Signing of 18 Agreements with an Investment Value Exceeding OMR 100 Million During the Ministry of Transport, Communications, and Information Technology’s Celebration of Logistics Day 2025

The Ministry of Transport, Communications, and Information Technology celebrated “Logistics Day” today at Al Bustan Palace Hotel under the patronage of His Excellency Sayyid Saud bin Hilal Al Busaidi, Governor of Muscat, and in the presence of His Excellency Eng. Said bin Hamoud Al Maawali, Minister of Transport, Communications, and Information Technology, along with a number of Their Excellencies, chief executive officers of companies operating in the logistics sector, and a large gathering of officials and specialists from the sector.

 

This year’s celebration was held under the theme “Logistics Technologies and Investment,” emphasizing the role of modern and advanced technologies in enhancing the competitiveness of the logistics sector, improving its operational efficiency, and attracting investments.

 

The event witnessed the signing of 18 agreements with a total investment value exceeding OMR 100 million. These agreements span various fields, including ports, airports, transportation activities, storage, and the integration of smart technologies into the logistics sector. During the celebration, the winners of the 2025 Logistics Sector Best Practices Award were also announced.

 

In his opening remarks, Eng. Abdullah bin Ali Al Busaidi, Acting Head of the Oman Logistics Center at the Ministry of Transport, Communications, and Information Technology, stated that the celebration of Logistics Day reaffirms the importance of the sector and its fundamental and pivotal role in strengthening the national economy. He noted that the logistics sector is broad and diverse, representing an integrated system that includes road networks, ports, land border crossings, airports, logistics zones, transportation activities, and storage, serving as a backbone for various economic and service-related activities.

Logistics Sector Contribution

 

In his speech, Eng. Abdullah added, “We aim for the logistics sector to become the second-largest contributor to the Gross Domestic Product (GDP), as it is a key pillar for achieving Oman Vision 2040 in terms of economic diversification. In 2024, the logistics sector contributed approximately OMR 2.25 billion to the GDP, representing 5.9%. The total investment in the logistics sector in 2024 amounted to around OMR 2.3 billion. By 2040, the sector’s contribution is expected to reach about OMR 36 billion.”

 

Logistics Sector Strategy 2040

 

Al Busaidi explained that the Logistics Sector Strategy 2040 is built around four key pillars. The first is Market Development, which focuses on implementing projects and activities to achieve the targeted share in land, sea, and air transport markets. The second is Trade Facilitation, aimed at a qualitative shift in cargo processing systems across land, sea, and air ports, as well as supply and logistics chains. The third is Enhancing Employment and Omanisation, which emphasizes the Ministry’s initiatives in labor market governance, regulation, training, capacity-building, and increasing Omanisation within the logistics sector. The fourth is Logistics Technologies, which seeks to encourage companies in the logistics sector to adopt advanced technologies to boost their competitiveness in regional markets.

 

Logistics Technologies and Investment

 

Eng. Abdullah Al Busaidi pointed out that the sector is rapidly advancing in the adoption of advanced technologies across many logistics activities and services at sea, land, and air gateways. Most Omani ports, airports, and logistics zones now employ advanced technologies such as artificial intelligence and the Internet of Things, contributing to improved operational efficiency, reduced turnaround times, and time savings.

 

He added that one of the Ministry’s key objectives in promoting the adoption of advanced technologies in the logistics sector is to enhance environmentally friendly sustainable solutions, support green mobility, and reduce carbon emissions in alignment with the national strategic goal of achieving net-zero carbon emissions by 2050.

National Port Community System

 

Following this, the framework agreement for the National Port Community System was signed. This system is one of the key enablers supporting the implementation of the Logistics Strategy 2040. It contributes to enhancing the competitiveness of the Sultanate, facilitates trade, improves operational efficiency, speeds up transaction processing, and provides easy access to information related to shipments and vessels through the digitalization of the supply chain in Oman.

 

The system integrates various platforms used by stakeholders that form the maritime, land, and air freight and port community, including land border crossings and logistics services across the Sultanate. The electronic data exchange platforms enable streamlined business operations between public and private entities and offer a unified platform for managing supply and demand among stakeholders participating in the system.

