AGP Executive Report

Hormuz Security: Oman evacuated 10 crew members from the Panama-flagged tanker On Peace after it was struck by a projectile; India said 12 sailors were injured, most of them Indian. An Iranian official also threatened to close routes along Oman’s coast that Tehran considers illegal, raising fresh concerns for shipping. Oman–India Ties: Officials discussed activating the Comprehensive Economic Partnership Agreement and expanding cooperation in trade, investment, aviation, maritime transport, logistics and energy. Central Asia Links: Oman signed terms to join the Eurasian Development Bank as its first Gulf shareholder. During Sultan Haitham’s Kazakhstan visit, the countries also advanced investment and trade links. Investment and Culture: The Muscat Stock Exchange was added to FTSE Russell’s watchlist, while Oman and Italy signed a heritage and museums cooperation agreement. Oman is also promoting pharmaceutical investment opportunities at an exhibition in Milan.

Strait of Hormuz Security: India condemned a projectile strike on the Panama-flagged tanker MT On Peace, saying 12 of 19 crew were injured, including 11 Indians, and thanked Oman for evacuating the wounded to Khasab for treatment; India again urged an immediate halt to attacks on commercial shipping and a return to safe navigation. Oman Response: Oman’s air force carried out a medical evacuation of 10 injured seafarers after the attack near Musandam, underscoring Muscat’s role in maritime emergency support. Regional Diplomacy: In Muscat, Punjab Chief Minister Maryam Nawaz Sharif met Oman’s agriculture minister and agreed to expand cooperation in agriculture, fisheries, livestock and water, including an Oman-backed shrimp centre in Punjab and steps to ease skilled-worker movement. Aviation & Security Fallout: Reports say Flydubai co-pilot Hamam al-Hammami studied pilot training in the UK and was fired by Oman Air over extremist concerns before the attempted hijacking incident. Sports: Saudi Arabia won the Gulf Cup 27 title, beating the UAE 2-0, with tournament awards dominated by Saudi players.

Strait of Hormuz Security: India condemned an attack on the Panama-flagged tanker MT On Peace off Oman after a projectile hit the vessel while transiting the Strait of Hormuz, injuring 12 crew members including 11 Indians; the injured were evacuated with Omani help to Khasab for treatment, with New Delhi calling for an immediate halt to attacks on commercial shipping. Oman–Kazakhstan Ties: Sultan Haitham’s state visit to Kazakhstan wrapped up after talks with President Kassym-Jomart Tokayev, with both sides agreeing to expand trade and diversify goods, alongside energy, mining, transport, logistics, food security, tourism and technology cooperation; multiple agreements and MoUs were signed. Oman Economy & Policy: The Central Bank of Oman launched its inaugural Research Symposium to strengthen economic research and policy foresight under Vision 2040. Energy Update: Oman’s oil production rose 11.9% year-on-year to 270 million barrels by end-August 2026, while oil exports increased 1.9% to 209 million barrels. Logistics Strategy: Oman’s Shura Council reviewed progress against Logistics Strategy 2040 targets, focusing on SOHAR Port and Freezone performance and future plans.

FlyDubai Terror Probe: Israel says it was ready to shoot down the FlyDubai jet after an Omani co-pilot allegedly attacked the captain with an axe and tried to crash the plane toward Ben Gurion; the aircraft was stopped by passengers and landed in Tabuk, while investigators and allies weigh whether the suspect acted alone and how he evaded checks. Oman in the Spotlight: Reports say the co-pilot had been flagged by Oman Air as a security risk and was later grounded over extremist concerns, raising fresh questions about screening and coordination. Energy Security for Oman’s Region: Gulf oil producers are paying huge premiums for risky “shuttle runs” through the Strait of Hormuz to keep crude moving despite threats, as tanker attacks and logistics strain continue. Trade & Markets: Oman replaced the US as India’s top LNG supplier in September, taking a 27% share as India diversifies amid West Asia disruptions. Ports & Jobs: Dr. Raid Al Rubaiey is set to become CEO of SOHAR Port and Freezone from 11 October, aiming to drive further growth at Oman’s logistics hub.

