Piyush Goyal Explains India–Oman CEPA Hiring Flexibility
NEW DELHI | December 20, 2025
Commerce and Industry Minister Piyush Goyal on Friday said the India–Oman Comprehensive Economic Partnership Agreement (CEPA) provides significant relief to Indian companies investing in Oman, particularly on local hiring requirements under the country’s labor laws.
Under the agreement, Oman has assured India that companies from India operating there will be required to hire only a limited number of Omani nationals, while the rest of the workforce can be sourced from India. Goyal said this provision offers long-term certainty to Indian investors and is unprecedented in Oman’s trade agreements.
The CEPA was formally signed on December 18 in Muscat, marking a major milestone in bilateral economic ties.
First-Ever Binding Exemption by Oman
Goyal said this is the first time Oman has granted a permanent and legally binding exemption of this nature to any country. Even if Oman revises its labor laws in the future, the agreed hiring flexibility for Indian firms will remain protected as part of the free trade agreement.
“This ensures that Indian investors will not be forced to hire workers from third countries,” the minister said, adding that the move would directly translate into employment opportunities for Indian professionals while also supporting job creation within Oman.
Boost for Jobs and Investment
The minister noted that the arrangement benefits both countries. Indian companies will gain workforce flexibility, while Oman will continue to see employment generation and investment inflows in key sectors.
Under CEPA, entry and residency conditions have also been liberalized for skilled professionals in sectors such as accountancy, taxation, architecture, medical services, and allied fields, easing cross-border movement and enhancing cooperation in professional services.
What Is Omanization Policy?
Officials said it has also been agreed that if Oman grants greater relaxation under its Omanization policy to any other SAARC country in the future, the same benefits will automatically extend to India.
Under the Omanization policy, sector-wise quotas are set to ensure the hiring of Omani nationals in the private sector.
100% FDI Access for Indian Firms
Additionally, the CEPA allows 100% foreign direct investment (FDI) for Indian companies in key service sectors in Oman. This is expected to provide Indian service providers with a major opportunity to expand operations across the Gulf region, strengthening India’s footprint in West Asia.
The agreement is being seen as a strategic step toward deepening trade, investment, and labor mobility ties between India and Oman, while giving Indian businesses a competitive edge in the Middle East.
