Discusses the distribution network within the country form how products enter to final destination, including reliability and condition of distribution mechanisms, major distribution centers, ports, etc.
Last Published: 11/20/2018

Numerous transport, logistics and retail companies serve the domestic market. Most goods destined for the Omani market enter through the Port of Sohar, Oman’s import/export hub, which is located two hours by road from Muscat.  A well-developed road infrastructure links almost all points in the country. In addition, goods may enter Oman overland after arriving at ports in the UAE. American goods entering Oman are exempt from the 5 percent GCC customs duty under the terms of the FTA, although the GCC duty has been charged on occasion on American goods entering Oman overland from the UAE at the Wajaja border post, in contradiction to the FTA.
The Port of Salalah, located some 1,000 kilometers southwest of Muscat in southern Oman, has established itself as a leading container transshipment center on the Indian Ocean Rim since its November 1998 opening; it also handles import/export shipments. Maersk is the principal customer of the port and a majority shareholder in the Port of Salalah Company. The Port of Salalah is the only port between Europe and Singapore that can accommodate S-class container vessels. Salalah boasts 14-day turnaround times to the United States. The Port of Salalah is expected to add a new general cargo terminal and a liquid jetty, which will increase the capacity of the port to 40 million tons of dry-bulk commodities and 5 million tons of liquid products each year. The adjacent free trade zone and the new international airport have the potential to make Salalah a major multi-modal cargo hub and a center for industrial development. The government has offered a number of incentives to attract business to the zone, including: reduced or deferred corporate taxes; extended period for re-exports; availability of hard currency and financing; favorable rental charges; reduced local content requirements; and lower customs duties and Omanization requirements.

The Port of Sohar is Oman’s third largest port. Sohar is located just outside the Strait of Hormuz and is proximate to the busy shipping lanes of the Gulf. By entering the Gulf through Sohar, companies avoid the high insurance premiums normally levied on vessels that ply the Upper Arabian Gulf. The Port of Sohar has deepwater draughts; modern container, cargo, and liquid terminals; and is linked to other locations, both in Oman and in the UAE, through world-class road infrastructure and an airport. The Port of Sohar is undergoing expansion work, including a major deepwater jetty and a dry bulk terminal. The deepwater jetty is primarily constructed to support the bulk shipping needs of the Brazilian mining conglomerate Vale Oman, which has a hub in the Sohar industrial area next to the port. The dry bulk terminal will be dedicated to the handling of aggregates, minerals, and related dry bulk commodities. The Sohar Freezone is located adjacent to the Port and features investment incentives which include: a 10 year corporate tax holiday; no minimum capital requirements; a relaxation on the quotas of Omanis a company must employ; and a one stop shop for business registration and permits.

The government is in the process of constructing a large commercial port at Duqm boasting a dry dock, deep water draughts, hotels, and a special economic zone. The Special Economic Zone Authority for Duqm (SEZAD) offers its own One-Stop Shop for investors, facilitating business registration, work visas, reduced Omanization requirements, and permits directly.
 

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