AGP Executive Report

Strait of Hormuz Disruption: A tanker was hit by an unknown projectile in the Strait of Hormuz, triggering a fire; UKMTO said the crew was safe while damage and environmental impact were still unclear, with Iranian media earlier citing a supertanker burning off Oman. Shipping Costs Jump: UAE shipping bills reportedly rose 300–500% after Hormuz disruptions, driven by war-risk fees, emergency surcharges and rerouting rather than higher base freight rates. Oman Port Move: Shinas port plans a marine fuels supply service, targeting first-phase capacity of 200,000 metric tons/month to help shippers find alternatives to regional bunkering. Oman Demographics & Health: NCSI data says hospital deaths among Omani senior citizens fell nearly 45% in 2025, while the senior population reached about 256,469. Regional Security Spillover: Separately, a US DOE employee was arrested over alleged attempts to aid Iran-backed Houthis, underscoring how Middle East tensions keep reaching global business and logistics.

Aviation Security Shock: A FlyDubai flight (FZ1073) from Dubai to Tel Aviv carrying 174 people made an emergency landing in Saudi Arabia after an alleged cockpit stabbing by the co-pilot, with passengers and crew helping regain control; Indian captain Smit Machchhar was praised by leaders including India’s PM Narendra Modi and Israel’s PM Benjamin Netanyahu, while the UAE ordered a probe into whether the incident had any terrorist link. Oman Energy & Power: Oman awarded a consultancy contract to Energoprojekt ENTEL for three new gas-fired power projects, supporting concept design, tendering and bid evaluation. SalamAir Leadership: Oman’s low-cost carrier SalamAir appointed Eng. Yaqoob Al Kiyumi as CEO, outlining a next phase of network growth and customer experience improvements. Hormuz Watch: Oil prices held steady as Gulf exports recovered and US-Iran diplomacy progressed, keeping Strait of Hormuz shipping in focus for regional trade and costs. Demographics: Oman’s elderly population reached 256,469 in 2025, with projections pointing to continued growth by 2040. Oman Fisheries: Spiny lobster (“sharkha”) season opened in Oman, running until Nov. 30 under stock-protection rules.

Aviation Security: Passengers on flydubai Flight FZ1073 from Dubai to Tel Aviv stopped a co-pilot’s alleged attempt to crash the jet after he stabbed the captain; the aircraft made an emergency landing in Tabuk, Saudi Arabia, and passengers later returned to Israel as investigations continue, with Israel saying the attacker is an Omani national and Netanyahu pledging tighter checks. Energy Markets: LNG prices eased off recent highs even as Strait of Hormuz disruption persists, pointing to shifting supply and demand dynamics. Oman Power & Infrastructure: Oman is moving ahead with three new combined-cycle gas power plants (2,800–3,000MW) after a consultancy contract for development and tender support, while OQ plans to expand Duqm onshore crude storage toward 10 million barrels to strengthen regional storage and trading. Trade & Industry: Oman and Uzbekistan discussed accelerating a preferential trade deal and joint industrial/logistics projects, aiming to turn opportunities into commercially viable ventures. Skills & Jobs: Oman’s Labour Ministry urged a shift toward a capability economy, pushing private-sector-led training and recruitment support to match fast-changing skills needs.

Oman-Uzbekistan Trade Talks: Oman’s Minister of Economy Khamis Al Jabri met Uzbekistan’s Laziz Kudratov to push deeper economic integration, joint industrial projects, and a preferential trade framework. Oman Development Finance: SDIC secured OMR 38.5m IFC financing for The Plaza at The Sustainable City–Yiti, backing retail, dining and community facilities in the mixed-use project. Oman Public Sector Reform: Oman is shifting government promotions from seniority to performance, competence and skills, with RO10m allocated for 2026 promotion routes. Oman Agriculture & IP: Oman registered the “Razat” banana variety with UPOV after technical tests confirmed distinctness, uniformity and stability. Oman Health Expansion: Health institutions in Oman rose to 2,464 in 2025 (+3.4%), with outpatient visits and key services also increasing. Gulf Markets & Energy Mood: Most Gulf bourses closed lower amid US-Iran tensions, while shipping activity and Hormuz disruption kept investors cautious. Strait of Hormuz Incident: A crude oil tanker was struck by an unknown projectile in the Strait, with authorities investigating. Aviation Shock: A flydubai Dubai–Tel Aviv flight diverted to Saudi Arabia after reports of a pilot stabbing and an attempted crash; passengers helped subdue the attacker and Israel says the suspect was arrested.

