Strategically located on the south-eastern coast of the Arabian Peninsula, Oman is capitalising on its geographic advantages through substantial investment in road, port, airport and rail projects, with an aim to diversify its economy in line with Oman Vision 2040, the sultanate’s long-term economic development plan. These efforts are led by the Ministry of Transport, Communications and IT (MTCIT), which is implementing a comprehensive infrastructure development plan to enhance regional connectivity and build an integrated, efficient transport network.
Additionally, Oman is advancing digital initiatives to streamline trade and logistics processes. The November 2023 launch of the Hazm electronic platform simplifies conformity procedures for merchants and consumers by ensuring product safety and expediting Customs clearance. Complementary initiatives, such as the Omani Conformity Scheme and the MTCIT’s accreditation programme, foster innovation and strengthen regulatory oversight in the logistics sector.
These strategic efforts have yielded tangible results. Oman climbed 57 places in the Quality Infrastructure for Sustainable Development Index in 2024, moving from 117th globally in 2022 to 60th out of 155 countries and improving from 14th to sixth in MENA over the same period. Issued by the UN Industrial Development Organisation, the index assesses national infrastructure in standards, metrology, accreditation, conformity assessment and related policies. Oman’s advancement reflects its broader commitment to enhancing national quality systems, streamlining trade and improving the business environment – ultimately attracting foreign investment and strengthening its competitiveness.
Structure & Oversight
Established in 2019, the MTCIT oversees land and sea transport while driving ICT advancements. Its role includes managing major infrastructure projects, improving transport efficiency and sustainability, and issuing operational licences – granting over 163,000 in 2023. Ministry initiatives include Oman’s first space rocket launch in December 2024, the launch of a system in February 2025 to manage transport violations, and the introduction of the sultanate’s first hydrogen-powered taxi service, also in February 2025. Supported by Oman Shell’s Green Hydrogen for Mobility project, 15 vehicles will be provided to operator Oman Airports at Muscat International Airport. With its broad mandate, the MTCIT plays an important role in Oman’s medium- and long-term economic diversification strategies, positioning the transport sector as a key driver of multi-sectoral growth.
Established in 2016, Asyad Group is Oman’s government-owned integrated logistics provider, ranking fourth on Forbes’ list of the 10 biggest logistics organisations in the MENA region in 2021. With an initial $26bn in government infrastructure investment, the $4bn enterprise continues to attract investors, securing OR1bn ($2.6bn) in foreign direct investment in 2023 through its free zones. Asyad’s competitive edge lies in its 16 subsidiaries across shipping, ports, transport, logistics, ship repairs and free zones. Its infrastructure includes three deepwater ports, a dry port, a dry dock, two free zones, an economic zone and an extensive road system – positioning it as a regional logistics destination. The year 2023 marked strong financial growth, with net profit increasing by 4% to OR46.9m ($121.8m) and revenue up 5%, reaching OR464.7m ($1.2bn). Founded in 2003, a subsidiary, Asyad Shipping Company was listed on the Muscat Stock Exchange in March 2025 after completing its OR128.1m ($332.9m) initial public offering, signalling a strategic push for further expansion and investment.
Aviation Regulator
Established in 2012, the Civil Aviation Authority (CAA) acts as the sultanate’s independent regulator, ensuring compliance with international standards while overseeing airspace, airport operations and air traffic control. It licenses airlines, pilots and engineers; enforces safety regulations; promotes investment; and manages consumer protection, airfare policies, fair competition and meteorological services for aviation and public safety. Aligned with Oman Vision 2040, the authority plays a pivotal role in modernising the aviation subsector and enhancing global connectivity through international partnerships. To that end, in October 2024 it signed bilateral air agreements with Australia, Chad, Chile, Seychelles, Suriname and Uganda to regulate air transport, foster cooperation and enable code sharing.
In December 2024 the CAA partnered with Muscat-based unmanned aircraft firm Serb to launch the Serb Platform, Oman’s first electronic system for regulating unmanned aerial vehicles. By streamlining drone registration, licensing and compliance; and designating authorised flying zones, Serb Platform aims to enhance regulatory oversight and support the integration of drone technology across various industries.
Strategy & Policies
Oman’s transport sector operates within the framework of the Sultanate of Oman Logistics Strategy 2040 (SOLS 2040), launched in 2015 to foster economic growth by enhancing logistics infrastructure. SOLS 2040 aims to position the country as an international logistics centre by increasing the sector’s GDP contribution to $36bn by 2040, which would make it the sultanate’s second-largest economic driver after hydrocarbons. The strategy also targets the creation of 300,000 new jobs and streamlined trade with improved Customs and business-friendly policies. These aims represent a marked increase from the sector’s 7% GDP share and 79,000 jobs in 2023.
