MUSCAT : In its latest report, ‘Investing in Oman’s Future: High-Growth Opportunities in Key Sectors,’ the Oxford Business Group noted that the transport and logistics sector is set to be a major driver of Oman’s GDP and job creation in the coming decades.

As per the report, Oman’s transport and logistics sector contributed RO 1.7 billion ($4.4 billion) to the nation’s GDP in the first nine months of 2024, representing 6.1 percent of the total GDP. With strategic investments and infrastructure development, this figure is projected to soar to RO 13.8 billion ($36 billion) by 2040.

The sector is also expected to generate approximately 300,000 new jobs by 2040, a significant increase from the current 79,000, positioning it as the second-largest economic contributor after hydrocarbons. Oman’s strategic geographic location, at the crossroads of major trade routes, has been instrumental in its rise as a logistics powerhouse. The country ranks 10th globally in digital readiness and 5th in business fundamentals, according to the 2023 Agility Emerging Markets Logistics Index.

Key infrastructure projects, such as the 52-million-square-meter Khazaen Economic City, and initiatives by the Oman Logistics Centre, are driving this growth. The report highlights Oman’s competitive edge, with shipping times 30-40 percent faster than competitors and streamlined import-export compliance processes. The National Cargo Strategy aims to handle 780,000 tonnes of air cargo annually by 2040, complemented by plans for 10 mid-sized domestic ports.

Oxford Business Group’s report emphasises the wide-ranging investment opportunities within Oman’s logistics sector. Growth targets include a projected RO 14 billion ($36.4 billion) contribution to the national economy by 2040, up from the current 7 percent of GDP. Investment growth is anticipated in green supply chains, last-mile delivery, and contactless delivery solutions.

Significant achievements, such as the 2023 New Maritime Law, designed to position Oman among the top-10 global jurisdictions for shipowners, and technological advancements like the port community system, which reduced processing times from 48 to two hours, are highlighted. Land transport optimization software and improved International Civil Aviation Organisation audit results further showcase Oman’s progress.

The report also identifies outstanding opportunities, including supporting second- and third-party trade, optimising transport asset coordination, and expanding regional aviation connections. Recently announced investment projects include marina and business centre developments, mining jetties, ship repair facilities, multipurpose ports, re-export facilities, fulfilment centres, airport free zones, and new dry ports.

Oman’s commitment to sustainability is evident in its target to achieve net-zero carbon emissions by 2050. With the transport sector currently accounting for 19 percent of total emissions, government initiatives focus on expanding electric vehicle infrastructure, establishing hydrogen fuelling stations, and introducing hydrogen-powered vehicles. Key milestones include the first hydrogen corridor for trucks in 2025 and mandatory offshore power solutions for ships in select ports by 2027, with long-term strategies including LNG bunkers in the maritime sector.

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