Muscat: Oman's logistics industry is on the cusp of a major transformation, aided in part by the rapid development of Khazaen Economic City, the country’s largest logistics-centric Private-Public Partnership (PPP) initiative.

Located at Barka in South Al Batinah Governorate, Khazaen is Oman’s largest integrated economic city. It strategically beckons both domestic and foreign investments in key sectors, including pharmaceuticals, food, industrial, logistics, technology, and clean energy.

Khazaen's value as an integrated economic city is evident in the rising volume of investments. To date, over 100 investment agreements have been signed, surpassing a cumulative value of $820 million. These investments affirm Khazaen's status as a lucrative destination for investors.

Spurring Khazaen's growth as a strategic logistics hub is an array of services to businesses, including technological solutions, online order management, efficient inventory control, and streamlined operations, facilitating the smooth flow of goods through various transportation modes.

A critical factor in Khazaen's success is the PPP model, which leverages the private sector's resources and expertise, a key driver in operating and developing Oman's first integrated international dry port, the Khazaen Dry Port. The dry port plays a pivotal role in logistics management and efficient movement, offering comprehensive services to businesses, ensuring the seamless flow of goods both domestically and internationally.

Investor confidence in Khazaen is evident as it attracts significant players in the logistics industry. The Global Warehousing Company (GWC), well-known for its extensive warehousing capabilities in the GCC region, recognized Oman's potential and invested in Khazaen. Prominent companies like Saudi Arabian Express Naqel have also become part of Khazaen.

The logistics sector has also benefited from an 80% increase in government subsidies, which climbed from RO 30 million to RO 54 million between the second quarter of 2022 and the second quarter of 2023. This substantial increase underscores the government's commitment to the sector's growth and aligns with the ambitious Vision Oman 2040, which envisions Oman as a logistics hub.

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