Logistics sector entails a bright future for the Sultanate

Oman expects the logistics sector will contribute almost RO 3 billion by 2020, while seaports and maritime affairs sector receives great attention from the state. Today this sector plays a vital role in supporting the national economy in spite of some difficulties being faced by the sector due to low oil prices in the last three years. As for the role of ports in economic development, it is a well-known fact that seaports are not just ports for shipping and offloading consignments, they also play an important role in economic development and activating the sectors associated with them.

One of the distinctive outcomes of establishing seaports is the provision of a highlevel infrastructure for the operation of heavy industries.

As far as Sohar Port is concerned, it has provided an attractive environment for heavy industries that require import and export facilities, leading to industrial development in this setting in particular and in north and south Batinah governorates in general, and the same for Salalah Port which will play a bigger role in the near future.

Moreover, seaports boost small and medium industries (SMEs) along with other services to establish their projects nearby.

Omani seaports have provided direct and indirect employment that contributed in increasing income levels, beside their influential role in decreasing commodity prices due to close proximity to seaports to consumer markets, saving time and injecting direct and indirect proceeds into the state treasury.

The aviation sector is considered a component of sustainable development by boosting aerial navigation traffic and activating domestic tourism. Oman has achieved positive results through aviation sector in the past years while the new strategy will enable the transport sector in general to become a main pillar of national income.

The civil aviation sector witnessed tangible development through multiple projects to provide important and necessary services to keep abreast of the developments in the aviation industry by utilising the state-of-the-art technology aiming at connecting the Sultanate to the outside world.

It is no secret that the Sultanate’s strategic geographical location as a meeting point between the East and the West for international airlines gives it a special edge.

Thus air traffic through Omani airspace will witness a growth in the near future once the new Muscat International Airport becomes operational.

The number of aircraft flying through Omani airspace is growing every year and there is an increase in the number of flights compared to the last years, emphasising the dire need for air traffic development in the Omani airspace, to enhance growth of the national economy sectors.

As for investment opportunities in this sector are concerned, the Public Authority for Civil Aviation is gaining ground in releasing as much investment opportunities as it can in the aviation sector in the Sultanate, in order to attract the private sector to make earnings and in line with its economic diversification policy.

These efforts need to exploit the opportunities by Omani private sector since the door is open for investors to apply for new budget airline permits and in general aviation services while such airlines will hopefully boost domestic air traffic.

Further, the government is combining efforts with PACA to strengthen civil aviation and aerial transport relations with the rest of the world by signing bilateral agreements that contribute in boosting air traffic to and from Oman’s airports, whether by national or global carriers, in a way that encourages and serves economic, commercial and tourist exchanges.

It is well known that the Sultanate has signed more than 90 agreements in the field of organising aerial transport services with many countries worldwide.

These agreements aim at organising the operation process of airlines between Oman and the rest of the world.