MUSCAT : Addressing concerns over the potential impact of CEPA on national employment, His Excellency Qais bin Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion, clarified that existing Omanisation rates across sectors will remain fully protected under the agreement. All sectors where Omanisation currently exceeds 50 per cent will retain their existing levels without any reduction. For instance, sectors with Omanisation rates of 70 per cent or 90 per cent will continue at those levels.

In sectors where Omanisation rates are below 50 per cent, the agreement provides flexibility for the Sultanate to gradually increase these rates up to 50 per cent, in line with national labour market priorities. This mechanism ensures that CEPA supports job localisation rather than diluting it, reinforcing Oman’s long-term workforce development strategy.

The Minister emphasised that CEPA is aligned with Oman Vision 2040, balancing economic openness with social and employment objectives. By safeguarding Omanisation thresholds, the agreement aims to attract foreign investment without compromising opportunities for Omani nationals.

Oman’s key non-oil exports to India include urea, ethylene, polyethylene and gypsum, sectors expected to benefit from reduced tariffs and improved market access under CEPA. At the same time, the agreement is expected to lower production and import costs, enhance competitiveness of Omani industries, and stimulate activity in special and free zones.

His Excellency noted that CEPA also positions Oman as a strategic gateway for Indian trade and investment into the Gulf, Middle East and Africa, while ensuring that national employment policies remain firmly intact.

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