The India–Oman Comprehensive Economic Partnership Agreement (CEPA) marks the next chapter in one of India’s oldest and most stable regional relationships. Ratified by Oman under Royal Decree No. 30/2026, the agreement goes beyond tariff liberalisation and reshapes how Indian businesses view Oman not merely as a market, but as a platform for manufacturing, logistics, energy and business expansion too.   

A Platform for Manufacturing, Trade and Supply Chains 

Mr. Abdullah Alowimari, Partner at Global Advocacy and Legal Counsel, Oman, says “Much of the public discussion has focused on tariff reductions, the agreement’s real significance lies in its ability to integrate Indian and Omani supply chains and position Oman as a manufacturing, export, and logistics platform for Indian businesses serving regional and international markets.”  

Alowimari points out that “the agreement reduces or eliminates tariffs on a substantial number of product categories, making Oman increasingly attractive as a location for manufacturing, assembly, and value-added processing. Sectors such as textiles, engineering products, food processing, minerals, metals, chemicals, glass products, and specialized industrial goods are likely to benefit most.” 

He is careful to flag a common misconception. “Businesses should not assume that assembling or repackaging products in Oman automatically qualifies them for preferential treatment. The agreement contains detailed origin requirements, including value-addition thresholds, tariff-classification changes, anti-circumvention measures, and restrictions on minimal processing activities. As a result, legal and trade advisers will play a critical role in helping businesses structure supply chains, determine the most advantageous origin methodology, maintain the necessary cost documentation, and navigate certificate-of-origin requirements,” Alowimari notes. 

His conclusion on sectoral opportunity is a note of caution against treating the agreement as a simple tariff play. “In short, the most successful projects under the CEPA will not simply rely on tariff savings. They will be built around carefully structured commercial models that combine Indian manufacturing strength with Oman’s strategic location, logistics infrastructure, and investment-friendly regulatory framework,” he says. 

Abdulredha Al Lawati, Founder, ALC Lawyers & Counsels, Oman, frames the moment against the backdrop of the two countries’ long-standing ties. “Considering the long-standing relationship between Oman and India, today’s relationship has been completely reshaped on a broader level and is reflected in the India-Oman CEPA. Such a legal framework was constructed on solid ground, drawing on expertise in economics, real estate, energy, import-export, oil & gas, construction, and law to discuss future plans,” he says. 

Asked which sectors are best placed to benefit, Al Lawati points to trade and logistics. “Based on the above, I believe that sectors such as exports and imports, logistics, transportation, carriage by sea, energy, industry, and agriculture could always benefit from CEPA, as investors may benefit from Oman’s legal system, which enhances the environment,” he says. 

Infrastructure and Energy: A Live Project Pipeline 

Mr. Ramkumar R., Executive Vice-President, Contracts & Legal at Afcons Infrastructure Ltd., sees the agreement’s biggest impact in market access and predictability. “The India–Oman CEPA has the potential to significantly deepen economic engagement between the two countries by enhancing market access, facilitating investment, and creating a more predictable framework for cross-border business. The agreement is expected to further strengthen bilateral trade and promote long-term commercial partnerships,” he says. 

From the vantage point of infrastructure and heavy engineering, Ramkumar is specific about where he expects activity to concentrate. “From the perspective of the infrastructure and heavy engineering sector, we believe the most promising opportunities will emerge in transport and logistics infrastructure, ports, industrial parks, energy and utilities, water and desalination projects, renewable energy, manufacturing facilities, and large-scale industrial development projects. Oman has made substantial investments in infrastructure modernization and industrial diversification, making it an attractive destination for Indian engineering, procurement, and construction (EPC) companies.” 

“In addition,” he continues, “Oman offers a strategic geographic advantage as a gateway to the GCC and broader Middle East and African markets. Its position along major maritime trade routes, combined with ongoing industrial and logistics developments, creates significant opportunities for Indian companies seeking regional expansion.” 

