SOHAR unveils $1.7 billion investment plan

MUSCAT, JAN 21

Building on a record-breaking year for 2024, SOHAR Port and Freezone (SOHAR) unveiled an ambitious five-year strategy to strengthen its position as a regional leader in logistics and industry. Speaking at the annual Business Reception, CEO Emile Hoogsteden highlighted plans focused on investment, sustainability, and innovation, aligning with Oman Vision 2040.

Hoogsteden emphasised SOHAR’s commitment to strategic growth, announcing $1.7 billion in new investments and the leasing of 265 hectares of land through the completion of port infrastructure and Freezone Phase 2. With land availability becoming a challenge, SOHAR is securing space in the northern region to accommodate expansion needs by 2027.

Energy and sustainability remain central to SOHAR’s vision. The Port is addressing gas and power challenges through long-term agreements and aims to boost bunkering volumes to 500,000 tonnes, achieving a compound annual growth rate of 44.3 per cent. Additionally, renewable energy initiatives are set to reduce carbon dioxide emissions by 30 per cent, underscoring SOHAR’s commitment to decarbonisation.

Collaboration and partnerships play a pivotal role in SOHAR’s roadmap, with ongoing negotiations for land acquisitions and new memoranda of understanding with customers. Partnering with tenants, SOHAR aims to foster mutual growth and sustainability.

Strategic infrastructure development is also a priority, with the Hafeet Rail project set to be operational by 2028, enhancing connectivity. Simultaneously, the Port is advancing full digitalisation and cloud adoption to optimize operations and drive efficiency.

Highlighting the importance of people in this journey, Hoogsteden reaffirmed SOHAR’s focus on leadership development in sustainability, technology, and operations. “The next five years are critical as we enhance our infrastructure, expand our capabilities, and invest in talent to meet the evolving demands of the global marketplace,” he said.

With its comprehensive strategy, SOHAR is poised to solidify its position as a hub for innovation, sustainability, and regional growth, setting new benchmarks for Oman’s industrial and logistics sectors.