Aviation Sector Boosts Oman’s GDP by $1.8 Billion: Implications for Investors and Entrepreneurs
Muscat, December 31 — The aviation sector in Oman plays a significant role in the country’s economy, contributing an estimated $1.8 billion to the GDP and supporting 42,000 jobs, according to a recent report from the International Air Transport Association (IATA).
Direct aviation-related activities, including airlines, airport operators, air navigation service providers, and on-site businesses, directly employ around 17,000 individuals in Oman, generating $629.5 million in economic output. This represents 0.6% of the national GDP. When considering the broader effects of the supply chain, employee spending, and tourism, the sector’s total contribution increases to 1.7% of the GDP.
A significant portion of this impact comes from tourism facilitated by aviation, which contributes $710 million to the GDP and provides jobs for approximately 18,000 people. International visitors arriving by air are estimated to inject $2.9 billion annually into the Omani economy through various expenditures, including accommodation, transport, retail, and local services.
Data on passenger traffic underscores the international focus of Oman’s aviation market. In 2023, international air travel constituted 80% of all origin-destination departures, amounting to 3.8 million passenger departures. The Asia Pacific region emerged as the largest international market, accounting for nearly 1.8 million passengers, or 48% of total international departures. This was followed by the Middle East, with 1.3 million passengers (33%), and Europe, contributing 472,000 passengers (12%).
Additionally, cargo activities are crucial to Oman’s trade and logistics framework. In 2023, a total of 169,500 tonnes of air cargo were transported through Omani airports, supporting national import and export flows and highlighting the sector’s vital role in supply chain resilience, time-sensitive trade, and e-commerce.
Special Analysis by Omanet | Navigate Oman’s Market
The burgeoning aviation sector in Oman, contributing $1.8 billion to GDP and supporting 42,000 jobs, presents significant opportunities for businesses in tourism and logistics. As international passenger traffic surges, smart investors should capitalize on this growing demand by enhancing service offerings and infrastructure. However, they must remain vigilant to supply chain vulnerabilities, particularly in the context of global economic fluctuations.
