Oman has committed access to 127 sub-sectors of services and substantial liberalisation of the mobility framework for Indian professionals in the Comprehensive Economic Partnership Agreement (CEPA) signed on Thursday.
In the mobility part of the agreement, Indian companies will be allowed to have 50% of its staff in Oman from India up from 20% now as part of Intra Corporate Transfer (ICT). This will enable Indian companies to deploy a larger share of managerial, executive and specialist staff in their operations in Oman.
“These mobility provisions are critical for the 6000 Indian-Oman joint ventures improving staffing flexibility, service delivery and access to regional contracts,” an official said.
Enhanced Mobility
Personnel on ICT can now stay in Oman for up to four years from 90 days at present. Oman has also committed to increasing the stay period of Contractual Service suppliers from 90 days to two years which can be further extended by two years. Professionals that are engaged in accounting, engineering, medical, IT, education, construction and consulting services will be covered by this relaxation.
Independent professionals will be allowed a stay up to 180 days and business visitors. The countries in the region have rules that mandate mandatory local hiring at the managerial level. The limit of locals in the supervisory levels varies across companies and countries.
In the CEPA Oman has agreed to freeze the extent of local hires by Indian companies in Oman at current levels even if it is increased for other companies, the official said. If the local hiring laws are liberalised then they will apply to Indian companies as well. “If Oman offers more liberal terms on localisation to any of the South Asian Association for Regional Cooperation (SAARC) then they would be extended to India as well,” the official added.
SAARC includes India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka, Maldives, and Afghanistan.
Unlocking a $12.5 Billion Services Market
The 127 sectors that Oman has extended substantial commitments include computer related services, business and professional services, audio-visual services, research and development, education and health services. The CEPA also recognises trade in health-related services and traditional medicine services.
Oman’s substantial global services imports amounting to $ 12.52 billion, with the share of India’s exports in Oman’s global imports basket as 5.31%, indicating significant untapped potential for Indian service providers, a statement said. India’s services trade with Oman stood at $ 863 million in 2024 with exports of $ 665 million and imports of $ 198 million.
The CEPA further provides for 100 per cent Foreign Direct Investment by Indian companies in major services sectors in Oman through commercial presence, opening a wide avenue for India’s services industry to expand operations in the region. In addition, both sides have agreed to hold future discussions on social security coordination once Oman’s contributory social security system is implemented.
The Social Security Agreement (SSA) – once concluded – will ensure continuity of social security benefits on reciprocal basis and avoid potential dual contributions for Indian workers and employers.