Oman: Khazaen Economic City, strategically located in Barka within the South Al Batinah Governorate, is shaping up to be the cornerstone of Oman’s logistics ambitions. The city is rapidly attracting both domestic and foreign investments, becoming a hub for key sectors like pharmaceuticals, food, industrial, technology, and clean energy.
With over 100 investment agreements inked, the cumulative value has surged past an impressive $820 million, solidifying its status as an investment hotspot. The city’s integrated economic framework is a magnet for investors seeking lucrative opportunities.
Khazaen’s growth as a strategic logistics hub is not by chance but by design. The city offers a suite of business services that streamline operations and ensure the seamless flow of goods through various transportation modes. Technological solutions, efficient inventory control, and online order management are at the core of these services, making Khazaen a logistical powerhouse.
A key driver behind Khazaen’s success is its innovative Public-Private Partnership (PPP) model, which leverages the private sector’s resources and expertise. Central to this model is Oman’s inaugural integrated global dry port, the Khazaen Dry Port. This asset plays a pivotal role in logistics, providing comprehensive services for smooth domestic and international goods movement.
Investor confidence in Khazaen is not limited to local players. The Global Warehousing Company (GWC), renowned for its extensive warehousing capabilities in the GCC region, recognized Oman’s potential and invested in Khazaen. Similarly, Saudi Arabian Express Naqel has become an integral part of Khazaen’s growth story.
In alignment with the ambitious Vision 2040, the government has significantly increased subsidies for the logistics sector, from RO 30 million to RO 54 million between the second quarter of 2022 and the second quarter of 2023.
This remarkable increase underscores the government’s commitment to driving the sector’s growth and cementing Oman’s position as a future logistics hub.