AGP Executive Report

GCC Oversight: Oman joined the 27th GCC meeting of Deputy Heads of Audit and Accounting Institutions, discussing GCC auditing research and an AI-powered platform for audit outcomes. Hormuz Diplomacy: Oman is pushing a Middle East-backed plan for voluntary fees on Strait of Hormuz transits, but Iran is resisting joint management and wants greater control, keeping shipping uncertainty high. Maritime Security & Energy Risk: Drone strikes hit Egypt’s Damietta port, igniting fires on gas vessels, while Qatar reportedly resumed LNG shipments through Hormuz after a pause. Oman Food & Consumer Rules: FSQC urged prior approval for advertising infant and young-child foods on social media. Renewables Tenders: Oman’s Nama Power & Water Procurement Company invited bids for consultancy on three 1GW solar projects. Oil Market Pressure: Shell reported a 70% profit jump and announced a $3bn buyback, citing Middle East disruption effects; ADNOC Drilling posted record Q2 and H1 results and reaffirmed 2026 guidance. Regional Finance: Kamco Invest flagged a GCC bond/sukuk maturity peak of $143.1bn in 2029, with Oman among the smaller exposure group. Heritage Discovery: Archaeologists uncovered a stepped Neolithic pyramid in Dhofar, pointing to long-distance trade links as far back as 4,000 BCE.

Strait of Hormuz & Energy Security: Oman’s GCC-backed proposal for joint Strait of Hormuz management with voluntary ship fees is being rejected by Iran, even as the US and Saudi Arabia step up strikes on Iran-aligned militias in Iraq and Iran targets US forces in Jordan—raising fresh supply-risk fears that pushed Brent back above $90. Maritime Disruption: The conflict is spilling beyond the Gulf, with drone-linked explosions reported at Egypt’s Damietta port involving a US-owned LNG-related vessel and another tanker, while CENTCOM says it is enforcing a blockade of Iranian ports but allowing freedom of navigation through the Strait. US-Iran Escalation: US officials describe a thwarted “surprise” missile attack and warn of further action, while Trump reiterates threats of a hard response. Gulf Financing Push: Gulf states, led by the UAE and Saudi Arabia, are accelerating record bond issuance to build alternative ports and corridors to bypass Hormuz and Red Sea risks. Oman Business Watch: Oman’s Hormuz diplomacy and shipping rules are now directly tied to regional trade flows, with implications for energy logistics and costs for Oman-based operators.

Food Safety Push: Oman strengthens Food Safety and Quality Centre’s legislative framework to keep pace with modern risks and boost consumer protection. Property Market Watch: Oman’s real estate transactions rose 5.4% to OMR1.43bn in Q2 2026, with foreign investment in the sector up to OMR602.5m in Q1. Hormuz Diplomacy vs Reality: Oman’s Gulf-backed proposal for joint Strait of Hormuz management with voluntary fees is being rejected by Iran, which insists on Iranian control and says the plan has “no chance.” Regional Energy Shock: As US-Iran tensions flare again, oil prices jump on renewed strikes and missile interceptions, while shipping traffic remains thin through Hormuz and reroutes grow in importance. Aviation Deal: US-Bangla Airlines signs for 21 Boeing aircraft worth about $1.5bn, including routes that add Salalah in Oman. Business & Trade: Adani Enterprises posts a Q1 loss after paying an OFAC settlement of ₹2,644 crore tied to LPG trading. Markets: Gold edges lower ahead of the Fed decision, while UK stocks track miner/energy gains as investors watch Middle East developments.

Strait of Hormuz Diplomacy: Oman has presented Iran with a Gulf-backed plan to jointly manage Hormuz and collect “voluntary fees” from ships, Reuters reports—while the US again rejects any tolls, saying the strait must remain free of Iranian control. Iran Escalation Signals: Iran warned it will block vessels linked to companies benefiting from compensation using frozen Iranian assets, and also opposed an Oman-led mine-clearing approach, threatening European warships. US-Iran Missile Update: The US said it intercepted multiple Iranian ballistic missiles aimed at American forces, ending a brief pause in fighting. Oil & Markets: Oil slid about 5% to a two-week low as hopes grew that the US-Iran pause could hold; Brent fell to around $84 and WTI to about $79, while Wall Street rallied on earnings even as semiconductors stayed under pressure. Oman Finance Move: State Street is expanding in Oman to pursue institutional custody and asset-servicing clients, backing Muscat’s push to lift MSX’s global status.