The Oman Logistics Centre (OLC), established in 2015 under the MTCIT, oversees the strategy’s execution. The OLC focuses on expanding market access, strengthening Oman’s logistics brand, improving trade, integrating advanced technologies and cultivating a skilled workforce. Priorities include expanding intermodal systems, increasing port capacity, attracting investment and advancing specialised logistics services in cold storage, health care, construction and e-commerce. The strategy ultimately seeks to enhance logistics efficiency and boost Oman’s global competitiveness.
Oman ranked 43rd internationally and among the top-five Arab nations in the 2023 World Bank Logistics Performance Index, alongside Bahrain, Qatar, Saudi Arabia and the UAE. The sultanate is working to improve its standing through investment and targeted government outreach. In 2023 the MTCIT unveiled a plan to invest some OR2.5bn ($6.5bn) in Oman’s transport and logistics sector over 2021-25. This initiative follows workshops organised with the CAA and supported by the National Programme for Investment and Export Development (Nazdaher) that identified 27 investment opportunities and six initiatives worth OR1.4bn ($3.6bn). The plan aims to boost government revenue, create employment opportunities, generate OR18m ($46.8m) in land transport returns by 2025 and enhance the sultanate’s competitiveness.
Maritime
Oman’s maritime infrastructure plays a critical role in the sultanate’s transport sector, with seven ports that efficiently clear cargo in under six hours through a streamlined inspection process and targeted risk management. This approach has reduced inspection rates from 100% to 12%.
The subsector accounted for 11.8% of the transport and storage sector’s GDP and generated OR2.2bn ($5.8bn) in 2023. “The development of deepsea ports and free zones has positioned Oman as a key logistics centre, attracting foreign investment and boosting non-oil revenue,” Ahmed Al Abri, CEO of Asyad Port, told OBG. “However, the sector must continue to innovate and adopt sustainable practices to maintain its competitive edge in the evolving global market.” In 2023 Oman’s maritime ports processed 37bn tonnes of imports, 59bn tonnes of exports and over 1bn tonnes in re-exports, solidifying its growing importance in global trade. As part of its digital transformation, the MTCIT launched a digital verification system for seafarers’ certificates to ensure employment legitimacy and industry recognition as part of an effort to modernise operations.
Oman’s maritime network includes three deepwater ports – Duqm, Salalah and Sohar – strategically located along the Gulf and Indian Ocean coasts, providing connectivity to 90 ports in 40 countries. The Port of Sohar, located 200 km north-west of Muscat in the Al Batinah North Governorate, is managed by the Sohar Industrial Port Company, a joint venture between Asyad and the Port of Rotterdam. The port hosts Oman’s first dedicated agricultural bulk terminal and features remote-controlled container cranes. In 2024 cargo volume at Sohar decreased by 2.6% to 74.5m tonnes. However, that year container throughput rose by 15% to 943,000 twenty-foot equivalent units (TEUs) and roll-on/roll-off traffic increased by 25%. The authorities are planning the construction of a $1.6bn solar-powered liquefied natural gas (LNG) liquefaction plant at the port, supporting sustainability goals under Oman Vision 2040 and its carbon neutrality target for 2050.
The Port of Salalah, established in 1998, has grown into a leading trans-shipment node with over $800m invested in advanced freight infrastructure. Located outside the Strait of Hormuz, it reduces insurance and freight costs, enhancing its attractiveness as a trade gateway. In 2023 the Port of Salalah ranked as the second-most-efficient container port in the world, according to the Container Port Performance Index issued by the World Bank and Standard & Poor’s. A $300m expansion increased container-handling capability from 4.5m to 6.5m TEUs, supporting the Gemini Cooperation, an alliance between Maersk and Hapag-Lloyd launched in February 2025.
The Port of Duqm, Oman’s newest deepwater port, officially opened in 2022 and serves as a key node for oil, gas and mining projects. The facility is a joint venture between Asyad and the Port of Antwerp. In 2023 the port managed 933 vessel calls and benefited from $12.2bn in investment that supported its expansion. A new container terminal was inaugurated in January 2024 featuring over 1000 metres of quay, a yard storage capacity of 26,000 TEUs and more than 600 reefer containers, enhancing integrated logistics solutions.
Oman’s non-deepwater ports – Port Sultan Qaboos, Port Shinas, Port Suwaik and Khazaen Dry Port – serve specialised roles supporting targeted industries and trans-shipment operations. Port Sultan Qaboos, the sultanate’s first commercial port, transitioned into a tourism centre in 2011. In October 2024 the MTCIT partnered with Asyad to explore its potential as a cruise hub through a feasibility study. Located in the Musandam Governorate, the Port of Khasab functions as a key trade and tourism gateway on the Gulf. Port Shinas supports domestic trade, particularly for livestock, agricultural and fishery products. Near the Khazaen Economic Zone, Port Suwaik is undergoing expansion under Asyad’s management, featuring a 500-metre jetty and an additional 36 hectares of space. These developments aim to accommodate large vessels and diverse cargo – including LNG – positioning Port Suwaik as a major international logistics centre.
