MUSCAT - Oman said on Wednesday that it has decided to open an embassy in the Palestinian territories in support of the Palestinian people, in a first for a Gulf Arab state.

The announcement coincides with a US-led economic workshop in Bahrain to unveil a Middle East peace plan which is not expected to recognise an independent Palestinian state.

"In continuation of Oman's support for the Palestinian people, the Sultanate of Oman has decided to open a diplomatic mission at the level of embassy in the State of Palestine," the foreign ministry said in a statement on Twitter.

A delegation from the foreign ministry will travel to Ramallah, the seat of the Palestinian Authority, to take the necessary measures to open the embassy, the statement said.

Oman was also the first Gulf state to receive Israeli Prime Minister Benjamin Netanyahu in October 2018.

Oman is not participating in the Bahrain workshop where US President Donald Trump's administration hopes to raise $50 billion of investments to improve the economic conditions of Palestinians.

The conference is boycotted by the Palestinian Authority which fears the US administration is dangling money to impose pro-Israeli political solutions.

Jared Kushner, Trump's son-in-law and adviser, is leading the "Peace to Prosperity" initiative which he called the "Opportunity of the Century" for the Palestinians.

Last year Oman's state minister for foreign affairs, Yusuf bin Alawi bin Abdullah, held talks with Palestinian president Mahmud Abbas in Ramallah.

He also made a rare visit by an Arab official to the flashpoint Al-Aqsa mosque complex in Israeli-annexed east Jerusalem.