Overview
Investment in Oman’s logistics sector totals USD 30 billion committed through 2040, reflecting both sovereign and private capital deployment. The sector’s GDP contribution of ~5% is targeted to reach 12-15% by 2040, requiring sustained capital inflows across the investment pipeline. Deal flow has accelerated since 2020 with Vision 2040 providing a clear policy framework for investor confidence.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Total Investment | USD 30 billion committed through 2040 | Growing |
| GDP Contribution | ~5% | 12-15% |
| Key Investors | Asyad Group, Port of Salalah (APM Termin… | Diversifying |
Analysis
The investment landscape for logistics in Oman is shaped by a combination of government-led strategic investments and growing private sector participation. Asyad Group, Port of Salalah (APM Terminals), Sohar Port, Oman Rail, Oman Aviation Group represent the core investor base, with increasing interest from international institutional investors and sovereign wealth funds. The Oman Investment Authority (OIA) has prioritised the sector in its portfolio rebalancing strategy. Foreign direct investment is facilitated through free zones, tax incentives, and streamlined licensing processes. However, deal sizes remain modest compared to UAE and Saudi equivalents, suggesting room for growth.
Challenges
Capital mobilisation faces headwinds from 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
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. Green and sustainable financing instruments (sukuk, green bonds) represent an emerging channel for sector investment.
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.