Oman’s maritime sector, rooted in a centuries-old shipbuilding tradition, is positioning itself to capitalize on emerging opportunities in ship repair, recycling, and small-scale vessel construction amid shifting global trade and shipping dynamics.

Historically, Oman’s shipwrights played a key role in the region’s maritime commerce, with vessels such as the Sultan’s ship Al Sultanah symbolizing the country’s reach from the Arabian Peninsula to East Africa and beyond. While contemporary shipbuilding is dominated by East Asian countries—including China, South Korea, and Japan—Oman is focusing on areas aligned with its geographic advantages and evolving market demands.

Strategically located along major Asia-Europe and Asia-Africa shipping lanes, Oman’s extensive 3,165-kilometer coastline provides ports such as Al Duqm, Suhar, and Salalah with direct access to vessel traffic without requiring detours. This positioning supports Oman’s growing maritime services sector, which recorded a 9.5 percent increase in ship calls and a 21.6 percent rise in container throughput in 2025 according to Ministry of Transport data. Infrastructure developments, like deep-water ports, free zones, and the region’s first liquefied natural gas (LNG) bunkering hub at Sohar, slated to open in 2028, reinforce these capabilities.

Ship repair and maintenance currently form the backbone of Oman’s maritime industry. Asyad Drydock in Al Duqm has repaired over 230 vessels annually in recent years, with dockings increasing by more than 10 percent in early 2026. Investments in facilities, including a floating dock and specialized services like robotic hull cleaning and propeller repairs, have attracted repeat business from international shipowners, including Greek operators noted for their rigorous standards.

Looking ahead, Oman aims to expand into ship recycling, an area gaining importance as the International Maritime Organization’s (IMO) Hong Kong Convention on safe and environmentally sound recycling took effect in mid-2025. With global recycling capacity concentrated in just a few countries and recycling rates at historic lows, Oman’s planned green recycling facility in Al Batinah North aims to dismantle 70 ships annually while supplying approximately two million tonnes of low-carbon steel to domestic industries. This initiative promises to integrate Oman’s maritime heritage with sustainable industrial development.

Shipbuilding is re-emerging on a modest scale. The first locally built tugboat, set for delivery in early 2027 through a partnership between Asyad Drydock and Svitzer, will feature a 50 percent local content target. Emphasizing smaller vessels, particularly fibreglass fishing boats—of which over 27,000 were registered in 2024 with a doubling of the coastal fleet in four years—allows local yards to incrementally build expertise and cater to domestic demand.

The integration of these activities into a cohesive maritime cluster is central to Oman’s strategy. Suhar’s steelworks, with an annual capacity of 2.4 million tonnes, and its aluminium smelter producing over 375,000 tonnes, provide key raw materials for ship repair and construction. Coupled with fabrication shops, spare parts warehouses, and engine service centers located near docks, this ecosystem aims to reduce vessel downtime and improve service quality. Asyad Shipping’s recent contracts worth RO 269 million with Korean shipbuilders—including Hanwha Ocean and HD Hyundai Heavy Industries—signify growing international collaboration in repair, block fabrication, and technical exchanges.

Challenges remain, primarily in workforce development and ensuring clear demand signals. While Omanisation in transport and logistics stood at 21.6 percent in 2025, skilled trades such as certified welders and marine electricians require sustained investment in education and training programs adjacent to the maritime sites. Strengthening local supply chains through In-Country Value policies also seeks to embed small and medium-sized enterprises within the maritime sector’s value chain.

Oman’s maritime ambitions align with the broader national vision of economic diversification under Oman Vision 2040, where non-oil sectors accounted for over 72 percent of GDP in 2025. The Eleventh Five-Year Development Plan (2026–2030) targets annual private-sector job creation of 50,000 jobs, reinforcing the emphasis on maritime services as a growth pillar.

Global shifts in trade routes, production networks, and shipbuilding capacity favor countries offering stability, accessibility, and neutrality. Oman’s location and reputation position it to capture increased demand for reliable repair, recycling, and niche shipbuilding services. While large-scale ship construction is expected to remain concentrated in East Asia for the foreseeable future, Oman is preparing to grow its maritime footprint, potentially evolving into a regional hub for mid-sized vessel construction and comprehensive marine services within the next generation.