AGP Executive Report

Oman Economic Relief: Oman announced a facilitative package to cushion geopolitical shocks, including capped electricity tariffs for food-security sites, support for maritime transport of food imports, fixed rebar customs duties, a three-month postponement of the 4% tourism levy for affected hospitality firms, and possible loan-installment deferrals for impacted SMEs. Muttrah Tourism Boost: The Muttrah Cable Car project is 90% complete, with trial operations planned for December, as Muscat Municipality continues monitoring tourism infrastructure progress. Dhofar Khareef Countdown: Dhofar Municipality unveiled the 2026 Khareef season lineup (June 21–Sept 21) with 125 events, while Oman’s aviation sector ramps up Khareef flights and Salalah Airport retains its five-star Skytrax rating for a second year. Tourism Regulation Online: Dhofar authorities approved three digital booking platforms (Sikka, Masarra, Valop) to regulate seasonal accommodation rentals and curb misleading listings. Duqm Coastal Expansion: SEZAD is pushing a major coastal tourism master plan for Duqm, targeting hotels, a marina, eco-tourism and large visitor numbers by 2030 and beyond. Shipping & Energy Shockwave: The US-Iran framework deal and claims of Hormuz reopening are easing oil prices, but shipping firms warn normal transit could take weeks as safety, de-mining and transit details remain unclear—important for Oman’s port and maritime-linked economy. Oman Sail Spotlight: Oman Sail’s Optimist team is set for the 2026 World Championship in Morocco, aiming to represent the Sultanate on the global stage.

Oman Tourism & Aviation: Oman’s Civil Aviation Authority says it’s fully ready for the 2026 Khareef Dhofar season (June 21–Sept 20), with Oman Air adding up to 13 daily Muscat–Salalah flights in peak periods (14 on some days) and SalamAir up to 10 daily flights, plus higher overall capacity. Airport Service Upgrade: Salalah Airport keeps its five-star Skytrax rating for a second year, citing upgrades like the Majan Lounge and improved family facilities ahead of the seasonal rush. Hotel Performance: Oman’s 3–5 star hotels earned RO 96.2 million by end-April with 696,911 guests, though total guest numbers and revenue fell versus last year. Destination Development: SEZAD is pushing a major 16km Duqm coastal tourism expansion with hotels, a marina, eco-tourism and public waterfront spaces. City & Heritage Projects: Muscat Municipality has started work on the Muttrah Square waterfront landmark, featuring a pedestrian bridge and a new public plaza. Sustainable Tourism Rules: A forum in South Al Batinah discussed balancing tourism with environmental compliance at the Daymaniyat Islands Nature Reserve. Global Travel Context (Hormuz): As US-Iran talks move toward a Switzerland signing, shipping and energy markets are watching whether the Strait of Hormuz fully reopens—key for global travel costs and logistics. Diplomacy for Tourism: Oman’s ambassador presented credentials to the UN Tourism Organization, focusing on sustainable tourism cooperation.

Khareef Dhofar 2026 Air Boost: Oman’s Civil Aviation Authority says it’s ready for the season (June 21–Sept 20), with extra capacity on the Muscat–Salalah route: Oman Air up to 13 daily flights in peak periods (14 on some days) and SalamAir up to 10 daily flights, plus 984 flights planned for the season. Premium Travel Experience: Oman Air picked up the 2026 APEX Best Seat Comfort award (its third win in the category), underlining continued upgrades to passenger comfort. Mobility & Hospitality at Muscat Airport: Europcar Oman & Bahrain welcomed global leadership to Muscat and showcased “The Majlis” at Muscat International Airport, offering chauffeur-driven transfers and concierge-style welcome services. Muttrah Tourism Projects Move Ahead: Muttrah Teleferik is 90% complete, with trial operations expected in December, while Muttrah Square waterfront construction has started, including a pedestrian bridge and a multi-use plaza. Regional Travel Watch—Strait of Hormuz: US and Iran say a framework peace deal has been reached to end hostilities and reopen the Strait of Hormuz, a move that could ease shipping and energy pressure affecting travel logistics across the region. Maritime Safety in Oman Waters: India says rescued crews and incidents off Oman’s coast are being handled with Omani coordination, as tensions keep attention on commercial shipping routes.

