Logistic sector set to boost the economy of Oman

A transformation will be seen in the logistics sector in the next few years, which requires us to utilise all potentials and employ all available means that can enhance its role in the national economy, especially with the presence of integral infrastructure in multiple and various sectors.  

Haider Al Lawati –
haiderdawood@hotmail.com –

No doubt, there are notable achievements and constructive collaboration with government organisations regarding development and inventory of logistic procedures through trade facilitating team. Beside the efforts exerted to simplify these procedures, an idea has been put forward to create a one-stop shop
with full authority to finalise required procedures under one roof.
Due to the Sultanate’s strategic location, it is necessary to implement projects that serve the logistics sector to fulfil the needs of Omani market and put it on the global trade map. Therefore the recent step was to establish Oman Global Logistics Group (OGLG) to implement the main objectives and functions to add more revenue to the Omani economy in general.
According to the sources in the Ministry of Transport and Communications, the general contribution of the logistics sector to the Sultanate’s GDP during 2014 reached nearly RO 1.5 billion and the ministry expects the sector to contribute almost RO 3 billion by 2020.
As far as the role of ports are concerned in economic development, it is well-known fact that ports are not just places for shipping and offloading consignments, but also important element in economic development. One of the distinctive outcomes of establishing ports is the provision of a high-level infrastructure for the operation of heavy industries.
For example, Sohar Port has provided an attractive environment for heavy industries that require import and export facilities, leading to industrial development in Al Batinah North and South governorates in general, and the same is the case with Salalah Port.
Moreover, ports boost small and medium enterprises (SMEs) along with other services to establish their projects nearby. Omani ports have provided direct and indirect employment that contributed in increasing income levels, beside its influential role in decreasing commodity prices due to the close proximity of ports to consumer markets, saving time and injecting direct and indirect proceeds into the state treasury.
A transformation will be seen in the logistics sector in the next few years, which requires us to utilise all potentials and employ all available means that can enhance its role in the national economy, especially with the presence of integral infrastructure in multiple and various sectors.
And the presence of the logistics group will definitely contribute in enhancing this role. It is no secret that ports, free zones and companies operate under independent managements. Therefore it was deemed necessary to have an entity that combines all these under one comprehensive management and coordination. This is one of the tasks assigned to OGLG.
OGLG also strives to upgrade performance level of affiliate companies and institutions by employing existing competencies. This is achieved by understanding the needs and potential of affiliate companies and guiding them to serve the enhancement of fiscal performance, business growth and boosting the efficiency of existing resources of these companies, whether human resources, contracts, etc.
By the end of this year, OGLG will produce a comprehensive action plan. As for the OGLG’s main functions, its mission is to implement the National Logistic Strategy 2040. The logistics sector has the components and infrastructure that guarantee success, especially the strategic location etc. However, there is still need to focus on efficiency in offering services, cost and time to fulfil our aspirations in terms of achieving the required growth rates, as well as high rankings in logistic services. This requires creating a new type of services and offering the best advantages while forecasting future outlook.
Medium- and long-term plans have been developed in preparation for logistic products that may be required in the future along with performance indicators, whether in terms of contributing to the GDP, number of containers or cargo volume (by sea, land or air).

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