
Oman emerges as prime gateway to US market
As the United States rolls out sweeping new reciprocal tariffs, Oman's Free Trade Agreement (FTA) with the US has become more valuable than ever.
Far from being a historical footnote, the 2009 FTA now positions Oman as a resilient and strategic partner for global businesses seeking stable access to the world's largest economy.
On April 2, 2025, the White House announced reciprocal tariffs on a broad range of imported goods, part of a strategy to level the playing field for American exporters facing high foreign duties.
Set to take full effect on July 8, these measures are already shifting global trade patterns. In this changing landscape, Oman stands out — offering preferential and in many cases duty-free, access to US markets.
OMAN'S COMPETITIVE ADVANTAGE
Under the US-Oman Free Trade Agreement, Omani goods have entered the US duty-free. Even with the newly imposed 10% reciprocal tariff, Omani products such as minerals, fertilisers and stones remain exempt.
For other categories now subject to the 10% charge, Oman still avoids the original 'General' tariffs under US Normal Trade Relations, which typically range from 5% to 25%.
This distinction is critical. While countries like Saudi Arabia and the UAE now face both the new reciprocal tariff and the existing general duties — resulting in total tariffs of 15% to 35% — Omani exporters generally pay no more than 10%.
For some goods listed under Executive Order 14257, Omani exporters continue to enjoy zero tariffs altogether.
REAL-WORLD EXAMPLES
Consider shaving products (HTS Code 3307.10): an Omani exporter faces only the 10% reciprocal charge, while European companies shipping the same products encounter nearly 25% in combined tariffs.
Similarly, Vietnamese broom exporters now contend with nearly 49% in tariffs, while Oman's total duty remains a modest 10%.
This pricing gap gives manufacturers and exporters based in Oman a significant advantage in the US market, offering predictability and cost competitiveness even as global trade faces rising protectionism.
CHALLENGES REMAIN
Not all sectors benefit equally. Aluminium and steel exports, for instance, still face a 25% tariff under US Section 232 rules, national security measures that the FTA does not override.
Furthermore, Omani producers competing directly with US manufacturers must work harder to remain competitive, as American companies (and some Canadian and Mexican firms under the USMCA) face no tariffs at all.
Nonetheless, Omani companies can remain competitive by smart pricing, incorporating US-origin materials; and emphasising speed and reliability in deliveries. With strategic adjustments, many Omani goods can continue to thrive in the American market.
SERVICES EXPORTS:
A HIDDEN ADVANTAGE
An often-overlooked strength of the US-Oman FTA is its protection of services exports. Omani firms in sectors such as IT, consulting, design, and logistics enjoy tariff-free, unrestricted access to the US market.
The agreement guarantees national treatment, putting Omani service providers on equal footing with American competitors — an advantage unmatched by other Gulf countries.
MANUFACTURING IN OMAN:
A STRATEGIC PLAY
For international companies now burdened by higher US tariffs, Oman presents an attractive alternative manufacturing hub.
Firms from Asia, Africa, or Europe can relocate operations to Oman, meet the 35% local value threshold and ship goods to the US under FTA benefits, often paying zero or minimal duties.
Beyond tariffs, Oman offers a stable regulatory environment, competitive energy costs, strategic geographic location, world-class infrastructure and growing incentives for investors — making it one of the region's most promising export bases to the US.
'This is a rare moment when global trade shifts create lasting opportunities,' said Ali Daud, Chairman of the Oman American Business Council (OABC).
'Oman is ready to welcome international manufacturers and help local exporters leverage access to the US market. But success will depend on smart, forward-looking decisions.'
Daud emphasised that no serious company will invest in relocating operations or opening new facilities if the opportunity looks temporary.
'No one moves factories for just four years,' he said. 'Oman must focus on durable sectors — products the US cannot easily manufacture itself, or sectors that have consistently faced high tariffs under different American administrations.'
