Opportunity Oman: Strategic location
Published: 03:04 PM,Apr 17,2023 | EDITED : 07:04 PM,Apr 17,2023
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Located along the southeastern coast of the Arabian Peninsula, the Sultanate of Oman is strategically positioned at the intersections of the Arabian Sea, the Sea of Oman, and Arabian Gulf.
This geographical position has placed Oman in the spotlight for international trade and commerce making it a hub for regional and global investments. Oman also used to be a centre of trade during the old times particularly using maritime routes with ships bringing in goods from Africa and Asia, which were later moved logistically to other GCC countries.
This advantageous strategic location continues to be an ideal hub for transportation and logistics, now with access to major shipping lanes, air routes, and road networks and hence an ideal gateway to the Middle East, Asia, and Africa.
According to US Energy Information Administration, 2021, its location has also made Oman a significant player in the oil and gas industry as the largest non-Opec oil producer in the Middle East. As Oman is located outside the Strait of Hormuz, this makes it a suitable place for oil and gas storage as well as a distribution hub for humanitarian aid for the region.
In recent years, Oman has made significant strides in creating an attractive environment for foreign, local, and regional investors by building on the country’s strategic geographic position, reliable transport infrastructure, and a stable political environment allowing investors to reap great returns.
Hence, the country has invested heavily in its transportation infrastructure, with projects such as the new Muscat International Airport, the expansion of the Port of Duqm, and the development of the Salalah Free Zone.
These initiatives have helped establish Oman as a major logistics hub in the region, with the logistics sector contributing 7% to Oman’s GDP in 2022.
Furthermore, Oman has also made significant investments in developing its logistics sector, with a focus on enhancing its connectivity to the rest of the world.
The country’s flagship logistics project, the Duqm Special Economic Zone, is a massive industrial and commercial development that spans over 2,000 hectares.
It includes a deep-sea port, an airport, and a range of industrial and commercial facilities. The project is aimed at attracting foreign investors and providing them with a world-class infrastructure to operate from.
According to the World Bank, Oman ranks 5th in the region in terms of the quality of its transport infrastructure, providing investors with reliable and efficient transport options.
Its extensive network of ports and airports provides investors with a convenient and efficient means of transportation for their goods and services.
The country’s seaports, in particular, are vital to Oman’s economic growth. In 2022, the Port of Salalah handled over 4.5 million twenty-foot equivalent units (TEUs), making it the largest port in the country. In 2021, Port of Salalah was ranked the second most efficient port in the world.
This massive throughput has made Oman an attractive destination for international businesses looking to expand their reach in the Middle East and beyond.
Additionally, Oman has several free zones, including Freezone Sohar and the Salalah Free Zone, which offer investors tax exemptions and 100% foreign ownership.
According to a report by Oxford Business Group, the Port of Salalah’s container throughput increased by 13% in 2020, demonstrating the port’s potential for growth.
One of the major investment opportunities in Oman’s logistics sector is the further development of ports and free zones.
The country has four major ports, including the Port of Salalah, which is one of the largest ports in the region, and the Port of Duqm, which is being developed as a major transshipment hub.
Investment opportunities also exist in the development of logistics parks and warehouses. Oman has several logistics parks, including the Sohar Logistics City, which is being developed as a multimodal logistics hub, and the Duqm Logistics Park, which is being developed as a major logistics hub for the oil and gas industry.
Additionally, several international companies, such as DHL, have established logistics warehouses in Oman.
According to a report by Fitch Solutions, Oman’s logistics sector is expected to grow at a compound annual growth rate of 7.2% between 2021 and 2025, providing investors with a significant potential for returns.
In conclusion, Oman’s strategic location is a game-changer for global business, trade, logistics, politics, and manufacturing.
It’s a country located at the crossroads of significant trade routes, making it a competitive advantage in boosting its economy and enhancing its role in the region and beyond.
Oman’s Arabian Sea location positions it as a natural logistics hub for shipping and air freight, coupled with its existing infrastructure, making it an ideal location for investment.
The country’s location also offers abundant solar energy potential, making it a suitable location to become a hub for renewable energy.
Oman’s stable economy and strategic location make it an ideal location for a financial hub and a platform for businesses to connect and facilitate trade between Asia, Africa, and Europe.
With its streamlined business procedures, range of incentives, and extensive network of ports and airports, Oman provides investors with significant opportunities to expand their operations in the Middle East and beyond, and its commitment to creating a business-friendly environment further enhances its attractiveness to investors.