Ramkumar lists these factors that, in his experience, ultimately drive investment decisions: 

1. Regulatory certainty and ease of project approvals.
2. Availability of infrastructure and industrial ecosystems.
3. Public-private partnership (PPP) opportunities.
4. Access to financing and investment incentives.
5. Stability of contractual and dispute resolution frameworks.
6. Local partnership requirements and workforce considerations.
7. Long-term demand visibility and government-led infrastructure spending. 

“For General Counsel,” he adds, “the focus will be on ensuring that growth opportunities are pursued through well-structured contractual, regulatory, and governance frameworks that align commercial objectives with legal risk management.” 

Mehak Oberoi, Former General Counsel and Legal Subject Matter Expert, approaches the question from her experience on large construction and energy projects across APAC and the Middle East, and is upfront about the limits of her lens. “My perspective comes from working on large construction, energy and infrastructure projects across APAC and the Middle East. That is where I see the clearest opportunities arising from this agreement,” she says. 

“Oman is already well into an ambitious infrastructure programme under Vision 2040,” Oberoi notes. “Industry estimates place the value of its construction market at roughly USD 7 to 10 billion in 2025 with further growth forecast through 2029. For Indian EPC contractors, engineering consultancies and construction technology providers, this is a live project pipeline.” 

On energy specifically, she says: “Energy is another obvious area. Oman aims to generate approximately 30% of its electricity from renewable sources by 2030. And since green hydrogen is also a stated national priority for India, Indian companies with experience in renewable energy, power transmission and water infrastructure can bring both technical capability and competitive pricing to the Omani market.” 

Oberoi is nonetheless careful not to overstate what a trade agreement can deliver. “Trade agreements alone do not persuade companies to enter a new market. Businesses considering Oman will ask more practical questions regarding enforceability of contracts, infrastructure support, reliability of dispute mechanisms etc. Indian businesses need certainty, CEPA appears to provide for it. The real test will come once companies begin operating under the new framework and encounter the day-to-day regulatory process,” she says. 

Services, Immigration and the Advisory Opportunity 

Alowimari sees an equally significant opportunity opening up in services. “The opportunities are equally significant in the services sector. While Oman had already liberalized foreign investment through the Foreign Capital Investment Law, the CEPA provides greater certainty by binding certain market-access commitments and creating procedural safeguards governing licensing, permits, and regulatory approvals. This is particularly relevant for sectors such as information technology, engineering, consultancy, architecture, research and development, education, environmental services, insurance, healthcare, and construction,” he says. 

For legal advisers themselves, he expects the nature of the work to shift. “For legal advisers, the focus will increasingly move beyond traditional market-entry work. We expect growing demand for advice relating to supply-chain structuring, strategic joint ventures, technology-transfer arrangements, licensing models, cross-border service delivery, regulatory approvals, customs compliance, and commercial contracting. As trade flows increase, legal advisers will also play a more prominent role in risk management, dispute avoidance etc.,” Alowimari says. 

Al Lawati expects a similar broadening of legal work, spread across several specializations. “Legal advisors are expected to take sufficient portions of the current framework, depending on the nature of the transaction to be conducted under the CEPA. It is expected that legal professionals specializing in banking & finance, energy, construction, and corporate & commercial will lead the transactions,” he says. 

He also flags a less obvious consequence of deeper economic integration. “It is worth mentioning that the CEPA is expected to attract individuals to both jurisdictions, increasing demand for immigration and corporate immigration services, which also require specialized advisors to navigate the structure of business, labor, and immigration processes,” Al Lawati adds. 

Oman’s Regulatory Architecture and Investment Framework 

Alowimari urges Indian investors to see Oman as more than a standalone market. “Indian investors should approach Oman not only as a standalone market but as a regional platform connecting the GCC, Africa, South Asia, and international shipping routes. Oman offers significant advantages in terms of political stability, strategic geography, modern port infrastructure, and a relatively liberal foreign investment regime. However, successful investment requires careful consideration of several regulatory and structural issues,” he says. 