Maritime Security: Iran’s IRGC ordered a tanker inbound through the Strait of Hormuz to turn back after hailing it near Khasab, about 11 nautical miles north of Oman, with UKMTO reporting the vessel complied and authorities investigating. Aviation Shockwaves: The FlyDubai cockpit attack probe widened into a broader security and intelligence effort spanning the UAE, Israel and beyond, after reports that the Omani co-pilot planned to crash into Ben Gurion or a Tel Aviv target; questions now focus on how he was cleared despite prior extremist concerns. Energy Watch: Saudi Aramco’s Amin Nasser warned global oil stockpiles are “scarily thin” and stressed Hormuz reopening is key, while OPEC+ kept November output targets steady amid infrastructure and shipping-route risks. Oman Policy & Economy: Oman published updated rules for citizenship eligibility for divorced foreign wives and set visa requirements for family joining, while the central bank raised OMR19.7mn via treasury bills and trade data showed a OMR5.5bn surplus by end of July. Urban Development: Muscat Municipality will unveil Urban October 2026 opportunities, including major seafront projects across Qurum, Muttrah, Seeb and Qurayyat. Education: Oman hosted GCC e-learning officials to boost cooperation among higher education institutions.

Aviation Security Shock: Israel ordered a security review of foreign flights after an alleged Flydubai cockpit attack by Omani co-pilot Hamam al-Hammami, with reports saying he planned to crash into Ben Gurion Airport and that multiple countries are probing how he was cleared. Oman in the Spotlight: Oman’s role is under scrutiny as claims say he was barred from flying over extremist concerns, yet still reached the cockpit—while UAE officials say passenger and crew details were shared with Israel before departure. Oil & Hormuz Pressure: OPEC+ agreed to keep November production steady as Brent stays above $100, while tanker attacks near Oman and Iran continue—pushing costs higher and forcing reroutes. Regional Trade Signals: Middle East crude exports rebounded above pre-war levels in late September, even as shipping disruption persists. Local Economy: Oman’s GDP grew 5.1% in Q2, driven by stronger petroleum activity. Environment & Tourism: A whale sanctuary bid at the IWC fell short by four votes, and Oman fined tourists after a sea turtle disturbance video sparked outrage.

Oman Economy: Oman’s real GDP grew 5.1% in Q2 2026 (constant prices), with petroleum activities up 14.7% and non-petroleum up 0.7%, according to national statistics. OPEC+ Oil Policy: OPEC+ agreed to keep oil output targets unchanged for November for a second straight month, including Oman, after reviewing market conditions; the next meeting is set for Nov 1. Space & Vision 2040: Oman Space Conference 2026 in Muscat brought together government, academia and industry to push space-sector priorities tied to Oman Vision 2040, including Earth observation use and building local capabilities. Health Awareness: Oman’s Ministry of Health launched a year-long breast cancer early-detection awareness campaign under “Rest Assured,” running across governorates. Flydubai Security Shock (Oman link): Investigations continue after an alleged cockpit attack on an Israel-bound Flydubai flight, with Australia probing the Omani co-pilot’s past in the country and UAE/Israel examining aviation vetting gaps. Environment: Divers removed about 400kg of entangled fishing nets near Jabal Al Sawadi in Barka after reports of dead sea turtles.

Flydubai Terror Probe: UAE investigators say Flydubai co-pilot Hamam al-Hammami, an Omani national, attacked Captain Smit Machchhar with a cockpit crash axe and tried to seize control of a Dubai–Tel Aviv flight, prompting a rapid descent before passengers and crew subdued him; the UAE prosecutor general called it a “terrorist attack,” while Oman-linked vetting failures and extremist concerns are now under scrutiny. Oman Air Vetting Claims: Multiple reports say al-Hammami was removed from Oman Air pilot training over radical views before later roles elsewhere, raising questions about how he still reached an Israel-bound cockpit. Australia Links: Australian counter-terror teams are investigating possible Australian connections after claims he studied in Australia and had a visa cancelled. Strait of Hormuz Disruption: India’s embassy in Oman says five Indian citizens were safely rescued after a Kuwait-flagged tanker, MT Kazimah III, was hit by a projectile in the Strait of Hormuz, with Oman assisting the operation. Gulf Cup 27: Oman’s Gulf Cup run ended in the semi-finals after a 1-0 defeat to the UAE, while the UAE set up a final against Saudi Arabia. Environment Watch: Oman’s Environment Authority took legal action after a viral incident involving a tourist sitting on a sea turtle at Ras Al Hadd, warning against disturbing protected wildlife.

