Overview
Small and medium enterprises in Oman’s logistics sector represent a critical but underdeveloped segment of the value chain. The Riyada (Public Authority for SME Development) and Al Raffd Fund provide financing and incubation support, while the National SME Development Programme targets raising SME contribution to 35 percent of GDP by 2040. Within logistics, SME participation is concentrated in services, maintenance, and distribution segments.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| SME Share of Sector | ~25-35% | 50%+ by 2040 |
| SME Employment | Growing | Major employer |
| Access to Finance | Limited | Improved |
Analysis
The SME ecosystem surrounding Oman’s logistics sector shows both promise and structural constraints. While large enterprises like Asyad Group, Port of Salalah (APM Terminals), Sohar Port, Oman Rail, Oman Aviation Group anchor the sector, SMEs fill essential roles in supply chains, maintenance, specialised services, and last-mile delivery. Government procurement mandates requiring 10 percent SME allocation have increased opportunities, but access to finance remains the primary barrier. Bank lending to SMEs carries high collateral requirements, and venture capital availability is limited. The sector’s total investment of USD 30 billion committed through 2040 creates substantial subcontracting opportunities for qualified SMEs.
Challenges
Access to finance, limited management capacity, regulatory compliance burden, and competition from larger firms constrain SME growth. 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
Government procurement set-asides, incubator programmes, e-commerce platforms, and value chain integration with anchor tenants offer pathways. 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.