Oman’s logistics industry growth fueled by $8.8bn investment, official figures show

Port of Salalah in Oman. Getty
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Updated 12 January 2026
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Oman’s logistics industry growth fueled by $8.8bn investment, official figures show

RIYADH: An investment of 3.4 billion Omani rials ($8.8 billion) by the end of 2025 underscored Oman’s accelerating transformation in transport, logistics, and the digital economy.

According to the Ministry of Transport, Communications and Information Technology Achievement Bulletin, total investment in the transport and logistics sector amounted to 2.3 billion rials from 2021 through the end of 2024, increasing to 3.4 billion rials by the close of 2025.

The level of capital spending achieved signals a clear shift from planning to implementation, as infrastructure, services, and digital systems are now actively transforming the movement of goods, data, and people throughout the Sultanate of Oman.

This funding aligns with Oman’s goal of establishing itself as a key logistics hub connecting regional and international trade corridors.

The investments have been allocated to ports, logistics hubs, land transport systems, and digital platforms that enhance the sector’s efficiency and integration.

A prominent outcome of this investment is the progress in digital transformation. By the close of 2024, 1,700 out of 2,523 key government services had been fully digitized.

By the end of 2025, the number of digitized services rose to 2,277, signaling the near completion of public service digitalization.

For businesses, especially in trade, transport, and logistics, this transition has led to faster processing, greater transparency, and reduced administrative costs, contributing to a more efficient and supportive business climate.

Advancements in workforce localization highlight deeper structural shifts, particularly in tech-driven sectors.

Omanization in the IT sector grew from 38 percent in 2024 to 45.5 percent in 2025, indicating greater integration of Omani talent into high-value digital roles.

In transport and logistics, Omanization rose from 20 percent to 21.6 percent, showing steady progress in developing national expertise in roles historically filled by expatriates.

Trade and operational metrics highlight the sector’s expanding capabilities. Container and cargo traffic rose from 4.3 million twenty-foot equivalent units in 2024 to over 5 million TEUs in 2025, signaling enhanced port performance, efficiency, and deeper regional supply chain integration.

General cargo volumes also grew significantly, increasing from 115.7 million tonnes to 143 million tonnes over the same period, reflecting the continued growth of Oman’s logistics sector.

The bulletin highlights significant progress in digital governance, with the National Digital Transformation Program’s performance rate increasing from 73 percent in 2024 to 94 percent in 2025. This improvement reflects enhanced execution, improved coordination among government agencies, and more effective oversight of complex digital projects.

Financial results across key subsectors further confirm tangible progress. The ports sector saw a 12.9 percent rise in revenue, driven by higher volumes and improved operational efficiency.

Maritime affairs experienced a 6.5 percent jump, while land transport led the growth with an 18 percent increase, reflecting strong demand for freight and mobility services.

Regarding project delivery, although the target for project implementation was set at 70 percent, actual performance reached 85 percent in 2025.

This surpassing of expectations reflects stronger planning, enhanced execution capabilities, and greater accountability in major transport and digital initiatives.

In December, Fitch Ratings upgraded Oman to investment-grade status, raising its long-term foreign-currency rating from BB+ to BBB-, citing the Sultanate’s stronger public finances, improved external position, and continued commitment to prudent fiscal management.

The agency noted at the time that Oman has successfully strengthened fiscal discipline, reducing government debt significantly to around 36 percent of gross domestic product in 2025, down from about 68 percent in 2020.


Arab Energy Fund takes minority stake in Saudi energy firm APSCO 

Updated 15 January 2026
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Arab Energy Fund takes minority stake in Saudi energy firm APSCO 

RIYADH: The Arab Energy Fund has acquired a minority stake in Saudi Arabia’s Arabian Petroleum Supply Co., backing one of the Kingdom’s largest private energy solutions providers as it looks to expand across the Middle East and beyond. 

The investment initiates a partnership aimed at pursuing opportunities across the Middle East, North Africa, and select international markets, covering APSCO’s core and adjacent business sectors. 

The move underscores TAEF’s commitment to investing in established regional leaders while promoting innovation and sustainable growth across the energy value chain. 

According to a press release, the transaction marks The Arab Energy Fund’s first investment of 2026, following an active 2025 during which the fund completed several key deals, including investments in Jafurah Midstream Gas Co. alongside BlackRock and in the platform Tagaddod. 

Khalid Al-Ruwaigh, CEO of The Arab Energy Fund, commented on the deal, saying: “APSCO represents a unique platform with strong fundamentals and a proven track record in critical energy segments.” 

He added: “This investment aligns with our mandate to support high-quality energy and energy-adjacent businesses that are well-positioned to capture growth across the region and beyond.” 

The Arab Energy Fund is a multilateral impact financial institution established in 1974 by 10 Arab oil-exporting countries. 

Mohammed Ali Ibrahim Alireza, managing director, APSCO, said: “We welcome The Arab Energy Fund as a strategic partner supporting our next phase of growth.” 

He added: “As a pioneer in energy solutions for over 60 years, APSCO remains committed to quality, reliability, and innovation, while continuing to contribute to Vision 2030 by enhancing efficiency and minimizing environmental impact.” 

The partnership is designed to bolster APSCO’s long-term growth strategy, operational excellence, and geographic expansion, leveraging TAEF’s regional expertise and institutional network. 

APSCO is a Saudi energy company with more than 60 years of experience in integrated energy solutions, including aviation fuels, lubricants, and a nationwide automotive retail network. 

The company holds long-term partnerships with global energy leaders, including a 60-year relationship with ExxonMobil for lubricant distribution across several Middle Eastern countries. Since 1999, APSCO has also been the exclusive aviation fueling services provider for Saudia.