Maritime Safety & Diplomacy: The US began strikes on Iran after a US Apache helicopter crash near the Strait of Hormuz, with a drone boat rescuing two aviators; the incident comes as tensions keep spilling into shipping lanes. Oman Coast Incident: A Palau-flagged tanker, M/T Settebello, was hit after nearly 60 verbal warnings, killing three Indian sailors, while India lodged fresh protests over attacks on commercial vessels near Oman. Rescue at Sea: All 14 Indian nationals were rescued after a dhow began sinking off Oman’s eastern coast near Ras Al Hadd, with US Navy aircraft and a nearby merchant vessel assisting. Aviation & Tourism Demand: Oman saw domestic passenger growth (+0.6% to 304,546) while international traffic fell (-7.8% to 1.88m) in early 2026. Urban Tourism Development: Construction has started on Muttrah Square’s waterfront landmark, including a bird-shaped pedestrian bridge. Cable Car Progress: Muttrah Teleferik is 90% complete, with trial operations expected in December. Hospitality Growth: Al Buraimi’s resort and rest house sector is expanding, supported by licensed facilities and rising private investment. Airline Award: Oman Air won the 2026 APEX Best Seat Comfort award for the Middle East. Weather Watch: Rain and thunderstorms are forecast to cool conditions in al Hajar areas, with possible dust and reduced visibility. Summer Festival: Oman’s key summer tourism festival is set for a mid-July launch.

Oman Tourism & Travel: Oman Air and SalamAir are adding summer routes, including Oman Air’s Muscat–Singapore and Muscat–Sochi from July 2, Muscat–Tashkent from July 3, and Dubai–Salalah from July 3, while SalamAir expands to Vienna (June), Medan (July) and Mogadishu (Sept 3). A’Dakhiliyah Summer Festival: Al Jabal Al Akhdar Festival 2026 is set for July 15 to end of August, aiming to boost domestic and regional tourism with upgraded venues and visitor services. Duqm Coastal Push: SEZAD plans a 16-km Duqm waterfront tourism master plan under Oman Vision 2040, targeting hotels, resorts, a marina, eco-tourism and hundreds of thousands of annual visitors. Airline Recognition: Oman Air won “Most Comfortable Seats in the Middle East” at the 2026 Apex Best Awards in Dublin for the third time. World Blood Donor Day: Oman marks June 14 with rising blood collections at Bausher and continued support for regular voluntary donation. Regional Disruption Watch: US-Iran tensions near the Strait of Hormuz continue to affect shipping and travel risk perceptions, with a recent Apache helicopter incident off Oman leading to US strikes and a drone-boat rescue.

Oman Air & SalamAir Expand Summer Routes: Oman’s airlines are adding new direct links this summer, including Oman Air services from Muscat to Singapore and Sochi (from July 2), a Muscat–Tashkent route (from July 3), plus Dubai–Salalah flights (from July 3); SalamAir will launch Vienna (June), Medan (July) and Mogadishu (from Sept 3), boosting both tourism and business travel. Duqm Tourism Push: Duqm’s Special Economic Zone is advancing a coastal tourism master plan under Oman Vision 2040, with a 16-km waterfront, hotels and resorts, a marina, eco-tourism, and targets of 200,000+ annual visitors by 2030. World Blood Donor Day in Oman: Oman marked June 14 with renewed calls for voluntary, regular blood donation, citing a rise in Bausher blood units collected from 28,613 (2020) to 42,023 (2025). Strait of Hormuz Tensions Affect Region: Amid US-Iran escalation and talks, the Strait of Hormuz remains central to shipping and regional travel risk, with Oman’s coast also in the diplomatic spotlight after attacks involving Indian seafarers. Aviation Comfort Win: Oman Air received Middle East “most comfortable seats” recognition at the 2026 Apex Best Awards, based on verified passenger surveys.

Maritime Safety & Oman: The U.S. says it has begun strikes against Iran after an Apache helicopter crash near Oman, with a drone boat rescuing two aviators; the incident underscores how the Strait of Hormuz remains a flashpoint for shipping and regional travel. Oman-Linked Human Impact: In parallel, India is grieving after a U.S. missile strike killed three Indian sailors on a tanker off Oman, while New Delhi again summoned the U.S. chargé d’affaires to protest lethal attacks on merchant vessels. Diplomacy & Shipping Lanes: Reuters reports the U.S. and Iran are nearing a peace text that could reopen the strait and lift a naval blockade, though both sides trade warnings and Iran discusses “service fees” for transit. Oman Community & Tourism Resilience: Oman marked World Blood Donor Day with a push for more regular donations, while the country also continues promoting coexistence through a UN initiative aimed at combating hate speech and atrocity incitement. Regional Travel Signals: UAE visa rule changes for 2026 and Oman-linked transport updates (including shuttle services and aviation upgrades in the wider region) point to continued momentum for Gulf travel despite tensions.

