AGP Executive Report

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.

India-Oman CEPA: The India-Oman Comprehensive Economic Partnership Agreement takes effect today, giving Indian exporters duty-free access to 98.08% of Oman’s tariff lines (99.38% of export value) and aiming to lift India’s goods exports by about 50% over three years, with immediate gains for sectors like engineering, pharma, agriculture/processed foods, marine products, textiles, chemicals, electronics, plastics, and gems & jewellery, plus services and enhanced mobility for professionals. Oman Investment Authority: Oman’s sovereign wealth fund, the Oman Investment Authority, expanded its Future Generations Fund portfolio in 2025 across global private equity, venture capital, healthcare, logistics, infrastructure and advanced technology, reaching about RO 8.57bn with RO 1.041bn in profits and 210 funds. MSX market move: The Muscat Stock Exchange extended trading hours to boost liquidity, improve price discovery and deepen market participation. Renewables in Duqm: O-Green plans a 58 MW wind pilot project in Duqm to support industrial decarbonisation and its wind manufacturing plans. Tourism projects: Oman’s MoHT signed usufruct deals for a RO 12m+ hospitality push: a 4-star resort in Al Hamra and a 5-star hotel in Mirbat. Hormuz risk backdrop: US-Iran tensions continue to cloud shipping, with reports of US coordination of vessel crossings and renewed fire as negotiations drag on.

India-Oman CEPA Rollout: India’s Finance Ministry has notified customs rules of origin for the India-Oman Comprehensive Economic Partnership Agreement, clearing the way for preferential duties from June 1. The pact gives Indian exporters 100% duty-free access across 98.08% of Oman’s tariff lines, with major gains expected for textiles, gems & jewellery, engineering goods, pharma and more. Maritime Security & Trade Disruption: The US Central Command says it fired a Hellfire missile to disable a Gambia-flagged cargo ship in the Gulf of Oman after it ignored 20+ warnings, as the blockade enforcement continues amid Iran tensions. Tourism Investment: Oman’s MoHT signed usufruct deals for a 4-star resort in Al Hamra and a 5-star hotel in Mirbat, with investment exceeding RO 12m. Heat Rules for Workers: Oman’s MoL issued reminders of the annual mid-day outdoor work ban from June 1 (12:30pm–3:30pm), with fines for violations. Duqm Talent Pipeline: SEZAD and SQU will launch a two-week Duqm summer internship from June 7 for 18 students across logistics and industrial firms. Local Business Momentum: South Al Sharqiyah recorded 451 new commercial registrations in Q1 2026, lifting cumulative totals to 20,933.

Hormuz Security Shock: Oman’s Maritime Security Centre flagged a suspected sea mine in the Strait of Hormuz, urging all vessels and fishermen to steer clear and report immediately, as the UKMTO warned threats in the wider Gulf of Oman/Hormuz area have hit “critical” levels. US-Iran Blockade Escalation: The US disabled the Gambia-flagged bulk carrier M/V Lian Star in the Gulf of Oman after repeated warnings, adding to a growing list of ships stopped under the Iran blockade; the wider standoff continues while a possible ceasefire extension and deal terms remain disputed. Oman Investment Push: Oman launched an investment package with guaranteed purchase agreements to improve bankability, alongside major battery-chain moves including a $1bn lithium-ion anode materials project in Sohar Freezone (200,000 tonnes capacity planned). Markets & Finance: Muscat Stock Exchange extended trading hours to boost liquidity and saw a weekly rebound, while bond and sukuk listings topped RO 589m this year. Ports & Fisheries: Tiwi breakwaters rehabilitation reached 100% completion (about RO 2.9m), and Qurayat fishing port is adding a fixed pier and new investment area to expand docking and fisheries-linked services. Policy & Regulation: Oman introduced an electronic transport document system for truck freight to tighten compliance and reduce irregular practices.

