AGP Executive Report

Trade and Travel: Air Astana will launch weekly Almaty–Salalah and Astana–Salalah flights on October 23 and 24, respectively, opening new links after the Sultan’s recent Kazakhstan visit. Energy: Pakistan State Oil signed a petroleum supply agreement with Oman’s OQ Trading on October 8, under a deal intended to strengthen Pakistan’s fuel supply chain. Regional Diplomacy: Oman condemned Houthi attacks on Saudi airports and called for them to stop. A proposed “Muscat Process” would create regular dialogue among the GCC, Iran and Iraq, with Oman as a potential facilitator. Jobs and Industry: Oman has reserved 32 professions for citizens, according to a newly published list. Upcoming Visit: Sultan Haitham is due in the UK for a state visit from October 20 to 22.

Maritime Security: Oman evacuated 10 crew members from a tanker hit near Musandam as fires and attacks threaten shipping around the Strait of Hormuz. Muscat condemned Houthi strikes on Saudi airports and urged restraint. Regional Investment: Oman and Kazakhstan agreed on energy and investment deals, including a proposed $150 million fund, after Sultan Haitham’s state visit. Business: Omani firms signed six agreements with Bahraini companies to expand trade, while a new Dhofar tourism complex is backed by a $1.04 billion deal. Economic Growth: Oman’s startup network is expanding, with more than 3,000 business ideas generated annually, according to Riyada. OQ Trading is also pursuing a larger, more diversified LNG portfolio, building on Omani supply. Capital Markets: Muscat Stock Exchange has been placed on FTSE Russell’s watch list for possible reclassification to secondary emerging-market status.

Economic Outlook: The World Bank expects the wider Middle East, North Africa, Afghanistan and Pakistan region to contract 2.1% in 2026. Oman’s food inflation has topped 7%, while headline inflation is around 3%, as Hormuz tensions disrupt trade and push up costs. Markets and Investment: Muscat’s stock index edged up 0.05% on Thursday, with turnover reaching OMR82.46 million. Oman’s International Financial Centre board reviewed plans to strengthen the country’s appeal to investors and financial institutions. Trade and Tourism: Oman launched its 2027 logistics best-practices award, while a new RO1.04 billion Dhofar tourism complex is among the week’s major investment developments. Sultan Haitham’s Kazakhstan visit also produced eight agreements and plans for a $150 million investment fund. Regional Security: Tanker attacks have reached a wartime high and traffic through the Strait of Hormuz has fallen to a two-month low, raising risks for Gulf shipping and energy exports. Earlier this week, Oman evacuated crew from a vessel attacked near Musandam.

Maritime Security: Oman evacuated 10 crew members from a tanker struck near the Strait of Hormuz; 12 people were injured in the attack, which heightened concerns over shipping through the waterway. Kazakhstan Partnership: Sultan Haitham concluded his state visit to Kazakhstan after the two countries signed eight agreements and advanced plans for a joint $150 million investment fund, alongside cooperation in trade, energy and logistics. Investment: Deals worth more than RO550 million ($1.43 billion) were announced at Muscat’s Urban October expo, led by a tourism development agreement valued above RO400 million. Capital Markets: FTSE Russell placed Oman on its watch list for possible reclassification to Secondary Emerging Market status, following reforms to improve market access and liquidity. India Ties: Oman and India reviewed trade, energy, defence and maritime cooperation, including security concerns around Hormuz. Digital Connectivity: Ooredoo’s OFN signed a fibre deal to extend a planned Gulf cable route across Iraq towards Türkiye and Europe.

