Khazaen: Connecting Oman to the World through Logistics

Oman, with its strategic location at the crossroads of key global trade routes, has long aspired to establish itself as a major logistics hub in the region. To realize this vision, the country has embarked on several ambitious projects, and Khazaen is emerging as a pivotal player in Oman’s logistics landscape. Located just 25 kilometers from Oman’s capital, Muscat, Khazaen is strategically positioned to support and bolster the nation’s logistics ambitions.

With the fastest-growing Khazaen Economic City—Oman’s largest logistics-focused Private-Public Partnership (PPP) initiative—the country’s logistics sector is poised for a significant upheaval.

The largest integrated economic city in Oman is called Khazaen, and it is situated in Barka, South Al Batinah Governorate. It deliberately entices investments from both domestic and foreign sources in important industries, such as clean energy, food, pharmaceuticals, logistics, and the industrial sector.

The increasing amount of investments shows how valuable Khazaen is as an integrated economic city. More than 100 investment agreements with a combined value of more than $820 million have been signed thus far. These investments support Khazaen’s reputation as a profitable investment destination.

A range of business services, such as technology solutions, online order management, effective inventory control, and streamlined operations that facilitate the seamless flow of goods through various transportation modes, are supporting Khazaen’s growth as a strategic logistics hub.

The PPP model, which makes use of the resources and knowledge of the private sector and was a major force behind the development and operation of Oman’s first integrated international dry port—the Khazaen Dry Port—is a crucial component of Khazaen’s success. The dry port is essential to effective logistics management and transportation because it provides businesses with a wide range of services that guarantee the smooth movement of goods both domestically and internationally.

The fact that Khazaen draws major players in the logistics sector is indicative of investor confidence in the city. The Global Warehousing Company (GWC), a prominent player in the GCC warehousing market, saw potential in Oman and made an investment in Khazaen. Khazaen now includes well-known businesses like Saudi Arabia’s Express Naqel.

Khazaen is well on its way to becoming a cornerstone in Oman’s logistics aspirations

Between the second quarters of 2022 and 2023, government subsidies increased by 80%, from RO 30 million to RO 54 million, which has also benefited the logistics sector. This significant increase is in line with the ambitious Vision Oman 2040, which sees Oman as a logistics hub, and highlights the government’s commitment to the sector’s growth.

As the city continues to evolve and welcome businesses and industries, it promises to play a vital role in realizing Oman’s ambitions in logistics and beyond.

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