The Growing Logistics Sector in Oman

The Growing Logistics Sector in Oman

- Natalia Shutilo

Logistics is an important sector in Oman and plays a critical role for many businesses in the sultanate. With Oman’s stable economy, logistics is key to increasing investment and assist in helping Omani companies to increase efficiency and drive profits. Oman’s logistics sector is competitive and is lead by multinational companies through to smaller national freight forwarders. Oman’s logistics industry is forecasted to grow by 7% by 2020. Infrastructure investments in ports, free zones, roads, airports are key drivers for economical growth for the country, in addition to strong trade agreements with the GCC, Asia and Africa.

Oman is becoming the logistics hub for the Middle East, the country’s location makes for easy air, road and sea routes. Major investments have been injected into the logistics industry over the last few years with both local and international investors making it a great base for logistical operations for any business.

Trading routes are being developed further in Oman, with the country being a key gateway to the GCC and other global markets, a five-year development plan is focusing on optimising recourses and investment opportunities within the sector. The Oman Logistics Strategy highlights long-term objectives to benefit trade and logistics to improve its infrastructure by easing congestion upgrading technology and route networks, overall enhancing ease of business.

What are the key areas of development in the logistics industry?

  • Development of ports of Khasab and Shinas
  • Increasing the number of vessels through the Port of Sultan Qaboos
  • Rehabilitation of the south runway at the Muscat International Airport
  • The development of a new aircraft maintenance building and a distribution centre for corrosive materials at the airport
  • Phase two of the Musandam airport
  • Air cargo village at the Muscat International Airport will be launched
  • Phase two of the Adam-Thamrait highway and the Sharqiyah Expressway will be opened this year
  • Expansion of Al Rusayl-Bidbid road and Daba-Lima-Khasab road

The growth and development of Oman’s transportation and logistics infrastructure is aimed at building Oman into a key logistics hub in the region. The government have key development priorities in road, air and rail sectors however, the development of Oman’s ports have increased trade and attracted numerous international investments.

PRO Partner Group are experts in company formation in the UAE and Oman, if you are interested in setting up a logistics company in Oman, please contact Natalia Shutilo on natalia@propartnergroup.com or +971 (0)4 456 1761.

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