Oman’s location just outside the Strait of Hormuz places it at a crucial crossroads for global trade, linking Asia, Africa and Europe. This prime positioning allows goods to move efficiently, bypassing congested Gulf routes and establishing Oman as an essential centre for international commerce. With its modern infrastructure, the sultanate offers an ideal environment for logistics companies to thrive.
As part of Oman Vision 2040, logistics is a central focus for economic diversification, aiming to boost GDP contribution, create job opportunities and attract foreign investment. The Sultanate of Oman Logistics Strategy 2040 (SOLS 2040), led by the government-owned integrated logistics provider Asyad Group, outlines a comprehensive roadmap for integrating Oman into global supply chains. This includes infrastructure upgrades, digital transformation and regulatory reforms, with the goal of positioning Oman as a premier logistics hub by 2040.
SOLS 2040 focuses on enhancing Oman’s role in global logistics by improving infrastructure, streamlining trade processes and integrating advanced technologies while nurturing a skilled workforce. The Oman Logistics Centre, established in 2015 under the Ministry of Transport, Communications and IT (MTCIT), has been pivotal in expanding ports, airports and road networks to support economic growth. A major goal of the strategy is to create 300,000 new jobs by 2040 through investment in workforce development and training programmes. Other key objectives include improving trade facilitation by simplifying Customs procedures, reducing clearance times and fostering a more business-friendly environment. Sustainability is also a priority, with a focus on green logistics infrastructure and eco-friendly practices such as contactless delivery and sustainable supply chain management.
Logistics
The transport and storage sector already plays a vital role in Oman’s economy, contributing 7% to GDP in 2023, and OR1.7bn ($4.4bn) in the first nine months of 2024, or 6.1% to GDP. Ongoing investment in air cargo, port expansions and advanced delivery technologies like refrigerated shipping and autonomous vehicles are expected to further boost growth and competitiveness. By executing these strategies, the sultanate aims to be among the top-10 countries with respect to logistics. In turn, Oman aims to become a leading international logistics centre by 2040.
There is reason for officials in Oman to be optimistic about meeting these targets. In 2021 the country was recognised by UN Conference on Trade and Development for having the fastest container handling in the world. That year the survey found that containers spend an average of just 12.5 hours in Omani ports for all operations – including entry, exit, loading and unloading operations. Moreover, 90% of goods are cleared within the first hour of arrival through advanced Customs clearance systems at Asyad’s ports. Reflecting this strong performance, Omani port exports grew by 21% in 2022, imports by 18% and re-exports by 3%.
Contribution
In 2023 the MTCIT launched a new executive programme for the Oman Logistics Centre for the 2023-25 period. The programme aims to accelerate economic diversification and increase sector investment to OR2.5bn ($6.5bn) by 2025. Key objectives include raising government revenue, boosting land transport earnings to OR18m ($46.8m) and boosting logistics employment from 19% to 21%.
In 2022 logistics contributed approximately OR2bn ($5.2bn) to Oman’s GDP, with land transport making up 60% of total contribution, followed by warehousing and support activities, 30%; water transport, 6.7%; and air transport, 3.2%. The government plans to make logistics the second-largest contributor to Oman’s economy by 2040. To further encourage innovation, the MTCIT introduced a best practices in the logistics sector award, promoting greater efficiency and creativity.
Ports
Oman has made significant progress since launching its logistics strategy, focusing on expanding ports, improving connectivity and adopting digital logistics solutions. A key part of these efforts is the upgrade port infrastructure, with the Port of Duqm undergoing extensive expansion to handle higher cargo volumes and attract industrial investment. In January 2024 Asyad inaugurated a new terminal at the Special Economic Zone at Duqm capable of handling some of the world’s largest container ships. Equipped with advanced cranes and remote operation technologies, the terminal has a capacity of 26,000 twenty-foot equivalent units (TEUs) and 600 reefer containers. The facility’s successful pilot operations underscore its readiness for international trade, aligning with Asyad’s strategy to integrate logistics, support economic diversification and enhance maritime traffic. Additionally, the terminal supports local industries – including food security, green hydrogen, and oil and gas projects – while the zone’s tax incentives and business regulations further attract investment.
The Port of Salalah, ranked the world’s second-most-efficient container port in 2023 by the World Bank and Standard & Poor’s (S&P) Container Port Performance Index (CPPI), continues to develop as a major global trans-shipment centre. In February 2025 it inaugurated a $300m expansion, increasing capacity from 4.5m TEUs to 6.5m TEUs. Upgrades include berth and yard expansions, a new access road, an electrical substation and 2000 additional reefer plugs. The port also acquired 10 new shipto-shore cranes to accommodate ultra-large vessels, enhancing efficiency as a key node in Maersk and Hapag-Lloyd’s Gemini Cooperation. Similarly, the Port of Sohar signed a $2.6m deal with Allied Ondock Container Services in December 2024 to strengthen its logistics capabilities. The container depot, initially with an area of 3 ha, will expand by 2 ha to meet rising demand. This aligns with Oman Vision 2040 and complements the port’s container volume growth of 21% in the third quarter of 2024.
Road Transport
In response to the need for integrated transport networks, the MTCIT allocated OR1bn ($2.6bn) for road projects in 2023, focusing on strategic road construction, efficiency improvements and infrastructure rehabilitation. This included a road maintenance initiative featuring a reporting app and advanced construction technologies. Prior to this, a significant development was the 2021 completion of the 564-km Saudi-Oman highway connecting the two countries through the Rub Al Khali desert. This route is designed to drive tourism and trade, particularly with Saudi Arabia, Oman’s second-largest market for non-oil exports, which were valued at OR764m ($2bn) in November 2024. In February 2025 the Ministry of Housing and Urban Planning announced plans to develop five land parcels ranging from 6700 sq metres to 7500 sq metres as transport yards. Located in the Musandam, Dhofar, Al Batinah North and Al Dakhiliyah governorates, they are designed to improve logistics, support energy sustainability and encourage private sector involvement. Once developed, these areas will offer driver accommodation and maintenance services, optimising efficiency outside ports, industrial zones and free zones.
Aviation
In 2023 the Civil Aviation Authority (CAA) launched the National Aviation Strategy 2040 to enhance the sector by improving efficiency, optimising assets and attracting private investment. This strategy also aims to leverage Middle Eastern air cargo opportunities for economic expansion. To support this, a tender was issued in February 2023 for global consultants to help shape the strategy. A new civil aviation policy, introduced in late 2024, focuses on safety, security, sustainability and infrastructure development in line with Oman Vision 2040. Furthermore, the CAA announced plans to build six new airports – set to open between 2028 and 2029 – bringing the total number of airports in Oman to 13. These facilities will support tourism, logistics and domestic aviation, with key locations in areas like Sohar, Salalah and Duqm.
Oman has made significant progress in developing its logistics infrastructure but challenges remain in solidifying its status as a leader in the field, including regional competition. To compete effectively, it will be important for Oman to secure infrastructure investment and attract private sector participation through public-private partnerships to meet demand and ensure sustainable development. To differentiate itself, Oman is focusing on innovation in sustainable technologies and digitalisation, enhancing its transport value chain resilience and creating renewable energy investment opportunities. Investment in hydrogen and electric-powered freight solutions also align with sustainability goals.
