Overview
The regulatory environment governing Oman’s logistics sector has undergone significant reform under Vision 2040. Key legislative changes include the Foreign Capital Investment Law (2019), updated Commercial Companies Law, and sector-specific regulations aimed at improving ease of doing business. Oman’s ranking in the World Bank Doing Business index improved notably, though further regulatory modernisation is needed.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Primary Regulator | Sector ministry | Enhanced governance |
| FDI Framework | Open with conditions | Fully liberalised |
| Licensing Complexity | Moderate | Streamlined |
Analysis
Regulatory reform in the logistics sector balances investor attraction with national interest protection. The sector’s regulatory framework is administered by relevant ministries with oversight from the Supreme Council for Planning. Asyad Group, Port of Salalah (APM Terminals), Sohar Port, Oman Rail, Oman Aviation Group operate within a licensing regime that has been progressively simplified. The introduction of the Invest Easy portal has reduced business setup time from weeks to days. However, inter-agency coordination remains a bottleneck, with overlapping mandates between sector regulators and cross-cutting bodies like the Environmental Authority and Labour Ministry.
Challenges
Regulatory complexity and enforcement inconsistency remain key concerns. 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. Additionally, the pace of regulation often lags behind technological and market developments, creating uncertainty for first movers.
Opportunities
Regulatory sandboxes, digital permitting platforms, and outcome-based regulation can unlock growth. 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.