WEEKLY NEWS


CAN MUSCAT AND SOHAR HOLD GROUND AS SAUDI ARABIA SCALES UP AIR CARGO?


BY Omar AHMED


As Saudi Arabia accelerates its push to become a global air cargo megahub, Oman faces a strategic reality it cannot ignore — nor should it attempt to match. Riyadh’s logistics ambitions under Vision 2030 are built on scale, density, and state-backed consolidation at a level the Sultanate neither can nor needs to replicate. The real question for Oman is not whether it can compete head-to-head with Saudi Arabia’s capital-heavy


expansion, but whether it can remain commercially relevant as cargo flows in the Gulf are reshaped by megahub economics. The answer lies in differentiation, not duplication. Where Saudi Arabia is pursuing throughput and network dominance, Oman is positioning itself as


a precision logistics platform: multimodal, less congested, and tightly aligned with industrial and trade corridors rather than transit volume alone. In a region already dominated by established hubs in the UAE and now facing aggressive new entrants, that distinction may determine whether Muscat and Sohar merely endure — or continue to matter.


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Saudi Arabia’s scale play Saudi Arabia’s air cargo strategy is underpinned by capital deployment on a scale unmatched in the region. Under Vision 2030 and the National Transport and Logistics Strategy, the Kingdom is investing heavily in fleets, airports, and integrated logistics zones, with the stated aim of lifting aviation cargo capacity beyond 4.5 million metric tonnes a year by 2030. Official figures show that Saudi airports handled more than 103 million passengers between January


and September 2025, with flight movements up five percent year on year and international connectivity expanding to almost 170 destinations. Aviation’s contribution to GDP is targeted to rise from six percent in 2021 to 10 percent by 2030, supported by an estimated SAR 45 billion in additional non-oil revenue. The launch of Riyadh Air, backed by the Public Investment Fund (PIF), has further strengthened this push.


Designed to complement Saudia’s passenger operations, the new carrier is intended to support high-volume freight services and long-haul connectivity. Infrastructure development has been reinforced by a long-term agreement between Riyadh Air and SAL


to develop and operate advanced air cargo facilities at King Khalid International Airport, including terminal leasing, technology deployment, and phased capacity expansion through to 2044. Together, these initiatives are intended to transform Riyadh into a major global cargo gateway. The


emphasis is on aggregating flows, building density, and competing directly with established regional hubs by offering scale, frequency, and integrated logistics ecosystems.


Oman’s selective positioning Oman’s logistics strategy is rooted in geography as much as policy. Long before air cargo became a competitive battleground, the sultanate’s position on the Indian Ocean made it a maritime gateway linking East Africa, South Asia, and South-East Asia. That legacy — and Oman’s location outside the Strait of Hormuz — has long shaped its role in regional


trade and informed the modern development path pursued under the late Sultan Qaboos bin Said, who sought to translate geographic advantage into long-term economic resilience. Under Oman Vision 2040, logistics is positioned as a strategic tool for economic diversification and


industrial development, rather than a pure volume play. Instead of chasing rapid scale expansion, the Sultanate is prioritising geographic advantage and institutional efficiency. Multimodal integration sits at the core of this approach. Oman is not positioning itself as a megahub


competing on sheer throughput, but as a connector of air, sea, and land corridors designed to optimise cost, reliability, and transit time. The National Cargo Strategy links cargo growth directly to industrial zones such as Sohar and Duqm, with total freight volumes targeted at 1.5 million metric tonnes by 2040. Sohar Port and Free Zone, while primarily maritime, plays a critical role in supporting air cargo


competitiveness through sea-air connectivity. Industrial clustering and rising container volumes allow freight to move efficiently between modes, strengthening Oman’s appeal to shippers seeking flexibility rather than pure speed. Airport city developments at Muscat, Sohar, Salalah, and Duqm support this model by co-locating air


cargo, e-commerce fulfilment, distribution, and light manufacturing. These projects shorten supply chains and attract cargo tied to production rather than transit alone.


