SOHAR Port and Freezone in Oman is a deep-sea Port and Freezone administered by SOHAR Industrial Port Company, the SIPC. The port is located in the middle of Dubai and Muscat and was inaugurated in 2004 with the first vessel. The Freezone was added later, during 2010 and 2018. The port is capable of handling more than one million metric tons of sea cargo every week. It is one of the fastest-growing ports and free zones in the world today and lies at the centre of global trade routes between Asia and Europe.
Initially built as three industrial clusters for metals, petrochemicals, and logistics, it has recently added a new food zone cluster for manufacturing, packaging, and logistics of food products. Foreign investments above USD 27 billion poured in this port and free zone that witnessed an increase of exports by 3.8% despite the economic crisis caused by the covid pandemic. Many foreign investors made a choice for company formation in Oman and selected Sohar as their preferred business destination. The port also achieved an almost 1% increase in the number of containers as well as a doubling of Ship-to-Ship cargos due to the port’s unmatched turnaround time and quick service.
In a recently released 2021 first-quarter result, the port and free zone reported cargo handling growth in all categories compared to the same quarter the previous year. Both the throughput and dry bulk volume witnessed sizable growth over last year registering a 21% & 23.6% increase respectively. Breakbulk and liquid bulk handling also grew significantly.
“Since the start of the pandemic in the first quarter of 2020, one of the key challenges faced by businesses around the globe has been securing supply chains and ensuring their business continuity. At SOHAR Port, we put in place precautionary measures and identified solutions to best serve our clients and the various markets. A testament to our proactive approach, we were able to continue contributing to the Sultanate’s GDP, supporting the objectives of the Government of Oman in its diversification plans,” told the CEO of Sohar Port Mark Geilenkirchen.
Sohar Port and Freezone in an attempt to explore the Indian market has entered into a collaboration with the Federation of Indian Chambers of Commerce & Industry (FICCI) and launched a five-part online webinar series titled ” Accessing Industrial and Logistics Solution to Maximize your Market Reach”. The webinars will also highlight opportunities on how Indian businesses can capitalise on the strategic location and world-class infrastructure of this port and free zone to gain enhanced access to the GCC, the US and African markets.
The first webinar held on July 13 mainly highlighted the opportunities available at SOHAR Port and Freezone with presentations and success stories from Omar Al Mahrizi, CEO-SOHAR Freezone; Emmee Haun, FTA Advisor; Sameer Gupta, Head of Production Planning, Shipping & Logistics, Jindal Shadeed Iron & Steel LLC; Malvika Pankaj Khimji, Director- Khimji Ramdas. The first webinar session was attended by 70 Indian business houses.
The first session provided knowledge and insights on multiple benefits offered by the port and free zone including value addition through cost-competitive utility prices, unhindered supply of raw materials and lucrative incentives. The Free Trade Agreement reached with the US also allowed duty-free access to qualifying products.
The next four webinars will be conducted over the coming months which will focus on key industries such as food, automotive, plastics and metals and the agenda will be released before each session.
Omar Al Mahrizi emphasized saying, “Oman and India have enjoyed decades of bilateral trading, linked by history, culture and warm and cordial relations. As a well-connected integrated hub with established clusters, our close geographical location, coupled with prime waterfront access, leasable land options and excellent infrastructure are all key ingredients to provide Indian investors with unique business opportunities. This webinar series provides the ideal platform for us to highlight these prospects to FICCI’s vast network, paving the way for future business development and closer relations.”
The webinar series also focuses on the huge opportunity for promoting mutually beneficial business partnerships between India and Oman in the Sohar Port and Freezone which has already attracted investments from Indian top business entities including Jindal, Larsen and Toubro (L&T), and Moon Iron and Steel Company (MISCO). Many new infrastructure projects and investments are also underway providing considerable growth prospects.
The Sohar Port and Free Zone have also made huge investments in innovative sustainability projects such as renewable energy, a rapidly growing sector in India. Indian companies aspiring for doing business in Oman can also benefit from several incentives announced by Sohar port and free zone. The company incorporation process is also easy and simple and can offer global market access to Africa, Asia and the Middle East.
