In a strategic pivot, India and Oman sign trade agreement

Good afternoon readers. India and Oman have signed a trade agreement — experts are calling it a strategic pact that goes beyond trade as Muscat opens the services sector to India and offers expanded market access for businesses.

Gulf energy supplies are likely to face a competitive market as US cargoes match Gulf quality and prices. India will not rely on one region for its energy imports as affordability and diversification remain the mantra for 2026.

Got some spare dollars? Adani Group is seeking a strategic partner for its airports business as it targets the acquisition of 11 airports in a USD 11 bn investment commitment.

WATCH THIS SPACE-

ENERGY: Public sector oil marketing companies (OMCs) in India are diversifying LPG sourcing as US cargoes are competitively priced compared to traditional and largest Middle East suppliers. The government is seeking to diversify sourcing options to reduce reliance on one single region and increase affordability, the Ministry of Petroleum and Natural Gas told parliament on Thursday, according to a Hindu Businessline report.

In context: State-run companies — Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have signed a one-year structured contract to import around 2.2 mn tonnes per annum of LPG from the US Gulf Coast for contract year 2026, the report added. The volume represents about 10% of India’s annual LPG imports.

Why it matters: For years, the Gulf (led by Saudi Arabia) held a near-unshakeable grip on India’s LPG supplies, currently accounting for a third of all imports. By bringing the US into the primary mix, India is gaining significant pricing leverage at a time when 90% of consumption is tied to sensitive household cooking costs.

India imported 20.67 mt of LPG in FY25. While the Gulf has the advantage of proximity, US supply is now “equivalent in quality” and matching them on price, signaling a more fragmented and competitive procurement strategy for the coming fiscal year, the daily added.

LOGISTICS: Adani Group is doubling down on its airports portfolio—planning to bid for all 11 more airports that the government is seeking to lease—as a part of its USD 11 bn investment strategy over the next five years, Reuters reports. The company operates seven airports — including Mumbai and Ahmedabad which feature among India’s busiest airports — making the firm the largest airport operator in the country.

Why it matters: Gulf SWFs such as Abu Dhabi’s International Holding Company, Adia, and Qatar Investment Authority are among the notable marquee investors in the Adani held firms.

Direct Opportunities: Adani is actively seeking a strategic investor to anchor the airports unit ahead of its March 2028 IPO, according to Bloomberg. For Gulf allocators, this is an entry point into a business that is already EBITDA positive and expects to be cash-flow positive within three years.

YOU’RE READING EnterpriseAM MENA <> India, your C-suite briefing on the movement of trade, investment, people, and ideas along one of the world’s most exciting corridors. Every Monday, Wednesday, and Friday at 2:30 pm UAE, we dive deep into the business, finance, economy, and policy headlines and trendlines that will move markets and set the tone for your day.

Were you forwarded this briefing? Tap or click here to sign up without charge for your own copy.

DATA POINT- Tariff impact:

TRADE: INR 150 bn (USD 1.78 bn) orders cancelled in textile hub of Tiruppur in southern state of Tamil Nadu following US tariffs imposed in September, Bloomberg reports. These duties — among the highest the US applies globally — are currently resulting in daily losses of roughly INR 600 mn (USD 6.7 mn) for exporters in the region.

THE BIG STORY ABROAD-

US inflation figures are out — but the controversy around their accuracy in the wake of the US government shutdown is dominating the conversation. While core inflation seems to have come in at the slowest annual pace since 2021, economists say the long shutdown has likely distorted both the monthly and annual figures, and that key shelter figures that came in lower than expected throw the data’s credibility into question.

What’s next? Wait for December data out in January to evaluate whether there are signs of disinflation or if the slowdown was a result of issues with the data.

Why it matters: Slowing inflation would boost the case for an interest rate cut early in 2026, which so far is not a guarantee as US Federal Reserve policymakers remain more divided than ever.

^^Read: Flawed inflation data dashes Donald Trump’s hopes of a quick affordability victory (Financial Times)

Meanwhile, TikTok is making headlines as its owner, ByteDance, agreed to sell 80% of the company’s US assets to American and global investors to avoid a ban in the country — putting an end to a ban-or-no-ban saga that has been going on for years. The company’s CEO Shou Zi Chew confirmed the takeover in a memo to employees.