Maritime Security: Oman evacuated 10 crew members from an oil tanker attacked near the Strait of Hormuz; India reported that 12 crew were injured. Investment & Trade: Oman is set to become the first Gulf shareholder in the Eurasian Development Bank, following an agreement signed during Sultan Haitham’s Kazakhstan visit. The two countries also agreed to deepen investment ties and explore trade routes linking Kazakhstan to Omani ports. Capital Markets: Muscat Stock Exchange has been added to FTSE Russell’s watchlist, opening the way for a future review of its market classification. Digital Connectivity: Ooredoo Group’s international arm, OFN, agreed to buy fibre capacity in Iraq, supporting a planned data route linking the Gulf with Türkiye and Europe. Economic Growth: Oman’s economy grew 5.1% in the second quarter, while its trade surplus reached RO5.5 billion by the end of July. Culture: Oman and Italy signed an agreement to cooperate on heritage and museums, including expertise for developing the Oman Maritime Museum.

Strait of Hormuz Security: Oman evacuated 10 crew after a commercial vessel was attacked near Musandam, as India reported injuries on the Panama-flagged tanker On Peace and called for an end to strikes on civilian shipping. Flydubai Terror Plot: New reporting says the Flydubai co-pilot accused in the Tel Aviv-bound cockpit attack trained in Britain and was fired by Oman Air over extremist concerns before being hired by Flydubai; investigators continue to probe his background and alleged targets. Oman–Pakistan Trade Push: Punjab and Oman agreed to expand cooperation in agriculture, fisheries, livestock and water, including a proposed shrimp centre in Punjab and easing rules for skilled workers. Oman Conservation Win: Oman released 60 rare Arabian sand gazelles into the wild in Wadi Marir as part of its Al Reem 2 biodiversity push. Gulf Sports Spotlight: Saudi Arabia beat the UAE 2-0 to win Gulf Cup 27, with Oman’s Ali Al-Habsi noted among goalkeeping history-makers.

Oman–Kazakhstan State Visit: Sultan Haitham bin Tariq met Kazakhstan President Kassym-Jomart Tokayev in Astana, agreeing to deepen cooperation across energy, mining, transport, logistics, food security, tourism, tech and AI, with five agreements and 10 MoUs signed, including investment protection, air services, and an Oman–Kazakhstan business council. Central Bank Research: Oman’s Central Bank launched its inaugural Research Symposium to strengthen economic foresight and policy resilience in line with Vision 2040. Logistics Strategy 2040: Oman’s Shura Council reviewed progress against Logistics Strategy 2040 targets, focusing on SOHAR Port and Freezone performance and how the logistics ecosystem supports competitiveness. Maritime Security: Oman renewed its maritime security MoU with the Indian Navy to keep navigation safe. Strait of Hormuz Risks: India condemned an attack on the Panama-flagged MT On Peace off Oman that injured 11 Indian crew; separately, UKMTO reported multiple tanker incidents and cautioned ships to transit carefully. Housing Focus: UN-Habitat marked World Habitat Day in Muscat, urging urgent action on the global housing crisis. Flydubai Probe Fallout: Reports say Israel is still assessing whether the Omani co-pilot acted alone, while Trump blamed Iran for the attempted hijacking.

FlyDubai Terror Probe: Investigators say Omani co-pilot Hamam al-Hammami planned a crash targeting Israel’s Ben Gurion Airport, after attacking the captain with an axe and trying to seize control of the Dubai–Tel Aviv flight; the UAE calls it a “terrorist act,” Israel is probing whether he acted alone, and the US says it has seen no conclusive Iran link while Trump says he personally believes Iran was behind it. Aviation Security Scrutiny: The incident is triggering fresh questions over crew vetting and how a pilot flagged by Oman Air for extremist concerns still ended up on an Israel-bound route, with Israel reportedly prepared to shoot down the aircraft if it had stayed on course. Oman in Sanctions Spotlight: Japan’s first-ever vessel sanctions against Russia included 13 crude oil tankers registered in Oman, tightening controls on payments, services and insurance tied to the targeted network. Regional Sports: Saudi Arabia and the UAE set for the Gulf Cup 27 final in Jeddah after beating Qatar and Oman respectively, while Oman’s national team exited the semi-finals after a 1-0 loss to the UAE. Housing in the Gulf: Bahrain highlighted a more flexible housing model at Urban October in Oman, including private-sector roles and land development programmes. Oil & Shipping Risks: Tanker attacks and heightened threats around the Strait of Hormuz are pushing shipping costs up as Gulf exports hover near pre-war levels but face an uncertain outlook.

