The Oman 3PL market is expected to register a growth rate of over 6.5% during the forecast period of 2020-2025. Increasing trade with the GCC, Asia, and Europe is the major driver for 3PL companies in the region. The logistics sector has gained a special focus of the government due to its potential and the geostrategic location of the country. Given the political uncertainty in the gulf area, Oman offers a safe by-pass to some of the major trade lines of the world.

The government of Oman is planning to bring down the economy’s dependence on oil and gas sector by aggressively diversifying into other industry verticals. Government initiatives such as an investment of USD 50 billion in infrastructure projects for over the next 15 years until 2028 is expected to benefit the overall logistics industry of the country.

The country’s location, infrastructure and stable political climate are some of the key drivers which contribute to the growth of the logistics sector in the country.

Key Market Trends

Investments in the Country Boosting the Logistics Sector

Having a coastline of 2,100 kilometres at the mouth of the Gulf, and good relations with its neighbours, Oman has a unique opportunity to become the logistics gateway to the GCC consumers and a key centre between Europe and Asia. The Omani government is taking up the promotion of Oman as a main logistics centre in the region through infrastructure investments improving the national logistics development plans, economic diversification, and increase in trade with the GCC, Asia and African nations.

The logistics industry in Oman is undergoing a change conquering the infrastructure block, that includes lack of investment in the port handling capacity, and poor land transportation network with the other Gulf Cooperation Council nations.

  • On January 2020, UAE based Tristar Group announced a deal to lease about 11,000 sq. meters of land to develop a logistics project in the Port of Duqm with 3,048 sq. meters of covered warehouse capacity, 5,000 pallet positions and yard for future expansion offering 3PL as well as 4PL services.
  • The international freight forwarding and logistics company Panalpina is developing a new office in Muscat, Oman handling around 9,00,000 barrels of oil produced in Oman every day and grab the opportunity to benefit from this lucrative market.



Fisheries boosting the demand for cold chain logistics

Oman is facing a steady growth in the demand for refrigerated trucks with the increasing demand for frozen food and ready to eat meals. The need for special care along with the developing standard of living of the urban population has led the food & beverage sector to become the largest end-user in the industry. Oman has a huge consumer base of fish with an annual consumption of 28 kg fish per person. The Omani Government is focusing on increasing the fish production of the country. There is a rush in the business of hyper marts and convenience stores across Oman, especially in the online grocery delivery segment. These factors are demanding for huge investments in cold chain logistics in terms of advanced trucks with regulated temperatures, multi-level refrigeration and RFID technology, and storage facilities.

Competitive Landscape

The market is fairly concentrated with a large number of local and few international players such as Sultan Bin Soud Ahmed Al, DHL, Kunooz Logistics Global, Premier Logistics Muscat and Al Madina Logistics Company as its key players. The economic growth forecast of Oman 3PL services is likely to continue to be one of the sultanate’s leading sources of growth. The effective strategies such as SOLS 2040 and Tanfeedh, initiated by the government, have accelerated the essential changes to the business environment addressing hard and soft infrastructure. Initiatives like the new PPP authority and FDI law are expected to motor the investments needed in order to pump the sector’s ample potential. The developments in the warehousing sector and the implementation of automatic systems in the sector is also aiding to its growth not only in terms of volume but also in efficiency producing minimum waste, carbon and in a minimum amount of time.

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