We knew this was happening: News that Oracle, Silver Lake, and UAE AI investor MGX are acquiring TikTok’s assets in the US first broke in September, though the news was yet to be confirmed. The transaction reportedly values the business at USD 14 bn, and will see the three investors own a 45% stake, with 30% going to affiliates of investors in ByteDance, and 19% retained by the parent firm.

Tags:

Adani Group Asset Management AVIATION ENERGY IPO Tariffs WHAT WE’RE TRACKING TODAY

THE BIG STORY

India, Oman sign CEPA granting 99% duty-free access for Indian exports

India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA), granting India near-universal duty-free access to the Omani market and marking New Delhi’s second freetrade agreement (FTA) with a Gulf nation after UAE, Indian Commerce Minister Piyush Goyal said in a post on X.

The agreement was signed yesterday in Muscat by commerce ministers in presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik.

Why it matters: The FTA marks an important shift in New Delhi’s otherwise reluctant approach towards freetrade agreements, Omair Anas, Middle East expert and Director at the Centre for Studies of Plural Societies told EnterpriseAM. Given India’s growing export economy, “the US tariff war has created a favourable condition for India to look beyond big markets”, he said.

What the agreement covers-

Tariff cuts: Under the CEPA, Oman will provide zero-duty access on 98% of its tariff lines, covering 99.38% of India’s exports to Oman by value, according to India’s commerce ministry.

India, in turn, will liberalise tariffs on 77.8% of its tariff lines, covering 94.8% of imports from Oman by value, largely through tariff-rate quotas to protect sensitive sectors.

Sectors affected-

“India Oman CEPA is unique as it covers services,” Anas said, adding that it could simplify Indian companies’ access to third-country markets by operating through Oman, including regions where India does not yet have preferential trade agreements.

The agreement allows 100% foreign direct investment by Indian companies in major services sectors in Oman, offering a base for such firms to expand in the region. Oman has also committed market access across 127 services sub-sectors under the CEPA, including IT and professional services, according to a press release.

What’s in, out: The agreement provides full tariff elimination for Indian exports across labour-intensive and industrial sectors including gems and jewellery, textiles and apparel, leather and footwear, sports goods, plastics, furniture, agricultural products, engineering goods, pharmaceuticals, medical devices, and automobiles. India has excluded several sensitive products from tariff concessions

Big labour concessions: The pact liberalises workforce mobility allowing easier entry and longer stays of skilled Indian professionals in key industries such as accountancy, taxation, architecture, medical and allied services. The contractual service suppliers will be permitted to stay longer than two years from the current 90 day limit, the release added.

It goes beyond trade-

Bilateral trade between India and Oman stood at USD 10.61 bn in FY 2025, up from USD 8.94 bn in FY 2024.

Indian goods were already entering Oman at low average tariffs of around 5%, limiting the incremental boost from duty cuts alone, Ajay Srivastava, founder of the Global Trade Research Initiative, told EnterpriseAM. Oman’s small domestic market also constrains the scale of export growth, he said, making a sharp jump in shipments unlikely.

With over 6k India-Oman joint ventures and Indian investments of more than USD 7.5 bn, mainly in the Sohar and Salalah free-economic-zones, “the CEPA is as much a strategic pact as a trade-deal,” Srivastava said adding that “it allows market access, mobility, and influence in a critical maritime and energy corridor.”

“The bigger hurdles are compliance and execution,” Srivastava said, noting that small businesses lack awareness of procedures, documentation and certification requirements, which could limit actual utilisation of the agreement.

The agreement’s larger value lies in strengthening India’s role in Oman’s logistics hubs, free-economic-zones and regional re-export networks, rather than in headline tariff reductions alone, Srivastava noted.

Tags:

CEPA GCC India-Oman relations THE BIG STORY

TRADE

The 1% Margin: India tests competitive bidding for India-UAE gold corridor

India’s Directorate General of Foreign Trade is inviting bids for the first 30-tonne tranche of the gold import quota at 1% custom duty under the India-UAE CEPA, according to a government order. It is the first major test of a competitive bidding process introduced in October, which replaced the earlier discretionary allocation.

Why now? The move to a tender process suggests the government is wary of a surge in UAE gold imports and is using price discovery (via the bid) to manage the flow rather than implementing arbitrary caps.

