Strategically located along the axis of the Indian Ocean and Arabian Gulf, Oman boasts accessible trade routes and fast transit times to the world’s most attractive emerging markets. As Oman seeks to develop its economy further, the logistics sector is seen playing a vital role and is key to increasing inward investment, non-oil exports and the nation’s competitiveness. Slated to grow at a compound annual growth rate (CAGR) of 7% over the 2015-2020 period, Oman’s transport and logistics sector is well-positioned to become a gateway to the Gulf Cooperation Council (GCC)’s large consumer base, and a valuable transshipment centre between Europe and Asia.
Despite a recent history of low energy prices that has has resulted in a rising government budget deficit, steady government investment in the transport and logistics sector has resulted in a dynamic, well-developed industry valued at over US$ 4.5 bn in 2016. Key drivers for economic growth within Oman are infrastructure investments in ports, free zones, industrial estates, roads, airports and rail network, economic diversification efforts and trade with Gulf Cooperation Council (GCC) states, as well as Asia and Sub-Saharan Africa.