As global trade fragments, Oman’s long logistics bet gains relevance

MUSCAT, JUNE 2
For decades, global trade was built around a simple formula: maximise efficiency, minimise costs and concentrate activity through a limited number of major hubs. That model is now being challenged.
A recent analysis published by the World Economic Forum (WEF) argues that an increasingly fragmented world requires more diversified trade hubs and stronger supply-chain resilience as geopolitical tensions, shipping disruptions and economic uncertainty reshape international commerce.
The analysis, authored by Ominvest economist Azza Al Habsi, comes at a time when businesses worldwide are reassessing their dependence on concentrated trade routes and just-in-time logistics systems that have long underpinned global supply chains.
“The global trade system is too reliant on concentrated supply routes,” Al Habsi wrote, arguing that complementary regional hubs are becoming increasingly important to ensure continuity when primary routes are disrupted.
For Oman, the message carries particular significance. Over the past two decades, the Sultanate has invested heavily in ports, industrial zones, logistics corridors, airports and transport infrastructure as part of a long-term strategy to position itself as a gateway linking Asia, Africa and Europe. At the time, some questioned whether additional logistics capacity was necessary in a region already home to some of the world’s busiest ports and most established trade centres.
Today, the global conversation appears to be shifting. Rather than relying on a small number of dominant hubs, companies are increasingly seeking diversified supply chains, alternative routes and additional logistics nodes capable of improving resilience during periods of disruption.
According to the World Economic Forum’s Global Trade Observatory Annual Outlook Report 2026, based on a survey of more than 3,500 senior supply-chain and logistics executives worldwide, supplier diversification emerged as the leading strategic priority for 2026, selected by 51 per cent of respondents. Meanwhile, 42 per cent identified improvements in infrastructure and transport capacity as key drivers of future growth.

The trend reflects a broader transformation taking place across international trade. Multinational corporations are increasingly moving away from traditional just-in-time models towards more regionalised and flexible supply networks designed to reduce exposure to geopolitical risk and supply-chain disruptions.
Oman’s infrastructure investments may therefore be entering a more favourable global environment than the one in which they were originally conceived. The World Economic Forum analysis specifically cites Oman as an example of a country whose long-term investments in ports, logistics, industrial zones, road connectivity and digital infrastructure have enhanced its strategic value during periods of disruption.
The article notes that Oman has emerged as an important alternative to traditional regional chokepoints because the necessary infrastructure was already in place before crises occurred.
The opportunity, however, is far from guaranteed. Competition across the Gulf remains intense as countries race to attract trade, investment, manufacturing and logistics activity. The United Arab Emirates continues expanding its global logistics footprint, while Saudi Arabia is investing heavily to establish itself as a leading transport and industrial hub under Vision 2030.
For Oman, geography alone will not be enough. Future competitiveness will depend on customs efficiency, regulatory certainty, industrial depth, workforce capabilities and the ability to convert infrastructure assets into sustained investment, trade flows and job creation.
Yet the broader direction of travel appears increasingly clear. The era in which trade could rely on a handful of dominant gateways is gradually giving way to a more distributed model built around resilience, redundancy and diversification.
If that shift continues, the strategic value of Oman’s ports and logistics infrastructure may prove greater than many anticipated when those investments were first made. In a world searching for backup routes and complementary hubs, Oman may find that its long-term logistics strategy is becoming more relevant than ever.