qatar-to-GCC connectivity. Tech Standards: The UAE dirham symbol was added to Unicode 18.0, improving digital adoption across devices.

Oman Fintech Push: Oman launched a National Fintech Strategy and an Oman Fintech Portal, aiming to speed responsible innovation, attract talent and investment, and strengthen the country’s fintech position under Oman Vision 2040. Digital Skills for Jobs: PDO graduated 30 job seekers from its Digital Innovation Programme 2026, delivering 8 weeks of training and thousands of hours to build job-ready digital talent. Anti-Corruption Cooperation: Oman’s State Financial and Administrative Audit Authority met Qatar-based anti-corruption officials to review integrity and corruption-prevention mandates and discuss a cooperation memorandum. Vocational Training Upgrade: Oman will invest OMR20m (2026-2030) to modernise vocational training, tighten links with employers, and update curricula and labs. Dhofar Local Services: Dhofar Municipal Council discussed proposals to improve “Sanad” service centres, commercial register regulations, and better care for chronic and disability patients. Regional Trade & Logistics: Etihad Rail launched a 200km Fujairah–Abu Dhabi (ICAD) freight service with customs integration and a dedicated UN LOCODE to speed cargo movement. Energy Shock Watch: Brent slipped below $100 as hopes grew for Hormuz reopening within days if US pressure eases, while Saudi restarted pipeline flows—key signals for regional business costs.

Oman Diplomacy in Focus: Oman is among the countries trying to broker an end to the Iran conflict, even as it faces direct economic and security pressure from Strait of Hormuz disruptions and attacks tied to the wider war. US-Gulf Energy Reconstruction Plan: The US has proposed a $10bn fund to repair Gulf energy infrastructure damaged during the Iran war, seeking matching contributions from Oman and other regional states to reduce reliance on Hormuz. Aviation Sanctions Escalate: Washington says it will “shut down” Iranian airlines globally, warning third countries that landing, fuel and ticketing support could trigger US financial penalties. Shipping Security Incident Near Hormuz: A liquefied gas tanker near the Strait of Hormuz was hit by shrapnel from an unidentified projectile, with authorities investigating and assessing risks to transiting vessels. Oman Energy & Industry Signals: Oman’s Weatherford drilling work continues under PDO contracts, while Asyad Shipping moves to recycle older tankers as it refreshes its fleet. Regional Business Notes: Bahrain’s takaful sector is seen as poised for growth, and Oman’s investment and property rules in economic/free zones are being updated to speed development.

Oman Investment & Zones: Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) issued executive regulations for special economic and free zones, streamlining licensing, land allocation and foreign property rules, including investor residency and real estate development. Energy & Shipping Risk: A tanker was hit by an unidentified projectile in the Strait of Hormuz; UKMTO reported two crew injuries and no environmental pollution, as shipping traffic drops sharply amid US-Iran tensions. PDO Drilling Deal: Petroleum Development Oman (PDO) signed a three-year integrated drilling services contract with Weatherford for 274 wells in Marmul and Greater Saqar, targeting about 20% cost reduction versus conventional pricing. Cybersecurity Expansion: Otech partnered with Kaspersky to expand Oman’s locally hosted cybersecurity services. Business & Legal Ease: Oman launched a unified guidance manual to streamline litigation procedures before the Investment and Trade Court. Economy Signals: Oman’s producer prices rose 32.7% in Q2 year-on-year, led by higher crude oil, natural gas and refined petroleum prices. Skills & Jobs: Oman allocated OMR 20 million for a 2026–2030 vocational training development plan focused on modernising colleges and deeper private-sector integration. Finance & Payments: Paymob raised $35m pre-Series C co-led by Mubadala and EBRD, with Oman among its served markets.

Oman R&D Push: Oman’s experimental research and development spending hit about RO 189.42mn in 2025 (0.48% of GDP), with 35,539 workers involved and researchers rising to 18,193, led by the private sector. Hajj 2027 Update: Oman’s Awqaf ministry says online registration for Haj 1448H opens Sept 28 on hajj.om, with key dates for results, cancellation and air travel set, alongside a “Comprehensive Package” requirement to streamline safety, costs and contracts. Labour Market Stability: Oman’s Labour Ministry reports 2,957 individual and 2,908 collective labour complaints in H1 2026, plus 6,335 beneficiaries from labour awareness programmes aimed at reducing disputes. Medical Procurement Speed-Up: Oman launched an electronic feature on the Amana platform to cut cardiac surgery supplies procurement to 48 hours for the National Heart Centre at Royal Hospital. Regional Trade & Logistics: Sharjah’s sea-land corridor to Oman recorded AED1.7bn cargo value in its first three months (+66.26%), with 34,000+ truck movements and 32,000+ customs declarations, underscoring faster cross-border trade flows.