Initiatives

 

First and Last Mile Service Development

 

A set of new initiatives in the logistics sector for the current year was announced, most notably the First and Last Mile Service Development Initiative. This initiative aims to connect micro-mobility solutions to public transportation systems at a number of higher education institutions in Muscat Governorate and the Wilayat of Salalah. Targeting university communities—including students, faculty, researchers, administrators, and technicians—the initiative seeks to enhance the integration of the public transport network through tailored first and last mile solutions.

 

These include linking higher education institutions in Muscat and Salalah to public transportation through micro-mobility options such as e-scooters and shared small vehicles. The initiative also aims to ease access to public transportation for students and staff, promote the use of sustainable transport, reduce reliance on private vehicles, improve daily commuting experiences, increase the efficiency of the public transport network, lower carbon emissions, and promote smart and eco-friendly mobility concepts.

Oman Airports Initiatives

 

Oman Airports also announced a number of special offers, most notably the extension of the long-term parking offer (aligned with the Khareef season), which allows travelers to park for just one Omani rial per day. This offer will remain valid until 30 September 2025. Additional promotions include various discounts at the Oman Souq outlet for local products such as dates and Omani sweets, as well as exceptional shopping services in the duty-free zone through the “Shop and Collect” service, which allows travelers to shop online and pick up their purchases before departure or upon arrival. These offers will be available until 31 December 2025.

 

Moreover, Transom Handling announced a 5% discount on entry fees to the Majan Lounge at Muscat International Airport, valid until 29 May 2025.

 

Oman SATS Initiatives

 

Oman SATS also announced a set of discounts valid until 31 December 2025. These include a 50% discount for freight forwarders on export shipments of perishable goods from Oman through Muscat International Airport, aimed at encouraging the agricultural and fisheries sectors in the Sultanate. Additionally, a 50% discount is offered on re-exported (transit) shipments from Oman through Muscat International Airport, with the goal of reinforcing the airport’s position as a key logistics hub.

Agreements

 

Sohar Port Agreements

 

As part of the Logistics Day celebration, several key agreements were signed, most notably:

• An agreement to construct a liquefied natural gas (LNG) jetty and shoreline protection for the LNG terminal project between Sohar Port and Six Construct LLC, Oman Branch.
• An agreement to carry out dredging works for the navigation channel of the LNG terminal project between Sohar Port and Boskalis International, Oman Branch. This includes deepening the navigation channel at Sohar Port’s LNG terminal by removing approximately 3.8 million cubic meters of material to develop the access channel, berth basin, and turning basin.
• An agreement for project management and site supervision of the navigation channel dredging works for the LNG terminal project between Sohar Port and WSP Global, Oman Branch. The agreement includes the provision of consultancy services such as project management, administrative support, design review, site supervision, and tender management.

 

Oman Airports Agreements

• Oman Airports and Rakesh Pandey Gold LLC signed an agreement to develop a world-class gold refinery facility in Phase 2 of the Logistics Gate at Muscat Airport through foreign direct investment (FDI). The facility will have a daily refining capacity of 200 kilograms.
• Oman Airports and Tharawat Al Khaleej Al Alamiah Company signed an agreement to establish an innovative academy and research & development center for drones at the Business Gate. A land area of 21,591 square meters has been allocated for the project, which will include an indoor drone training center, a 3D printing manufacturing lab, satellite component assembly areas for space-related activities, a drone R&D center, drone incubator programs, and a warehouse for an e-commerce store selling drones and spare parts.
• Oman Airports and One World Regions for Properties Company signed an agreement to build a bonded warehouse on a 40,000 square meter plot at Muscat International Airport to store a wide range of goods.
• Oman Airports and Sinan Advanced Industries Company signed an agreement to establish a specialized center for the research, development, and manufacturing of advanced technologies at the Logistics Gate of Muscat International Airport.
• Oman Airports and Zahara Airport Services LLC signed a concession agreement to manage and operate the landside airport hotel at Muscat International Airport for a period of 12 years.

 

Agreements of Al Madina Logistics Services

 

An agreement was signed between Al Madina Logistics Services, Lone Star Alpha Laboratories, and Al Alamiya Laboratories and Inspections to expand the Sohar Logistics Hub to accommodate a greater number of private laboratories. These laboratories will provide testing services for imported and exported consignments of agricultural, animal, fishery, and food products, with the aim of enhancing food quality and safety.