Logistics Centre
Oman’s strategic location at the crossroads of major trade routes between Asia, Europe and Africa has established the country as a vital logistics centre. The 52-sq-km Khazaen Economic City, a key public-private partnership, demonstrates the sultanate’s commitment to expanding its logistics capabilities. Oman boasts shipping times 30-40% faster than regional competitors and the GCC’s most efficient import-export processing system. Its connectivity is further enhanced by Muscat International Airport and Salalah Airport, with the National Cargo Strategy targeting 780,000 tonnes of annual air freight by 2030 and later 1.5m tonnes by 2040.
Air Transport
Oman has 129 bilateral air transport agreements, including 82 under an open skies policy. In 2024 over 14.5m passengers travelled through Oman’s four major airports – Muscat International Airport, Salalah Airport, Duqm Airport and Sohar Airport – from over 90,000 flights, marking a 2% increase in total arrivals compared to 2023. Muscat International Airport handled the bulk of arrivals, with 12.9m international and domestic passengers, followed by Salalah Airport (1.5m passengers), Sohar Airport (66,700 passengers) and Duqm Airport (61,100 passengers). In January 2025 alone Oman’s airports managed 1.3m passengers, 1.2m of which flew via Muscat International Airport.
Oman Airports, a government-owned company established in 2002, manages these civil airports, overseeing operations, infrastructure and services such as ground handling, terminals, cargo and runways. In 2019 its responsibilities expanded to include regional airports in Fahud, Marmul and Qarn Alam, facilities that were previously managed by Petroleum Development Oman.
Muscat International Airport, formerly known as Seeb International Airport until a rebrand in 2008, serves as the sultanate’s primary gateway. In 2018 a $1.8bn expansion introduced a new terminal, control tower and runway, solidifying its status as Oman’s largest airport. The 580,000-sq-metre terminal boasts an annual capacity of 20m passengers, with future plans to expand capacity to 48m. In November 2024 the CAA opened bidding for a maintenance, repair and overhaul facility at the airport, scheduled for completion by mid-2025, as part of Oman’s goal to establish itself as a regional centre for aircraft maintenance in MENA.
Salalah Airport, which opened in 2015, features a 4-km runway and accommodates up to 2m passengers annually. Sohar Airport began limited domestic operations in 2014 and became Oman’s third international airport in 2017. It can handle 250,000 passengers and 50,000 tonnes of cargo annually. Duqm Airport, located 14 km from Duqm City, opened in 2019 with a capacity of 500,000 passengers, expandable to 2m passengers. It spans 273,000 sq metres with a 4-km runway, supporting commercial and economic activities in the Special Economic Zone at Duqm.
The sultanate is expanding its aviation infrastructure to cater to tourists, with plans for six new regional airports by 2029. In September 2024 the CAA issued a tender for master planning and design of three domestic airports in Al Jabal Al Akhdar, Masirah Island and Sohar. The selected organisation will oversee site selection, planning and design. The CAA announced the launch of a new low-cost airline in June 2024 to enhance connectivity and boost tourism.
Roads
Oman’s extensive road network, spanning over 60,000 km, is key in facilitating economic growth by facilitating the movement of people, goods and raw materials. Designed to meet international standards, the sultanate’s expressways enhance trade and streamline access to critical destinations, reinforcing regional connectivity. The MTCIT prioritised road expansion in 2024, awarding tenders for 42 infrastructure projects. Among these are the final three phases of the Adam-Thumrait Road dualisation spanning 400 km, covering segments from Haima to Muqshin, Muqshin to Dawkah and Dawkah to Thumrait. These upgrades incorporate vital infrastructure such as box culverts, service roads, drainage systems, rest areas and designated parking zones for police, fire and emergency use.
Several large-scale projects are advancing in the sultanate. As of January 2025 phase two of the Al Sharqiyah Expressway was nearing 20% completion, while work had commenced on phase one of the Batinah Coastal Road project by October 2024. In Musandam Governorate, progress on the OR151m ($392.4m) 96-km Khasab-Lima-Dibba motorway had reached 26%, further integrating coastal communities. Meanwhile, the 27-km Rusayl-Bidbid Road was recently opened and construction continues on the Liwa Road dual carriageway as well as road links connecting four villages in Shinas to the Batinah Expressway. The connection between Sultan Qaboos bin Said Road and Batinah Expressway was nearing completion at the end of 2024 and is expected to be fully operational by end-2025. Altogether, the MTCIT portfolio for 2024 encompassed 16 road-related initiatives across multiple governorates, in addition to ongoing restoration work on 80 roads impacted by extreme weather and wadi crossings.