Oman Innovation Push: Oman climbed 8 places in the Global Innovation Index 2026, reaching 47th in the innovation inputs pillar, with strong showings in FDI inflows, cluster development, and entrepreneurship policy. Green Hydrogen Drive: Oman plans to export green hydrogen by 2030 and is seeking deeper renewable-energy cooperation with India, including SAF and green fuels. Digital Health Collaboration: Oman’s Ministry of Health joined a virtual health event in Tunisia focused on digital health, telemedicine, AI, data governance and cybersecurity. Environment Cleanup: In Salalah, authorities returned 135 tonnes of treated sand to Auqad Beach after clearing oil derivatives, as part of rehabilitation efforts. Cultural Research Wins: Two Omani researchers secured first place at the Sharjah International Award for Cultural Heritage for work on the Sidr tree, linking scientific and traditional knowledge. Maritime Tensions: A commercial vessel was struck and caught fire in the Strait of Hormuz near Oman’s Khasab, while India said 163 Indian seafarers were on 12 vessels transiting the area. Regional Diplomacy: Qatar said its mediation between the US and Iran is focused on building common ground to reduce tensions and reopen dialogue. Sultan Haitham City Power-Up: Nama commissioned three electrical substations (160 MVA) to support key facilities as the new city prepares for first residents by end-2026.

Green Hydrogen Push: Oman plans to build capacity to export green hydrogen by 2030 and is seeking deeper renewable-energy cooperation with India, including in SAF and green fuels. Innovation Momentum: Oman climbed 8 places to 47th in the Global Innovation Index 2026 “innovation inputs” pillar, with strong scores in FDI inflows, cluster development and ICT access. Energy & Trade Security: With Strait of Hormuz tensions continuing, Gulf states are exploring alternative export routes; Oman’s geography is seen as a key advantage, while others remain exposed. Oman’s Role in Regional Talks: Mediators say behind-the-scenes efforts between Iran and the US to reopen Hormuz continue, though major hurdles remain. Shipping Disruption Watch: A merchant vessel was reported hit and caught fire while transiting the Strait of Hormuz near Oman’s Khasab; crew and cargo details weren’t disclosed. Oman–Tanzania Business Ties: Oman and Tanzania opened a new chapter via bilateral consultations, discussing trade, investment and potential OIA-linked projects. Digital Skills for Jobs: SAP and Petroleum Development Oman (PDO) are partnering to develop Omani digital talent through SAP Young Professionals. Public Sector HR Update: Oman’s Ministry of Labour rolled out a new promotion system for civil employees, with RO 10m allocated for promotions in 2026.

Strait of Hormuz Shipping Pressure: Iran’s Persian Gulf Strait Authority warned vessel charterers to avoid “illegal routes,” threatening to add non-compliant charterers to a growing list of restricted ships as Trump rejects Tehran’s reopening terms. Energy Flows Watch: Despite the standoff, Middle East crude exports rebounded in September and oil shipments are back to roughly 72% of pre-war levels, with Saudi rerouting via the East-West pipeline and the US-backed Oman lane. Aviation Squeeze on Iran: US sanctions are cutting Iran’s international flights by about half, with knock-on effects on third-country airport and ground services; Iraq later resumed Najaf–Iran flights after temporary suspensions. Oman Business & Trade: Oman-US trade hit about RO 555m by end-July, while Oman’s central bank raised RO 18m via treasury bills. Logistics & Shipping: Asyad Shipping took delivery of the first of two Kamsarmax bulk carriers for RO 28m total deal. Oman Policy & Jobs: Oman allocated RO 10m for a new civil promotions system tied to performance, and RAM wrapped an executive programme for local administration leaders. Regional Deals: Oman and Tanzania held talks on investment, trade and logistics; Oman also backed safe Hormuz navigation and dialogue.

