The logistics sector plays a vital role in Oman’s modern and ambitious economy and is key to increasing
inward investment, non-oil exports and the nation’s competitiveness.
Logistics isn’t only an important sector in its own right but also a critical enabler for businesses of all
sizes operating across the sultanate - from the gypsum quarry in Thumrait, hypermarkets in Seeb,
battery manufacturer on Rusayl Industrial Estate, the pelletizing plant in Sohar to the plastics exporter
on Salalah Free Zone. A well-oiled logistics sector provides Omani businesses and manufacturers with
ways to increase efficiency, go greener and drive profits.
Earning revenues of US$7.87bn in 2013 that are forecast to reach US$12.02bn in 2017, Oman’s logistics sector is already competitive, contributing 4.9% to the sultanate’s GDP in 2015. The industry is led by multinationals offering a comprehensive range of sophisticated logistics services, down to smaller national freight forwarders offering the simple storage and shipping of merchandise. Oman’s logistics industry is expected to grow at a CAGR of 7% between 2015 and 2020. The key drivers for economic growth are the infrastructure investments in ports, free zones, industrial estates, roads, airports and rail network, economic diversification efforts and trade with GCC states, Asia and Sub-Saharan Africa.
OMAN’S LOCATION ON 2 MAJOR INTERNATIONAL SHIPPING ROUTES WHICH ARE WITHIN TWO WEEKS OF SOME OF THE WORLD’S MAJOR PORTS.
INVESTMENT IN INFRASTRUCTURE AND TECHNOLOGY TO UPGRADE PORTS AND FREE ZONES IN SOHAR, SALALAH, DUQM AND AL MAZUNAH.
DIRECT TRADE ROUTES TO GCC , INDIA, AFRICA
DEEP-WATER PORTS IN SALALAH, DUQM AND SOHAR.
OMAN PLANS TO SPEND OMR 2 BILLION TO FINISH INFRASTRUCTURE WORK IN THE DUQM FREE ZONE BY 2020. IT WILL INCLUDE A PORT, AIRPORT, AN OIL REFINERY & OTHER FACILITIES.
STRATEGICALLY LOCATED FREE ZONES IN SOHAR, DUQM, SALALAH AND AL MAZUNAH.
CONSTRUCTION OF A NATIONAL RAILWAY NETWORK AND ITS CONNECTION TO THE GCC RAIL NETWORK, IMPROVING EFFICIENCY AND REDUCING LOGISTICS COSTS.
COMPLETING 49 ROAD PROJECTS AT A COST OF US$5.4 BILLION COVERING 1,650 KILOMETRES.
FOR OMAN’S PORTS THE LOGISTICS OPPORTUNITY IS THERE FOR THE TAKING. MINISTRY OF TRANSPORT & COMMUNICATIONS COMMISSIONED RESEARCH ON CONSOLIDATION IN THE CONTAINER SHIPPING INDUSTRY ESTIMATES THAT ON A BENCHMARK VOYAGE DIRECT FROM SINGAPORE TO SUEZ, A WEEKLY CALL AT SALALAH FOR AN ULTRA-LARGE CONTAINER VESSEL WOULD REPRESENT AN ANNUAL COST OF US$4.47M, AT DUQM US$8.69M AND AT SOHAR US$17.09M.
OMAN WILL SPEND OVER US$50BN IN INFRASTRUCTURE PROJECTS OVER THE NEXT 15 YEARS, US$20BN OF WHICH IS EARMARKED FOR THE TRANSPORT SECTOR. THIS SIZEABLE INVESTMENT IN INFRASTRUCTURE OFFERS WIDESPREAD AND ATTRACTIVE OPPORTUNITIES FOR LOGISTICS PROVIDERS, PARTICULARLY THOSE WITH A SIGNIFICANT PRESENCE IN THE GLOBAL FREIGHT FORWARDING BUSINESS. INVESTMENT IN INFRASTRUCTURE IS ALSO EXPECTED TO CREATE 80,000 JOBS IN LOGISTICS BY 2020, RISING TO 300,000 BY 2040