As part of an ambitious national transport expansion strategy, Oman paved 16,000 km of roads in 2024, with a further 17,000 km under development. Accessibility to major tourist destinations remains a priority, with feasibility studies for a new route to Al Jabal Al Akhdar via the Al Batinah South Governorate finalised in 2023. Additional projects, such as the Raysut-Mughsail dual carriageway in the Dhofar Governorate and the Saih Qatna road in Al Jabal Al Akhdar, are set to enhance travel to remote scenic locations. The proposed Jebel Shams road will further integrate rural villages, fostering connectivity and tourism.
Rail
The Oman National Railway Project, launched in 2014 by Oman Rail, aims to establish a sustainable, highspeed rail network across the sultanate integrated into the GCC Railways project, a modern network planned for completion by 2030. Spanning 2135 km, the leg in Oman will support passenger trains reaching 350 km per hour (km/h) and freight trains up to 200 km/h, powered by electric infrastructure. The plan includes 46 stations and nine intermodal yards to improve connectivity between major cities, ports and resource centres. Divided into nine phases, key segments will link Sohar to Muscat, Muscat to Duqm and Duqm to Salalah, with the Sohar-Muscat phase already under way. The $15bn project is funded by the sultanate of Oman, Asyad and the Asian Infrastructure Investment Bank. “Oman’s vision for a modern logistics network aligns with its broader economic goals, fostering seamless integration between sea, air and land transport,” Walid Fawaz, Oman country manager of Aramex Muscat, told OBG. “Such advancement supports local industries and positions the sultanate as a competitive player in regional and international trade.”
Oman is advancing multiple rail initiatives alongside its national rail network, including the Hafeet Rail project – a collaboration with Etihad Rail, Oman Rail, Mubadala and Asyad. This 238-km cross-border railway will connect the Port of Sohar to Abu Dhabi, supporting both freight and passenger services. Funded with $1.5bn in 2022 from banks across the UAE, Oman, Jordan, Kuwait and the UK, it will feature passenger trains reaching 200 km/h and freight trains at 120 km/h, reducing travel time between Sohar and Abu Dhabi to 100 minutes. The line is expected to transport 12,000 passengers and 250,000 containers daily. In 2024 Hafeet Rail entered the implementation phase and in February 2025, it awarded $3bn in construction contracts to Indian construction firm Larsen & Toubro and Power Construction Corporation of China for logistics facilities in the Al Buraimi and Sohar governorates.
Public Transport
As part of its broader push to modernise public transport, the MTCIT is investing in Bus Rapid Transit systems and exploring the 15-minute city concept to reduce congestion. Rapid urbanisation since the 1970s has led to car-centric development, limiting public transport options, especially in Muscat, where westward expansion has prioritised roads over mobility solutions. To address these challenges, green mobility initiatives aligned with Oman Vision 2040 have been implemented, including sustainable city projects like Sultan Haitham City. In February 2024 the MTCIT announced key transport initiatives modelled on an energy conservation agenda, including Oman’s first hydrogen power station, feasibility studies for the Muscat Metro and a new Al Batinah South-Al Jabal Al Akhdar road link. In 2024 the ministry hosted the Green Mobility Forum, a sustainable transport conference, and is advancing infrastructure projects like the SoharAbu Dhabi railway and a unified e-government portal.
Sustainability remains central to Oman’s transport strategy, with smart technologies like weighbridges on the Batinah Expressway and the Road Projects Prioritisation Matrix ensuring eco-friendly infrastructure. The Naql platform streamlines vehicle permits and integrates with government systems, improving transport sector efficiency. Meanwhile, app-based taxi services like OT axi and Tasleem are transforming urban mobility, offering convenience and transparency.
Bus Network
Mwasalat, a member of Asyad Group and Oman’s national public transport provider, operates buses in Muscat, Salalah and Sohar, as well as intercity and ferry services. In 2023 passenger numbers surged by 40% to reach 4.5m, while ferry services transported nearly 237,000 passengers and more than 61,000 vehicles. Mwasalat launched Oman’s first electric bus in July 2024, advancing its sustainability goals. It also partnered with Odys Aviation to explore autonomous air transport and contracted HyCap Middle East to decarbonise its fleet using green fuels like hydrogen.
Outlook
With strategic investment and a clear vision, Oman is establishing itself as a global logistics centre. Infrastructure expansion, sustainability and digital transformation are enhancing trade efficiency and regional connectivity. However, challenges such as skilled labour shortages and regional competition remain. Addressing these requires investment in green technologies, regulation and foreign partnerships to strengthen infrastructure and workforce capabilities. Nonetheless, Oman is steadily advancing toward its 2040 goals, such as growing sector GDP contribution, as it strives to be among the world’s top logistics centres.