Special Economic Zones & Free Zones: OPaz has issued Executive Regulations (No. 81/2026) to complete the legal framework for Oman’s Special Economic Zones and Free Zones, spelling out the investor journey from land allocation and licensing to operations, incentives, compliance and oversight. OCCI Private Sector: Oman Chamber of Commerce and Industry says its investment portfolio jumped 45% to over OMR67mn by end-2025, alongside plans for a new headquarters in Muscat’s Al Irfan City. Tourism Push (Jabal Akhdar): Al Jabal Al Akhdar was named GCC Tourism Capital for 2027, with first-half 2026 visitor numbers at 101,608 and hotel revenues around RO 7.8mn. Khareef Connectivity: Oman Air carried 270,000 passengers to Salalah in Khareef 2026, up 9% year-on-year, and boosted capacity with more flights and new Dubai-Salalah services. Ports & Trade: Shinas Port handled 2.34mn tonnes in H1 2026 (imports 2.32mn tonnes), while Oman’s maritime activity continues to expand amid regional shipping pressures. Finance & Markets: Money market funds in Oman are being positioned as a liquidity-friendly savings alternative, with some funds targeting around 4.5% returns. Regional Risk: US embassies, including in Oman, issued heightened vigilance travel alerts as Middle East tensions could escalate rapidly, with possible flight cancellations and airspace closures.

Oman Business & Investment: OQ is exploring Angola energy deals across oil & gas, LNG, petrochemicals and a proposed 500MW renewables project, as His Majesty’s visits aim to deepen Africa partnerships. Local Industry & Jobs: Oman will invest about RO 15mn to localise transformer component manufacturing under 10 agreements, supported by advance purchase contracts to cut import reliance. Maritime & Trade: Bilfinger won a FEED role for a marine fuels terminal at Shinas Port (targeting ~200,000 tonnes/month), while Ocean Master Marine Services expands technical ship management and crewing support for Oman’s shipping corridor. Energy Prices & Shipping Risk: Oil stayed above $100 as supply fears eased on reports of more Saudi crude via ship-to-ship transfers off Sohar, even as Hormuz remains volatile. Business Expansion: AMTUR Gold & Diamonds opened its 14th Qatar branch, pushing an Omani jewellery brand further into the GCC. Innovation & Sustainability: Muscat prepares citywide e-bike sharing with battery-swap stations, and ECOTHON 2026 showcased climate hackathon prototypes supported by Oman LNG and partners. Regional Business Links: Bahrain-Oman ties got a boost in talks on SME and entrepreneur cooperation, with UNIDO’s Bahrain office involved.

Aviation & Tourism: Salalah Airport handled 686,808 arriving and departing passengers during Dhofar Khareef 2026 (June 1–Aug 31), with 5,148 flights and passenger growth climbing from 92,735 in June to 357,985 in August. Industrial Policy: Oman’s Ministry of Commerce, Industry and Investment Promotion will start a nationwide survey of industrial establishments across all governorates on Tuesday to update industrial data for Industrial Strategy 2040. Corporate Governance: A new explainer outlines key rules for board formation in Oman’s closed joint stock companies, including odd-sized boards, election by secret ballot, non-executive and independent member requirements, and filing timelines. Markets: MSX 30 closed the week slightly lower (down 0.58% to 7,603.23) as geopolitical concerns and postponed Gulf-Iran talks weighed on sentiment. Trade & Exports: Oman will showcase natural stone at Italy’s Marmomac with a larger pavilion and more participating firms. Russia Link: 16 Omani companies are taking part in WorldFood Moscow to find export channels across Eurasia and Central Asia. Energy & Shipping Risk: With Red Sea and Hormuz disruptions continuing, tanker shortages are pushing up long-haul oil costs, raising pressure on global supply chains. Oman-Africa Deals: Oman and Angola signed agreements and MoUs worth over $1.5bn across investment, energy, infrastructure and water management during Sultan Haitham’s state visit.