Flydubai Terror Probe: UAE prosecutors say Omani co-pilot Hamam al-Hammami attacked Captain Smit Machchhar with a cockpit crash axe and tried to seize control on the Dubai–Tel Aviv flight, calling it a “terrorist attack”; reports add he was previously barred from flying in Oman over extremist concerns and studied aviation management via distance learning at Buckinghamshire New University. Oman Air Vetting Questions: Oman has not publicly commented, while international media focus on how a banned pilot still reached an Israel-bound cockpit and what screening gaps may have been missed. Hormuz Shipping Alert: India’s embassy in Oman confirmed five Indian nationals were safely brought ashore after the Kuwait-flagged tanker MT Kazimah III was hit by a projectile in the Strait of Hormuz; UKMTO said there was a small fire and no injuries. Business & Investment: AmCham Oman’s “Back to Business” event drew 200+ executives and diplomats, with O Homes debuting an AI-driven property platform for international investors. Industry Update: Raysut Industrial City attracted nine new projects worth RO6.55m in H1 2026, boosting targeted manufacturing and services. Space Milestone: Oman successfully tested the Azad Dreamer rocket at Etlaq Spaceport in Duqm as part of the Karman X1 mission.

Flydubai Hijacking Probe: Oman-linked co-pilot Hamam Al Hammami, 29, accused of stabbing Captain Smit Machchhar and trying to crash a Dubai–Tel Aviv flight, was reportedly barred from flying in Oman over extremist views before later being hired by Flydubai—sparking fresh questions about how he passed checks and how concerns were (or weren’t) shared with other airlines. Aviation Security Scrutiny: Investigators say the attacker is cooperating and indicated an intent to crash in Israel; Israeli officials are expected to question him in the UAE as flights and repatriation plans continue. Hormuz Shipping Tensions: Separately, UKMTO reported an oil tanker off Oman was hit by an unknown projectile; no injuries or environmental impact were reported, with authorities urging extra caution in the area.

Aviation Security Shock: Israel says it will question the flydubai co-pilot accused of stabbing Captain Smit Machchhar and attempting to crash a Dubai-to-Tel Aviv flight, after the suspect was detained in Saudi Arabia and transferred to the UAE; Netanyahu warned any “power behind” the incident will pay a “very heavy price,” while Israel also probes how an Omani crew member could operate despite restrictions. Oman in the Spotlight: Reports claim the co-pilot had no second nationality and that Israel is investigating a “loophole” that allowed Omani pilots to fly the route. Hormuz Pressure on Trade: Gulf crude exports are back near prewar levels as routes adapt around the Strait of Hormuz, but shipping and fuel supply remain uneven. Local Sports: Oman coach Tarik Sektioui insists his team is ready for the Gulf Cup semi-final against UAE, pushing back on criticism. Cricket: Nepal named a 15-member squad for the ICC CWC League-2 tri-series in Oman starting Oct 7.

FlyDubai Hijacking Probe: Saudi Arabia has handed the Omani co-pilot accused of stabbing the captain and trying to crash an Israel-bound flight to the UAE, as investigators in the UAE weigh whether the attack was terrorism or something else; Israeli PM Benjamin Netanyahu says the suspect showed “Islamist radical indoctrination,” while motive remains under review and passengers describe the plane plunging after the cockpit attack. US-Houthi Case Linked to Oman Travel: In a separate development, a US Department of Energy engineer from Richland, Washington, Ashton Hamed Ellaboudy, was arrested for allegedly trying to aid Iran-backed Houthis—claims include buying drone and explosive-making materials and traveling via Oman to Yemen. Oman Environment Enforcement: An Ukrainian influencer was referred to Oman’s Public Prosecution after a viral incident at Ras Al Jinz, where he entered at night without a permit and mishandled endangered sea turtles; officials say an apology doesn’t undo the wildlife violations. Maritime and Energy Pressure: Fuel oil bunkering at Fujairah is rebounding after Iran-war disruptions, while shipping costs in the region are reported up sharply due to rerouting and war-risk fees, and Iran-linked reports say a tanker was hit near Oman in the Strait of Hormuz. Gulf Spotlight: GCC Housing Award winners were honoured, and Oman’s Shinas port plans marine fuel supply services as shipping firms look for alternatives.