Oman Digital Push: Oman launched the Midad Digital Centre at Innovation Park Muscat, aiming to build digital skills and turn emerging tech like 5G, IoT and AI into products and services aligned with Oman Vision 2040. Public Sector Pay & Promotions: Oman’s Ministry of Labour rolled out a new promotion system for civil servants, with RO 10 million allocated and promotions split across fast, flexible and special tracks. Stats With AI: Oman presented at an Arab League statistics meeting how it is using AI in its Household Income and Expenditure Survey, alongside work on a Digital Economy Survey. Trade & Diplomacy: Oman’s Trade Office in the US met Oman’s Economy Minister to boost exports and investment; trade exchange hit about OMR 555.26m by end-July 2026. Tourism Momentum: World Tourism Day remarks highlighted nearly 7% growth in Oman tourist visa arrivals in the first seven months of 2026. Hormuz Watch: Amid ongoing Iran-US talks, mediators are still working on a proposal to reopen the Strait of Hormuz with lifting of the US blockade and sanctions, while oil flows show signs of recovery. Regional Business Links: Oman Chamber of Commerce hosted Indonesian health-sector firms to explore medical tourism and healthcare investment.

Oman’s VAT and price stability push: Oman introduced zero VAT on food, medicines and veterinary supplies, and expanded the zero-rated list to 807 items, as authorities also step up monitoring to keep inflation contained amid global shocks. Student support updates: The Social Protection Fund urged all students on internal scholarships to register for monthly allowances via the electronic service, even if they received payments previously, to unify beneficiary data and link bank details. Local content drive: Oman’s road projects topped RO 200mn in local content value, with the average local content ratio exceeding 60% in H1 2026, boosting jobs and SME participation. Digital and innovation momentum: RIA inaugurated the Midad Digital Centre at Innovation Park Muscat to build national capability in emerging tech, including AI, IoT and 5G. Space sector surge: Private investment in Oman’s space sector jumped 270% to OMR74mn (2025), with companies and jobs rising sharply. Tourism push: World Tourism Day in Oman focused on a digital agenda and AI, while Oman also backed medical tourism cooperation talks with an Indonesian health-sector delegation. Regional trade risk watch: US Treasury says it is pressuring countries to isolate Iran, while Hormuz disruption continues to ripple through shipping and energy markets.

Hormuz & Iran-US Tensions: President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz within seven days and resume nuclear talks, saying Tehran is “losing so badly” and wants a deal on terms the US won’t accept; Oman’s Position: Oman’s foreign minister reiterated Muscat’s commitment to safeguard navigation through the strait under international law and urged Iran and the US to reach a lasting political settlement; US Economic Pressure: Treasury chief Scott Bessent said Operation Economic Outcast is “delivering results,” citing curbs on Iranian airlines and banking links, including reports that Türkiye and Oman halted Mahan Air flights and the UAE stopped Iranian airline flights; Local Content in Infrastructure: Oman’s road projects surpassed OMR200mn in local content value in H1 2026, with average local content above 60% and more work awarded to SMEs; Banking Regulation: The Central Bank of Oman held its third 2026 meeting, adopting policies for bank/representative office classification and licensing plus an emergency framework; VAT Relief: Oman’s Tax Authority set zero-percent VAT for selected essentials from 1 Oct 2026, including basic food commodities, human medicines/medical equipment, and veterinary medicines/medical equipment; Food Security Leadership: The Royal Academy of Management launched a National Leadership Development Programme in the Food Security Sector targeting 35 leaders; Student Allowances: The Social Protection Fund urged students to register for monthly allowances via the electronic system to update beneficiary data and verify eligibility; Trade & Fisheries: Oman exported squid worth about OMR4.47mn in 2025 to 19 countries, with Vietnam the top buyer; Tourism Supply: A report says Oman will deliver 700 new hotel rooms by end-2026, taking inventory to about 40,800 keys.