 

Al Madina Logistics Services also signed an investment agreement with Global Integrated Equipment Company to develop a fleet of trucks dedicated to the energy sector. The agreement includes providing transport and freight services and establishing an integrated service station in Duqm. The investment will focus on the latest fleet of trucks (tractors and trailers) equipped with advanced technology, safety features, fuel efficiency, and driving safety. This fleet will be used to provide transport and freight services exclusively for Petroleum Development Oman (PDO) and will be operated entirely by Omani drivers and management.

 

Development and Operation of the Integrated Public Transport Station

 

An agreement of cooperation was signed between the Office of the Governor of North Al Batinah and Oman National Transport Company “Mwasalat” to develop and operate an integrated public transport bus station in the Wilayat of Liwa, North Al Batinah Governorate. The agreement includes the development of public transport infrastructure in the governorate, leveraging its strategic location to establish a bus terminal near the Sohar–Abu Dhabi passenger railway station. This reflects the cooperation between the public and private sectors and aligns with Oman Vision 2040’s goals of community partnership.

 

Land Transport Management System (Darby)

 

The Oman Logistics Association and Darby Investment Company signed an agreement to launch the Land Transport Management System (Darby). The platform aims to commercially manage logistics operations, supporting truck and heavy vehicle drivers—especially those operating under the national carrier. It provides opportunities to receive transportation requests directly from companies and allows for both immediate and deferred payment options. The platform consists of four core functions focused on enhancing the logistics sector and supply chains, linking warehouses across the Sultanate with direct and indirect transportation routes, and establishing hubs for short-term cargo collection and distribution integrated with last-mile delivery connections.

 

Ship Bunkering Services

 

Asyad Ports and Free Zones signed an agreement with USTOOL Supply Company to provide ship bunkering services at Sultan Qaboos Port. The agreement aims to support the maritime logistics sector, enhance the efficiency of fuel supply services, strengthen public-private cooperation, and deliver safe and sustainable solutions.

Agreements of the Oman Logistics Center

 

A cooperation program was signed between the Oman Logistics Center and the Oman Development Bank to promote productive collaboration in financing logistics sector projects. This includes providing funding for various investment opportunities in the logistics sector and supporting high-value development projects with a significant impact across different economic sectors.

 

Additionally, a Memorandum of Understanding (MoU) was signed between the Oman Logistics Center and the Oman Academy for Small and Medium Enterprises to enhance investment and funding in emerging logistics projects, while also providing a supportive environment for their growth and success.

 

Winners of the 2025 Logistics Sector Best Practices Awards Announced

 

As part of the 2025 Logistics Day celebrations, the Ministry of Transport, Communications, and Information Technology announced the winners of the Logistics Sector Best Practices Awards, recognizing outstanding contributions and achievements across five key categories.

 

In the Omanization category, Arkan Sohar Logistics claimed first place, followed by RATP Dev LLC in second.

For Health and Safety, Al Samri Trading secured the top position, with Mazoon Dairy coming in second.

The Net Zero category saw Oman SATS take first place, while Sohar Industrial Port Company earned second.

In the area of *Continuous Improvement and Innovation, Sohar Industrial Port Company led the category, followed by Modern Silver Hands.

Finally, in the Omani Services and Products category, Al Raad Logistics was awarded first place, with Darby Investment taking second.

 

These awards aim to encourage excellence, promote innovation, and celebrate organizations that exemplify best practices in the logistics sector.

 

Accompanying Events

 

The celebration also featured a series of presentations by both Omani and international speakers. Dr. Yousuf Al Balushi, an economic expert, presented on logistics sector investment; Yazan Al Busaidi, Senior Manager of Logistics Business Development at Asyad Group, discussed Asyad’s role in enabling the logistics sector through growth and resilience; Charles Kanuka, Senior Transport Specialist at the World Bank, presented on the impact of global logistics trends on the GCC; Dr. Altaf Al Bahwah, Senior Civil Engineer at Kuwait’s Ministry of Oil, addressed sustainability in logistics; and Dr. Shams Ghazi, Director of Strategic Growth and Communications at Asia Mobility in Malaysia, presented on transportation services in Oman.

 

The event concluded with a panel discussion on “Sustainable Logistics in Light of Global Trends,” featuring Dr. Yousuf Al Balushi, Yazan Al Busaidi, Charles Kanuka, Dr. Altaf Al Bahwah, and Dr. Shams Ghazi.