Strait of Hormuz Diplomacy: Oman won Gulf backing for a proposal to let Iran collect voluntary fees for using the Strait of Hormuz, aiming to ease oil-market disruption without giving Tehran sole control; talks also include mine-clearing and shared regional oversight. Oman Employment Push: Oman targets about 300,000 jobs for nationals over the next five years under its Eleventh Five-Year Plan, with most new roles expected in the private sector. Financial Literacy Drive: Oman’s FSA, MSX and Muscat Clearing launched “Safe Investment Journey” in Salalah during Khareef Dhofar to boost investor awareness, portfolio monitoring and safe decision-making. Aviation Links: Air Tanzania officially inaugurated direct Dar–Muscat flights (three weekly), strengthening tourism and travel ties. Risk Management Tech: FSA ran a workshop on using satellites and drones for flood risk analysis to improve insurance underwriting and claims. Local Economy & Tourism: The Al Hajar Geopark booklet was issued in Arabic and English to support sustainable ecotourism, while Oman Broadband promoted fibre connectivity at Khareef Dhofar 2026. Public Safety Data: Oman recorded 5,560 fire incidents in 2025, up 12%, prompting renewed calls for prevention and faster emergency response.

Hormuz Diplomacy & Energy Markets: Iran and Oman are negotiating to restart commercial shipping through the Strait of Hormuz, easing pressure on oil and risk assets as the US and Iran pause strikes and Trump says there’s “a good chance” of a deal. Market Mood: Oil slid sharply (Brent down ~6-8% in reports) and stocks bounced in early trading, though chipmakers dragged sentiment at times. Oman’s Role in De-escalation: Oman’s Foreign Minister held calls with Iran and regional counterparts to push a political agreement for stable navigation and supply-chain flow through the strait. Oman Finance & Banking: Oman’s Bank Dhofar plans to issue $400m in AT1 capital instruments, while Oman Housing Bank rolled out a digital waiting list platform for housing loans. Trade & Industry Links: India’s engineering exports rose 21% in June, with Oman shipments jumping five-fold, highlighting how Gulf route disruptions are reshaping trade flows. Human Capital & Governance: Oman Human Rights Commission reported 1,479 cases handled in 2025, underscoring ongoing monitoring and complaint follow-up.

Telecom Regulation: Oman’s Telecommunications Regulatory Authority (TRA) has opened a public consultation on draft rules for telecom service permits, covering activities from device installation and network excavation to systems integration, last-mile services, information security and marketing, with permits grouped into four categories. Housing Finance Digitisation: Oman Housing Bank launched its first Digital Waiting List platform for housing loans, letting citizens register online, upload documents and track progress without branch visits in the initial stages; it is now processing 1,252 applications worth over OMR 63mn submitted in April–May. Renewables Pipeline: Oman invited consultancy bids for four 1GW utility-scale solar IPP projects (total 4GW), targeting commercial operations by Q2 2030, with a bid deadline of Aug 26, 2026. Market Snapshot: Net profits of MSX-listed public joint-stock companies rose 12% in Q2 2026 to OMR 866.98mn, with industrial profits up 51% and financial profits up 13%. Energy & Trade Backdrop: With US-Iran strikes paused and Hormuz talks discussed, oil prices eased sharply, lifting risk sentiment; India’s engineering exports still grew 21% in June, with demand including Oman.

Strait of Hormuz Talks: The US and Iran paused attacks for a second straight day as diplomacy advanced, with Oman and Iranian officials reporting constructive technical discussions on safe passage and route management—key for keeping shipping moving through the world’s energy chokepoint. Shipping Disruption: Despite the lull, risk remains high after reports of a tanker explosion following a mine strike in the Strait of Hormuz, with authorities like UKMTO not confirming details, while Iran also said it halted retaliatory operations. Oil & Gold Markets: Oil prices eased sharply as the pause reduced immediate supply fears, while gold climbed on relief from inflation worries. Regional Spillover: The conflict’s wider reach continued to show through Red Sea tensions, including Houthi attacks on Saudi oil facilities, raising the chance of further disruption beyond Hormuz. Oman’s Role in Mediation: Multiple reports point to Oman’s mediation as a driver of the pause, with talks aimed at reopening the strait under a workable transit arrangement. GCC Competitiveness: Separately, GCC states strengthened their global competitiveness rankings in IMD’s 2026 report, with Oman among the top performers across trade, labour, fiscal and infrastructure indicators.

