Logistics sector expected to contribute $36bln to Oman's GDP by 2040
Muscat: With Oman's strategic location at the crossroads of global trade routes, cutting-edge infrastructure projects, and advancements in air, sea and land connectivity, the sultanate's transport and logistics sector is poised to drive economic growth and diversification in the coming years.
A new report from global research and advisory company Oxford Business Group, in partnership with Oman's Ministry of Commerce, Industry, and Investment Promotion, shows that Oman's transport and logistics sector is anticipated to contribute RO14bn to the national economy by 2040, positioning the sector as the second-highest economic contributor after hydrocarbons.
As of 2023, the logistics sector contributed approximately 7% to Oman's GDP. It contributed RO1.7bn, or 6.1%, to the sultanate's GDP in the first nine months of 2024, as per the report.
According to the report titled 'Investing in Oman's Future: High-Growth Opportunities in Key Sectors,' the Omani transport and logistics sector presents wide-ranging investment opportunities. The sector, which currently provides over 79,000 jobs, is seeking to create up to 300,000 new logistics jobs by 2040.
The Oxford Business Group report covers various promising sectors and highlights the sultanate's ongoing efforts to attract investment and foster economic transformation through strategic initiatives aligned with Vision 2040.
The report explores the sultanate's advancements and opportunities in transportation and logistics, agriculture and food production, manufacturing and mining, tourism and urban development, energy, and the digital economy. It offers an in-depth analysis of Oman's drive to position itself as a global leader in green hydrogen, renewable energy and digital innovation, while leveraging its strategic location as a logistics hub connecting Asia, Africa and Europe.
The report also examines Oman's significant infrastructure projects, such as Khazaen Economic City and its advanced port systems, which aim to solidify the country's status as a vital trade and logistics centre. It outlines how initiatives like Yiti Sustainable City and Hydrom are aligning 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 underscores the importance of strategic investments in driving the nation's transformation.
'This report underlines 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, as well as employment generation, trade enhancement, creating in-country value and digital transformation – were established with Oman Vision 2040. They are now reinforced by our net-zero emissions target in 2050 and are being realised through progressive policies,' H E Yousef said.
Jana Treeck, Oxford Business Group's Managing Director for the Middle East, said the report highlights Oman's progress in creating a pro-business environment that promotes 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 harnessing its competitive advantages and implementing forward-thinking strategies to unlock high-growth opportunities across key sectors.'
© Apex Press and Publishing Provided by SyndiGate Media Inc. (Syndigate.info).
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