Oman’s strategic location at the intersection of global trade routes, coupled with its state-of-the-art infrastructure projects and advancements in air, sea, and land connectivity, positions the sultanate’s transport and logistics sector as a key driver of economic growth and diversification in the coming decades.
A recent report by global research and advisory firm Oxford Business Group, in collaboration with Oman’s Ministry of Commerce, Industry, and Investment Promotion, reveals that the transport and logistics sector is expected to contribute $36.4 billion (RO14 billion) to Oman’s GDP by 2040. This would make it the second-largest contributor to the national economy after hydrocarbons.
As of 2023, the logistics sector accounted for approximately 7% of Oman’s GDP. In the first nine months of 2024 alone, the sector contributed $4.4 billion (RO1.7 billion), or 6.1%, to the sultanate’s GDP, according to the report.
Titled Investing in Oman’s Future: High-Growth Opportunities in Key Sectors, the report highlights the vast investment opportunities within Oman’s transport and logistics sector. Currently employing over 79,000 people, the sector aims to create up to 300,000 new jobs by 2040.
The report provides a comprehensive overview of Oman’s efforts to attract investment and drive economic transformation through strategic initiatives aligned with Vision 2040. It explores opportunities in various high-potential sectors, including transportation and logistics, agriculture and food production, manufacturing and mining, tourism and urban development, energy, and the digital economy. Additionally, it delves into Oman’s ambitions to become a global leader in green hydrogen, renewable energy, and digital innovation, while capitalizing on its strategic location as a logistics hub connecting Asia, Africa, and Europe.
Key infrastructure projects, such as Khazaen Economic City and advanced port systems, are highlighted as critical to solidifying Oman’s position as a major trade and logistics center. The report also emphasizes initiatives like Yiti Sustainable City and Hydrom, which align with global sustainability goals to attract environmentally conscious investments.
The report features an exclusive interview with H.E. Qais Al Yousef, Oman’s Minister of Commerce, Industry, and Investment Promotion, who stresses the importance of strategic investments in driving the nation’s transformation.
“This report underscores Oman’s potential as an attractive and globally competitive investment destination. Our priorities—diversification, infrastructure promotion, re-engineering Oman’s business environment, human capital development, employment generation, trade enhancement, in-country value creation, and digital transformation—were established under Oman Vision 2040. They are now reinforced by our net-zero emissions target for 2050 and are being realized through progressive policies,” H.E. Al Yousef stated.
Jana Treeck, Oxford Business Group’s Managing Director for the Middle East, noted that the report highlights Oman’s progress in fostering a pro-business environment that supports both local value creation and foreign direct investment.
“Oman is making significant strides in economic diversification under Vision 2040, with its focus on sustainable growth and innovation providing a solid foundation for long-term success,” she said.
“This report underscores the sultanate’s commitment to leveraging its competitive advantages and implementing forward-thinking strategies to unlock high-growth opportunities across key sectors.”
(Source: Muscat Daily)
