Oman's transport sector advances sustainable trade, connectivity goals
A new Growth Perspectives video produced by global research and advisory firm Oxford Business Group (OBG), in partnership with the Ministry of Transport, Communications and Information Technology (MTCIT), examines how infrastructure upgrades and sustainability initiatives are reinforcing Oman's role as a strategic trade and logistics hub.
The video, titled Oman's transport sector seeks to drive sustainable trade, highlights the sector's contribution of 7% to GDP in 2023, with aims to surpass 10% by 2040. Backed by RO2.5bn in targeted investment from 2021 to 2025, Oman is enhancing efficiency, boosting non-oil exports and improving multimodal connectivity.
Particular focus is placed on the role of the country's deepwater ports – Sohar, Duqm and Salalah – which are positioned to support industrial development, energy production and international trans-shipment. These ports, together with improved road and airport access, are enabling Oman to expand its logistics footprint regionally and globally.
The video also outlines the country's efforts to advance green and digital logistics solutions in support of its target of net-zero emissions by 2050. New initiatives include incentives for electric vehicles, adoption of blockchain and e-seal technologies, and the development of green trade corridors.
The Oman Logistics Centre, a directorate under MTCIT, is leading the National Logistics Strategy and overseeing the sector's digital transformation. Key projects include Customs streamlining, last-mile delivery improvements and measures to increase transparency and efficiency across the logistics value chain.
H E Eng Said bin Hamoud al Ma'awali, Minister of Transport, Communications and Information Technology, said Oman's investment in infrastructure and innovation is enabling the country to strengthen its position as a regional gateway for trade.
'The transport and logistics sector is a vital enabler of Oman Vision 2040. Through integrated planning, policy development and advanced infrastructure, we are supporting economic growth while aligning with the country's broader sustainability objectives.'
Dana Carmen Agarbicean, OBG's Country Director for Oman, said the sector's performance reflects Oman's ability to align long-term strategic goals with implementation.
'Oman's logistics sector is making significant strides in infrastructure development, trade facilitation and digitalisation. These efforts are establishing a foundation for sustainable growth and enhancing the country's competitiveness as a trade and investment destination.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
3 hours ago
- Observer
Health insurance claims management firm established in Oman
The first company specializing in health insurance claims management company, was established today. Green Line Health Insurance Claims Management Company is the first Omani company licensed for this activity, supported by a national vision consistent with the directives of Oman Vision 2040, aiming to provide services with global standards using the latest technologies, and to enhance and empower national competencies to undertake a key role in this new field. Faisal Hamad Al Rashdi, Co-founder and CEO of Green Line Insurance Services, stated that, due to his long experience in the health insurance sector, he observed the operational challenges facing this sector, whether at the level of insurance companies, healthcare providers, or even policyholders. Given a clear gap in claims management, Al Rashdi decided to establish this company, especially with the Financial Services Authority (FSA) announcing the opening for applications to practice health insurance claims management as an independent and regulated activity. This presented a national opportunity to establish a specialized local company that contributes to building this vital sector. He explained that the market lacked a specialized company in health insurance claims management, with a greater reliance on foreign companies managing operations from outside Oman. This affected the speed and quality of services, in addition to the possibility of health data, which is highly sensitive, being leaked through external systems. The Financial Services Authority had taken the initiative to issue clear legislation to ensure the protection of this data within Oman. He noted that the company represents a reliable source managed by national competencies, meeting market needs through its proximity to clients, which directly reflects on work quality and the speed of transaction completion. Faisal Al Rashdi said that it is natural for any sector to face some challenges when entering a phase of change, especially when there are long-standing working relationships between the market and external parties that have managed this activity for decades. However, he stressed the necessity of redoubling efforts to build trust and confirm readiness to provide high-standard services that meet the needs and aspirations of target groups, in addition to full compliance with national regulations. As for the project's nature, he mentioned that the company offers a comprehensive package of services in health insurance claims management that meets international standards. These include accurate and prompt medical claims management, medical and administrative verification using smart systems to detect duplication and errors, as a step towards time management. It also covers medical network management, from contracting with hospitals and clinics to ensuring the quality of service provided to policyholders, in addition to data analysis and smart reporting that helps insurance companies make decisions based on accurate data. He emphasized that the company relies heavily on digital solutions and modern technologies, including artificial intelligence, for faster data analysis and the automation of routine operations using robotic process automation (RPA), which reduces manual errors and saves time and effort. Furthermore, it is fully integrated with the national platform developed by the Financial Services Authority ("Dhamani" platform), which has been approved for fully electronic operations. He clarified that the company handles data confidentially, storing client data on company-owned servers only, without relying on external servers, to ensure complete control over information security. It applies best cybersecurity standards, such as advanced data encryption during transmission and storage, firewalls, and intrusion detection and prevention systems. Additionally, access permissions are granted on a limited and well-considered basis according to the employees' job roles, along with adherence to all local and international laws and regulations related to data protection and periodic reviews to ensure continuous compliance.
