Oman is set to expand its logistics sector with a $260 million investment aimed at enhancing facilities and driving growth in the GCC’s second-smallest economy by GDP. The government-led initiative, announced this week in honor of Oman 2025 Logistics Day, will primarily focus on developing free trade zones, airports, and ports across the country.
Abdullah Al-Busaidi, acting head of the Oman Logistics Center, stated that the goal is to make logistics the second-largest contributor to Oman’s GDP. Last year, Oman’s logistics sector was valued at nearly $6 billion, marking a 12% year-on-year growth and accounting for 6% of the country’s GDP. The long-term target is to increase the sector’s value to $93 billion by 2040, with a focus on advanced logistics technologies, international trade, market development, and improved connectivity.
Al-Busaidi also highlighted that Oman attracted over $10 billion in investments from logistics businesses, including those in free zones, airports, and ports. These investments position Oman as a growing regional business hub. The Duqm special economic zone on the Indian Ocean coast led in attracting $3 billion in private investments last year, while the Sohar free trade zone on the Gulf of Oman garnered nearly $2 billion.
With significant investment into free trade zones, Oman is strengthening its dominance in freight services and goods movement, laying the foundation for continued growth in its logistics sector.
