Oman expands trade via India partnership and new border markets

Oman is implementing several strategic trade initiatives to enhance commercial diversification and secure supply chains. The India–Oman Comprehensive Economic Partnership Agreement (CEPA) entered into force on June 1, 2026, providing duty-free access on 98.08 per cent of Oman’s tariff lines. This agreement covers services, investment, and regulatory cooperation, allowing Omani businesses to access India’s $3.7 trillion economy while positioning Oman’s Arabian Sea ports as regional distribution hubs.

Simultaneously, Oman has authorized three new duty-free border markets at its crossings with Saudi Arabia and the United Arab Emirates. Located at Al Wajajah, Khatmat Malaha, and the Rub’ al Khali crossing, these markets aim to stimulate commercial activity and tourism.

These developments occur as Gulf importers face maritime uncertainty due to shipping disruptions in the Red Sea and the Strait of Hormuz. The shift toward land-based border trade and strengthened bilateral agreements serves to mitigate risks for food retailers and manufacturers who are increasingly seeking alternative supply channels to ensure the steady flow of essential goods.