Observer
3 hours ago
- Observer
Salalah to host Oman's next iconic coastal destination
SALALAH, JULY 27 Construction has officially commenced on a major new tourism project along Dhofar's southern coast, with the first phase of development valued at RO 25 million and total investments expected to exceed RO 130 million, according to site observations and project documentation. The project, titled 'Boutique Hotel Salalah and Marina,' is being spearheaded by Al Wathba Hospitality, and is set to transform over 2.5 million square metres of coastal land into a premium tourism and leisure destination. A prominent signboard at the project site—visited this week by Oman Observer—confirms that construction activities are underway, with early works and land preparation already visible. The development will include a luxury beachfront hotel, an integrated marina, and supporting tourism infrastructure designed to enhance Salalah's year-round appeal. Design and engineering responsibilities are being handled by leading international firms. The architectural vision is led by Benoy and Opini, while the main engineering consultancy is Tusker, a firm known for infrastructure and environmental planning. Execution of marine works has been assigned to MDC Dredging & Marine, in partnership with Al Fairuz, according to details on-site. The location, situated west of central Salalah, is part of a broader national push to develop high-impact tourism assets in Dhofar, in line with Oman Vision 2040. The strategy aims to expand the tourism sector's contribution to GDP and promote the region as a key gateway for sustainable economic diversification. Initial visuals on the project board suggest a design that integrates natural landscapes, palm-lined promenades, and luxury coastal amenities, preserving the environmental character of the surrounding area. The inclusion of solar-powered site lighting reflects an emphasis on modern and eco-conscious development. Industry observers note that this development could play a significant role in diversifying Dhofar's tourism economy beyond the seasonal Khareef influx, offering a high-end option for both regional and international travellers.
Observer
3 hours ago
- Observer
Development Bank loan approvals rise 13% to RO 110 million in H1 2025
BUSINESS REPORTER MUSCAT, JULY 27 Development Bank has approved 3,716 loans worth RO 110 million ($286 million) during the first six months of 2025, marking a 13% increase compared to the same period last year. This growth reflects the bank's commitment to supporting Oman Vision 2040 by promoting economic diversification and strengthening the private sector across the country. 'The loans and programs we provide contribute substantial added value to our national economy,' said Hamad al Harthi, MSME Chief & Portfolio Management, Development Bank. 'We're helping meet food security requirements, reduce reliance on imports and encourage entrepreneurs to pursue new opportunities.' The bank's success stems from its tailored approach that recognizes the unique needs of businesses at different stages of development. 'We craft solutions that align with their business strategies,' Al Harthi explained, enabling both start-ups and established companies to grow and expand their operations. Building on this comprehensive strategy, H1 financing was distributed across key economic sectors that drive national development. Manufacturing received the largest allocation at RO 38 million ($99 million) reflecting the sector's important role in reducing import dependence. General professional services attracted RO 19 million ($49 million) while traditional sectors also saw strong support with fisheries receiving RO 14 million ($36 million), agriculture RO9 million ($23 million) and mining RO8 million ($21 million). This sector-focused approach was matched by broad geographical reach across Oman. Muscat Governorate received RO 25 million ($65 million) while regional development was supported through considerable allocations to North Al Batinah at RO18 million ($47 million) and South Al Sharqiyah at RO 14 million ($36 million). South Al Batinah received RO 11 million ($29 million) and Al Wusta Governorate RO8 million ($21 million) ensuring development opportunities reach communities nationwide. The increased lending demonstrates the bank's commitment to supporting businesses of all sizes, from start-ups and SMEs to large corporates. This approach enables entrepreneurs to implement projects across growth-driving sectors while maximizing local value creation and contributing to Oman's strategic economic goals. As part of a broader ecosystem of government organizations aligned with Oman Vision 2040, Development Bank continues to provide support and incentives to strengthen national industries and promote in-country value. 'Our shared goal is sustainable and inclusive progress,' Al Harthi concluded. 'We're proud that our support is helping ambitious, growing companies fulfill their potential while driving economic transformation.' Development Bank (DB) is a key enabler of economic growth, providing innovative financing solutions to support Oman's Vision 2040 and the transition to a diversified, sustainable economy. DB offers tailored financial products and services to a wide range of sectors, including agriculture, fisheries, tourism, manufacturing, renewable energy, health, education and logistics, focusing on projects that drive in-country value and job creation. Caption: H1 financing was distributed across key economic sectors that drive national development.
