The pact was signed by Ahmed bin Abdulnabi Macki, Omani minister of national economy and deputy chairman of the Financial Affairs and Energy Resources Council, and the governor of the Seychelles Central Bank, the Times of Oman reported last week.

In a bid to encourage both freight and passenger transport between the two nations, under the terms of the agreement, Gulf Air and Oman Air will be exempt from taxation in the Seychelles, and likewise Air Seychelles will enjoy tax-exempt status in Oman. The accord will also give preferential tax treatment to share profits and interest payments.