AGP Executive Report

Oman Energy & Ports: Shinas port plans to start supplying marine fuels to shippers, targeting first-phase capacity of 200,000 metric tons/month (about 2m tons/year), as Gulf conflict pushes demand for alternative bunkering options. Gas & Industry: Integrated Gas Company (IGC) is auctioning gas allocations for CNG projects, offering up to 200,000 SCM/day per bidder and opening supply to sites beyond the pipeline network. Trade & Logistics: Port of Salalah logged a second straight monthly container record, handling 511,209 TEUs in September, lifting combined Aug-Sep throughput above 1m TEUs. Finance & Markets: Hema Energy says it aims to list part of its business on the Muscat Stock Exchange in 2030 or 2031. Regional Business Impact: UAE shipping costs jumped 300–500% after Strait of Hormuz disruptions, with war-risk fees, emergency fuel surcharges and rerouting—not base freight rates—driving the spike. Security & Trade Disruption: A FlyDubai cockpit attack diverted an Israel-bound flight to Saudi Arabia; meanwhile, US officials say more military assets are being sent to the Middle East, keeping shipping and energy risk in focus. Education for Jobs: Oman’s higher education is shifting toward industry-linked learning, applied research and entrepreneurship to meet workforce needs for manufacturing, logistics, renewables and the digital economy.

Power & Utilities: Oman awarded Serbian firm Energoprojekt ENTEL a consultancy contract for three new gas-fired power projects, with Nama PWP handling concept design, tender documents, bid evaluation support and EPC contractor selection. Aviation Leadership: SalamAir appointed Eng. Yaqoob Al Kiyumi as CEO, tasking him with driving the airline’s next growth phase ahead of its 10th anniversary, including network expansion and customer experience upgrades. Aviation Safety & Security: The flydubai cockpit stabbing incident involving Captain Smit Machchhar remains under investigation after the aircraft made an emergency landing in Tabuk; officials say Machchhar is stable, while airlines and regulators weigh wider security implications. Energy Shipping Watch: Strait of Hormuz traffic is rebounding toward pre-war levels, even as tankers report projectile strikes and some cargo transfers shift farther out due to congestion. Maritime & Trade: Oman-linked ship-to-ship transfers off Sohar were cited as part of how exporters keep flows moving. Fisheries: Oman’s spiny lobster season (“sharkha”) opened with strict rules to protect stocks, with 2025 production valued at about OMR 4.255m. Markets: GCC equities slid in September amid higher rates, crude and regional geopolitics, with Oman among the smaller decliners.

Aviation & Security: A Flydubai Boeing 737 (FZ1073) on the Dubai–Tel Aviv route made an emergency landing in Saudi Arabia after a cockpit fight left both pilots injured; Israeli PM Benjamin Netanyahu said the co-pilot was an Omani national and that the captain, Indian pilot Smit Machchhar, fought back and helped prevent a crash, with Israel saying it will join the investigation. Energy & Shipping: Iran is reviewing a U.S. counterproposal on a seven-day ceasefire and Strait of Hormuz reopening as Qatar mediates, while shipping analysts note traffic shifting to “tanker shuttle” operations and AIS-dark transits amid projectile strike reports. Oman Energy Infrastructure: Oman awarded a consultancy contract for three new combined-cycle gas power plants (2,800–3,000 MW) and plans to lift Duqm onshore crude storage toward 10 million barrels, aiming to strengthen the Arabian Sea export and storage hub. Trade & Industry: Oman and Uzbekistan discussed faster preferential trade talks and joint industrial/logistics projects; Omani EV maker MAYS signed a $17.9m deal to supply 750 vehicles to Uzbekistan. Workforce & Policy: Oman’s Labour Ministry urged a shift toward a capability economy, pushing private-sector training and recruitment support. AI & Data: A Google Cloud executive said unstructured corporate data is the main hurdle for autonomous AI agents—relevant for Oman’s digital transformation push.