Oman–Philippines Business Links: Oman and the Philippines used the third bilateral forum in Manila to push deeper cooperation across trade, investment, finance, logistics, tourism, energy and technology, with both sides backing progress on an investment protection deal and a double-taxation agreement. Hormuz Talks With Oman: Iran says it has made progress in talks with Oman on managing safe passage through the Strait of Hormuz, focusing on shared principles and operational mechanisms, as the US pauses airstrikes while diplomacy continues. US–Iran Pause and Maritime Pressure: The US military says its naval blockade against Iran remains in force, redirecting and disabling tankers attempting to breach it, while reports point to limits from dwindling munitions affecting escalation plans. Oman Tax Overhaul: Oman’s Tax Authority amended income tax rules, tightening conditions for corporate expense deductions and requiring THEQA digital identity login for access to its electronic portal from Aug 1, 2026. Capital Markets Upgrade: Oman’s Financial Services Authority adopted executive regulations for the Securities Law to prepare capital market institutions for faster, tech-driven developments. SME Push: Riyada reported 19,267 new Entrepreneurship Cards issued in H1 2026, bringing total card-holding enterprises to 32,103. Trade and Connectivity: ASYAD Container Terminal Duqm welcomed CMA CGM’s Vasco da Gama, while Muscat Airport launched Air Tanzania’s first direct flight from Dar es Salaam, boosting East Africa–Gulf connectivity.

Oman-Iran Diplomacy & Shipping: The US paused its Iran strike campaign after nearly 13 nights, with reports saying an Omani delegation in Tehran helped open a diplomatic off-ramp to reopen the Strait of Hormuz—while Qatar said maritime navigation would fully resume from Sunday. Red Sea Risk: Tensions didn’t cool elsewhere: Iran-aligned Houthis claimed missile and drone attacks on Saudi Aramco facilities in Yanbu and Jizan, warning of wider disruption to Bab el-Mandeb shipping. Oman Economy—Money & Property: Oman’s broad money supply rose 12.7% year-on-year to RO 28.6bn in May, and authorities moved to strengthen real estate rules, pushing buyers to verify licensing before investing. Industrial Performance: Muscat Stock Exchange industrial firms’ profits jumped 46.8% to about RO 175.3m in H1 2026, led by Oman India Fertiliser and OQ Basic Industries. Sustainability & Innovation: Oman hit a ~39% recycling rate (about 1.37m tonnes) and advanced AI ambitions, with an Omani youth project selected among the world’s top 13 at the London International Youth Science Forum.

Maritime Security: UKMTO reported an incident involving a tanker and unspecified military forces in the Gulf of Oman, urging vessels to stay alert as investigations continue—another reminder of how fast shipping risk is rising around the Strait of Hormuz. Oman Capital Markets: Muscat Stock Exchange weekly trading saw local purchases top OMR154mn (up from OMR125mn), with trading value rising to OMR182.7mn as investors leaned in on profit optimism, even while many stocks fell. Monetary Conditions: Oman’s broad money supply grew 12.7% year-on-year to OMR28.6bn by end-May 2026, alongside higher deposits and lower weighted average deposit and loan rates. AI & Investment: Oman joined the Global Cooperation Organization for AI as a founding member, while Oman Investment Authority expanded its innovation footprint via Cambridge and Oxford investments; separately, OIA said FDI stock rose 8.7% to OMR32.2bn in Q1 2026. Real Estate Rules: Oman is tightening its real estate regulation framework to boost transparency and investor confidence, including controls around off-plan sales, brokerage and escrow accounts. Social Inclusion: Oman launched its first “Purple Saturday” initiative to promote accessibility for persons with disabilities through retail discounts and wider awareness.

Oman-Hormuz Talks: Oman has sent a delegation to Tehran to discuss mechanisms for managing navigation through the Strait of Hormuz as US-Iran strikes and shipping risks continue. Red Sea Escalation: Saudi Arabia hit Yemen’s Hodeidah after Houthi attacks on Saudi tankers, while the Houthis warn of a naval blockade—raising fears of wider disruption beyond Hormuz. Shipping Risk Pricing: Traders say the chance of Hormuz returning to normal by July 2027 is below 50%, with shipping volumes far below typical levels; insurance and crude premiums are rising. Energy Market Impact (Oman): Middle East crude premiums jumped, with Oman’s premium rising to $12.62 a barrel, reflecting rerouting and tighter supply. UNIDO Industrial Push: UNIDO highlighted Oman’s clean-energy industrial drive, citing progress in photovoltaic manufacturing ambitions supported by procurement and foreign investment. US Trade Shock: The US launched forced-labour tariffs on 60 economies and the entire EU, adding another layer of uncertainty for regional trade flows. Maritime Safety: India’s embassy said all 28 Indian crew on a Mozambique-flagged LPG tanker attacked near Hormuz are safe, underscoring ongoing risks to seafarers.

