Overview
Oman’s logistics sector contributes approximately 5 percent of GDP and is positioned as a strategic gateway between Asia, Africa, and Europe. Salalah Port handles roughly 7 million TEU in container throughput, Sohar Port processes 17 million tonnes of cargo, and the planned Oman Rail network will span 2,200 km connecting key industrial zones and GCC borders. The sector is central to Vision 2040 diversification.
The value chain for Oman’s logistics sector encompasses upstream inputs, midstream processing and logistics, and downstream distribution and export channels. Mapping this chain reveals critical nodes where value addition can be maximised and leakage to imports can be reduced.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Salalah Throughput | ~7M TEU | 14M TEU by 2040 |
| Sohar Cargo | ~17M tonnes | 35M tonnes by 2040 |
| GDP Contribution | ~5% | 12-15% by 2040 |
| Rail Network | Under construction | 2,200 km by 2040 |
| Omanisation Rate | ~55% | 70% by 2040 |
Analysis
The logistics value chain in Oman is characterised by significant upstream concentration, with Asyad Group, Port of Salalah (APM Terminals), Sohar Port, Oman Rail, Oman Aviation Group dominating primary production. Midstream processing and logistics represent the largest opportunity for value capture, as much of the raw output is currently exported with minimal transformation. Investment of USD 30 billion committed through 2040 signals strong commitment to building out downstream capacity. The sector employs ~65,000 direct workers, though value-chain deepening could multiply employment effects significantly.
Challenges
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.
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.