Competing without competing Saudi Arabia’s air cargo ambitions are built on scale and consolidation. Oman’s carriers and logistics


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providers operate within a more disciplined capital framework, focused on selective market participation. The question, therefore, is not whether Omani operators can match Saudi Arabia’s expansion, but whether they can maintain commercial relevance alongside it. Oman Air Cargo, for example, is being positioned to build on its existing strengths rather than chase


volume. The expansion of refrigerated storage and distribution services by domestic logistics firms supports growth in pharmaceuticals, perishables, and other temperature-sensitive goods. The carrier’s achievement of IATA CEIV Pharma certification underlines this focus on precision handling and regulatory compliance. According to Umer Faisal, a Muscat-based logistics professional with more than 20 years’ experience


overseeing ocean, inland, and multimodal freight operations in Oman, air freight remains the preferred option for time-sensitive and high-value shipments, particularly when road and sea routes face congestion, border delays, or capacity constraints. “From a shipper’s and forwarder’s perspective, air freight is often used to protect production schedules,


meet tight delivery windows, or support emergency and project-related movements where delays are not acceptable,” Faisal stated. Focusing on Oman, he said the country’s geographic position allows it to function as an effective regional


hub linking the GCC, Europe, Africa, and the Indian subcontinent. “Compared with some regional hubs, Oman’s airports are generally less congested, which enables quicker turnaround times and more predictable transit schedules,” he added. Faisal also pointed to the growing importance of sea–air solutions via Oman, which offer a cost-effective


alternative to pure air freight while still significantly reducing transit times compared with full sea transport. “Flexible customs procedures, reliable connectivity, and efficient clearance processes give shippers greater confidence to route cargo through Oman, particularly during peak seasons or periods of disruption,” he said. Mohamed Al Alawi, air cargo operations at Transom Handling, said Oman’s appeal lies in operational


efficiency rather than competing head-to-head with the region’s largest hubs. “From what we’re seeing at Transom, shippers and forwarders tend to look at Oman as a smart, practical


option rather than trying to position it as a direct regional hub,” Al Alawi explained. “Oman stands out for being efficient, less congested, and easier to operate through. “For certain flows, especially involving the Indian subcontinent, East Africa, and parts of the GCC,


Oman makes a lot of sense. The combination of reliable airport operations and sea–air links via Sohar and Salalah gives forwarders flexibility, predictable transit times, and often better cost control. There’s also an appreciation for the relatively straightforward customs processes and the ability to avoid some of the delays seen elsewhere in the region. “Oman’s strength is really in how it fits into multimodal and alternative routing strategies, rather than


competing purely on scale. In a region that’s expanding quickly, that kind of reliability and agility continues to matter to customers.” This approach gives the sultanate scope to dominate specialised freight segments where handling


quality, predictability, and multimodal efficiency outweigh raw speed. Sea-air solutions linking South Asia, East Africa, and South-East Asia with Europe play directly to this strength, offering competitive cost-time balances that megahubs optimised for throughput may overlook. Recent expansion by Oman Air Cargo into East Africa, including new links to markets such as Kigali, reflects the sultanate’s focus on targeted trade corridors rather than pursuing scale for its own sake.


Where the outlook stands Oman will not outbuild Saudi Arabia, and it would be a strategic mistake to try. Riyadh’s air cargo expansion is underwritten by financial firepower and policy alignment that favour scale above all else. Oman’s competitive future lies elsewhere. Muscat International Airport and Sohar Port together offer a dual-node model that prioritises resilience,


predictability, and integrated routing over sheer volume. For shippers balancing cost, time, and risk — particularly along corridors linking South Asia, East Africa, and Europe — that proposition remains compelling. But this positioning is fragile. Precision logistics only works if execution is consistently superior. Customs


efficiency, digital cargo platforms, inland connectivity, and regulatory transparency are not supporting features; they are the product. Any erosion in these areas would quickly strip Oman of the differentiation that allows it to operate between regional megahubs rather than beneath them. In a Gulf logistics market increasingly defined by scale, Oman’s relevance will depend on its ability to


remain small by design, disciplined in investment, and relentless in operational performance. Holding ground will not come from matching ambition, but from delivering reliability where megahubs cannot afford to slow down.


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