Oman Economic Outlook: S&P Global lifted its forecast for Oman’s GDP growth to 3.5% in 2026, citing favourable trade logistics and energy routes that are less dependent on the Strait of Hormuz. Oman Energy Deals: Oman signed three petroleum concession agreements with OQ Exploration and Production for Blocks 36, 43A and 66, with minimum exploration work programmes of about $56m. Oman Business & Investment: Oman is mapping a plan to boost the business environment and non-oil trade under Royal directives, including tighter coordination across licensing and approvals via connected digital platforms. Oman Capital Markets: Oman’s financial regulator unveiled new rules to deepen the capital market and expand investment funds, alongside a broader push for investor protection. Oman Trade & Connectivity: Oman Investment Authority is looking to expand market access along and beyond China’s Belt and Road, pointing to ports like Suhar, Salalah and Duqm. Muscat Markets: The Muscat Stock Exchange slipped 49 points last week as sentiment cooled on geopolitics, while the industrial index rose. Regional Security: Oman reiterated its UNGA stance for peaceful, consensus-based solutions and reaffirmed efforts to safeguard navigation in the Strait of Hormuz amid renewed US-Iran deadlock. Hormuz Diplomacy: Trump rejected Iran’s proposal to reopen Hormuz within seven days, while Iran said it has lost trust in US negotiations. Compliance Focus: Oman’s environmental permitting rules for high-risk projects were highlighted, stressing permits, impact assessments and ongoing pollution controls. Workforce & Local Content: Oman’s private-sector employment shows a net rise in Omanis, while analysis renewed focus on local content’s role in jobs, skills and value added. Media & Culture: Oman’s Ministry of Information won six awards at the Arab Radio and Television Festival, underscoring growing regional media output.

Oman Inflation Watch: Oman’s average inflation stayed contained at about 2.9% from January to August 2026, below the IMF’s global 4.7% projection, as the Ministry of Economy said it is closely monitoring prices, markets and supply chains amid geopolitical-driven cost pressures. Energy & Industry: Duqm Refinery hit roughly 255,000 bpd (about 110% of design capacity) and reported $7bn revenues in 2025, reinforcing its role as a strategic Oman-Kuwait partnership. Capital Markets: The Muscat Stock Exchange edged down, with MSX 30 down 0.65%, while industrial shares showed resilience as investors looked ahead to Q3 results; S&P also reaffirmed Oman’s BBB- rating with a stable outlook. Banking Credit Growth: Credit extended by banks in Oman rose 12.7%, with private-sector credit up to OMR23.8bn by end-July 2026, alongside deposit growth to OMR29.3bn. Diplomacy & Trade Routes: Oman’s FM met Iran’s counterpart at UNGA in New York, focusing on repairing regional ties and ensuring safe navigation and freedom of passage through the Strait of Hormuz, as Iran and the US trade competing proposals. Renewables Push: Oman won the bid to host the 23rd World Wind Energy Congress (2027), signaling momentum for wind power and investment under Oman Vision 2040.

Hormuz Deal Push: Iran’s FM Abbas Araghchi says the Strait of Hormuz could reopen in seven days if the US lifts its naval blockade, waives sanctions on Iranian oil and observes a ceasefire including Lebanon, with talks on day seven—while Trump aides privately expect bombing to resume after the November midterms. Aviation Sanctions Hit Region: New US measures under “Operation Economic Outcast” are shutting Iranian airlines out of Gulf airspace; Iraq has notified Iran of a flight ban, and Iran says “either everyone flies or no one flies,” as routes to places including Oman and UAE are disrupted. Oman in the Mix: The Hormuz offer revives ideas tied to earlier Oman-mediated channels, as Iran frames the plan as aligned with a Pakistan-mediated MoU. Maritime Safety Coalition: India and Liberia launched a UN-backed “Group of Friends” to deter attacks on commercial shipping and protect seafarers, citing incidents in the Gulf of Oman and Strait of Hormuz. Oman Business Watch: Oman’s space sector is accelerating—private investment and companies are rising fast, with OmanSat-1 planned to strengthen communications and the digital economy. Energy Logistics: Oil markets remain volatile as Hormuz risks and shipping costs swing, while Saudi pipeline flows resume amid ongoing Houthi pressure.