He is precise about what the CEPA does and does not change. “Investors should understand that Oman already permits 100% foreign ownership in most sectors under the Foreign Capital Investment Law. This liberalisation is available to investors of all nationalities and does not arise from the CEPA itself. Nevertheless, certain sectors remain subject to restrictions, licensing requirements, or ownership limitations, though CEPA has relaxed the limitations. Investors should therefore conduct sector-specific regulatory analysis before committing capital, particularly in regulated industries such as telecommunications, financial services, healthcare, distribution, and professional services,” Alowimari says. 

A second point he stresses is the distinction between CEPA access and GCC-wide customs treatment. “Investors should carefully assess the relationship between Oman, the CEPA, and the wider GCC customs framework. Businesses frequently assume that establishing operations in Oman automatically provides seamless preferential access to both India and the GCC. These are separate legal and commercial questions. Eligibility for CEPA benefits depends on satisfying the agreement’s rules of origin. Access to GCC preferential treatment is subject to different requirements under the GCC customs framework. These considerations should be analyzed at the project-design stage rather than after operations commence,” he says. 

Al Lawati traces this liberalisation to a broader, longer-running reform of Oman’s legal system. “The Omani government has focused over the last few years on restructuring its legal systems and regimes, aiming to lay solid foundations for the execution of many international agreements and treaties. One of the main objectives of restructuring the legal landscape is to comply with international practice. Prior to the execution and enforcement of the international treaties, Oman removed the concept of local sponsorship, created more immunities for the investors, activated the roles of free zones, and promulgated new laws regulating important sectors such as banking, real estate, foreign investments, anti-money laundering and terrorism, the securities market, and, more importantly, residency of expats. These important pre-steps have encouraged neighboring large economies to focus on the Omani market. Oman and India have maintained historical ties, which continue, and these ties have led to the execution of the India-Oman CEPA, ratified by Oman by virtue of Royal Decree no. 30/2026,” he says. 

On the scope of the agreement itself, he adds: “CEPA is a comprehensive agreement that governs the entire commercial and business relationship between the two countries. Further, it supports business exchange by focusing on increasing exports and imports, clearing customs obstacles, simplifying procedures, and enhancing transparency.” 

Al Lawati also points to Oman’s geopolitical positioning as a factor in its own right. “While Oman has played a strong neutral role during the recent conflicts, it remains one of the safest zones, surrounded by important free zones in different locations and at different costs. This strategic location, which Oman has, continues to assist traders in utilizing such geographical zones in many trading activities, whether onshore or offshore,” he says. 

Contracts, FIDIC Forms and Risk Allocation 

Ramkumar is direct about why legal and regulatory preparedness matters so much in this sector. “Infrastructure and heavy engineering projects are inherently complex due to their long gestation periods, significant capital requirements, and extensive stakeholder involvement. Consequently, legal and regulatory preparedness becomes critical,” he says. In his view, Indian companies entering Oman should carefully assess a specific set of issues. 

On regulatory and licensing requirements, he says: “Understanding sector-specific approvals, project permits, environmental requirements, and local regulatory expectations is essential before committing investments.” 

On project contracting risk: “EPC, O&M, and concession agreements often involve complex risk allocation mechanisms, including performance obligations, delay damages, change-order management, force majeure provisions, and dispute resolution arrangements.” 

On contract structuring itself, Ramkumar is specific about the standard forms he considers most relevant: “For major infrastructure projects, the adoption of internationally recognized and balanced contract forms is essential to ensure project certainty, bankability, and efficient execution. Depending on the nature of the project, parties may consider using established FIDIC contract forms, such as the FIDIC Yellow Book or Emerald Book for EPC and design-build projects, and the FIDIC Red Book or Pink Book for item-rate and employer-designed projects, as appropriate. The use of tested and balanced contractual frameworks promotes fair risk allocation and reduces the likelihood of disputes during project delivery.” 

