Non-Oil GDP Share: 70.5% ▲ +9.5pp vs 2017 | QS Ranking — SQU: #334 ▲ ↑28 places | Fiscal Balance: +2.8% GDP ▲ 3rd surplus year | CPI Rank: 50th ▲ +20 places | Global Innovation Index: 69th ▲ +10 vs 2022 | Green H₂ Pipeline: $30B+ ▲ 2 new deals 2025 | Gross Public Debt: ~35% GDP ▲ ↓ from 44% | Digitalised Procedures: 2,680 ▲ of 2,869 target | Non-Oil GDP Share: 70.5% ▲ +9.5pp vs 2017 | QS Ranking — SQU: #334 ▲ ↑28 places | Fiscal Balance: +2.8% GDP ▲ 3rd surplus year | CPI Rank: 50th ▲ +20 places | Global Innovation Index: 69th ▲ +10 vs 2022 | Green H₂ Pipeline: $30B+ ▲ 2 new deals 2025 | Gross Public Debt: ~35% GDP ▲ ↓ from 44% | Digitalised Procedures: 2,680 ▲ of 2,869 target |
Encyclopedia

Sohar Port Expansion Milestone

Review of the Sohar Port expansion programme enhancing Oman logistics capacity and industrial zone development.

Overview

The expansion of Sohar Port and its associated freezone and industrial area represents a strategic milestone in Oman’s ambition to become a regional logistics and industrial hub. Located on the Gulf of Oman coast, Sohar Port benefits from a position outside the Strait of Hormuz, providing an alternative shipping route that appeals to international shipping lines. The expansion programme has added container handling capacity, bulk cargo facilities, and industrial berths to support the growing cluster of manufacturing and processing activities.

Key Points

Port expansion includes new container terminals, bulk cargo handling facilities, and specialised berths for liquid cargo and project freight. The Sohar Freezone offers tax incentives, streamlined customs procedures, and integrated logistics services for tenants. Major industrial investments include an aluminium smelter, methanol plant, ferro-chrome facility, and food processing operations. Road and rail connectivity projects link Sohar with the capital area and neighbouring countries. The port operates as a public-private partnership between the Oman government and the Port of Rotterdam.

Current Status

Sohar Port has achieved significant throughput growth, handling millions of tonnes of cargo annually. The freezone and industrial area host hundreds of companies from dozens of countries. Employment at the port and its associated facilities reaches tens of thousands of direct and indirect jobs. New investments continue to be announced, attracted by the competitive cost structure and strategic location. The port authority is developing digital systems for vessel scheduling, cargo tracking, and customs clearance.

Vision 2040 Context

Sohar Port is central to Vision 2040’s logistics and industrialisation strategy. By providing world-class infrastructure and a competitive business environment, the port attracts global supply chains and supports Oman’s emergence as a manufacturing base for regional and international markets. The continued expansion of Sohar reinforces Oman’s geographic advantage and creates sustainable economic activity independent of hydrocarbon production.