Oman-Uzbek Economic Talks: Oman and Uzbekistan discussed expanding trade, investment and joint industrial projects, including a preferential trade agreement and work on rules of origin, as Muscat also reviewed Vision 2040 priorities with Uzbekistan’s investment minister. Oman Public Sector Reform: Oman is shifting government promotions from seniority to performance, competence and specialised skills, with RO10m earmarked for 2026 and three promotion routes (fast, flexible and special). Hormuz Diplomacy and Shipping Risk: Iran and the US remain at odds as mediators shuttle messages; Iran received US feedback via Qatar on a seven-day trust-building plan, while shipping patterns around Hormuz are changing as tankers reduce tracking and use ship-to-ship transfers. Energy Markets Watch: OPEC+ core members, including Oman, are expected to keep output targets steady for November; meanwhile crude flows show signs of easing after Saudi resumed Yanbu loadings following pipeline repairs. Regional Business and Logistics: A new Kenya–Rwanda fuel corridor begins with a 40,000-tonne cargo supplied by Oman’s OQ Trading, using Mombasa port and pipeline infrastructure. Global Energy Event: India announced Kolkata will host India Energy Week 2027 (Jan 28-31), spotlighting oil, LNG, refining, hydrogen and digitalisation.

Oil & Shipping: Saudi Arabia partially restored capacity on its East-West pipeline after drone attacks, helping ease crude supply worries as Hormuz remains risky; tanker traffic and ship-to-ship transfers suggest Gulf exports are stabilising, even as the US rejects Iran’s latest truce push. Oman Energy & Industry: Oman’s green hydrogen export plans are back in focus, with the ambassador to India saying the country aims to build export capacity by 2030 and deepen renewable-energy cooperation. Oman is also advancing a high-purity graphite refinery project and mapping a minerals-to-fertilisers-and-chemicals value chain to lift downstream manufacturing. Oman Business & Policy: Oman climbed 8 places in the Global Innovation Index 2026 (to 47th in innovation inputs), while Muscat Governorate reviewed health services and World Habitat Day 2026 plans, and Sultan Haitham City moved closer to occupancy with new power substations. Regional Trade & Logistics: India’s MEA said 163 Indian seafarers are on 12 vessels in the Persian Gulf west of Hormuz, as shipping attacks and reporting delays keep insurers and operators on edge. Awards & Talent: Omani researchers won first place at Sharjah’s cultural heritage awards for Sidr tree research, and the Stevie Awards opened entries for 2027 across MENA.

Oman–Tanzania Trade Push: Oman and Tanzania opened a new chapter in economic cooperation after their first Bilateral Consultations in Muscat, with Oman positioning itself as a gateway for investors into Africa and Asia. Energy & Industry Integration: Oman’s Ministry of Energy and Minerals held a workshop on building integrated value chains linking minerals to fertiliser and chemicals, mapping resources, clusters and timelines for local manufacturing. Digital Skills for Oil & Tech: SAP and Petroleum Development Oman (PDO) are partnering to grow Omani digital talent by connecting PDO’s Digital Innovation Programme with SAP Young Professionals, starting a new cohort in November. Green Hydrogen Roadmap: Oman’s ambassador to India said the country aims to export green hydrogen by 2030 and is seeking collaboration with India, including for renewable and SAF-related projects. Sultan Haitham City Power Up: Infrastructure in Muscat’s Sultan Haitham City is accelerating as new electrical substations (160MVA) were commissioned to support residential areas and public facilities ahead of first occupancy by end-2026. Culture & Research Win: Two Omani researchers took first place at Sharjah’s International Award for Cultural Heritage for work on the Sidr tree’s sustainability using both scientific and traditional knowledge. Hormuz Talks Continue: Mediators kept working with Iran and the US to reopen the Strait of Hormuz, but major hurdles remain, with nuclear issues still a sticking point.

