The third party logistics (3PL) market in Oman is growing at a compound annual growth rate of >6.5% over the next five years.

The Omani Third Party Logistics (3PL) market is segmented by type (domestic transport management, international transport management, value added warehousing and distribution), and end users.

Market overview

The Oman 3PL market is expected to register a growth rate of more than 6.5% during the forecast period 2020-2025. Increasing trade with the GCC, Asia and Europe is the main driver for 3PL companies in the region. The logistics sector has gained a special focus from the government due to its potential and the strategic geographical location of the country. Given the political uncertainty in the Gulf region, Oman provides safe bypass to some of the world’s major trade routes. 

Oman’s government plans to reduce the economy’s dependence on the oil and gas sector by diversifying aggressively into other industry sectors. Government initiatives such as investing $50 billion in infrastructure projects over the next 15 years to 2028 are expected to benefit the overall logistics industry in the country.

The country’s location, infrastructure, and stable political climate are major factors contributing to the growth of the logistics sector in the country.

Market scope

Comprehensive background analysis of Oman 3PL market, covering current market trends, restraints, technological updates, and detailed information on various segments and competitive landscape of the industry. 

By Services
Domestic Transportation Management
International Transportation Management
Value-added Warehousing and Distribution
By End-User
Manufacturing & Automotive
Oil & Gas and Chemicals
Distributive Trade (Wholesale and Retail trade including e-commerce)
Pharma & Healthcare
Other End Users

Major market trends

Investments in the country that promote the logistics sector

Oman has a coastline of 2,100 km at the entrance to the Gulf, good relations with its neighbours, and has a unique opportunity to become a logistical gateway for consumers in the GCC and a major hub between Europe and Asia. The Omani government adopts the promotion of the Sultanate of Oman as a major logistics hub in the region through infrastructure investments to improve national logistics development plans, economic diversification, and increase trade with GCC countries, Asia, and African countries.

Oman’s logistics industry is undergoing a changing infrastructure block, including underinvestment in port handling capacity, and poor road transport network with other GCC countries.

  • In January 2020, the UAE-based Tristar Group announced a deal to lease around 11,000 sqm of land to develop a logistics project in the Port of Duqm with 3,048 sqm of covered warehouses, 5,000 pallet sites and a yard for future expansion offering 3 PL as well as 4PL services.
  • Panalpina International Shipping and Logistics Company is developing a new office in Muscat, Sultanate of Oman that handles around 9,00,000 barrels of oil produced in Oman each day and seizes the opportunity to tap into this lucrative market.

Fisheries boost demand for cold chain logistics

Oman is facing a steady growth in demand for refrigerated trucks with an increase in demand for frozen foods and ready-to-eat meals. The need for special care along with the development of the living standard of the urban population has led the food and beverage sector to become the largest end-user in the industry. Oman has a huge fish consumption base, with an annual per capita consumption of 28 kg of fish. The Omani government is focusing on increasing fish production in the country. There is a rush in the hypermarket and convenience store business across Oman, particularly in the online grocery delivery sector. These factors require huge investments in cold chain logistics in terms of advanced temperature-regulated trucks, multi-level refrigeration, RFID technology, and warehousing facilities.

Competitive scene

The market is fairly concentrated with a large number of local and international players such as Sultan Bin Saud Ahmed Al, DHL, Kunooz Global Logistics, Premier Logistics Muscat and Al Madina Logistics Company as major players. The economic growth outlook for Oman Services 3PL is likely to continue to be one of the leading sources of growth in the Sultanate. Effective strategies such as SOLS 2040 and Tanfeedh, launched by the government, have accelerated fundamental changes in the business environment addressing hard and soft infrastructure. Initiatives such as the Public-Private Partnership Authority and the Foreign Direct Investment Law are expected to drive the necessary investments in order to unleash the significant potential of the sector.

Sultan bin Saud bin Ahmed Al, DHL International GmbH. Kunooz Oman Holding, Premier Logistics Group, Logistics City are the main companies operating in the Oman Market for External Logistics Services (3PL).

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