Hormuz Diplomacy Watch: Iran’s foreign ministry says no US agreement is finalized yet, with message exchanges continuing as Washington pushes for an immediate reopening of the Strait of Hormuz with no tolls and mine removal. Oman’s Role in Security: Iran’s FM Abbas Araghchi held talks with Oman’s Badr Albusaidi on regional security and future Strait management, stressing stability under international law and sovereign responsibilities. US-UK Shipping Alert: US and UK maritime authorities warned vessels to use extreme caution in the northern Strait of Hormuz due to ongoing military operations near Musandam, urging continuous monitoring and reporting. Sanctions Pressure on Oman: Iran condemned US Treasury threats of sanctions against Oman tied to any Hormuz toll plans, while Iran’s new PGSA body vowed to keep operating “without interruptions” despite US sanctions. Trade Impact Lens: With Hormuz disruption still shaping energy flows, analysts note oil-price volatility and the wider knock-on effects for Gulf logistics and regional trade.

Strait of Hormuz Diplomacy: Iran’s FM Abbas Araghchi held a “very productive” call with Oman’s Badr bin Hamad Al Busaidi on the Strait’s legal management and regional security, while the US says a US-Iran ceasefire extension and reopening plan is close but still awaiting Trump’s final sign-off. US-Iran Deal Standoff: Trump says he’s making a final determination and reiterates demands including no nuclear weapons and an open Hormuz with mines cleared; Iran counters that no final agreement exists and rejects “must” language. Oman Under Pressure: US Treasury chief Scott Bessent warned Oman over any role in Hormuz tolling, and reporting says Oman has told the US it has “no plans” to charge fees. Shipping and Energy Fallout: India keeps some vessels moving through Hormuz amid disruption; US CENTCOM says 115 commercial ships were redirected under the blockade. Oman Investment & Sustainability: Oman Investment Authority expanded its international portfolio via the Future Generations Fund, while coverage also highlights the role of green buildings in Oman’s sustainable cities. Corporate Update: South West Pinnacle Exploration signed a shareholders’ agreement for an Oman mining JV, Al Hadeetha Mining LLC.

Strait of Hormuz Tensions: US Treasury Secretary Scott Bessent says Oman has assured Washington there are “no plans” to impose tolls on the Strait of Hormuz, warning Muscat that any tolling facilitation would be a “non-starter” and could trigger sanctions. Ceasefire Watch: US and Iran are edging toward a 60-day ceasefire extension and talks on Iran’s nuclear programme, but the deal still hinges on President Donald Trump’s approval amid renewed strikes. Shipping Disruption: Bessent also warned nearly 2,000 vessels are waiting to exit the Gulf, underscoring risks to energy flows and freight costs. Food Security Focus: In Oman, a Dhofar University workshop argues food security hinges on logistics—transport, cold storage and distribution—since logistics pressures drive most fruit and vegetable price impacts. Mining Update: Mazoon Copper Project earthworks are completed, clearing the way for accelerated development toward a 2027 launch. Banking Deal: Sohar International Bank and Ewpartners signed a partnership aimed at boosting cross-border supply-chain and project financing for Chinese firms in Oman.

US-Iran Ceasefire Talks: The US and Iran have reportedly agreed a draft 60-day ceasefire extension and nuclear negotiations, but it still needs President Donald Trump’s final approval, with fresh strikes and counter-strikes showing how fragile the truce remains. Strait of Hormuz Pressure on Oman: US Treasury Secretary Scott Bessent escalated warnings to Oman, saying Washington will “aggressively target” any parties involved in an Iranian-linked tolling system for Hormuz, after Trump threatened Oman over any role in tolls or shared control. Sanctions on Iran’s Strait Authority: The US imposed sanctions on Iran’s Persian Gulf Strait Authority, framing it as an IRGC-linked effort to monetize transit and extort vessels. Markets Watch: Traders reacted to deal headlines with oil and risk-asset swings, while analysts flagged that markets may be underpricing a faster Hormuz reopening. Oman Business & Economy: Mazoon Copper Project earthworks are completed, supporting progress toward accelerated development; and a Dhofar food-security workshop stressed that logistics and cold storage drive fruit and vegetable prices as much as production. Community: Al Seeb kicked off a three-day Eid Al-Adha festival with heritage shows, family activities, and SME exhibitions.