Oberoi’s experience on the ground in Oman echoes this, with a sharper warning about how those standard forms are actually used. “Companies that skim the contract will get into trouble. FIDIC-based forms are widely used for major infrastructure projects in Oman, but they are often heavily amended through the Particular Conditions. Indian contractors accustomed mainly to government standard forms or bespoke domestic contracts may recognize the broad FIDIC structure while still missing provisions that materially change their risk,” she says. 

“The Particular Conditions require the closest attention,” Oberoi continues. “Employers often amend payment terms, liability limits, notice requirements and time bars. Those changes can move a large part of the project risk to the contractor. This happens across the Gulf, but companies are still caught off guard when they assume the standard FIDIC wording governs without checking what has been changed.” 

Compliance, Governance and Risk Management 

Back on Ramkumar’s checklist, compliance and financial transparency feature prominently. “Robust frameworks relating to third-party risk management, sanctions screening, data protection, and Environmental, Social, and Governance obligations are increasingly important in cross-border projects,” he says, adding that “investors and contractors require confidence regarding the financial viability of projects throughout the contract lifecycle. Transparency in project funding, payment security mechanisms, and financial governance can significantly contribute to timely project completion, reduce schedule and cost overruns, and strengthen overall investor confidence.” 

He also raises a risk specific to the region’s geography. “Businesses must carefully evaluate geopolitical developments that may affect logistics, project execution, and supply chains. In particular, regional tensions affecting maritime trade routes around the Strait of Hormuz remain a key consideration for international investors and contractors. To promote competitive bidding and ensure equitable risk allocation, such extraordinary geopolitical events should, where appropriate, be treated as Employer Risks or defined relief events, with suitable contractual provisions addressing resulting delays, disruptions, and additional costs,” Ramkumar says. 

Alowimari frames risk management for Indian investors more broadly, around the protections already built into Omani law. “From a risk-management perspective, investors should place particular emphasis on regulatory compliance, licensing strategy, employment matters, localization requirements, data governance, and contractual protections. Oman’s laws provide important safeguards against arbitrary interference, including protections relating to expropriation, asset seizure, and transfer of funds,” he says. 

Dispute Resolution and Enforcement 

Oberoi points to a specific, easily missed change that Particular Conditions often make in Oman. “Dispute boards are one example. In Oman, the Particular Conditions often delete the dispute board provisions altogether. A company should understand what it is giving up and negotiate another interim mechanism where possible,” she says. 

On the broader enforcement landscape, she notes: “Oman has an established arbitration framework is based on the UNCITRAL Model Law. Oman also acceded to the New York Convention in 1999, giving foreign arbitral awards a recognized route to enforcement.” 

She cautions, however, that clause drafting matters as much as the choice of forum. “Some contracts divide disputes by value, sending lower-value matters to local courts and larger claims to international arbitration. Others use hybrid or multi-tiered clauses. These arrangements may look commercially practical but can produce jurisdictional disputes when the drafting is unclear. General Counsel must check that the governing law, dispute process and enforcement route work together,” Oberoi says. 

Alowimari reaches a similar conclusion from the investor’s side of the table. “Investors should ensure that commercial contracts contain robust governing-law, jurisdiction, and arbitration provisions. Oman maintains a recognized arbitration framework and is a party to the New York Convention, making arbitration an effective tool for managing cross-border disputes. Proper contract drafting, governance procedures, and compliance systems generally provide far greater protection than attempting to address risks after a dispute has arisen,” he says. 

Land, Localisation and Workforce Planning 

Oberoi flags that local relationships often matter as much as formal legal entitlements. “Local partnerships will matter just as much. Access to government projects, land and regulatory authorities often depends on relationships and local knowledge, regardless of what the law formally permits. Companies that recognize this early will benefit more,” she says. 