The tender process aims to improve transparency regarding tariff concessions for traders along the UAE-India trade corridor. Successful bidders gain access to a 1% duty concession, a significant margin advantage in a high-volume, low-margin commodity trade.

India’s gold imports from the UAE surged sharply after the India-UAE CEPA, from about USD 3 bn in FY 2023 to around USD 7.6 bn in FY 2024, reflecting a 148% y-o-y increase, according to Hindu Businessline.

A compliance filter: By auctioning the quota, the government captures more of the trade’s value while ensuring that the benefits are tied to domestic regulatory compliance. The government is effectively cleaning up the trade channel to ensure only formalized players benefit from the CEPA’s preferential rates.

Who stands to benefit? For UAE-based refineries, this means the tier-one Indian clients, those with the scale and compliance to win these bids, will become even more dominant in the trade corridor.

Tags:

FTA India-UAE CEPA India-UAE relations Trade

STARTUP WATCH

Indian underwater inspection startup bags USD 12 mn round to scale in the Middle East

Abu Dhabi’s Hub71-based Indian deeptech startup Planys Technologies bagged USD 12 mn to scale its industrial inspection business across the Middle East, with a focus on ports and terminals, refineries, petrochemical complexes, desalination plants, and power infrastructure.

Who’s in? The round was led by Indian investors Ashish Kacholia and Lashit Sanghvi, with participation from existing investors including Pratithi Investment, Samarthya Investment Advisors, 3i Partners, LetsVenture, and other angel investors, according to a press release.

About Planys: Founded in 2015 by Tanuj Jhunjhunwala (LinkedIn) and Vineet Upadhyay (LinkedIn), Planys develops autonomous and remotely operated underwater vehicles to inspect underwater infrastructure systems in the marine and process sectors. The firm operates across 500 sites in more than 10 countries, including the UAE, Saudi Arabia, Qatar, and Oman.

Tags:

Hub71 Startup Watch TECH UAE-India relations

POLICY WATCH

India invites full foreign control in ins., blocks composite licence route

India has cleared the way to raising the foreign direct investment (FDI) cap in the ins. sector to 100% from 74%, News on Air reports.

What didn’t change: The government dropped a major “composite license” reform clause that would have allowed a single ins. provider to offer all ranges of ins. products from life to health. Current rules do not permit life ins. providers to offer other ins. products like health coverage. These products are only offered by general insurers, creating a fragmented and siloed market for companies.

Gulf sovereign wealth funds (SWFs) have been making inroads in India’s ins. sector of late. The Abu Dhabi Investment Authority picked up a 9.99% stake in Aditya Birla Health Ins. in 2022. In 2024, Qatar Ins. Company partnered with Mumbai-based Cosmea Financial Holdings and other investors to form a new general ins. joint venture, with QIC expected to hold roughly a 40% stake.

What it means: For SWFs and private equity firms already holding stakes in Indian firms, they can now own 100% of the pie, with some limitations. While global players like Prudential, Sun Life, and AIG can now exit or expand joint ventures for full control, they face new guardrails—at least one top executive must be an Indian citizen. Additionally, the new law gives the ins. regulator wider powers to set agent commissions, enforcement, mergers, and policyholder protection.

Why it matters: The reform targets a sector where ins. penetration declined to 3.7% of the GDP, implying fewer people are buying ins. relative to the country’s economic growth.

What now? Foreign partners in India’s 74 ins. firms — of which only four currently hit the 74% cap — are expected to evaluate buyouts of local partners.

Parliament clears law to open civil nuclear power sector to private firms

Liberalizing the nuclear sector: India’s parliament on Thursday cleared a new legislation to open the country’s civil nuclear power sector to private companies, ending decades of near-exclusive state control, Reuters reports. The legislative shift is designed to help India hit a massive 100 GW nuclear capacity target by 2047, up from just 8 GW today.

Government spending: The Modi government has pledged over USD 2 bn toward nuclear research and allied activities in recent months, as the government looks to expand non-fossil power sources and reduce reliance on coal.

OUR TAKE- Nuclear projects are the ultimate long-dated infrastructure assets. For Gulf SWFs looking for 20-30 year yields, India’s move to allow up to 49% FDI in nuclear power projects creates a structured entry point into India’s base-load power market that didn’t exist six months ago.