Middle East Energy Shock: Brent surged past $100 as Yemen’s Houthis struck Saudi shipping and the US warned of “major military punishment” for Iran-linked actions, while markets also tracked Hormuz and Red Sea risks. Oman Diplomacy: Oman’s FM Sayyid Badr met the Netherlands in Manila and reaffirmed support for maritime security and freedom of navigation, pushing for dialogue to keep key waterways open. Shipping Costs & Disruption: War-risk marine insurance premiums for Hormuz transits jumped sharply, and hundreds of ships trapped in the Gulf face rising biofouling risks. Bypassing Hormuz: Gulf producers are accelerating pipeline and port plans to reroute exports; DP World signed an agreement to build two new Fujairah terminals to create an alternative UAE gateway outside Hormuz. Oman Business Appointments: Oman Duty Free named Sayyid Nasr Al Busaidi as CEO to expand its retail footprint and explore international opportunities. Oman Regulation: CPA and Environment Authority inspected Barka shops to enforce Oman’s plastic shopping bag ban. US Trade: The US imposed new forced-labour tariffs on 60 economies, including Oman, with rates of 10% to 12.5%.

Oman-Philippines Diplomacy: Oman and the Philippines will convene the 3rd Strategic Majlis in Manila on July 26, with Oman’s FM Sayyid Badr Al Busaidi and DFA Secretary Ma. Theresa Lazaro expected to push cooperation across trade, investment, tourism, logistics, fisheries and agriculture. Banking Resilience: Fitch says Omani banks should stay resilient through 2026 despite regional turmoil, citing contained exposure to the Strait of Hormuz, higher oil prices, Oman Vision 2040 diversification and strong capital buffers. Logistics Earnings: Gulf Warehousing Company (GWC) posted Q2 net profit of QR29mn on revenues of QR359mn, and said it is protecting GCC supply chains by activating multimodal trade corridors linking Qatar, Saudi Arabia, UAE, Oman and Bahrain. Agribusiness Expansion: Gulf Mushroom approved a 50% compost capacity expansion to 30,000 tonnes, targeting completion by end-2029, alongside higher interim profits. Aviation Connectivity: Oman’s Civil Aviation Authority approved Air Tanzania flights to Muscat, starting July 25 with three weekly services via Dar es Salaam and Zanzibar. Maritime Risk & Energy Prices: Brent pushed above $100 as Houthis attacked Saudi tankers in the Red Sea and US-Iran tensions kept the Strait of Hormuz under strain, raising shipping insurance costs and reviving fears of wider supply disruptions. Regional Energy Workarounds: Gulf states are accelerating pipeline and route plans to bypass Hormuz, even as alternative corridors face new Red Sea threats.

Government Digital Transformation: Oman hit 75% on the UN ESCWA GEMS Maturity Index for 2025, up from 72% in 2024, covering 27 institutions and 93 e-services, with especially strong public outreach (86%). Energy & Trade Routes: Oil prices rose for a fifth straight day as Houthis claimed attacks on Saudi tankers in the Red Sea and US-Iran strikes again rattled the Strait of Hormuz; the risk is pushing Gulf producers to accelerate alternative pipelines and port corridors. Regional Diplomacy: Oman is working to keep Gulf de-escalation on track, including efforts to support dialogue amid the Hormuz and Red Sea tensions, while foreign ministers also met on ASEAN sidelines to stress ceasefire and stability. Oman–Kuwait Ties: Kuwait’s Oil Minister and KPC chairman Tareq Al-Roumi reaffirmed shared commitment with Oman to deepen oil and energy cooperation. Renewables Deal: Chinese EPC firm Shanxi Installation won a $222m contract for Oman’s 500MW Al Kamil I solar IPP, including design, build and 2.5 years of O&M. Shipping Security: UKMTO reported a vessel fire incident near Oman’s Kumzar, with crew safe, as attacks and rerouting fears continue to disrupt maritime activity.

Oil & Shipping Shock: Brent jumped to about $94 a barrel as US-Iran talks cooled and attacks near the Strait of Hormuz and the Gulf of Oman kept supply fears elevated, with multiple tanker incidents reported near Oman. Oman Maritime Risk: A sanctioned Russian “shadow fleet” tanker is linked to a possible oil spill off Oman, raising environmental and enforcement concerns for the region’s waters. DP World Expansion (UAE): DP World signed a 50-year deal with Fujairah Ports Authority to develop two new deepwater container and cargo terminals (Al Rugaylat and Dibba), aiming to reroute trade capacity away from Hormuz constraints. EU-Oman Diplomacy: The EU and Oman agreed to establish an EU diplomatic mission in Muscat, with cooperation flagged across energy, logistics, banking, minerals, maritime security and training. Oman Social Protection: Oman’s Social Protection Fund moved to operationalise sick and extraordinary leave insurance, with applications via its electronic portal starting Aug 1. Tourism Push (Dhofar): Salalah’s Salalah Eye observation wheel is set to open Aug 15 during Khareef, targeting year-round visitor demand. Workplace & Local Markets: Oman’s workplace leave insurance reform and Dhofar’s Shaat Viewpoint stall space pressure both point to rising demand for better systems—whether for workers’ income security or seasonal household livelihoods.