Tuesday 23 / December / 2025
MUSCAT: The Ministry of Commerce, Industry and Investment Promotion (MOCIIP) on Tuesday reassured the public and business community that the recently signed Comprehensive Economic Partnership Agreement (CEPA) with the Republic of India does not affect Omanisation policies, stressing that the Sultanate’s laws remain the sole reference for regulating the labour market and ensuring that national interests are firmly protected.
At a media briefing in Muscat, Qais Al Yousef, the Minister of Commerce, Industry and Investment Promotion, underlined that the agreement, which takes effect only after Royal Decree ratification, remains fully subject to Oman’s laws and regulations, with priority in employment continuing to be accorded to Omani nationals “without exception.”
He emphasised that Oman retains its sovereign right to deploy trade-defence measures, including anti-dumping, safeguard, and countervailing actions, should local industries face harm or unfair practices.
“The agreement allows Oman to take protective action when harm is proven or suspected in practices affecting local industries,” Al Yousef said, adding that the CEPA gives Oman a comparative advantage in trade with India.
Al Yousef highlighted that the CEPA supports the competitiveness and diversification of the national economy, opens avenues to broaden the production base, empowers SMEs, and expands employment opportunities for citizens.
It also establishes a comprehensive trade liberalisation framework, covering reduction of customs duties, regulation of non-tariff barriers, facilitation of trade procedures, and rules to protect Omani products.
He said: “Omani goods will gain preferential access to over 400 million Indian consumers, strengthening exports, enhancing their global presence, and consolidating Oman’s position as a regional logistics and industrial hub and gateway to Asian markets.”
Speaking at the Diplomatic Club, Al Yousef elaborated on the agreement’s scope, noting that it opens access to Indian consumers and reduces customs duties on several products to nearly zero.
He described the pact as a natural progression of the centuries-old trading relationship between Oman and India, now the world’s fourth-largest economy with a rapidly expanding middle class.
The Minister said that the agreement is expected to encourage Indian companies to establish production and export bases in Oman, boosting investment inflows while ensuring compliance with Omanisation requirements.
“The focus is on economic growth, employment, and diversification,” he said, adding that Omani and Indian professionals will work together in new ventures to serve regional and global markets.
Al Yousef also highlighted Oman’s unique position as one of the few countries with trade agreements linking it to both the world’s largest and fourth-largest economies, describing it as a strategic advantage.
He stressed that although the CEPA will come into force only after a Royal Decree, preparatory work must begin immediately, including raising awareness among businesses, identifying competitive Omani products, and ensuring the private sector is ready to capitalise on opportunities once the agreement takes effect.
Negotiations, conducted over five rounds between 2023 and 2025, were supported by detailed studies including an assessment by Deloitte & Touche, confirming the CEPA’s feasibility and potential to enhance value addition and competitiveness.
Under the agreement, Oman secured 97.4 percent liberalisation of its current export volumes, while Indian markets provide 77.8 percent access, with special liberalisation for goods of strategic importance to Omani industries.
In return, Oman granted India gradual customs liberalisation up to 99.22 percent, aligned with national economic policies and safeguards for domestic industries.
Faisal Abdullah Al Rawas, Chairman of the Oman Chamber of Commerce and Industry (OCCI), said the Chamber will organise trade missions to India, host Indian delegations in Oman, and conduct awareness workshops across governorates to maximise private sector gains from the CEPA.
The briefing also traced the CEPA’s negotiation journey from initial talks to the final agreement, comprising 16 chapters and technical annexes, reaffirming that the pact does not require Oman to amend its Omanisation policies.
Pankaj Khimji, Advisor to the Ministry for Foreign Trade and International Cooperation, said that a committee will be formed soon to review the progress of CEPA once implemented. He added that CEPA will give both the countries a big boost to bilateral trade and he expects a lot of investments from Indian businessmen in future.
Ahmed bin Mohammed Al Sharqi, Chairman of the Economic Committee at Oman’s Shura Council, welcomed the agreement, saying it fully safeguards the Sultanate’s national interests and will be subject to periodic review through a joint mechanism. He noted that the Shura Council had conducted a detailed examination of the CEPA to ensure alignment with Oman’s economic and national priorities.
The briefing concluded that the CEPA represents a major strategic step in deepening Oman-India economic cooperation, opening new avenues for trade and investment while safeguarding the Sultanate’s sovereignty, national industries, and employment priorities.