Oman Shipping & Trade: Asyad Shipping took delivery of Ain Al Sarooj, the first of two Kamsarmax bulk carriers, and it has entered a one-year time charter, boosting the firm’s dry bulk capacity and global reach. Energy & Logistics: Qatar-linked LNG traffic through the Strait of Hormuz has picked up again, with multiple Ras Laffan-linked tankers reappearing after earlier disruption fears. Oil Markets: Middle East crude exports rebounded in September to 12.8mn bpd, the highest since the US/Iran war began, though full recovery still depends on Hormuz reopening. Oman-US Business: Oman’s trade with the US reached about RO 555m by end-July, with chemicals and aluminium among key Omani exports. Finance & Regulation: Oman’s Financial Services Authority gave banks up to three years to separate securities activities into legally independent entities, aiming to cut conflicts of interest. Agriculture & Food Security: Oman is scaling up potato production as part of its food-security push, with targeted projects funded over 2021-2025. Science & Sustainability: Sultan Qaboos University researchers developed a simpler soil test to measure DNA-bound phosphorus, helping track how microbes feed plants. Regional Diplomacy: Mediators continue US-Iran talks on reopening Hormuz, even after Trump publicly rejected Iran’s latest proposal.

Oman Energy & Industry: OQ Exploration and Production (OQEP) secured exploration rights for Blocks 36, 43A and 66, underlining Oman’s push to expand upstream activity. Oman-US Trade: Oman’s Trade Office in the US met the Minister of Economy to discuss boosting Omani exports and investment links; trade hit about OMR555.26m by end-July 2026. Business Community Readiness: OCCI’s elections committee reviewed preparations for an integrated electoral system ahead of the Chamber’s upcoming polls. Digital & Innovation: Oman launched the Midad Digital Centre at Innovation Park Muscat to build digital skills and innovation in areas like 5G, IoT and AI. Agriculture Science: Researchers refined a simpler, lower-cost soil test to measure DNA-bound phosphorus, aiming to better understand how microbes make nutrients available to plants. Shipping & Energy Shockwatch: LNG transits linked to QatarEnergy picked up through the Strait of Hormuz despite the US-Iran standoff, while oil prices jumped after Trump rejected Iran’s seven-day reopening proposal. Regional Policy & Trade: The US partially lifted antidumping and countervailing duties on qualifying aluminium can stock from India, with Oman included among affected countries. Tourism Spotlight: Oman was named in Lonely Planet’s 50 Best in Travel 2027 list, highlighting its landscapes and hospitality. Medical Tourism Link: OCCI hosted an Indonesian health-sector delegation exploring cooperation and investment in medical tourism and healthcare research.

Strait of Hormuz: Trump said a record volume of oil was transported through Hormuz, but Iran’s foreign minister said only negotiations can end the conflict after the US rejected Tehran’s seven-day reopening plan; Iran also warned it will not fully reopen the strait until US blockade and sanctions end, while shipping remains under threat. Oman diplomacy: Oman urged UN members to refrain from the use of force and reaffirmed its push for peaceful, consensual dispute resolution, with specific calls to safeguard Hormuz navigation amid global energy and trade risks. Energy & shipping costs: Product tanker rates are rising as clean exports and rerouted flows respond to disruptions, while analysts warn that workarounds keep oil moving at a steep cost. Oman economy & policy: Oman’s Tax Authority issued decisions for zero VAT on basic food, human medicines and medical equipment, and veterinary supplies from Oct 1; Oman also targets price stability as inflation stays around 2.9% in 2026. Digital & innovation: RIA launched the Midad Digital Centre to boost Oman’s AI and emerging digital capabilities, while World Tourism Day in Oman focused on a digital agenda and AI. Local business & jobs: Local content in road projects surpassed RO 200m in H1 2026, and Al Batinah North reported strong private-sector expansion. Agriculture & science: Oman marked Arab Agriculture Day on rangeland sustainability, and researchers developed a cheaper method to measure DNA-bound phosphorus in soil to support sustainable farming. Space sector: Oman’s space investment jumped 270% to OMR74m, and the country is drafting a national space law to attract investment.