On the Indian corporate side, Ramkumar lists local partnerships and workforce matters among the issues requiring the closest diligence. On local partnership and procurement: “Companies must perform detailed due diligence on local partners, subcontractors, suppliers, and consortium participants to ensure alignment of commercial and compliance objectives.” On employment and localization: “Workforce regulations, immigration requirements, and local employment policies can significantly impact project execution and cost structures,” he says. 

Alowimari adds a further dimension around land itself. “Another important consideration concerns land rights and project implementation. Foreign ownership of real estate remains restricted in certain areas, although investors can often obtain long-term leasehold or usufruct rights for investment projects. Large-scale industrial, logistics, infrastructure, renewable-energy, and public-private partnership projects also require careful review of land-use rights, environmental approvals, and sector-specific permits,” he says. 

Oberoi extends this to workforce planning specifically. “For an Indian company planning to deploy specialist engineers or construction personnel, non-compliance may affect access to government projects and the company’s wider operating status. Workforce planning has to be accordingly done,” she says. Regulatory approvals, she adds, need the same advance planning: “Environmental permits, municipality approvals, free-zone rules and sector-specific licenses may involve different authorities and separate procedures. The required approvals will depend on both the project and its location. A company should understand that route before work begins.” 

The Role of Legal Advisors as Strategic Partners 

Ramkumar is clear that, for General Counsel, the value lies in early involvement rather than after-the-fact risk-spotting. “From a General Counsel’s perspective, success lies in being involved from the earliest stages of project development. In large infrastructure projects, proactive legal involvement often contributes significantly to project success, cost control, and long-term business sustainability.” 

Oberoi frames the same point from her own experience as General Counsel, in a single line: “A General Counsel needs to know the pulse of the regulatory environment and not just identify risks in a memo. The real contribution is in the structure of the project, negotiating a workable allocation of risk, building compliance processes that site teams can follow and giving the business enough legal clarity to make sound commercial decisions before execution exposes the gaps,” she says. 

On the Omani side, Al Lawati sees local firms increasingly positioned as one-stop shops for foreign clients. “Local lawyers are anticipated to act as one-stop shops for clients. An increase in the number of investors and companies set up may always lead to an increase in demand among Indian investors and Omani lawyers. Omani lawyers are considered among the best professionals, understanding their laws and established practices in their main fields of focus,” he says. 

He elaborates on what he believes sets Omani counsel apart. “Omani lawyers retain strong social skills, deep experience, bilingual skills, an understanding of international mindsets and requirements, a thorough review of the recently signed CEPA, and strong teamwork, which consistently gives clients a clearer view of the market and a broader understanding,” Al Lawati says. 

For international clients specifically, he adds: “International clients focus on demands that Omani lawyers can always provide, such as availability, straight information, offers to support in time, and sharing the know-how. Practical know-how is considered important, with lawyers being available to develop practical and commercial solutions within the bounds of the law. From another perspective, solutions should be practical and helpful, which can attract many investors to seek them out and spread them by word of mouth.” 

Alowimari argues that the bar for Omani law firms is rising in step with the sophistication of Indian investors. “As Indian businesses become increasingly sophisticated in their regional ambitions, the role of Omani law firms must evolve beyond company incorporation, licensing, and routine compliance. Those services are important, but they are no longer sufficient to distinguish one adviser from another. The firms that will add the greatest value are those capable of acting as long-term strategic partners throughout the investment lifecycle,” he says. 

He is also candid about a common misconception among investors. “It will be important for lawyers to provide commercially grounded advice rather than simply describing legislation. Many investors arrive with the impression that the CEPA itself has opened Oman to foreign investment. In reality, Oman had already undertaken substantial investment liberalisation through domestic legislation. Hence, lawyers should navigate the nuances of what rights are protected by treaty commitments, what rights are created by domestic law, and how changes in regulation may affect long-term business planning. The real value would, therefore, lie in practical suggestions backed by law,” Alowimari says. 