Overall, Oman’s strategic location offers numerous opportunities for the country to foster innovation and growth across several sectors of its economy, making it a promising market in the region.
This geographical position has placed Oman in the spotlight for international trade and commerce making it a hub for regional and global investments. Oman also used to be a centre of trade during the old times particularly using maritime routes with ships bringing in goods from Africa and Asia, which were later moved logistically to other GCC countries.
This advantageous strategic location continues to be an ideal hub for transportation and logistics, now with access to major shipping lanes, air routes, and road networks and hence an ideal gateway to the Middle East, Asia, and Africa.
According to US Energy Information Administration, 2021, its location has also made Oman a significant player in the oil and gas industry as the largest non-Opec oil producer in the Middle East. As Oman is located outside the Strait of Hormuz, this makes it a suitable place for oil and gas storage as well as a distribution hub for humanitarian aid for the region.
In recent years, Oman has made significant strides in creating an attractive environment for foreign, local, and regional investors by building on the country’s strategic geographic position, reliable transport infrastructure, and a stable political environment allowing investors to reap great returns.
Hence, the country has invested heavily in its transportation infrastructure, with projects such as the new Muscat International Airport, the expansion of the Port of Duqm, and the development of the Salalah Free Zone.
These initiatives have helped establish Oman as a major logistics hub in the region, with the logistics sector contributing 7% to Oman’s GDP in 2022.
Furthermore, Oman has also made significant investments in developing its logistics sector, with a focus on enhancing its connectivity to the rest of the world.
The country’s flagship logistics project, the Duqm Special Economic Zone, is a massive industrial and commercial development that spans over 2,000 hectares.
It includes a deep-sea port, an airport, and a range of industrial and commercial facilities. The project is aimed at attracting foreign investors and providing them with a world-class infrastructure to operate from.
According to the World Bank, Oman ranks 5th in the region in terms of the quality of its transport infrastructure, providing investors with reliable and efficient transport options.
Its extensive network of ports and airports provides investors with a convenient and efficient means of transportation for their goods and services.
The country’s seaports, in particular, are vital to Oman’s economic growth. In 2022, the Port of Salalah handled over 4.5 million twenty-foot equivalent units (TEUs), making it the largest port in the country. In 2021, Port of Salalah was ranked the second most efficient port in the world.
This massive throughput has made Oman an attractive destination for international businesses looking to expand their reach in the Middle East and beyond.
Additionally, Oman has several free zones, including Freezone Sohar and the Salalah Free Zone, which offer investors tax exemptions and 100% foreign ownership.
According to a report by Oxford Business Group, the Port of Salalah’s container throughput increased by 13% in 2020, demonstrating the port’s potential for growth.
One of the major investment opportunities in Oman’s logistics sector is the further development of ports and free zones.
The country has four major ports, including the Port of Salalah, which is one of the largest ports in the region, and the Port of Duqm, which is being developed as a major transshipment hub.
Investment opportunities also exist in the development of logistics parks and warehouses. Oman has several logistics parks, including the Sohar Logistics City, which is being developed as a multimodal logistics hub, and the Duqm Logistics Park, which is being developed as a major logistics hub for the oil and gas industry.
Additionally, several international companies, such as DHL, have established logistics warehouses in Oman.
According to a report by Fitch Solutions, Oman’s logistics sector is expected to grow at a compound annual growth rate of 7.2% between 2021 and 2025, providing investors with a significant potential for returns.
In conclusion, Oman’s strategic location is a game-changer for global business, trade, logistics, politics, and manufacturing.
It’s a country located at the crossroads of significant trade routes, making it a competitive advantage in boosting its economy and enhancing its role in the region and beyond.
Oman’s Arabian Sea location positions it as a natural logistics hub for shipping and air freight, coupled with its existing infrastructure, making it an ideal location for investment.
The country’s location also offers abundant solar energy potential, making it a suitable location to become a hub for renewable energy.
Oman’s stable economy and strategic location make it an ideal location for a financial hub and a platform for businesses to connect and facilitate trade between Asia, Africa, and Europe.
With its streamlined business procedures, range of incentives, and extensive network of ports and airports, Oman provides investors with significant opportunities to expand their operations in the Middle East and beyond, and its commitment to creating a business-friendly environment further enhances its attractiveness to investors.
Overall, Oman’s strategic location offers numerous opportunities for the country to foster innovation and growth across several sectors of its economy, making it a promising market in the region.