Flydubai Probe Widens: Investigators say the Omani co-pilot behind the attempted cockpit attack on an Israel-bound flight planned the strike before being hired, with the investigation now spanning the UAE, Israel, Saudi Arabia and even New Zealand and Australia. Aviation Security Questions: Reports point to vetting failures after the suspect was previously flagged over extremist views in Oman, raising fresh concerns about how he was cleared to fly. Oman Trade & Growth: Oman’s trade surplus hit OMR5.5bn by end of July 2026, while GDP grew 5.1% in Q2 on strong petroleum activity. Energy Watch: OPEC+ kept November output targets steady as OPEC warned attacks on energy infrastructure and shipping routes could boost volatility. Oil & Shipping Signals: Satellite and shipping data show 19 ship-to-ship oil transfers off Oman on Oct 4, and Middle East crude exports topped pre-war levels in late September despite Hormuz risks. Local Updates: Oman hosted a GCC e-learning officials meeting, launched Urban October housing events, and forecast above-average October rainfall in northern governorates.

Aviation Security Shock: Israel ordered a security review of foreign flights after an Omani flydubai co-pilot allegedly stabbed the captain and tried to crash the Israel-bound jet, with reports saying the plan targeted Ben Gurion and even included shutting down engines and forcing a steep dive. Regional Fallout: Australia opened an investigation into the co-pilot’s links after claims he studied in Melbourne, while Israel said it had received crew details from the UAE—raising fresh questions about vetting and oversight. Oil Market Watch: OPEC+ agreed to keep November production steady as Brent stays above $100 amid Iran-linked shipping risks, and Saudi Aramco cut Asia crude prices unexpectedly. Oman Economy: Oman’s GDP grew 5.1% in Q2, driven by a 14.7% jump in petroleum activity. Labour Mobility: Overseas job clearances fell 29% year-on-year in September, with Gulf restrictions and regional instability blamed. Environment & Society: Two tourists were fined and jailed in Oman for disturbing nesting sea turtles at Ras Al Hadd.

Flydubai Terror Probe: UAE-led investigators say the Tel Aviv-bound FZ1073 cockpit attack was a “terrorist act” after Omani co-pilot Hamam al-Hammami allegedly stabbed Captain Smit Machchhar with an emergency axe and tried to seize control; Israel’s preliminary probe also points to a lone-wolf scenario, while Australia has launched a counterterrorism investigation into his links to the country after reports he studied there on a student visa. Aviation Security Questions: Multiple reports highlight how the suspect was reportedly barred from flying in Oman over extremist concerns yet still ended up on the Flydubai crew, keeping focus on vetting and screening gaps. Regional Fallout: Iran denies any connection and calls claims a “false flag,” as the incident continues to strain Israel-UAE ties and spark wider debate on aviation checks. Oman Diplomacy: Oman’s Foreign Minister received WHO credentials and welcomed Jordan and Türkiye ambassadors-designate. Energy Watch: OPEC+ kept November oil output targets unchanged, with Oman among the core members. Environment: Divers removed 400kg of entangled fishing nets near Jabal Al Sawadi in Barka after reports of dead sea turtles.

Flydubai Terror Probe: UAE prosecutors say the Israel-bound Flydubai Flight FZ1073 incident was a “terrorist attack” after co-pilot Hamam al-Hammami allegedly attacked the captain with a crash axe and tried to seize control; passengers and off-duty crew helped stop him and the plane landed safely in Saudi Arabia. Oman Link Under Scrutiny: Multiple reports say Oman had barred al-Hammami from flying over extremist concerns, raising questions about how he still got onto the cockpit. Australia Connections: Australian Federal Police and the Victorian Joint Counter Terrorism Team are investigating possible Australian links, including claims he studied in Australia and visa details. Hero Captain Spotlight: Injured captain Smit Machchhar described how the attacker appeared to pray first, then struck him; Netanyahu invited Machchhar and Modi to light a torch at Israel’s Independence Day. Regional Context: Israel is also probing whether pilots with certain dual nationalities could have entered Israel despite security restrictions. Gulf Cup 27: UAE beat Oman 1-0 to reach the final against Saudi Arabia.

