Overview
The logistics sector in Oman employs ~65,000 direct workers with an Omanisation rate of ~55%. Workforce development is a critical enabler of Vision 2040 objectives, requiring targeted interventions in skills training, career pathway development, and nationalisation policies tailored to sector-specific needs.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Direct Employment | ~65,000 direct | See 2040 targets |
| Omanisation Rate | ~55% | See 2040 targets |
| Key Employers | Asyad Group, Port of Salalah (APM Termin… | Expanding |
Analysis
Workforce composition in Oman’s logistics sector reflects both historical development patterns and emerging skill requirements. The current Omanisation rate of ~55% indicates moderate progress toward nationalisation targets. Key employers including Asyad Group, Port of Salalah (APM Terminals), Sohar Port, Oman Rail, Oman Aviation Group are implementing structured training programmes. However, skills gaps persist in technical specialisations, middle management, and digital competencies. The sector must balance rapid Omanisation with maintaining operational excellence and international competitiveness.
Challenges
Skills mismatch between education outputs and sector requirements remains the primary workforce challenge. 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, retaining Omani talent in the face of competition from government and higher-paying sectors requires innovative compensation and career development frameworks.
Opportunities
Structured apprenticeship programmes, industry-academia partnerships, and TVET alignment with sector needs can accelerate workforce readiness. 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.