Overview
Logistics infrastructure is a competitive battleground between Oman and the UAE, with both countries investing heavily in ports, airports, and intermodal connectivity. Oman seeks to establish itself as an alternative gateway, while the UAE defends its dominant position.
Oman’s Logistics Infrastructure
Oman’s logistics infrastructure centres on three major ports: Salalah (handling over 4 million TEUs), Sohar, and the developing Duqm port. Muscat International Airport serves as the primary air gateway, with Salalah Airport handling regional traffic. Oman’s road network connects ports to inland areas and GCC neighbours. The Oman-Etihad Rail project, once completed, will provide rail connectivity. Oman’s strategic location outside the Strait of Hormuz offers a risk-diversification advantage for shippers.
UAE’s Logistics Infrastructure
The UAE’s logistics infrastructure includes Jebel Ali (the largest port in the Middle East, handling over 15 million TEUs), Khalifa Port in Abu Dhabi, and the world’s busiest international airport at Dubai (DXB). Dubai’s Al Maktoum Airport is designed as the world’s largest when completed. Emirates SkyCargo is the world’s largest international cargo airline. Etihad Rail connects Abu Dhabi’s industrial areas with the port network.
Key Differences
The UAE’s logistics infrastructure is more mature, integrated, and globally connected. Jebel Ali alone handles more containers than all Omani ports combined. Dubai’s airport connectivity is unmatched in the region. However, Oman’s lower costs, strategic location, and available capacity make it attractive for cost-sensitive logistics operations. Oman’s newer port infrastructure at Duqm offers modern facilities without legacy constraints.
Verdict / Bottom Line
Oman can compete effectively in specific logistics niches: transhipment for Indian Ocean routes, heavy cargo and project logistics through Duqm, and cost-competitive warehousing and distribution. Direct competition with Dubai’s established hub model is unrealistic, but complementary positioning can capture growing trade volumes between Asia and East Africa.