Flydubai Security Shock: A cockpit stabbing on Flydubai Flight FZ1073 (Dubai–Tel Aviv) left Captain Smit Machchhar seriously injured and forced an emergency landing in Saudi Arabia, after passengers and crew rushed in to stop the co-pilot, reported as Omani; motive remains unknown as UAE, Saudi and Israel investigate and Israel seeks extradition. Oman Aviation Leadership: SalamAir named Eng. Yaqoob Al Kiyumi as its new CEO, tasking him with pushing network growth and customer experience. Oman Energy Projects: Oman awarded a Serbian consultancy contract for three new gas-fired power projects, as Nama PWP prepares tenders and evaluations. Oman Demographics: Oman’s elderly population reached about 256,469 in 2025, with Omanis making up 73.5%, and projections point to continued growth by 2040. Oman Marine Rules: Spiny lobster (“sharkha”) season opened today and runs to Nov. 30 under conservation regulations. Regional Markets & Hormuz: Gulf bourses edged lower amid US-Iran uncertainty, while Strait of Hormuz traffic and tanker congestion remain key drivers for oil and shipping costs.

Aviation Security Shock: Passengers on flydubai flight FZ1073 from Dubai to Tel Aviv reached Israel safely after customers and crew foiled an alleged co-pilot attack, with the aircraft plunging nearly 14,000 feet before an emergency landing in Tabuk, Saudi Arabia; Israeli officials say the suspected attacker is an Omani national and Netanyahu called the incident a “serious security incident,” while Flydubai says the cause is still unknown. Oman in the Spotlight: The case has triggered fresh scrutiny of pilot checks and investigations into motive and how the cockpit struggle unfolded, with the injured Indian captain praised for fighting back and opening the cockpit door. Regional Football: Oman reached the Gulf Cup 27 semi-finals after a rare draw of lots against Iraq, while Qatar and the UAE set up semi-finals after a 1-1 draw, with the UAE to face Oman. Markets & Economy: Muscat Stock Exchange’s 30 Index closed 0.16% lower; OPEC+ is expected to keep output targets steady, and LNG prices have eased despite Hormuz tensions. Tourism Boost: Oman Air increased Salalah capacity by 16% for Khareef, carrying 270,000 passengers.

Gulf Cup Drama: Oman booked a spot in the Arabian Gulf Cup semi-finals after a 3-1 comeback win over Kuwait, then qualified when a draw settled a deadlock with Iraq on points, goals and fair play. Football Governance Row: Iraq’s coach Graham Arnold is pushing for FIFA regulations to decide the qualifier, arguing it “would not be fair” for Oman to advance via the draw. Oman Health Diplomacy: Oman’s public health minister met the Sultanate’s ambassador to Qatar to discuss ways to strengthen bilateral cooperation in the health sector. Drugs Crackdown: Oman Customs intercepted a major drug smuggling attempt through the post, seizing crystal meth worth about Rs. 80 million. Wildlife Backlash: A Ukrainian influencer couple faces legal action in Oman after viral footage showed them sitting on a nesting sea turtle at Ras Al Jinz/Ras Al Hadd. Regional Security Talks: Netanyahu met UAE President Mohamed bin Zayed with representatives from 10 countries, including Oman, to discuss security cooperation and potential new regional defence and oil-route plans.

Sea Turtle Backlash: A Ukrainian fitness influencer and partner apologised after viral footage showed them riding and handling sea turtles at Ras Al Jinz, prompting criticism from conservation groups and reports of legal action in Oman. Maritime Tensions: A merchant vessel was reported hit and set on fire while transiting the Strait of Hormuz, as the wider shipping squeeze and Iran-US standoff continue to ripple through the region. Sultan Haitham City Power-Up: Oman’s new city moved closer to occupancy after three electrical substations (160 MVA) were commissioned to supply key facilities and neighbourhoods ahead of first residents by end-2026. Green Hydrogen Push: Oman plans to build capacity to export green hydrogen by 2030 and deepen renewable-energy cooperation with India, including SAF and green fuels. Innovation Ranking: Oman advanced 8 places to 47th in the Global Innovation Index 2026, with gains in innovation inputs. Sports & Youth: Oman Football Academies League starts in Dhofar on 1 October, while Oman’s SailFree team prepares for the World Sailing Inclusion Championship in Portugal.