Maritime Security & Oman: The U.S. began strikes on Iran after a U.S. Army Apache helicopter crashed near the Strait of Hormuz off Oman, with a drone boat rescuing two aviators; Iran said explosions were heard near the strait as Trump blamed Tehran and vowed further action. Oman Coast Tensions: India again summoned the U.S. Chargé d’Affaires over repeated attacks on merchant ships with Indian crews near Oman, after three Indian sailors were confirmed dead in the strike on the tanker MT Settebello; India says it wants “unjustified” lethal force against civilian shipping stopped. Diplomacy Watch: Pakistan’s PM Shehbaz Sharif said the U.S. and Iran have agreed the final text of a peace proposal, with a possible Geneva signing, though both sides still trade accusations and insist red lines remain. Tourism & Business Events: Oman Convention and Exhibition Centre CEO Said Al Shanfari was elected UFI President for 2027-28, boosting Oman’s business-events profile. Local Development: Al Sharqiyah North projects get a boost, with major spending on health, roads, recreation and tourism-linked centres reported.

Middle East Security & Shipping: The US began “proportional” strikes on Iran after a US Army Apache helicopter crashed near the Strait of Hormuz; a sea drone reportedly rescued two aviators, while Iran said explosions were heard in the strait area. Oman-Linked Maritime Impact: The Gulf of Oman remains in focus after US missile strikes on tankers linked to the blockade, with India confirming three Indian seafarers killed aboard the MT Settebello and Oman’s navy responding to distress calls. Oman Diplomacy: Oman launched the Muscat Plan of Action at the UN in New York, aiming to counter hate speech and atrocity incitement by putting traditional and indigenous leaders at the center. Oman Economy: Oman’s Ministry of Economy met IMF experts to review growth prospects, especially in non-oil sectors, under Oman Vision 2040 and the 11th Five-Year Plan. Tourism & Community: Mysk Al Mouj in Muscat rolled out a summer hydration stop for delivery riders, offering chilled water and lemonade to help them cope with extreme heat. Cultural Heritage: Oman issued amendments strengthening protection of tangible and intangible heritage, expanding the “competent authority” role to include MoHT and MoCSY.

Oman Heritage & Tourism: Oman has strengthened the legal framework for protecting its cultural heritage, with Royal Decree No. 62/2026 amending the Cultural Heritage Law to better cover tangible and intangible heritage and expand the “competent authority” role to the Ministry of Heritage and Tourism and the Ministry of Culture, Sports and Youth. Duqm Growth & Jobs: In Duqm’s Special Economic Zone, OPAZ hosted SQU students for internship briefings, while FMC-Ferrometalco (Egypt) signed to build a major steel fabrication facility at SEZAD, targeting 25,000 tonnes of steel structures annually. Muscat Visitor Experience: Rustaq’s City Walk project is now about 25% complete, with retail, restaurants, a private clinic, and a motel planned to boost family-friendly tourism in South Batinah. Regional Travel Risk Watch: Amid US-Iran tensions near the Strait of Hormuz, shipping and aviation disruption fears continue, including reports of attacks on tankers off Oman and renewed calls for unimpeded navigation—an issue that can quickly ripple into Gulf travel plans. Business Travel: dnata Travel Group appointed Maura Geertsma to lead corporate travel across the GCC, including Oman, aiming to expand duty-of-care and digital travel services.

Gulf Security & Shipping: The U.S. has launched another wave of “self-defense” strikes on Iran for a second straight night, after President Donald Trump blamed Tehran for the downing of a U.S. Apache helicopter near the Strait of Hormuz and vowed to “hit them hard again.” Iranian state media reported blasts near the Strait, while Iran warned it could target any vessel attempting passage as the waterway remains highly unstable. Oman Coast Incident: The same escalation is spilling into commercial shipping off Oman: the U.S. disabled the Palau-flagged tanker Settebello in the Gulf of Oman, and India says three Indian seafarers are missing after the attack; India summoned a senior U.S. diplomat and said its embassy in Oman is coordinating with Omani authorities on search and rescue. New Tech in Rescue: A drone boat rescue operation saved two U.S. aviators after the Apache crash, marking the first known use of an unmanned vessel for a sea rescue in the region. Travel Ripple (World Cup): Visa denials and entry refusals are also creating friction around the 2026 FIFA World Cup, with Iran’s players citing heightened tension linked to U.S. visa actions.

Gulf Security & Shipping: The U.S. began strikes against Iran after a U.S. Army Apache helicopter crash near the Strait of Hormuz, with a drone boat rescuing two aviators; tensions also spilled into commercial shipping as the U.S. disabled the Palau-flagged tanker M/T Settebello in the Gulf of Oman, leaving three Indian crew members missing and prompting India to protest and coordinate with Omani authorities. Oman Diplomacy: Oman’s foreign minister met Canada’s counterpart in Manama, stressing stronger diplomacy and the safety of navigation and supply chains. Oman Investment & Tourism Growth: Oman is pitching itself as a growth hub, with Future Fund Oman backing renewable energy, advanced manufacturing, tourism and innovation; Oman also announced fresh foreign investment deals and new tourism projects, including hotel and resort developments. Transport & Visitor Numbers: National Ferries carried over 250,000 passengers in 2025, underlining Oman’s connectivity for island and coastal tourism. On-the-Ground Travel: Mwasalat launched shuttle bus services between Khasab, Bukha and Sohar for non-UAE visa holders, while Al Wusta continues to expand licensed accommodation for summer visitors.

