Sohar can buck the slowdown

The population in the Omani town of Sohar has grown from 90,000 to around 120,000 since the first commercial vessel docked in the town's port in 2004. The town's rapid transformation is evident in the building of villas and hotels which line Sohar's roads.

The development of the port, which is being led by the Sohar Industrial Port Company - a joint venture between the Government of Oman and the Port of Rotterdam Authority - has attracted $12bn of investments since 2002. A major selling point for investors is Sohar's strategic location.

Situated outside the Strait of Hormuz, use of the port avoids the need to travel into the Gulf with goods, thereby cutting both travel time and insurance premiums. The Omani government has been at pains to promote the hi-tech handling and storage facilities on offer at Sohar. It brought in a joint venture of Germany's Oiltanking Odfjell Terminals & Company and Oman Oil Company to manage the bulk liquids storage terminal in a bid to transform Sohar into a liquids hub for the region.

Oman has a population of 2.7 million people, and with 83 per cent under 35, the Sohar project forms part of the plan to create jobs for a young population.

The government estimates that for every direct job created in the port of Sohar, three to four jobs will be created indirectly, in the petrochemicals, metals and other industries.

With a $200m contract to build a bitumen refinery at Sohar signed in May, the indications are that Sohar is bucking the regional trend and continuing to grow, despite the global financial downturn. The next stage in Sohar's development largely hinges on the ambitious construction of a new airport.

The government's success in developing that project will go a long way toward transforming Sohar into the industrial and logistics hub it aspires to be.