VAT & Cost of Living: Oman’s Tax Authority issued three decisions for a 0% VAT rate from 1 Oct 2026, covering basic food commodities, human medicines and medical equipment, plus veterinary medicines and equipment—aimed at easing living costs and supporting health, agriculture and animal wealth. Hormuz Navigation & Trade: At UNGA, Oman reaffirmed its commitment to safeguard Strait of Hormuz navigation and urged Iran and the US to resolve disputes through a lasting political settlement, warning disruptions are hitting energy security, prices and confidence. US-Iran Deadlock: Trump rejected Iran’s proposal to reopen Hormuz within seven days, saying Tehran is “losing so badly,” while Iran’s foreign minister insisted diplomacy is the only way and said negotiators are waiting for an official US response. Maritime Safety Push: India and Liberia launched a 25-member “Group of Friends” to improve safety and security for commercial shipping and seafarers after attacks across key routes, including Hormuz. Oman Hospitality Pipeline: Oman plans to deliver 700 new hotel rooms by year-end, lifting inventory to 40,800 keys, with Khareef and winter seasons expected to support H2 demand. Fisheries Snapshot: Oman recorded 14,000+ tons of squid landings in 2025, with exports worth about RO 4.47m and Vietnam the top destination.

Oman Diplomacy: Oman reaffirmed its push for dialogue and UN-backed solutions at UNGA, with FM Sayyid Badr al-Busaidi stressing respect for sovereignty and continued efforts to safeguard Strait of Hormuz navigation and energy flows. Gulf Shipping & Iran-US Talks: Iran renewed a seven-day plan to reopen Hormuz and restart nuclear talks, but the US rejected it, citing lack of trust; Trump also posted a “Trump Strait” map as tensions keep freight and energy markets jittery. UN Focus on Seafarers: India told UN leaders attacks on commercial shipping and seafarers are “simply unacceptable,” urging restraint and protection of civilians. Oman Energy & Industry: Oman signed three petroleum concession agreements with OQ Exploration and Production for Blocks 36, 43A and 66, with minimum exploration spend of $56m; Duqm Refinery hit ~255,000 bpd (about 110% of design). Renewables & Events: Oman won the right to host the 23rd World Wind Energy Congress in 2027. Business & Markets: Muscat Stock Exchange fell 49 points weekly while the industrial index rose; S&P lifted Oman’s 2026 growth forecast to 3.5% on resilient trade logistics. Local Economy & Policy: Oman’s private-sector employment saw a net rise in Omanis, while coverage highlighted how local content and environmental permitting rules shape industrial expansion. Media & Culture: Oman’s Ministry of Information won six awards at the Arab Radio and Television Festival, and an Omani disability-focused theatre troupe won an international prize in Cairo.

Oman Markets: The Muscat Stock Exchange edged down this week as investors stayed cautious on geopolitics and softer oil, with the MSX 30 slipping 0.65% to 7,554.13; industrial shares were steadier, led by Oman Cement (+5.18%), while the industrial index rose slightly to 9,907.92. Oman Economy Watch: Oman’s Ministry of Economy said inflation stayed contained at about 2.9% (Jan–Aug 2026), citing global volatility and logistics costs as key risks. Oman Diplomacy: Foreign Minister Sayyid Badr bin Hamad Al Busaidi met Iran’s Abbas Araghchi at UNGA, focusing on regional differences and, crucially, shipping security and freedom of transit through the Strait of Hormuz. Shipping & Trade Pressure: India’s Jaishankar called attacks on seafarers “indefensible” and backed a UN “group of friends” with Liberia to boost maritime safety as Hormuz traffic remains thin. Regional Transport Rules: Dubai announced truck movement restrictions from Oct 1, a reminder of how logistics disruptions ripple across the Gulf. UNICEF & Children: Badr also met UNICEF chief Catherine Russell to review Oman’s 2026–2030 cooperation priorities, including support for children affected by conflicts.

Strait of Hormuz Diplomacy: Iran’s FM Abbas Araghchi says a seven-day plan could reopen the Strait of Hormuz on day six, with US steps on day seven, including a phased uranium dilution/transfer concept via IAEA-recognised mechanisms. Aviation Sanctions Hit Gulf Connectivity: New US sanctions and secondary pressure have triggered major airline cut-offs, with the UAE suspending flights by Iranian carriers and Iraq notifying Iran of a flight ban. Maritime Safety Push: India and Liberia launched a UN-linked “Group of Friends” to deter attacks on commercial shipping and protect seafarers, citing incidents across the Gulf of Oman, Hormuz, Red Sea and Black Sea. Oman’s Growth Signals: Oman’s space sector is accelerating with rising private investment and jobs, while the country also moves to build a national fintech strategy. Energy Route Workarounds: Adnoc selected contractors for an East Coast LNG project in Fujairah to bypass future Hormuz disruption, as shipping and oil flows face fresh volatility. Regional Security Pressure: Houthis’ escalation against Saudi Arabia is drawing wider international condemnation and raising risks for Red Sea and Gulf energy routes.

