Oman pharma logistics to surge as market nears $1.24bn by 2031

Oman is expanding its pharmaceutical manufacturing and logistics sector as the country's pharmaceutical market is projected to reach $1.24 billion by 2031, creating higher demand for pharmaceutical warehousing, cold chain logistics and regional distribution. The market, valued at $752.4 million in 2024, is expected to grow at a compound annual rate of 7.4 per cent, according to data cited by the Public Authority for Special Economic Zones and Free Zones (OPAZ).

The market's growth is expected to increase the movement of medicines, vaccines and medical products through Oman's ports, free zones and industrial hubs, strengthening pharmaceutical supply chains and supporting exports to GCC and international markets. Greater local production could also reduce dependence on imported medicines while improving regional distribution capabilities.

OPAZ said Oman is attracting investments in generic medicines, active pharmaceutical ingredients, vaccines, biopharmaceuticals, medical devices and digital health technologies. Around 11 pharmaceutical manufacturing projects are currently operating across the country's special economic zones, free zones and industrial cities.

Pharmaceutical imports rose from $565 million in 2021 to $670.3 million in 2023, highlighting growing demand. Major pharmaceutical investments are located in Salalah Free Zone, Khazaazen Economic City, Madayn and Sohar Freezone, where new production facilities are supporting manufacturing and logistics activities. According to OPAZ, investment incentives are helping attract new pharmaceutical companies and expand local production, supporting the development of integrated healthcare supply chains in Oman.