Tags:

FDI India Focus Policy POLICY WATCH

ALSO ON OUR RADAR

Sebi plans tighter takeover rules in M&A overhaul

Sebi to tighten takeover rules in M&A revamp-

Sebi plans to revamp M&A rules: The Securities and Exchange Board (Sebi), India’s market regulator, is set to overhaul its “takeover code” to provide a level playing field for smaller and retail investors.

The new rules will prevent acquirers from offering higher prices or added compensation to major shareholders that aren’t available to retail investors, Reuters reports, citing unnamed sources. The caution follows high-profile cases, like the 2022 Adani Group acquisition of media firm NDTV, where founders received a 17% premium over the price offered to the retail investors.

Why it matters: The barriers for acquisitions in India are shifting for global investors and buy-out funds, as the new rules will bar private negotiations with large shareholders for six months following the completion of an open offer to the public, as well as mandate external valuations for private stake sales. While this increases transparency, it removes the sweeteners often used to lock in friendly takeovers from Indian business families.

What’s next: Sebi is also reviewing “creeping acquisition” limits (currently 5% annually), looking at stricter caps like those in Singapore (1% per six months) and Hong Kong (2% annually) as benchmarks.

RattanIndia expands Gulf e-commerce via Noon partnership-

New Delhi-based RattanIndia Enterprises has partnered with UAE-based e-commerce platform Noon, through its retail arm Cocoblu Global Retail, to expand the sale of Indian consumer products across the Gulf region, PTI reports. Under the partnership, Cocoblu will list a curated range of products across multiple categories on Noon’s marketplace.

Tags:

ALSO ON OUR RADAR M&A Policy Sebi

PLANET FINANCE

Brookfield wagers on real assets for 2026 as AI, energy, and dealmaking reshape returns

Brookfield is positioning 2026 as a year for real assets, not rate wagers. Higher-for-longer rates, geopolitical fragmentation, and AI-driven demand are reshaping where capital can earn durable returns, the firm said in its 2026 Investment Outlook (pdf).

Infrastructure sits at the center of the playbook: Brookfield is most bullish on digital infrastructure, power, and transport — assets tied to electrification, AI workloads, and critical material supply chain reconfiguration. Long-duration assets and inflation linkage, it says, are back in focus as volatility persists elsewhere.

Rather than chasing application-level top players, Brookfield favors owning the physical backbone of AI — data centers, grids, fiber, cooling, and compute-linked real estate — as energy constraints turn access to power into a competitive moat, reinforcing the infrastructure thesis, which pencils in investments of over USD 100 tn in the sector by 2040.

The trend will filter through to private equity, with Brookfield expecting platforms linked to digitization, services, and transition infrastructure to remain attractive, while capital-intensive and cyclical assets face higher hurdles. PE firms will also likely move away from leverage-driven returns and toward operational improvement and thematic growth.

And to M&A, which it expects to rebound in 2026, partly due to an increase in infrastructure mergers, alongside an easing of financing conditions and sellers reset expectations. Corporate carve-outs and sponsor-to-sponsor transactions are also likely to lead the recovery.

Real estate is stabilizing, unevenly: Brookfield sees a bottom forming across global property markets, with widening divergence by sector. Logistics, multifamily, student housing, and data center-adjacent assets are favored.

The takeaway: Brookfield argues investors who stayed defensive may be underexposed to the next phase of growth. With AI deployment broadening, infrastructure spending rising, and M&A thawing, it sees 2026 as a year where scale and patience regain the upper hand.

Markets this morning-

Asian markets were squarely in the green this morning, with Japan’s Nikkei leading gains after positive inflation data came out.

	Sensex	84,937	+0.54% (YTD: +8.12%)
UP	NIFTY 50	25,969	+ 0.59% (YTD: +9.38%)
	ADX	10,000	-0.21% (YTD: +6.18%)
	DFM	6,088	+0.12% (YTD: +17.87%)
	Tadawul	10,450.	+0.12% (YTD: -13.18%)
	EGX30	40,926	-1.39% (YTD: +37%)
	Boursa Kuwait	8,216	+0.35% (YTD: +18.96)
	QSE	10,654	-0.67% (YTD: + 0.79%)
	S&P 500	6,774	+0.79% (YTD: +15.19%)
	FTSE 100	9,839	+0.02% (YTD: +20.3%)
	Euro Stoxx 50	5,746	+0.08% (YTD: +17.2%)
	Brent crude	USD 59.4	-0.57%

Tags:

artificial intelligence ENERGY Financial markets Infrastructure investment PLANET FINANCE

CALENDAR

DECEMBER

1-19 December (Monday-Friday): Winter Session of Indian Parliament, New Delhi.

