Oman Increases Indian Workforce Cap to 50% in Major Trade Agreement
In a landmark development for Indo-Omani economic relations, Oman has agreed to significantly increase the permissible percentage of Indian nationals in company workforces from 20% to 50%. This major concession is a key provision of the newly signed Comprehensive Economic Partnership Agreement (CEPA), signed in Muscat on December 18, 2025.
The agreement, sealed by India’s Commerce Minister Piyush Goyal and Oman’s Minister Qais bin Mohammed Al Yousef, is designed to deepen trade, investment, and crucially, labour mobility between the two nations.
Unlocking New Opportunities for Indian Professionals
The raised workforce cap is a cornerstone of the CEPA’s mobility framework. It provides Indian companies operating in Oman with much greater flexibility to hire managers, executives, specialists, and other professionals from India, particularly in sectors where specific skills are essential. This addresses a key challenge for investors and is expected to enhance operational efficiency.
Enhanced Visa and Mobility Provisions
The agreement goes beyond just quotas, offering significant improvements in visa arrangements for Indian professionals:
Intra-Corporate Transferees (ICTs): Benefit from a higher quota and longer permitted stays.
Contractual Service Suppliers: Can now stay for up to two years, with the possibility of extension.
Independent Professionals & Business Visitors: Granted longer-term entry options.
These enhancements are set to benefit project-based work across high-demand sectors like IT, engineering, healthcare, and consulting, facilitating smoother service delivery.
Strategic Economic and Long-Term Benefits
The revised cap reflects a strategic balance, supporting Omanisation goals while meeting the practical talent needs of foreign investors. It strengthens India’s economic footprint in Oman and opens substantial opportunities for Indian professionals seeking Gulf assignments.
A critical feature is the “standstill clause,” which guarantees the 50% cap cannot be reduced in the future, providing long-term certainty. Furthermore, a parity clause ensures that if Oman grants similar benefits to other SAARC nations, India automatically receives them, securing India’s competitive position in the region.
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Broader Scope of the CEPA
The workforce provisions are part of a comprehensive pact that also includes:
Tariff Liberalization: Indian exporters will receive zero-duty access on the majority of Oman’s tariff lines.
Services Access: Oman has opened 127 service sub-sectors to Indian businesses in fields like health, education, and technology.
A Transformative Pact for the Future
With implementation expected in early 2026, the India-Oman CEPA is poised to transform bilateral engagement. By combining enhanced workforce mobility with broad trade liberalization, it sets a new benchmark for economic cooperation, promising expanded commercial ties and a significant boost for Indian talent and businesses in Oman and the wider Gulf region.
