Well before the crash of oil prices the world over, the Oman government had already started charting out plans to give the logistics sector a push and reduce their overreliance on oil for an economic boost. In fact, in 2013, the sultanate decided to invest US$ 20 billion into transport infrastructure by 2030 to give the economy a giant push. Over the next few years, Oman witnessed the logistics sector contributing a significant amount (US$ 2.8 billion to its GDP in the year 2018) with a growth rate of 33 percent. And this was only the beginning. Now, the Sultanate has taken yet another noteworthy step to give the logistics sector a significant push by introducing National Indicators Initiative to Upgrade Efficiency of the Logistics Sector. As the environment becomes more conducive for significant growth, there is a list of logistics companies in Oman that are beginning to participate and further this growth by providing their services. So, it comes as no surprise that the experts see this as one of the most path-breaking steps by Oman’s decision-makers in establishing themselves as a force to reckon with in the global economy.
Over a period of time, the logistics sector in Oman has seen several big players entering into the market with dedicated services. Ranging from ocean freight forwarding, air freight, road freight, customs clearance, project cargo services, and warehousing and distribution, these logistics companies are turning out to be the frontrunners in taking the economic growth in the GCC area forward. This is definitely giving the local economy a push to becoming more self-reliant. What’s been interesting to witness is that the logistics sector is not only being aided by the government, but the private players are taking just as much interest in this booming sector in laying the foundation for a robust economic growth.
And all this has been made possible by the Sultanate’s policies that have made doing business a lot easier. So, what does Tamayyiz means for the logistics companies based in Oman? Through this initiative, the Ministry plans for a complete overhaul of the logistics sector. With various programs and initiatives, the logistics business environment is all set to become a globalized business climate in the area which will help the sector reap all the benefits from business facilitation instruments available through government departments. It also plans to upgrade the capabilities of all the components of the logistics sector for doing business. And they plan to do this by providing better infrastructure and customs clearance protocols for a seamless business environment.
The Agility Emerging Markets Logistics Index released this year revealed that Oman ranks 12th globally when it comes to doing competitive business and fourth in business fundamentals. This stupendous growth in the Gulf countries has been a result of pro-business policies by the government, large-scale investments, and a concentrated policy development for the logistics sector in Oman. The geopolitical placement of Oman gives it an edge as there are ample opportunities to do business with India, East Africa, Iran, and Gulf countries. By the government’s relentless efforts, the logistics sector has received unwavering support through a world-class road network that links its ports, free zones, airports, and industrial areas. Conflict-free foreign policies and international relations have further helped Oman emerge as one of the hubs in the logistics sector.
While Tamayyiz aims at creating a pro-business environment in Oman, the government is thinking long term already. Their Logistics’ Strategy 2040 aims at creating multiple jobs and the logistics sector in Oman one of the frontrunners to boost their economy. The government has established an eCommerce department to utilize a growing eCommerce industry and its reliance on the logistics sector. All these initiatives mean that Oman will be concentrating extensively on this sector and become a global player very soon. The logistics companies are definitely to benefit big time with all these investment and strategical planning. Not to mention that the country’s already thriving support sectors like road and air freight will further enhance the services. So, if there was a good time for the logistics companies in Oman, it is now.
The government’s support and openness in investing in advanced technologies to make the logistics sector in Oman even more efficient has further helped the cause. This adaptation in the supply chain is powering the growth of the industry making shipping cargo more precise, efficient and damage free. Just like the growth of eCommerce has made an impact of this sector, technologies like blockchains, artificial intelligence, real time tracking, augmented reality etc are taking things to the next level.
While there is a lot of data that shows the immense potential of this sector, it will be easier to explain without hard-to-comprehend numbers. Simply put, Oman is emerging as one of the biggest logistics service providers in the world and the government is doing all that it can to push its business potential. From developing pro-business policies, opening up large-scale investments, working on government-private sector collaborations to inviting global eCommerce companies to set up their hubs in the area and extending the support infrastructure framework will collectively make a huge impact on the logistics sector in Oman. Even the private players are making their contribution count in the overall growth of this sector with a list of upping their business game.