FTA with India seen as milestone in Oman’s diversification strategy

Muscat – Oman’s planned free trade agreement (FTA) with India is expected to significantly boost bilateral trade, attract investment and diversify economic activity in line with Oman Vision 2040, according to economists and trade experts.

The agreement, which is under negotiation, is part of Oman’s wider strategy to expand trade ties through FTAs with key partners around the world. Officials say such agreements enhance competitiveness, strengthen supply chains and open new opportunities in non-oil sectors.

Dr Habiba bint Mohammed al Mughairy, Assistant Professor and Head of Business Administration at University of Technology and Applied Sciences, said the deal with India “represents a pivotal step towards strengthening trade and investment relations by reducing customs duties and expanding the scope of non-oil exports”. She added that it would support GDP growth, open new opportunities for SMEs and create jobs in sectors such as health, technology and renewable energy.

Dr Habiba bint Mohammed al Mughairy

Rashid bin Abdullah al Shaidhani, an economic and financial analyst, described the agreement as “a positive turning point” in bilateral relations, pointing to India’s economic rise and Oman’s role as a gateway between the East and West. He said it could push bilateral trade above RO5bn, enhance non-oil activities and expand opportunities for Omani companies in the Indian market.

Economic writer Mohammed bin Ali al Araimi noted that reducing customs duties and facilitating trade flows would benefit key sectors including oil derivatives, textiles, pharmaceuticals, minerals and services. He said the FTA would also “increase joint investments in infrastructure, energy and tourism, enhance maritime connectivity and develop new areas such as digital trade and intellectual property protection”.

Dr Qais bin Dawood al Sabai, legal advisor and member of Omani Economic Association, said the agreement builds on a long history of Oman-India trade relations. He emphasised India’s production capacity and consumer power, calling the deal “a milestone and a strategic partnership with an international dimension”.

Rashid bin Abdullah al Shaidhani

Experts agreed that the FTA will help Oman diversify income sources, attract foreign investment, strengthen the private sector’s role and lower consumer prices through reduced tariffs. With Oman’s ports positioned as regional hubs for re-export, they added, the agreement will further consolidate the sultanate’s role in global supply chains.

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