UN Walkout: Nearly 70 countries’ delegations walked out or left seats vacant as Israeli PM Benjamin Netanyahu began his UNGA address, with Oman among those reported absent, amid renewed global anger over Gaza and wider regional attacks. Aviation Pressure on Iran: Iran’s Mokhber warned that if sanctions block Iranian flights, “no country” in the region can operate flights freely; the US sanctions have already triggered flight suspensions by Oman and the UAE and broader aviation disruptions. Hormuz Diplomacy vs Hard Lines: Egypt urged US-Iran talks and de-escalation in Hormuz and Bab el-Mandeb, while Saudi and UAE lobbying pushes Washington to keep sanctions and the naval blockade—complicating mediator efforts for talks in Oman. Shipping Costs Spike: In the Gulf of Oman, ship-to-ship crude transfers hit capacity as Saudi reroutes exports via Hormuz after a Red Sea pipeline disruption, tightening tanker availability and lifting VLCC rates. Oman Business & Finance: Oman’s Ministry of Housing launched London’s “Live Oman” exhibition to attract investment in urban projects, while Oman also appears in regional diplomacy and investment cooperation coverage. Regional Investment Deal: The Azerbaijan-Oman Joint Investment Fund will acquire a 25% non-voting stake in Azer-Turk Bank, with the agreement signed at AIIF 2026.

Hormuz Pressure Point: Diplomacy around the Strait of Hormuz stayed uncertain as Iran said Washington has days to meet its conditions, while US-Iran talks in New York explored a phased deal that could reopen navigation if sanctions and the blockade are eased. Aviation Sanctions Hit the Region: The UAE suspended all flights by Iranian airlines, and reports said Oman and other destinations were also affected as new US “secondary sanctions” target third-country firms dealing with Iran’s aviation sector. Oil Prices and Shipping Risk: Oil rose about 3% to a one-week high amid renewed supply fears, with shipping through Hormuz still depressed and tanker traffic volatile. UNGA and Regional Fallout: Iran’s president delivered a defiant UN message, while an 80-country coalition called for full restoration of maritime navigation in the Arabian Gulf, urging reopening of Hormuz without tolls or “illegal charges.” Oman in the Mix: Oman participated in UNGA-side meetings, including GCC-ASEAN cooperation discussions, and signed an anti-corruption MoU with Iraq. Maritime Incident Near Oman: An Indian seafarer was killed after the MV Cape Dao was attacked near the Strait of Hormuz, with Oman coordinating with authorities on safety and repatriation.

Oman Energy & Oilfield Contracts: SLB won an Oman contract to expand OQEP’s Bisat-B production facility, with EPCC work plus four years of operations and maintenance; capacity is set to rise to 548,000 bpd and delivery is targeted within 19 months. PDO Drilling Deal: PDO signed a three-year integrated drilling services contract with Weatherford covering 274 wells across Marmul and Greater Saqr, aiming for efficiency gains and about 20% cost reduction while building local capability. Shipping Security: A cargo vessel (Cape Dao) was targeted near Musandam in the Strait of Hormuz; Oman reported one death and 27 crew evacuated, with no group claiming responsibility. Trade & Market Access: Oman Chamber of Commerce and Industry held a business meeting on accessing the US market, highlighting the Oman–US FTA and government contracting opportunities. Food Safety Rule: Oman’s Food Safety and Quality Centre said halal certificates from undesignated bodies won’t be accepted from July 1, 2027, placing the onus on importers to verify designation status. Capital Markets: Oman’s financial regulator issued executive regulations to deepen the capital market and expand investment funds. Regional Diplomacy Impacting Business: US-Iran talks at UNGA continue amid threats and sanctions pressure, keeping Gulf shipping and energy costs in focus for regional operators.