With the signing of a Comprehensive commercial Partnership Agreement (CEPA) on December 18, India and Oman took a major step in deepening their scientific and commercial relations. This is a historic occasion for Oman because it is the country’s first bilateral trade deal since signing a free trade agreement with the United States in 2006, even though it is India’s second CEPA in the Gulf following the India–UAE agreement in 2022.
The development of an improved framework for market access and mobility for Indian professionals and businesses is a key component of this agreement. Indian businesses are now allowed 100% foreign direct investment (FDI) through commercial presence in a number of important service industries under the CEPA. This eliminates the need for local ownership or partnership limitations, allowing Indian businesses to open operations in Oman, hire Indian people, and grow their presence.
Oman has made 127 service subsectors, such as IT and computer-related services, professional and commercial services, and research and development, accessible in order to support this liberalized framework. This action positions Oman as a desirable location for businesses wishing to service Gulf and African markets, opening up new prospects for Indian IT enterprises, startups, and qualified personnel.
Additionally, the agreement offers qualified workers like engineers and IT specialists more flexible entrance and stay policies. Indian technology businesses, especially those aiming for long-term regional development, are anticipated to gain a great deal from these improvements. More significantly, Indian businesses are in a good position to profit from what is widely being called an approaching “Omani AI gold rush.”
The Oman Investment Authority (OIA), Oman’s sovereign wealth fund that actively invests throughout the global artificial intelligence value chain, is at the center of this change. In order to promote economic diversification and technology transfer, the OIA is concentrating on future-ready technologies as part of Oman Vision 2040.
The fund has made investments in a number of AI-focused businesses and funds, including those developing next-generation computing technology and vertical AI applications. Additionally, it was an early investment in Elon Musk’s xAI business. In 2025, the OIA also made an investment in a UK-based company that specializes in photonic computer chips for accelerating AI. Additionally, Oman has supported businesses like Crusoe Energy, which creates data centers powered by renewable energy, a crucial piece of infrastructure for the AI ecosystem.
In order to draw in international AI investments, Oman is further utilizing its advantageous geographic location and comparatively neutral geopolitical stance. Early in 2025, the nation and the World Economic Forum struck a deal for the establishment of a Center for the Fourth Industrial Revolution (C4IR) in Muscat, with an emphasis on energy transition and AI governance.
Oman is making significant investments in digital infrastructure at the same time to build a solid foundation for foreign AI businesses. In order to create sandbox settings where international companies may test, pilot, and expand their ideas inside the Omani market, dedicated AI Startup Zones and “AI Studios” have been established.