Saturday 06 / September / 2025
Muscat: Free Trade Agreements (FTA) between Oman and other countries around the world have economic dimensions that enhance trade and investment relations, contributing to raising competitiveness, attracting investments, and opening new horizons in promising sectors, according to experts.
“They also work to strengthen regional and global supply chains and diversify sources of income in line with the objectives of Oman Vision 2040,” they further added.
The comprehensive economic agreement between Oman and India represents a pivotal step towards strengthening trade and investment relations by reducing customs duties and expanding the scope of non-oil exports, which will contribute to raising competitiveness and attracting investments, according to an expert.
“The FTA will support GDP growth, provide greater opportunities for small and medium-sized enterprises, and open new horizons in promising sectors such as health, technology, and renewable energy,” said Dr. Habiba bint Mohammed Al Mughairy, Assistant Professor and Head of the Department of Business Administration at the College of Economics and Business Administration at the University of Technology and Applied Sciences.
She further added that the agreement will contribute to job creation and strengthen regional and global supply chains, thus consolidating the path of economic diversification in line with Oman Vision 2040.
“The comprehensive economic agreement between Oman and India represents a positive turning point in trade relations, given India's status as an emerging economic power and Oman's strategic location as a gateway between East and West,” said Rashid bin Abdullah Al-Shaidhani, an economic and financial analyst.
He further explained that the agreement will open new horizons for boosting Omani exports, developing the gross domestic product, and supporting economic diversification efforts.
He noted its importance in transferring Indian expertise and expanding opportunities for Omani companies in the Indian market, thus strengthening the Sultanate of Oman's position in global markets.
He said that this agreement will contribute to raising trade exchange to levels exceeding OMR5 billion in the future, supporting non-oil activities, and creating new job opportunities.
He emphasised that the success of Omani economic diplomacy is directly reflected in macroeconomic indicators and the growth of bilateral trade between the two friendly countries.
Mohammed bin Ali Al Araimi, an economic writer and journalist, said that the comprehensive economic agreement between Oman and India carries important strategic dimensions, most notably reducing customs duties on goods, facilitating trade flow, and revitalising vital sectors such as oil and its derivatives, textiles, pharmaceuticals, minerals, and services.
“It will also contribute to increasing joint investments in the areas of infrastructure, energy, and tourism, enhancing maritime connectivity and using Omani ports as a regional center for re-export, in addition to developing new areas such as digital trade and intellectual property protection,” he added.
He emphasised that the agreement's importance to the Omani economy lies in its ability to diversify sources of income in line with the goals of Oman Vision 2040, attract foreign investment, expand the role of the private sector, create new job opportunities for Omani youth, and reduce prices for consumers by reducing fees, thus strengthening the Sultanate of Oman's position as a promising regional trade hub.
Dr. Qais bin Dawood Al-Sabai, legal advisor, economic expert, and member of the Omani Economic Association, explained that trade relations between Oman and India have a long history.
He added that the Indian economy is distinguished by its enormous production capabilities and growing consumer power, which opens up broad horizons for trade partnerships with the Sultanate of Oman and makes the relationship between the two countries a renewed model for economic integration based on shared interests.
“The agreement to be signed represents a milestone and a strategic partnership with an international dimension that will enhance the position of both countries. It will also contribute to consolidating the maritime navigational role between the two countries, thanks to the strategic geographic location and Omani ports open to global markets.”
“This will open the way for growing investments that will add stronger and more vital dimensions in the fields of finance, trade, and investment,” he further added.
