Logistics

• Initiative launched in May 2021

• 72 investment opportunities offered to investors in 2021 and 2022

• Investments valued at OMR200 million expected from the initiative

 

• Mining and quarrying

• Food processing

• Manufacture of paper and paper products

• Chemical industries

• Rubber and plastic products

• Non-metallic products

• Base metal works

• Formed metal products, excluding machinery and equipment

• Manufacture of electrical equipment

• Manufacture of transportation equipment

• Construction-related industries

• Incentivising available investment opportunities

• Attracting quality investment in economic diversification sectors

• Identifying the most appropriate environment for investment success

• Enabling the private sector and motivating it to invest in the national economy

• Promoting in-country value programmes

• Increasing the domestic market share of Omani products

The Sultanate has had impressive success from the establishment of several economic and free zones targeting foreign and domestic investment.

The Duqm Special Economic Zone is the largest of these zones in terms of area, at 2,000 square kilometres in total. It has recently been rehabilitated to attract more diverse investments serving the various economic sectors. Free zones have also been established in Sohar, Salalah and Al Mazunah. During 2022, Royal Decree No 10/2022 created new free zones at Muscat International Airport and Sohar and Salalah regional airports.

• His Majesty Sultan Haitham issued Royal Decree No 10/2022 establishing free zones at Muscat International Airport and the airports of Sohar and Salalah.

• Royal Decree No 53/2022 transferred the affiliation of the Public Establishment for Industrial Estates ‘Madayn’ to the Public Authority for Special Economic Zones and Free Zones.

• Duqm Port, now one of the largest ports in the Middle East, was officially opened in 2022.

• Interim operation of the integrated electricity and water station in the Special Economic Zone at Duqm was initiated.

• The Specialised Integrated Food Company has set up a US$25 million food processing plant in the Salalah Free Zone.

• Agreement was signed for construction of an OMR14 million canning facility for tuna, sardines and other marine products in the Special Economic Zone at Duqm.

• Several green hydrogen projects were launched in the economic and free zones.

• The Karwa Automotive Company celebrated the rollout of the first bus bearing the legend ‘Made in the Sultanate of Oman’ from its assembly line in 2021. The company is a joint venture between the Sultanate of Oman and the State of Qatar.

Economic activities expected to be located in airport free zones

1- Importation of sundry commodities for storage and marketing

2- Establishment of logistical warehouses for goods re-export

3- Establishment of light industry facilities

4- Transport, banking, insurance and other services pertinent to free zone activity

5- Tourist services, such as hotels, recreational facilities and commercial centres

 

 

 

 

1- 100% foreign ownership possible

2- Exemption from import and export duties

3- No minimum capital requirement

4- Exemption of operating entities and companies from income tax for a period of 15 years, renewable for a further 5 years

5- One-stop shop system for permits, licences, approvals and visas

6- World-class facilities and services, including fully outfitted offices, warehouses and commercial outlets near to the airports

• Located in Wilayat Barka in the Governorate of Al Batinah South, Khazaen is the newest integrated economic city to be developed.

• The new city is targeting light and medium industries, and real estate, logistics and commercial projects.

• The city hopes to attract significant foreign investment as well as increased domestic input, providing opportunities for small and medium enterprises.

• Investment contracts are being negotiated with several government agencies and private sector institutions.

• A 100,000 m² land port will provide integrated import and export services to investors in the city.

• An agreement with Salalah Mills Company will establish an integrated food processing complex.

• An agreement with Al Hilal Industrial Group will establish an industrial project specialising in the production of plastic and fibreglass materials.

• An agreement with Muscat Municipality will transfer wholesale and coldstore activities from the central vegetable and fruit market to the city of Khazaen.

Land transport in all its forms, crucial to the efficient movement of goods and human traffic throughout the country, is a carefully tended strand of the overall transport sector. It constitutes the backbone of the commercial supply mechanism, as well as of tourist mobility. As at December 2021, the Ministry of Transport was overseeing the maintenance of a network of 16,022 kms of paved road, as well as 17,069 kms of dirt road across the Sultanate.

 

7 January 2021: Inauguration of section of the Adam-Haima-Thumrait dual carriageway project

10 January 2021: Finalisation of the main framework of the Logistics Efficiency National Indicators Initiative (Tamayuz)

14 January 2021: Official opening of the Yanqul internal dual carriageway

20 January 2021: Opening of the 20 km Suwaiq-Al Hawqain road

20 October 2021: Assignment of damage repair works to the Al Batinah Highway in the wake of tropical storm Shaheen

25 October 2021: Second package of repair works assigned for roads in the governorates of North and South Al Batinah damaged by tropical storm Shaheen

4 December 2021: Mowasalat's smart transportation system launched

7 December 2021: Works assigned for construction of the Halban Rest House on the Al Batinah Expressway

8 December 2021: Official opening of the Empty Quarter (Rub’ al Khali) Highway, which connects the Sultanate of Oman with the Kingdom of Saudi Arabia