Flydubai Terror Probe: UAE Attorney General Hamad Saif Al Shamsi says the Omani co-pilot accused in the Dubai–Tel Aviv cockpit attack tried to seize control of the jet and carry out a “terrorist act,” after stabbing Captain Smit Machchhar with a crash axe and triggering a rapid plunge before passengers and crew subdued him. Identity and background: The suspect is widely named as Hamam al-Hammami, with reports he was removed from Oman Air training over extremist concerns and later studied aviation management via a UK distance course. Hero pilot updates: UAE leaders and the Indian Embassy say Machchhar is recovering well after the emergency landing in Saudi Arabia, with UAE officials praising his courage for opening the cockpit door. Oman business: Madayn’s Raysut Industrial City attracted nine new projects worth RO 6.55m in H1 2026, supporting sectors like iron, mining, food and services. Diplomacy: Oman is set to showcase pharmaceutical investment opportunities at Milan’s 2026 exhibition.

Flydubai Cockpit Attack: Oman-linked co-pilot Hamam Alhamami has been identified as the man accused of stabbing Captain Smit Machchhar and attempting to crash Flydubai Flight FZ1073 to Tel Aviv; multiple reports say Oman previously barred him from flying over extremist concerns, including alleged radical influence during time in Syria, while investigators now ask how he later got hired and cleared to fly. Aviation Security Scrutiny: UAE and Saudi authorities are probing the incident as Israel weighs whether to question the suspect after he was transferred to the UAE; officials and media reports also point to possible gaps in vetting and information-sharing for Israel-bound routes. Regional Fallout for Travel: Flydubai suspended Israel flights amid the investigation, and repatriation flights were arranged for stranded passengers after the emergency landing in Saudi Arabia. Oman in the Spotlight: Separate coverage revisits Oman’s “mediator” role in the region and how the case is testing perceptions of its ties with both Western partners and Iran.

Flydubai cockpit attack: UAE adviser Anwar Gargash called the attempted crash of a Dubai–Tel Aviv flight a “dangerous terrorist act,” praising Indian captain Smit Machchhar for saving 174 passengers after he was stabbed by an Omani co-pilot; Repatriation and probe: Israel says repatriation flights will resume for passengers stranded in the UAE as investigations continue in Saudi Arabia, the UAE and Israel, with officials also warning against conspiracy claims; Oman angle: Israel says the attacker exploited a “loophole” that allowed an Omani pilot to fly despite restrictions, while Oman’s coach Tarik Sektioui urged focus on the Gulf Cup semi-final against the UAE; Regional security: Iran’s weekly drone and missile attacks near the Strait of Hormuz are reported to be continuing despite oil exports rebounding, keeping shipping risk high.

Flydubai Cockpit Attack: Saudi Arabia transferred the wounded captain, Capt. Smit Machchhar, and the Omani co-pilot accused of stabbing him to the UAE after medical clearance, as investigators probe whether the incident was terrorism or a lone act; Israeli PM Benjamin Netanyahu said the suspect showed “Islamist radical indoctrination,” while the UAE says it is examining any possible terror link and prior planning. Oman Legal Action: Oman’s Public Prosecution is taking up the case of a Ukrainian influencer referred after a viral video showed him riding an endangered sea turtle and mishandling hatchlings; officials said an apology doesn’t undo serious wildlife violations. Houthis Support Case: In the US, a former Department of Energy employee from Washington, Ashton Hamed Ellaboudy, was arrested and charged with attempting to provide material support to Iran-backed Houthis, including buying drone and explosive-related materials and traveling via Oman to Yemen. GCC Housing: Oman’s housing minister attended GCC Housing Award ceremonies, honouring winners and youth projects during Gulf Housing Week.