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SPECIAL REPORT: Demand rising for warehouses in Oman

by Sarah Jacotine on May 2, 2015

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The Omani government’s continued investment in the development of infrastructure is aiding the Sultinate's transformation into a major logistics hub in the southern Gulf, according to the latest research report by Cluttons.

The leading international real estate consultancy also states that this investment has been the main driver behind activity in the Oman's industrial property market during the first quarter of 2015, 

Cluttons’ Spring 2015 Muscat Commercial Property Outlook report singles out the warehouse sector as being a stand out performer in the commercial market, with improved infrastructure and connectivity driving demand from occupiers, and catalysing the development of modern warehouse estates.

Philip Paul, head of Cluttons Oman, said: “We are recording an increase in warehouse developments coming to market to meet the current demand.

"In Rumais, which is located to the west of Muscat International Airport, First Logistic Services is developing warehousing units ranging in size from 500-1,000 sqm on an 81,000 sqm site.

"The first phase, comprising of 36 units is due to complete in May. The development is strategically positioned for occupants looking to service Muscat and interior markets in the wake of the closure of Port Sultan Qaboos.

“The developer is also offering 'build to suit' opportunities within the second phase of the scheme in response to the success of the first phase, highlighting the depth of demand in the market.”

The Cluttons report reveals that Oman's various transport infrastructure project investments and upgrades are playing an important role in boosting connectivity across the country, which is subsequently improving Oman’s attractiveness as a regional logistics and distribution centre.

Faisal Durrani, International research and business development manager at Cluttons, said: “Due to Oman’s high scores for market connectedness and compatibility, the Sultanate has maintained its ranking of 13th in Agility’s Emerging Markets Logistics Index for 2014 and this is reflected in the requirements we are currently receiving from shipping and logistics firms.

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