Overview
Physical infrastructure underpinning Oman’s logistics sector spans transport networks, utilities, industrial zones, and specialised facilities. The government has committed significant capital to infrastructure development, with the national infrastructure pipeline valued at over USD 50 billion across all sectors. For logistics specifically, infrastructure investment of USD 30 billion committed through 2040 targets capacity expansion, connectivity improvement, and modernisation of existing assets.
Key Indicators
| Infrastructure Element | Current Status | 2040 Plan |
|---|---|---|
| Salalah Throughput | ~7M TEU | 14M TEU by 2040 |
| Sohar Cargo | ~17M tonnes | 35M tonnes by 2040 |
| GDP Contribution | ~5% | 12-15% by 2040 |
Analysis
Infrastructure quality and availability significantly determine the competitiveness of Oman’s logistics sector. The Sultanate’s geographic advantages (3,165 km coastline, strategic location between Asia and Africa) are leveraged through purpose-built infrastructure. Asyad Group, Port of Salalah (APM Terminals), Sohar Port, Oman Rail, Oman Aviation Group benefit from dedicated industrial zones, port access, and utility connections. However, infrastructure gaps persist in secondary cities and remote governorates, creating geographic disparities in sector development. The Oman Rail project (2,200 km) and road expansion programmes will enhance connectivity, while digital infrastructure (5G, fibre) enables technology-intensive operations.
Challenges
Infrastructure financing gaps, construction delays, maintenance backlogs, and geographic dispersion increase costs. Competition from Jebel Ali (Dubai) and Khalifa Port (Abu Dhabi), incomplete rail network, customs process bottlenecks, shortage of skilled logistics professionals, and limited cold-chain infrastructure.
Opportunities
PPP models for infrastructure delivery, modular construction approaches, smart infrastructure integration, and cross-sector infrastructure sharing reduce costs and improve utilisation. Duqm Special Economic Zone as a trans-shipment hub, Oman Rail freight corridors reducing trucking costs by 40 percent, free zone incentives, digital logistics platforms, and Belt and Road connectivity.
Vision 2040 Targets
Increase GDP share to 12-15 percent; complete 2,200 km national rail network; double Salalah throughput; position Duqm as a top-20 global port; achieve 70 percent Omanisation.