Overview
Oman’s logistics sector is a strategic pillar of Vision 2040, leveraging the Sultanate’s position at the crossroads of major international trade routes between Asia, Africa, and Europe. The country has invested heavily in port infrastructure, road networks, airports, and logistics facilities to establish itself as a regional trade and distribution hub. The Ministry of Transport, Communications, and Information Technology oversees transport policy, while port operations are managed by dedicated authorities and concessionaires. Key logistics assets include the ports of Salalah, Sohar, and Duqm, Muscat International Airport, and an expanding road and rail network. The sector offers significant investment opportunities in warehousing, freight forwarding, cold chain logistics, and value-added supply chain services.
Key Facts
The Port of Salalah is one of the largest container transhipment ports in the Middle East, strategically located near major east-west shipping lanes. Sohar Port and Free Zone combines port operations with adjacent industrial and logistics facilities. Duqm Port serves the Special Economic Zone and provides deep-water berths for bulk cargo and heavy industrial logistics. Muscat International Airport has been expanded with a new terminal capable of handling 20 million passengers annually. The planned Oman National Rail network will connect ports, industrial zones, and border crossings. Oman ranks competitively in the World Bank Logistics Performance Index among regional peers.
Regulatory Framework
Transport and logistics activities are regulated by the Ministry of Transport and relevant sector-specific authorities. Port operations are governed by concession agreements and port authority regulations. Customs regulations and trade facilitation measures are aligned with the GCC Customs Union and WTO standards. Logistics companies must obtain commercial licences and may require additional permits depending on their specific activities. Environmental and safety regulations apply to logistics operations including hazardous materials handling and transport.
Opportunities
Third-party logistics and warehousing services are in growing demand as supply chains become more complex. Cold chain logistics infrastructure is needed to support the fisheries, agriculture, and pharmaceutical sectors. E-commerce fulfilment and last-mile delivery services represent rapidly growing market segments. The Duqm SEZ logistics zone offers purpose-built facilities for industrial logistics and transhipment. Public-private partnerships in transport infrastructure provide long-term concession-based investment opportunities.
Considerations
Logistics investments require careful analysis of trade volumes, cargo mix, and competitive dynamics. Infrastructure availability, including road access, utilities, and telecommunications, should be verified at prospective sites. Workforce availability for logistics operations, particularly skilled roles such as supply chain management, may require training investment. Regional competition from established logistics hubs in the UAE and Saudi Arabia should be factored into market assessments. Technology adoption in logistics operations, including warehouse management systems and track-and-trace capabilities, is increasingly important for competitiveness.