Oman’s strategic location and trade agreements position it as a key gateway for companies aiming to expand trade between India and the United States, industry experts say. The Sultanate is uniquely positioned among Gulf Cooperation Council (GCC) countries by holding both a Free Trade Agreement (FTA) with the US and a Comprehensive Economic Partnership Agreement (CEPA) with India.
Rebecca Olson, CEO of AmCham Oman, highlighted the potential for businesses to establish manufacturing and processing operations in Oman to take full advantage of these agreements. By producing goods in Oman under the CEPA framework, Indian firms can then export to the US duty-free through the US-Oman FTA, provided they meet the required rules of origin. This arrangement could create a seamless trade corridor between the three countries.
Oman offers several incentives to investors through its special economic zones and free zones located in Suhar, Al Duqm, and Salalah. These zones provide benefits such as full foreign ownership, customs advantages, tax incentives, and advanced logistics infrastructure, making them attractive for businesses looking to add value locally. Olson emphasized that companies must ensure genuine manufacturing or substantial value addition occurs within Oman to qualify for duty-free access to the US market.
Key sectors identified for growth and investment include solar energy, metals, plastics, fertilizers, food processing, pharmaceuticals, textiles, fisheries, and light manufacturing. Olson stressed the importance of careful evaluation of product eligibility, compliance with rules of origin, landed costs, and the advantages offered by Oman’s geographic and regulatory environment before establishing operations.
Notably, Oman’s FTA with the US is one of only four such agreements in the Middle East and North Africa (MENA) region, underscoring its unique role in facilitating international trade. AmCham Oman plans to support companies entering these markets by providing guidance on market entry, assessing export readiness, facilitating connections with buyers, aiding in certification processes, and granting access to US business networks.
The combination of these agreements and Oman’s infrastructure provides a strategic platform for businesses seeking to leverage growing economic ties between India and the US through the GCC region.