Oman Economic Review – August 2018

COVER STORY

56 August 2018

behind growth in Oman’s logistics
strategy, SOHAR Port and Freezone has
become a focal point for transhipment
between the East and West, as well as
an important gateway to over 3.5 billion
consumers. It has matured into a crucial
contributor to a trade surplus of $2bn in
Oman. To cater for increasing demand,
SOHAR has set aside more than 200,000
sqm for the future development of
general warehousing, cold storage and
light industrial units.

With the logistics sector in Oman
growing beyond the $12bn mark in
2017, SOHAR is quickly advancing
its plans to diversify the economy
beyond its traditional petrochemical
base, and to transform itself into a
major industrial and logistics centre,
regionally and globally.

The Sultanate is witnessing an
unprecedented surge in logistics and
transport activities with the recent
implementation of major projects,
especially the Al Batinah Expressway
which increases connectivity within
Oman. As such, SOHAR is playing a
leading role in the rise of the logistics
sector as a vital economic contributor.
Oman’s ideal geographical location and
its stable political climate, combined
with excellent infrastructure are
key elements that contribute to the
continued growth of the logistics
industry as a whole.

One of our strategic goals is to capture
a larger portion of the food cargo trade
in the region, and the new state-of-the-
art Food Cluster with a dedicated port
agri-terminal is a vital component of
the Omani government’s long-term
food security strategy. The new agri-
terminal features remote-controlled
quay cranes, 450 reefer plugs and is
equipped for an initial throughput of
1.6 million tonnes/year.

Another significant new project was the
signing with India’s Pittie Group, one of
the biggest cotton yarn manufacturers
in the world, for a $300mn cotton yarn
project. The project, when completed,

will produce 100,000 tonnes of cotton

yarn per year and generate over 1,500

sustainable jobs in the Freezone.

Another major project was for the

production of antimony, a mineral

which is primarily used as a fire-

retardant.

Meanwhile, with the establishment

of Oman’s first bitumen refinery

at SOHAR, there will be significant

reduction on the reliance on imports of

bitumen and asphalt for road paving

and industrial applications. This

project will also create new business

opportunities and employment in

the Sultanate, with sustainable jobs

generated for citizens in the first phase

of operations.

Can you elaborate on how SOHAR

Port and Freezone contributes to

SMEs and in-country value and helps

build a sustainable Omani Industrial

base?

SOHAR is committed to its mandate

as an SME business promoter and we

work closely with individuals and small

business operators to make sure they

can play a role in the huge number

of commercial opportunities on offer

within the port and free zone.

Most of the biggest and sustainable

economies in the world have been

formed from the successes of SMEs.

They continue to be one of the biggest

drivers of economic growth and form

the backbone of modern and diversified

supply chains.

We have developed a sizeable

manufacturing base and expect

investment opportunities to grow

rapidly in the coming years, so there

are huge opportunities for SME’s

in Oman, especially in the services

sector, to participate and grow. When

we consider the continued growth in

our industrial base, the opening of

Sohar Airport, the completion of the Al

Batinah expressway, and planned rail

freight services, the future looks bright

for SME’s looking to set up shop in here

in SOHAR.

For example, our HIMMATAK initiative

aims to stimulate the entrepreneurial

mindset amongst Omani youth by giving

them an opportunity to test new ideas,

learn about starting and running a

business, and to provide them with the

right resources to attract initial start-up

investment. The programme not only

stimulates the creation of business

ideas, but also serves as a spring-board

to actually establishing a sustainable

business. HIMMATAK was developed to

enable students to transform solid ideas

into commercially viable startups.

Our aim is centred on building

relationships with large and small

companies, and providing them with

the requisite tools they need to succeed.

New businesses in SOHAR are guided

through the ‘one-stop-shop’ that

assists them in securing the necessary

permissions to begin operations, since it

has been designed to simplify clearance

processes for permits.

Additional benefits include free trade

agreements with the United States and

Singapore, together with the low levels

of basic capital required, the latter

which is an important consideration for

any start-up or SME.

SOHAR Port and

Freezone has

rapidly emerged

as a world class

port and integrated

industrial area

of choice, so we

need to manage

our growth in a

sustainable manner