Mighty Wisdom

How Is Oman Shifting Gears for a Resilient Future?

In the face of global economic shifts and regional uncertainties, Oman is accelerating efforts to diversify its economy beyond oil. Buoyed by high oil prices and fiscal reforms, the Sultanate has improved its financial stability and credit outlook, creating momentum for investment in non-oil sectors.

Under the Vision 2040 plan, Oman is actively developing new growth pillars – from logistics and manufacturing to technology, natural gas, food security, and tourism – to manage future risks. Below, we highlight key sectors driving this shift and Oman-listed companies positioned to benefit.

Sectors in Oman worth investing in:

Logistics

 

Oman’s geographic location—at the crossroads of Asia, Africa, and the Middle East—gives it natural leverage as a logistics hub. In 2024, Omani ports handled 137 million tonnes of cargo, a 15% YoY increase. Container throughput hit 4.1 million TEUs, with Salalah Port alone contributing nearly 80%. Port expansions, free zone development, and strategic deals with Saudi and regional logistics firms are enhancing Oman’s appeal for transshipment and trade. These efforts aim to rival UAE ports like Jebel Ali and support the Asyad Group’s ambition to make Oman a top global logistics player.

Tourism

 With its rich culture and natural diversity, Oman is positioning itself as the Gulf’s authentic travel destination. Tourism contributed OMR 2.12 billion (~USD 5.5 billion) in 2024, representing a 3.2% CAGR since 2018. Visitor growth, eased visa policies, and hotel expansions are strengthening the sector. Government targets under Vision 2040 aim to quadruple tourism revenue to OMR 9 billion, while pushing its GDP contribution to 10%. Western and regional travelers are driving demand, with European hotel bookings and GCC weekend tourism both on the rise.

Energy Transition

 Oman is investing heavily in both natural gas infrastructure and green hydrogen to manage its dependence on hydrocarbons. Although oil and gas still account for ~70% of government revenue, initiatives like the $30 billion green hydrogen partnerships aim to shift this balance. Oman’s natural gas pipeline system, serving power plants, free zones, and LNG terminals, is central to this plan. The long-term ambition: produce 8 million tons of green hydrogen annually by 2050, making Oman a global clean energy hub.

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