21 December 2021: Works awarded for construction of the Liwa Rest House and Saham Rest House on the Al Batinah Expressway

30 December 2021: Works awarded for construction of Al Suwaiq Rest House on the Al Batinah Expressway

 

 

 

 

 

Project	Main components	Date of Initiation	Date of Completion
Elevated dual carriageway	- Dualisation of the road from the Muaskar Al Murtafa Roundabout to the Armed Forces Hospital Roundabout, and on to the Sultan Qaboos University Intersection - Streamlining of the connection between Al Mawaleh Intersection and Muscat Expressway across the Armed Forces Hospital Roundabout - Dualisation of Sultan Qaboos University Road between the University Intersection and the Sultan Qaboos Integrated Centre for Cancer Treatment and Research Intersection	Ongoing	Ongoing for 18 months
Dualisation of University Road	- Bi-directional double lanes, with parallel side passages for pedestrians in both directions -Extension of road from the Sixth Al Khoudh Roundabout to the Traffic Lights Intersection opposite Gate 2 of Sultan Qaboos University - Installation of side barriers along the road and construction of multiple rainwater drainage channels away from the project	Ongoing	Last quarter 2023
Widening of Al Mouj and 18 November Roads	- Widening of both roads to bi-directional triple lanes - Replacement of Al Mouj, Al Bahja and Al Ishraq Roundabouts in North Al Hail to high-capacity four-way intersections with traffic lights installed - Paving of service roads for existing commercial buildings in the area	Projected for first quarter 2023	18 months from initiation date
Expansion of Mosque Roundabout in the Mawaleh South area	- Transformation of the existing roundabout into a traffic-lighted intersection - Addition of new traffic lanes in all directions from the intersection - Installation of a network of surface water drainage channels, crossings and protective infrastructure	Projected last quarter 2022	One year from initiation date
Dualisation of Al Ansab-Al Jifnain carriageway	- Improvement of traffic flow through creation of bi-directional triple lanes - Conversion of existing roundabouts into bridges and tunnels - Installation of required protections and surface water drainage channels and systems	First quarter 2023	36 months from initiation date
Dualisation of Halban Road (Phase One)	- Construction of a 1,040 metre dualised section extending from the Muscat Expressway Intersection - Construction of a high-capacity traffic lighted intersection at the access point to Al Mabela 8th - Construction of 25 box culverts across the valley, along with side channels for rainwater drainage	2023	-
Dualisation of the Al Joud Road in Al Amerat (Preliminary Package)	- Addition of a new access point to the Al Joud Road to reduce congestion at the current access point - Construction of a 630 metre dualised section of the Road - Addition of 1,010 metre acceleration and deceleration lanes to the existing dual carriageway (Al Amerat Road)	2023	Nine months from initiation date

 

Maritime transport is undergoing rapid expansion, occupying an increasingly important role in the growth of commercial and industrial activity across the economy.

The year 2021 saw the accession of the Sultanate to the Maritime Labour Convention, 2006 (MLC, 2006) and the International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM Convention) of 2004.

 

The Sultanate of Oman has several major seaports that service various general and specific economic sectors. Most notable of these are Sultan Qaboos Port, Sohar Port, Salalah Port and Duqm Port. In addition many lesser seaports actively serve the commercial and fishing sectors.

 

 

 

 

 

Item	January-July 2021	January-July 2022
Value of imports (million RO)	4,203	6,076
Volume of imports (thousand tonnes)	17,181	21,885

 

 

Item	2020	2021
Movement of general cargo and liquid and bulk materials (shipped tonnes)	70,922,472	77,102,292
Container throughput (TEUs)	5,144,273	5,228,973
Vessel traffic (VTS)	9,275	9,391

 

The Sultanate’s airports reawakened to growing traffic in 2022, as global aviation recovered from the restrictions imposed by the Covid-19 pandemic.

Between January and August 2022, some 6.1 million passengers transited the Sultanate’s airports, compared with 2.4 million passengers over the same period in 2021, representing a 154% increase.

Oman has four airports: Muscat International Airport in Muscat Governorate, Salalah Airport in Dhofar, Sohar Airport in Al Batinah North, and Duqm Airport in Al Wusta.

 

Item	Muscat Airport	Salalah Airport	Sohar Airport	Duqm Airport
Total flights	41,594	5,931	652	440
- International flights	36,072	2,467	526	-
- Domestic flights
Total passengers	5,201,989	783,648	61,876	42,564
- On international flights	4,539,148	278,083	50,370	-
- On domestic flights	662,841	505,565	11,506	42,564

 

Total electrical power production in 2021 averaged 42.2 terawatts per hour, with net production of 40.7 terawatts per hour, an increase of 11% over the output for 2020. Net electrical power generated from natural gas was 37.2 terawatts per hour, representing 91% of the total electricity generation source.

Net production of electric power using solar sources increased significantly as a result of the operation of the new solar power station (Shams Al Zahira) in July 2021. Net electricity generated from this station in 2021 was some 626,000 megawatts per hour, as compared with 538 megawatts per hour in 2020.