Strait of Hormuz Disruption: Iran’s IRGC said it struck the Togo-flagged product tanker Trend and warned vessels of “destruction” for “illegal passage,” while UKMTO reported a separate security incident near Oman with the crew safe and no environmental impact. Yemen Escalation: Houthis claimed Saudi carried out 26 strikes in 24 hours as clashes intensify around Taiz and the Red Sea approaches, raising pressure on Bab al-Mandeb and regional shipping. Oman Trade & Ports: Sohar Port is pitching itself as a Gulf gateway for Indian traders, highlighting its scale, investment ecosystem and plans for faster customs via a green corridor with Jebel Ali. Oman-Linked Finance & Sanctions: Turkey revoked the operating license of Iran’s Mellat Bank Istanbul branch, while reports say Turkey will suspend Mahan Air flights from Sept. 21 over US sanctions exposure. Markets & Costs: Oil slipped as supply fears eased, but the broader Iran war drag continues, with the US military cost estimate for the conflict rising to $43.6bn. Regional Diplomacy: GCC chief Albudaiwi reiterated the bloc’s role in peace and energy security, stressing restraint during Hormuz disruptions.

Oman’s Energy & Trade Link: Oman crude pricing slid as global oil eased, with Oman crude for November delivery down $7.94 to $124.15/bbl, while Brent and WTI also retreated—amid shifting Middle East supply expectations. Hormuz Security: Fresh reports of attacks and “security incidents” near the Strait of Hormuz kept shipping risk front and centre, including an IRGC claim of a strike on the tanker Trend and a UKMTO advisory of a projectile-hit vessel on the Omani side; traffic disruption remains a key concern for regional logistics. Shipping Route Shift to Oman: As Hormuz risk rises, Asian refiners and regional freight are leaning more on Oman-linked routes—Sohar’s feeder services for Indian cargo to GCC markets reportedly surged nearly fourfold, reinforcing Oman’s role as a distribution hub. Oman Corporate Finance: Asyad ordered two more MR product tankers from Hyundai Heavy Industries for about $103.6m, with deliveries set for 2029 under long-term charter arrangements. Regional Diplomacy & Markets: US-Houthi talks in Muscat and broader Iran-war uncertainty continued to sway oil and risk sentiment, while Oman’s mediation role in Gulf security remained in focus. Oman Finance Sector: The World Alliance of International Financial Centers wrapped a week in Busan, with Oman’s representation transitioning to the newly established Oman International Financial Centre (OIFC).

Strait of Hormuz Security: UKMTO reported a security incident/attack about 16 nautical miles northeast of Khasab on the Omani side; crew were safe and no environmental impact was confirmed, with authorities investigating and urging caution. Iran–US Tensions: Trump said he faces a “big decision” on whether to resume large-scale military action against Iran, ahead of a UN General Assembly meeting with six Gulf leaders including Oman. Oil Market Watch: Oil eased as supply-disruption fears cooled after reports Saudi crude could move via Oman’s Sohar through ship-to-ship transfers and pipeline repairs were progressing, though Middle East risk still kept prices above $100. Iran Trade Pressure: Reports say the US blockade is forcing Iran to reroute trade overland, but delays at ports and border crossings are disrupting imports and raising costs. Oman–Gulf Business Angle: Oman’s role in alternative shipping routes remains central as maritime disruptions keep reshaping regional logistics and energy flows. Markets & Rates: Wall Street rebounded after the Fed’s rate hike as Treasury yields eased and oil slipped, while investors weighed further tightening risk.

Green Fuels Deal: Brookfield will invest up to $600m via its Global Transition Fund into ACME Cleantech Ventures to build green ammonia and green methanol projects across India and the Middle East, marking Brookfield’s push into “green molecules” and leveraging ACME’s offtake pipeline. GCC Finance Coordination: Oman took part in the GCC Committee of Undersecretaries of Finance meeting, reviewing progress on economic and financial integration, free-trade talks, GCC payment links, and the economic unity programme. Oman Climate Week Education: The Environment Society of Oman launched the sixth Namat sustainability competition at Oman Climate Week, shifting from project judging to helping schools embed sustainability as a lifestyle. Oman–Botswana Ties: Sultan Haitham’s Botswana visit produced multiple agreements, including visa-free travel for diplomatic/special passports, air services, investment promotion, medicines security and energy cooperation, plus a business-to-business MoU between Business Botswana and Oman’s chamber. Oil Market Watch: Oil prices slid as reports of Saudi crude cargoes moving through Oman eased supply-disruption fears, even as Middle East tensions and Fed tightening kept markets jittery.