Beyond tariffs, Oman offers a stable regulatory environment, competitive energy costs, strategic geographic location, world-class infrastructure and growing incentives for investors — making it one of the region's most promising export bases to the US.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Observer
an hour ago
- Observer
MoC inked to fund employment programme
MUSCAT: The Ministry of Labour (MoL) on Wednesday signed a memorandum of cooperation (MoC) with 'Security and Safety Services Corporation' to the tune of RO 1,207,300 to provide employment-linked training for 923 Omani job-seekers. The MoC was signed by Sayyid Salim bin Musallam al Busaidy, Under-Secretary of the Ministry of Labour for Human Resources Development, and Said bin Sulaiman al Asmi, CEO of Security and Safety Services Corporation. The MoC explores suitable job vacancies for the job-seekers, identify necessary skills, supervise the performance of the trainees, check their dedication to quality standards and assess the extent to which they gain insights from the training programme. The MoC stipulates the preparation of periodic reports to measure the success of the project, monitor common challenges and propose development plans. It provides training for Omani job-seekers in the field of fisheries-related security, safety and control, and equipping them with the skills necessary to perform their job duties. — ONA


Observer
3 hours ago
- Observer
Oman a prime location for e-ammonia production: Yamna
MUSCAT: The Sultanate of Oman's potential to become a regional powerhouse in e-ammonia production has been reaffirmed by a top executive at Yamna, a clean energy investment firm collaborating with major international players to develop a gigawatt-scale green hydrogen project in Dhofar Governorate. Abdelaziz Yatribi, CEO of UK-based Yamna, stated in a recent interview that Oman's natural, infrastructural, geostrategic, and regulatory advantages make it an ideal destination for e-ammonia investment. 'Oman offers exceptional solar and wind resources, resulting in one of the lowest levelised costs of electricity (LCOE) – a critical factor in green hydrogen and ammonia production. Additionally, the Omani government's proactive approach, particularly through Hydrogen Oman (Hydrom), provides a supportive framework for green hydrogen and its derivative projects,' Yatribi said in an interview featured in an in-house report of Eiffel Investment Group, a leading European third-party asset manager. Last year, Yamna, along with consortium partners EDF Group and J-POWER, was awarded a 341 km² land block in Dhofar Governorate to develop, build, own, and operate a large-scale green ammonia project with an annual production capacity of 1 million tonnes. The project will integrate approximately 4.5 GW of renewable energy capacity and a 2.5 GW electrolyser, supplying hydrogen to an ammonia plant to be established in the Salalah Free Zone. Yamna's strategy, according to Yatribi, centres on producing the world's most cost-competitive green molecules – hydrogen and ammonia – in locations where renewable resources are both abundant and economical. 'Ammonia serves as an efficient carrier for hydrogen, facilitating its transport to global markets. It is a well-established commodity with over a century of production and transportation history, which significantly reduces technology and infrastructure risks. By leveraging existing ammonia infrastructure, we can accelerate the global deployment of green hydrogen solutions, particularly in markets with decarbonisation imperatives and limited domestic access to competitively priced green molecules,' he explained. Traditionally used in fertilizer production and industrial processes, the demand for e-ammonia is expected to grow substantially over the next 5 to 10 years, Yatribi noted. This growth will also be driven by its emerging role as a hydrogen carrier and low-carbon maritime fuel. In countries like Japan and South Korea, government-backed initiatives support the use of e-ammonia in power generation and industrial applications. Likewise, increasing interest in ammonia as a marine fuel is prompting the development of stringent safety protocols, supported by successful bunkering trials and forthcoming guidelines from the International Maritime Organisation (IMO), he added. Yatribi also emphasised Yamna's commitment to delivering a global portfolio of export-oriented e-ammonia projects, currently planned in Brazil, India, Morocco, and Oman. 'We envision e-ammonia playing a central role in the global energy transition. Beyond replacing fossil-based ammonia in traditional uses, e-ammonia will serve as a key enabler for decarbonising hard-to-abate sectors, including power generation and maritime shipping,' he said, adding: 'With continued technological innovation and supportive policies, we believe e-ammonia will become a cornerstone of a sustainable, low-carbon future.'


Observer
3 hours ago
- Observer
Tender floated for commercial hub in EZAD Square
MUSCAT: The Public Authority for Special Economic Zones and Free Zones (OPAZ) announced on Wednesday the launch of a tender for the construction of the administrative and commercial buildings complex in the Economic Zone at Al Dhahirah EZAD Square, IP4. The Authority invited experienced Omani-Saudi consortiums to submit bids via the electronic tendering platform 'Esnad.' The deadline for purchasing tender documents is set for June 26, with a site visit scheduled for June 30. The final date for submitting bids is August 11, 2025. The tender includes the construction of the main square of the Al Dhahirah Integrated Economic Zone, a business centre, an administrative building, a commercial centre, as well as a hotel and a health centre. The scope of work includes the execution of civil works, electrical and mechanical systems, and steel structures for the buildings. It also covers external works such as the construction of internal roads, sewage networks, water and irrigation systems, and landscaping. The total land area allocated for the complex is approximately 50,000 square metres, with the first phase covering a built-up area of around 17,000 square metres and the potential to expand to 38,000 square metres. Eng. Ibrahim Yousuf Al Zadjali, EZAD Project Manager, affirmed that smart city principles have been considered in the design of the facilities. The buildings have also been designed in line with the requirements for obtaining LEED (Leadership in Energy and Environmental Design) green building certification, which will be implemented by the consortium awarded the tender. Al Dhahirah Integrated Economic Zone is located 20 kilometres from the Empty Quarter border crossing between the Sultanate of Oman and the Kingdom of Saudi Arabia, with a total area of 388 square kilometres.