Strait of Hormuz Flashpoint: US and Iran traded fresh strikes near Bandar Abbas as Trump dismissed reports of a draft deal to restore shipping, with Washington saying it shot down four Iranian drones and hit a ground control station while Iran’s IRGC retaliated by targeting a US airbase in Kuwait; Oman in the line of fire: Trump again warned Oman to “behave” over Hormuz control plans, threatening to “blow them up” if Muscat backs any joint management idea; Markets react: Oil rebounded sharply after the renewed violence and ceasefire strain, while US futures slipped; Shipping and sanctions: The US imposed new sanctions on an Iranian agency tied to tolling and control of Hormuz transit, as tankers and LNG vessels continued rerouting and some ships exited the strait with transponders off; Broader economic hit: The ILO warned the conflict is spreading into labour markets worldwide through fuel, transport, tourism and remittances.

Strait of Hormuz Deal Talks: The White House rejected an Iranian state-TV report on a draft US-Iran memorandum, calling it “a complete fabrication,” as Trump said the US is “not satisfied” and Iran is “negotiating on fumes.” Oman Under Pressure: Trump warned Oman to “behave” or face possible action, after reports of a proposed mechanism where Iran would manage shipping in coordination with Muscat—an idea Washington says must not amount to control of the strait. Energy Markets: Brent slid to around $95 as traders weighed possible reopening of Hormuz and the risk of renewed disruption; the reported draft would restore commercial shipping to pre-war levels within a month while the US would lift its naval blockade and withdraw forces. Maritime Risk Near Oman: A Greek-owned tanker reported an external explosion about 60 nautical miles off Muscat; crew were safe and a small fuel leak was contained, underscoring security concerns around Hormuz approaches. Trade & Industry Link: India’s pharma exporters flagged CEPA benefits with Oman, including zero tariffs on Indian pharma from June 1, as logistics and shipping stability remain central to regional business planning.

Maritime Security Shock: A VLCC linked to Greek operator Olympic Shipping & Management was damaged by an external explosion off Oman, about 60 nautical miles east of the coast, with UKMTO saying the crew is safe but bunker fuel leaked into the sea—another reminder that shipping around the Strait of Hormuz remains fragile. Oman–India Cooperation: Oman renewed a maritime security cooperation MoU with India in Muscat, focusing on safer navigation and information-sharing across the Arabian Sea, Gulf of Oman and Hormuz. Strait-of-Hormuz Tensions: Iran denounced fresh US strikes as “bad faith,” while negotiations continue and Iran began restoring internet access after a long shutdown; crude prices stayed sensitive to every headline. Trade Resilience Push: UAE officials at GLOBSEC said they’re accelerating alternative corridors—Fujairah and Khorfakkan ports, air bridges, and a Green Corridor with Oman—plus SME support funds to keep trade moving. Local Business Pressure: A survey in Scotland found mid-sized firms are pausing investment as Middle East conflict and energy costs bite.

Gulf Tensions Hit Oil Prices: Brent jumped about 4% after U.S. strikes in Iran dashed hopes for a quick deal to reopen the Strait of Hormuz, with Iran calling the action a ceasefire violation while Washington frames it as “self-defense.” Hormuz Shipping Under Strain: CENTCOM says it has redirected 108 vessels as part of its blockade enforcement, while traders stay cautious amid mixed signals on whether escorting will resume. Oman Coast Incident: A tanker reported an external explosion about 60 nautical miles off Muscat, with some bunker fuel leaking; UKMTO urged extra caution as investigations continue. Diplomacy Still Moving: Iran’s negotiators are in Doha with Qatar as both sides talk about reopening Hormuz, but Iran warns a final agreement isn’t imminent. Oman Regional Links: Oman is also coordinating with Qatar on regional developments, including efforts tied to maritime navigation through Hormuz.