Strait of Hormuz & shipping risk: Oman reiterated its stance on safe, unhindered navigation through the Strait of Hormuz, warning that recent developments threaten global trade and energy security, as regional talks on practical transit arrangements were postponed amid GCC concerns. Oil market & regional supply: Oil prices slid after reports Saudi Arabia offered additional crude loadings via Oman’s Sohar port, easing some disruption fears tied to attacks on Saudi pipeline infrastructure. Yemen/Red Sea escalation: Houthis expanded attacks and seized strategic positions near Bab al-Mandeb, raising the stakes for Red Sea shipping and adding pressure to already strained Gulf energy routes. Oman in diplomacy: Oman also signalled continued engagement on Hormuz consultations while the wider Middle East conflict keeps negotiations fragile. Global finance spillover: The Fed’s hawkish rate hike rattled markets, with a stronger dollar and lower equities feeding into broader cost pressures that can quickly reach energy-dependent economies. Oman climate & environment: During Oman Climate Week, Kuwait highlighted mangrove restoration efforts, underscoring the region’s push toward climate adaptation and coastal resilience. Regional monetary policy: Bahrain raised rates following the Fed, reflecting how Gulf central banks continue to track US policy moves.

Oman-UAE Rail Link: Hafeet Rail says trial operations on the 238-km Sohar–Al Buraimi–Al Ain line are set to start in Q4 2027, aiming to move passengers and freight via a new cross-border corridor. Labour Mobility: Oman and Bangladesh agreed a plan to recruit 10,000 workers—5,000 for agriculture and 5,000 for fisheries—following discussions on easing visa access. Agriculture Investment: Oman plans to boost domestic mango production, targeting near 44,785 tonnes, by shifting from import dependence to a full value-chain approach. Environment & Compliance: Oman marked World Ozone Day and is pushing a national recycling centre for refrigeration and air-conditioning gases under the Montreal Protocol. Energy Cooperation: Oman and Thailand signed an energy MoU covering joint projects, training, and an “Energy Policy Dialogue.” Trade & Logistics: Oman is pitching Sohar and other ports as a gateway for Indian manufacturers, timed with the India-Oman CEPA. Regional Shipping Pressure: Oil eased after reports Saudi Aramco offered more crude loadings via ship-to-ship transfers off Sohar, while Hormuz crossings stayed very low. Social Development: Jordan and Oman signed a social development cooperation MoU on disability services and broader welfare programmes.

Strait of Hormuz Disruption: Oman’s Maritime Security Centre is running a search-and-rescue after the Panama-flagged product tanker El Gaia was attacked; 23 crew were evacuated and two remain missing as the vessel is towed to port, with Iran and the US offering conflicting accounts of whether mines or drones/missiles were involved. Oil Market Pressure: Brent and WTI climbed again as Saudi export logistics tightened, including reports of paused loadings at Yanbu and damage to the East-West pipeline, raising fears of supply losses while Hormuz and Red Sea risks persist. Diplomacy at a Standstill: Iran says there will be no new US talks until prior conditions are met, while Iran-Oman Hormuz navigation arrangements face delays and shifting positions amid wider regional escalation. Oman Climate Week: Oman Climate Week opened in Muscat with calls for stronger international action, with Bahrain backing regional climate cooperation and Oman pushing carbon-market and Article 6 Paris Agreement progress. Oman Business & Finance: Oman’s liquidity and market capitalisation updates continue alongside moves to deepen Islamic finance and expand energy and investment conferences, while regional shipping and energy shocks keep influencing risk sentiment.

Maritime Security: Oman’s Maritime Security Center says the Panama-flagged tanker ELGAIA was towed to port after an engine-room fire following an attack off Musandam; 23 crew were evacuated, but two remain missing. Strait of Hormuz Disruption: UKMTO also reported a projectile strike in the Strait of Hormuz with no damage or environmental impact, while Oman continues pushing for workable shipping arrangements as talks with Iran face delays. Energy & Markets: Oil prices climbed on supply fears after Saudi Arabia’s East-West pipeline was taken offline, with investors also reacting to renewed regional attacks and postponed Iran-Gulf discussions. SME & Finance: National Finance signed a cooperation deal with footwear brand Lozari to support eligible SMEs via advisory and tailored financing for franchise expansion. Industrial Investment: Madayn announced four investment opportunities in Sur Industrial City, including a private hospital, a specialised training centre, a quarry for backfill materials, and an integrated residential complex. Trade Promotion: Oman began participation in WorldFood Moscow 2026 to boost exports and build partnerships for Omani companies in Russia and nearby markets. Telecom Modernisation: TRA launched a pilot electronic Coverage Request Service to let governorates submit and track telecom coverage requests through a unified pathway.