Middle East Security: The U.S. began “self-defense” strikes on Iran after a U.S. Army Apache helicopter crashed near the Strait of Hormuz, with Trump blaming Tehran and Iran warning foreign forces are “at constant risk.” A drone boat then rescued the two aviators off Oman’s coast, underscoring how fast incidents can escalate in the region. Energy & Travel Costs: Gas and oil markets reacted sharply to the renewed fighting, with analysts warning fuel prices could jump again as the Strait of Hormuz remains a key chokepoint. Oman Investment Push: Oman’s Future Oman Fund signed deals for 105 projects worth over RO583 million, targeting 2,302 jobs across sectors including renewable energy, healthcare, tourism and advanced manufacturing. Oman Transport for Visitors: Mwasalat launches a shuttle bus between Khasab, Bukha and Sohar for non-UAE visa holders from June 17, with RO6 one-way and RO10 return. Regional Connectivity: Sharjah updated bus schedules to Muscat and added more options for cross-border travellers.

Strait of Hormuz Security: President Donald Trump blamed Iran for downing a U.S. Army Apache helicopter near the Strait of Hormuz and said the U.S. “must” respond, as a drone boat carried out the first known U.S. drone rescue at sea and both pilots were reported safe. Oman Maritime Response: In a separate incident off Oman, Indian Coast Guard and Omani authorities coordinated to evacuate 24 Indian seafarers after a missile attack on a Palau-flagged oil tanker, with Omani Navy helicopters involved. Road & Tourism Access: In Salalah, the Al Mughsail Road and Bridge project is 85% complete, with traffic expected to open in early July and improved access to Marneef Cave and Al Mughsail Beach. Oman Investment Push: Future Fund Oman signed agreements for 105 projects worth OMR583 million, targeting 2,302 jobs across sectors including tourism, renewable energy, healthcare and innovation. Regional Travel Watch: Sri Lanka waived tourist visa fees (free ETA) for visitors from 40 countries including Oman, aiming to boost short-stay leisure travel.

Maritime Safety & Security: Omani authorities and the Indian Coast Guard coordinated to rescue 24 Indian seafarers after a missile attack and fire on the Palau-flagged tanker MT Marivex off Oman; Omani Navy helicopters airlifted the crew to safety, highlighting tighter emergency response needs as regional tensions keep shipping risky. Investment & Tourism Development: Oman signed 10 Duqm Special Economic Zone deals worth RO2.9bn ($7.5bn), including ACME Group’s green hydrogen phases 2 and 3, plus power, battery materials, chemicals, and new tourism and housing projects—another push for Vision 2040 growth. Oman Travel Convenience: ahli islamic partnered with TRANSOM’s Maraheb to offer Private clients complimentary airport facilitation in Muscat and Salalah (luggage pickup, check-in help, boarding pass issuance) until 31 Aug 2026. Aviation & Passenger Planning: A “Fit to Fly” guide for GCC travellers explains when airlines require medical certificates (pregnancy, recent surgery, infectious illness, oxygen use) and how far in advance to arrange them. Emergency Response Upgrade: Oman transferred operational duties of the Marine Rescue Station to the Civil Defence and Ambulance Authority to strengthen round-the-clock marine search and rescue. Sports Tourism: Oman’s MoHT joined Ironman Europe in Hamburg to promote Oman as an adventure and sports destination and attract international athletes.

Maritime Rescue in Oman: Oman’s Civil Defence and Ambulance Authority has taken over operational duties of the Marine Rescue Station, aiming to boost round-the-clock search-and-rescue and emergency medical response as maritime and tourism activity grows. Tanker Incident Off Oman: Indian authorities report 24 Indian sailors were airlifted to safety after a fire on the Palau-flagged tanker MT Marivex off Oman’s coast; the cause wasn’t confirmed, but the incident comes amid heightened Strait of Hormuz disruption. Strait of Hormuz Fallout: The Strait remains effectively shut, with new moves including a Europe-led push to demine the route and EU sanctions targeting Iranian parties tied to freedom-of-navigation threats—keeping global shipping and energy markets jittery. Tourism Innovation in Oman: Omran Group wrapped up its “Hikayat Balad” Business Accelerator, selecting seven startups to turn ideas into tourism-ready projects and improve visitor experiences. Adventure Tourism Push: Oman’s Heritage and Tourism Ministry promoted “Discover Oman” at the Ironman European Championship in Hamburg to attract international athletes and market Oman’s sporting events. Oman Travel Calendar: Oman’s Islamic New Year holiday is expected to be observed on Thursday, June 18, 2026 (subject to official confirmation).