Oman invests in ports with eye to becoming Gulf gateway
Oman is betting on strategically located ports and container terminals to expand its logistics sector, hoping to serve as a prime gateway to Gulf markets.
“We want to significantly improve the contribution of logistics into our economy. … We are actually building the sector for the next generation. That is our responsibility,” Abdulrahman Al-Hatmi, CEO of Oman’s national logistics group, ASYAD Group, told Al-Monitor.
As Oman crude oil reserves dwindle — they could be depleted in the next 25 to 30 years at 2019 production levels — the country targets five sectors, including logistics, to re-energize its economy and diversify government income — 40% of which currently comes from oil revenues.
Logistics could employ 300,000 people in Oman by 2040 as it leverages its location at the center of global shipping routes to emerge as the Gulf’s gateway. For centuries, Oman reigned over a vast maritime trading empire encompassing most of the Western Indian Ocean.
Today, one of Oman’s strategic advantages is its location outside of the Strait of Hormuz. This narrow waterway connects the United Arab Emirates (UAE), the Gulf’s current logistics powerhouse, to the rest of the world. Iran's Islamic Revolutionary Guard Corps seized ships in the strategic Strait of Hormuz and had said it could close it, pushing up insurance premiums for vessels.
