Oman’s Ambitious Goal: 40 Million Air Passengers and 1 Million Tonnes of Cargo by 2040—Implications for Investors and Businesses
Muscat: The National Aviation Strategy has established ambitious targets for growth by 2040, aiming to manage over 40 million passengers annually, transport nearly one million tons of air cargo, attract over RO1 billion in cumulative private sector investments, and increase the sector’s contribution to GDP to more than 3.5%.
The strategy is built upon nine strategic principles designed to support a sustainable aviation industry. These principles include:
- Economy: Stimulating growth and diversification in Oman’s economy.
- Security and Safety: Ensuring safety and security within the aviation sector.
- Human Capital: Developing and attracting talent for the industry.
- Commerce: Enhancing commercial performance for stakeholders and businesses.
- Sustainability: Adopting environmental sustainability practices.
- Policies and Legislation: Supporting growth and competitiveness through effective regulatory frameworks.
- Operational Processes: Aiming for efficiency and excellence in service.
- Innovation: Encouraging digital transformation and enhancing customer experience.
- Governance: Strengthening communication and collaboration for continuous alignment among stakeholders.
The strategy also emphasizes three main pillars, each supported by specific sectoral enablers.
First Pillar: Airports and Infrastructure
This pillar aims to develop airports that provide an exceptional experience for aviation users, characterized by suitable infrastructure, high-quality services, and sustainable operations. It includes three strategic programs:
- Operational Performance Maximization Program: Focused on raising operational efficiency and improving service levels.
- Commercial Development Program: Enhancing airport attractiveness and competitiveness by developing commercial products and services and stimulating airline activity.
- Airport Network Activation and Sustainability Program: Ensuring sustainable operations and integrating environmental sustainability into services and operations.
Second Pillar: Air Transport
This pillar seeks to enhance Oman’s local and international connectivity through a competitive air transport network that supports economic growth across various sectors. It encompasses three key programs:
- Air Transport Capacity and Destinations Program: Maximizing national capabilities and bolstering regional and international competitiveness.
- Air Transport Incentives Program: Strengthening domestic and international connectivity using incentive tools.
- Environmental Sustainability Program for Carriers: Promoting environmental compliance and the adoption of innovative solutions in line with international standards.
Third Pillar: Aviation Services
This pillar focuses on achieving service excellence and developing the value chain, incorporating modern technologies and increasing private sector participation. It includes three strategic programs:
- Airspace Management Program: Enhancing the efficiency of Oman’s airspace management and maximizing its capacity.
- Support Services Development Program: Improving the efficiency of aviation services.
- Advanced Air Mobility (AAM) Program: Integrating advanced air transport technologies, including drones, safely and economically.
This comprehensive strategy aims to position Oman as a leading player in the global aviation landscape, ensuring sustainable growth and development in the sector.
Special Analysis by Omanet | Navigate Oman’s Market
The National Aviation Strategy’s ambitious goals for 2040 position Oman as a potential hub for air travel and commerce in the region, presenting significant opportunities for businesses to tap into a growing market. However, the success of these initiatives will depend on investor confidence in infrastructure and regulatory frameworks that support innovation and sustainability. Smart investors should consider aligning with government initiatives and exploring partnerships that leverage technological advancements and connectivity to maximize returns in this evolving landscape.
