According to latest report, the logistics industry in Oman is likely to grow at a Compound Annual Growth Rate (CAGR) of 6.9% between 2015 and 2020. The key drivers for economic growth are the infrastructure investments associated with national logistics development plans, economic diversification efforts, and trade with the GCC, Asia and Sub-Saharan African countries. Oman’s National Rail Network is likely to increase capacity and the Logistics Strategy 2020 aims to provide the infrastructure required for the development of major hubs for handling international cargo.
As a member of the Gulf Cooperation Council (GCC), Oman is likely to benefit from alignment of trade policies and customs regulations, integration of national transport infrastructure with regional transportation corridors in the GCC. The Oman Logistics Plan 2020 and the Oman Logistics Strategy (SOLS) 2040 plan to improve the country’s soft infrastructure, particularly the regulatory environment, support mechanisms, and institutions. Oman’s strategic centralised location in the Arabian Gulf makes it ideal for conversion into a major trans-shipment hub for East-West trade route.
Some of the key trends identified in the Oman logistics industry are:
- Initiated by the Supreme Council of Planning (SCP), the task force has developed the Sultanate of Oman Logistics Strategy 2040 (SOLS 2040).
- Investments on infrastructure and latest technology for upgrading ports, airport facilities, new road links, supported by increased Government spending.
- High priority is given for the development of national rail network to connect with the GCC rail network to improve efficiency and reduce logistics costs.
- Trade with the GCC, Asia, and Europe is likely to remain the major driver for freight forwarding and transportation companies in the region.
- Main exports continue to be mineral fuels, oils distillation byproducts, while imports comprise manufacturing goods and agriculture products.
Oman’s packaging market is small but at growing stage, public and private sector are working together for the betterment of the industry. Local market is willing to adopt international standards to meet the local demand and to provide high quality products in the market.
According to latest Smithers Pira report, world demand for corrugated board packaging will increase steadily across the next five years. The market with an annual consumption value of $222 billion in 2015 will expand to be worth $269 billion in 2021, and consume 160 million tons of board in that year.
Also Flexible barrier packaging presents strong opportunities for growth. Smithers Pira predicts global demand for transparent barrier films reached 1.5 million tons for 2015, and is forecast to grow at an annual average rate of 3.9% over the five-year study period, reaching 1.9 million tons in 2021.