Overview
The World Bank’s Logistics Performance Index (LPI) evaluates countries on six dimensions: customs efficiency, infrastructure quality, ease of arranging shipments, logistics competence, tracking and tracing capability, and timeliness of deliveries. It is a critical benchmark for trade-dependent economies and foreign investors assessing supply chain reliability.
Oman’s Position
Oman typically ranks between 40th and 55th on the LPI, reflecting solid port infrastructure at Sohar and Salalah, improving customs processes, and strategic geographic positioning along major East-West shipping routes. The development of the Port of Duqm and associated Special Economic Zone at Duqm adds significant logistics capacity. Road infrastructure connecting ports to hinterland areas scores well, though rail connectivity remains absent.
Regional Comparison
The UAE dominates GCC logistics performance, with Dubai and Abu Dhabi serving as global transhipment hubs. Saudi Arabia has invested heavily in logistics through its National Industrial Development and Logistics Programme. Qatar and Bahrain perform respectably given their smaller scale. Oman’s Salalah port competes directly with Jebel Ali and Jeddah for container traffic, with competitive advantages in cost and congestion avoidance.
Trajectory
Oman’s logistics trajectory is strongly positive. The Oman Logistics Strategy targets a top-10 global logistics hub position by 2040. Key enablers include the Etihad Rail connection (planned), Duqm port and dry dock expansion, single-window customs digitisation, and free zone development. The Khazaen Economic City near Muscat adds dedicated logistics infrastructure. Achieving these ambitions requires sustained investment and regulatory harmonisation with GCC partners.