Careem, the ride-hailing service, resumed its operations in Muscat, Oman after signing an agreement to partner with local taxi company Marhaba.
Careem said in a statement it had partnered with the company to register Marhaba's drivers to its app.
Dubai-headquartered Careem suspended services in Oman in 2017 shortly after launching when the government asked it to first work with licensed taxis.
With the new agreement, trips booked through the app would be charged the same fare as regular taxis, Careem said, adding that it would handle the components of the service such as payments and customer service.
Careem said that it plans to introduce all of its services in Oman, expand to all major Omani cities and that following the agreement with Marhaba Taxi it was the only ride-hailing app to be in all six Gulf Arab states.
Ride-hailing apps have faced opposition in many markets around the world by making inroads into the traditional taxi industry.
Careem resumed services in the Palestinian city of Ramallah in March after pricing its fares in line with metered taxis and first working with licensed taxi drivers as part of an agreement with Palestine's transport ministry.
Careem is a Middle East rival of San Francisco-headquartered Uber Technologies with the two firms competing in many of the region's major cities.
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