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Oman aims to be regional logistics powerhouse, with sector set to surpass 10% GDP by 2040

Oman's transport and logistics sector is undergoing an ‘accelerated transformation’, emerging as a dynamic gateway for global trade, according to a new Growth Perspectives video released by Oxford Business Group (OBG).

TAS News Service

info@thearabianstories.com

Monday, July 21, 2025

MUSCAT : Anchored by Oman Vision 2040, the sector, which contributed 7 percent to the nation’s GDP in 2023, aims to surpass 10 percent by 2040 through strategic investments and comprehensive reforms.
The OBG report highlights a significant investment of RO 2.5 billion between 2021 and 2025, enhancing integration, efficiency, connectivity and non-oil export growth.

“Sohar, Duqm and Salalah ports are regionally competitive, each playing a unique role in industrial and trans-shipment growth. Infrastructure upgrades, such as the Sohar-Abu Dhabi rail link and improved road and airport access, are reshaping the logistics landscape. Oman is also advancing green and digital logistics through EV incentives, blockchain adoption and a national push towards net-zero emissions by 2050,” the report stated.

A video presentation on the growth perspectives points out that Oman’s three major deep-water ports — Sohar, Duqm, and Salalah — are now among the most competitive in the Gulf region. Each port plays a distinct role in the Sultanate’s industrial and trans-shipment growth.

“Sohar supports more than industrial clusters; Duqm anchors energy and manufacturing growth along the central coast; and Salalah connects major transshipment routes to Africa, India and the United States, leveraging Oman’s free trade agreement with the US – one of two in the GCC region,” the video explains.
The Sultanate is also heavily investing in multimodal connectivity to reshape its logistics landscape.

Recent upgrades to the Al Batinah Expressway and Muscat International Airport have significantly enhanced access. Furthermore, the development of the 303-kilometer Sohar-Abu Dhabi rail link, in collaboration with Etihad Rail, is expected to substantially lower freight costs. A new highway connecting Oman with Saudi Arabia is also set to strengthen cross-border trade.

In line with its national commitment to achieve net-zero emissions by 2050, Oman is actively advancing green and digital logistics initiatives. With transport currently accounting for 19 percent of the country’s emissions, efforts include the establishment of green corridors, incentives for electric vehicles (EVs), and the adoption of digital tools such as blockchain and e-seals to improve transparency and efficiency across the supply chain.

The Oman Logistics Centre, operating under the Ministry of Transport, Communications and Information Technology, is spearheading the National Logistics Strategy. This Centre oversees crucial initiatives aimed at streamlining customs procedures, improving last-mile delivery, and accelerating the digitalisation of the entire sector.

“With strong fundamentals, advanced infrastructure and a clear long-term vision, Oman’s logistics sector offers a compelling proposition for investors, operators and partners seeking sustainable, globally connected growth in the region,” the report concludes.

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