On the practical, integrated advice Indian manufacturers will need, he adds: “As Indian manufacturers increasingly explore Oman as an export and production platform, businesses will need advisers capable of integrating customs, trade, regulatory, and corporate law considerations into a single commercial strategy. This includes advising on origin compliance, free-zone structures, customs verification procedures, and the interaction between CEPA preferences and GCC framework requirements.” 

Finally, Alowimari points to two further, more operational considerations. “Another important consideration would be to have a strong team on the ground which can supplement legal advice with the requirements set out by the regulator so that compliance can be achieved in both form and substance. Also, dispute prevention by informing the client about risks and issues with the contracts would be pertinent as volume of trade and manufacture increases in Oman,” he says. 

Looking Ahead: Reforms and Collaboration 

Ramkumar believes the CEPA provides a strong foundation, but that realizing its full potential will take continued work from governments, regulators, industry and the legal community. “The CEPA provides a strong foundation, but maximizing its impact will require continued collaboration between governments, regulators, industry participants, and professional advisers,” he says.  He wishes to have greater regulatory coordination and project facilitation mechanisms along with streamlined approval processes ,enhanced investment protection and dispute resolution frameworks accompanied with greater certainty around enforcement, arbitration and dispute resolution frameworks , Promotion of internationally accepted dispute resolution mechanisms, encouraging balanced contracting and bankable project structures by promoting the use of internationally recognized standard forms of contract, transparent procurement practices, balanced risk allocation mechanisms, and robust payment security arrangements, dedicated infrastructure and industrial cooperation platforms, support for sustainability and energy transition initiatives and increased legal and professional collaboration between India and Omani law firms, industry associations, and corporate legal teams. “Ultimately,” Ramkumar concludes, “the success of the India–Oman economic partnership will depend on creating an environment where businesses can invest with confidence, execute projects efficiently, and develop long-term strategic partnerships. The CEPA has the potential to become a catalyst for precisely this kind of sustainable and mutually beneficial growth.” 

Oberoi’s wish list is narrower and feels that CEPA provides the base. Construction and infrastructure projects would benefit from a few more practical measures, Industry bodies and legal communities in both countries could develop model Particular Conditions for Indian Omani joint ventures, with clear provisions on risk allocation, payment security and dispute resolution. 

She singles out payment delays as a particular pain point. “Delayed payments move quickly down the construction supply chain and are felt most sharply by subcontractors, suppliers and smaller Indian businesses. A shared focus on timely payment would give contractors on both sides a more workable operating environment,” Oberoi says, adding that “joint training, exchange programmes and cross-border mediation protocols for construction disputes can strengthen confidence in the institutions responsible for resolving these cases.” 

She points to her own organization as an example already under way. “At ConstructHER Legal Network, we are already bringing practitioners together across jurisdictions to share practical experience and learn from one another. Cross-jurisdictional task forces can be curated to provide a practical starting point for developing solutions that are both workable and capable of implementation,” Oberoi says. 

Al Lawati closes on a similar note of cross-border collaboration between the legal communities. “I believe that this opportunity, following the execution of CEPA, is a wonderful one to lay the groundwork for collaboration between Omani and Indian law firms to exchange services and know-how. This can always create trust between Indians and Omanis to gather joint information and present it in the best manner to the clients,” he says. 

Looking Ahead 

The  significance of  CEPA extends well beyond tariff liberalisation ranging from infrastructure and energy to manufacturing and professional services, the agreement provides a platform for deeper engagement across investment, supply-chain integration, and cross-border legal collaboration. 

As businesses move from anticipation to execution, sustained success is likely to depend on rigorous contract structuring, early regulatory diligence, and long-term collaboration between Indian and Omani legal advisers. Organizations that combine commercial ambition with careful legal preparation will be best placed to unlock the full potential of the India–Oman corridor.