26 December (Friday): Tender period for Emirates NBD’s offer for RBL Bank’s public shares ends.

2026

JANUARY

1 January (Thursday): India assumes the Presidency of Brics.

19-20 January (Monday-Tuesday): International Crop Science Conference and Exhibition, Le Méridien Conference Center, Dubai.

26 January (Monday): Republic Day (Public Holiday).

27 January (Tuesday): India-EU Summit (to potentially finalize FTA), New Delhi.

27-30 January (Tuesday-Friday): India Energy Week, ONGC Advanced Training Institute, Goa.

30 January-1 February (Friday-Sunday): India Agri Expo, Ludhiana Exhibition Center, Punjab.

31 January (Saturday): Commencement of Budget Session 2026, Parliament of India, New Delhi.

FEBRUARY

1 February (Sunday): Union Budget 2026-27, Parliament of India, New Delhi.

3-6 February (Tuesday-Friday): ChemTech World Expo, Jio World Convention Center, Mumbai.

9-10 February (Monday-Tuesday): Pune International Business Summit (PIBS), SL Kirloskar Convention Center, JW Marriott, Pune.

14-18 February (Saturday-Wednesday): IHGF Delhi Fair (Spring), New Delhi.

19-20 February (Thursday-Friday): India-AI Impact Summit, Bharat Mandapam, New Delhi.

25 February (Wednesday): World Sustainable Development Summit, Taj Palace, New Delhi.

MARCH

4 March (Wednesday): Holi (Public Holiday).

12 March (Thursday): ET Entrepreneur Summit & Awards, Bengaluru.

19-22 March (Thursday-Sunday): Bharat Urja Manthan – Global Energy Conclave, New Delhi.

20 March (Friday): Eid Al Fitr (Public Holiday).

23-25 March (Monday-Wednesday): Indiasoft: International IT Exhibition & Conference, New Delhi.

23-25 March (Monday-Wednesday): Smart Cities Expo, Bharat Mandapam, New Delhi.

23-25 March (Monday-Wednesday): PlastiWorld India, Jio World Convention Center, Mumbai.

31 March (Tuesday): Mahavir Jayanti (Public Holiday).

Signposted to happen sometime in March 2026

Election Commission of India is expected to announce polling dates for elections in the states of Tamil Nadu, Kerala, West Bengal, Assam, and the union territory Puducherry.

APRIL

3 April (Friday): Good Friday (Public Holiday).

23-25 April (Thursday-Saturday): Rail & Metro Technology Conclave, Bharat Mandapam, New Delhi.

29 April-2 May (Wednesday-Saturday): Bharat Buildcon, Yashobhoomi, Dwarka, Delhi.

7-10 April (Tuesday-Friday), India Rubber Expo, ITPO, Pragati Maidan, Delhi.

MAY

1 May (Friday): Buddha Purnima (Public Holiday).

26 May (Tuesday): Eid Al Adha (Public Holiday).

JUNE

24-25 June (Wednesday-Thursday): India Homeland Security Expo, Bharat Mandapam, Pragati Maidan, New Delhi.

26 June (Friday): Muharram (Public Holiday).

Signposted to happen sometime in 1H 2026:

Signing of India-Qatar Freetrade Agreement (details yet to be announced);
India-EU Trade and Technology Council Ministerial Meeting, Brussels, Belgium.

AUGUST

15 August (Saturday): Independence Day (Public Holiday).

26 August (Wednesday): Prophet Mohammad’s Birthday (Public Holiday).

OCTOBER

2 October (Friday): Gandhi Jayanti (Public Holiday).

20 October (Tuesday): Dussehra (Public Holiday).

NOVEMBER

24 November (Tuesday): Guru Nanak Jayanti (Public Holiday).

DECEMBER

8-11 December (Tuesday-Thursday), Expand North Star, Dubai.

25 December (Friday): Christmas Day (Public Holiday).

Sections

About

Privacy & Support

Get EnterpriseAM daily