Shipping & Oil Logistics: Ship-to-ship transfers in the Gulf of Oman have hit capacity as Saudi Arabia reroutes exports through the Strait of Hormuz after the Sept 13 Yanbu pipeline attack, pushing VLCC demand higher and lifting VLCC time-charter rates to record levels (about $1.27m/day), while congestion is stretching transfer timelines. Diplomacy & Sanctions: Saudi Arabia and the UAE are urging the US to keep Iran sanctions and the naval blockade, complicating mediation efforts for talks in Oman aimed at reopening Hormuz. Hormuz Timeline: Iran says it has proposed a seven-day plan to reopen the strait and restart talks if conditions are met, while US and regional pressure continues. Aviation Disruption: Qatar Airways has retired its last A330s and seconded some pilots to Rwanda’s RwandAir as the Iran war disrupts Gulf aviation and accelerates fleet changes. Oman Business & Travel Retail: JCDecaux Oman and Amouage delivered a major Muscat International Airport brand activation, adding large suspended installations and door branding across passenger touchpoints. Oman-Linked Energy Trade: SOMO has launched a tender to sell 2m barrels of Basrah Heavy crude for early October loading. Regional Media & Culture: Kuwait won awards at the Arab Radio and TV Festival in Tunis, with Oman among participating performers.

Oman Industry & Research: Oman’s Research and Innovation Authority (RIA) and OQ Global Investment Group signed an MoC to run joint industrial research, link labs to market needs, and turn innovation into commercial outputs. Energy & Shipping Security: A coalition of 80 countries urged the “urgent and full reopening” of the Strait of Hormuz, warning Iran’s actions and renewed Houthi attacks are disrupting trade and energy flows, with Oman-linked incidents cited. Oman-Related Diplomacy: Iran says it has a plan—via Oman—for reopening Hormuz within days, but conditions hinge on US sanctions relief and blockade changes, while talks remain uncertain. Aviation Sanctions Impacting Oman: New US sanctions led the UAE to suspend Iranian airline flights, with reports also pointing to service curbs affecting Oman routes. Gulf Infrastructure & Logistics: Kuwait and Oman discussed road-building expertise exchange, while the UAE launched a freight rail link from Fujairah to Abu Dhabi to help goods bypass Hormuz disruptions. Steel Snapshot: World crude steel output fell 1.2% in August, with the Middle East down 4.6% and Oman included among reporting countries.

Oman Energy & Oilfield Services: PDO awarded Weatherford a three-year integrated drilling services contract covering 274 wells across Marmul and Greater Saqr, aiming for higher efficiency, predictable planning and about 20% cost reduction. Oman Oil & Gas Infrastructure: SLB won major EPC work for OQEP’s Bisat-B expansion in Oman, boosting gross fluids capacity to 548,000 bpd with delivery in 19 months and four years of O&M support. Shipping & Maritime Security (Oman): A bulk carrier, MV Cape Dao, was attacked off Oman near the Strait of Hormuz; one Indian seafarer died and 27 were rescued, renewing calls for naval escorts and safer passage. Trade & Business Links: Oman Chamber of Commerce and Industry held a meeting on accessing the US market, highlighting the Oman–US FTA and government contracting opportunities. Regional Geopolitics Impacting Oman: Iran warned war could expand toward the Indian Ocean, while US-Iran diplomacy at UNGA continues amid threats over Hormuz access and sanctions pressure on airlines. Markets & Costs: Bond yields jumped on Iran-war and inflation worries, while energy disruptions kept Gulf shipping workarounds costly and oil prices sensitive.