Journal of Economics, Business and Market Research (ISSN: 2642-022X)
Research Article
CHALLENGES IN GLOBAL LOGISTICS PORT FOR 2025 FOCUSING ON THE OMAN & GCC REGION
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Despite being vital centers for global trade, global logistics ports are facing more and more difficulties as a result of changing technical, geopolitical, and economic environments. This report examines the major issues that logistics ports throughout the world are likely to face by 2025, with an emphasis on Oman and the Gulf Cooperation Council (GCC). The study draws attention to problems such supply chain interruptions, port traffic, infrastructural constraints, digital change, environmental laws, and geopolitical threats. It also looks at how legislative frameworks, environmental programs, and emerging technology affect port competitiveness and efficiency. This report offers insights into strategic ideas to improve port operations and solidify the GCC's standing as a global logistics center by examining existing trends and future forecasts.
As essential centers for the cross-border flow of goods and services, global logistics and port management are vital to international trade. Increased trade volumes, infrastructural development, and legislative reforms have all contributed to the logistics industry's recent rapid expansion in the Gulf Cooperation Council (GCC), especially in Oman (Hamed Al-Wahaibi, 2019). Oman has made significant investments in renovating its ports, such as Salalah, Sohar, and Duqm, due to its advantageous location at the intersection of major international marine trade routes. But in spite of these developments, the area still faces formidable obstacles that may affect the effectiveness of logistics in 2025 and beyond (Abbadi, 2021).
With an emphasis on infrastructural constraints, regulatory frameworks, technology adaption, and geopolitical effects, the main goal of this research is to assess the major issues facing global logistics ports in Oman and the larger GCC area (Mendoza, 2024). This study aims to identify these issues in order to offer insights that can improve the resilience and efficiency of logistics for stakeholders, industry leaders, and regulators. This study is guided by the following research question: What are the main obstacles that the logistics ports in Oman and the GCC area will have to overcome in 2025 in order to maintain the growth of their economy?
Since the logistics industry is the foundation of the GCC's attempts at economic diversification and fits in with programs like Oman Vision 2040 and the region's larger objectives for economic change, it is important to comprehend these difficulties (Abdul Rahman, 2023). Resolving these problems will be essential to preserving competitiveness and guaranteeing smooth trade flows, especially in light of the increasing dependence on global supply chains and digital logistics solutions. By providing a current overview of logistical challenges in the GCC area and investigating tactical solutions to lessen their effects, this research will add to the body of existing material.
Study Objectives
To identify bottlenecks in the infrastructure: Evaluate the existing port infrastructure constraints and how they affect the effectiveness of logistics.
Assessing Legislative Frameworks: Look at the efficacy and difficulties of the current laws and rules controlling commerce and logistics.
To examine how digital transformation and new technologies may improve port operations and supply chain efficiency in order to evaluate technological adaptation.
To examine how commerce flow and logistics tactics are impacted by regional and global geopolitical dynamics by investigating geopolitical influences.
Research Hypothesis
H1: The effectiveness of logistics ports in Oman and the GCC area is adversely affected by regulatory obstacles and infrastructure constraints.
H2: Automation and the use of cutting-edge digital technology can improve port productivity and regional competitiveness.
H3: The expansion and stability of logistics operations in Oman and the GCC are seriously threatened by geopolitical unrest and trade restrictions.
This study aims to identify these issues in order to offer insights that can improve the resilience and efficiency of logistics for stakeholders, industry leaders, and regulators. This study is guided by the following research question: What are the main obstacles that the logistics ports in Oman and the GCC area will have to overcome in 2025 in order to maintain economic growth?
Since the logistics industry is the foundation of the GCC's attempts at economic diversification and fits in with programs like Oman Vision 2040 and the region's larger objectives for economic change, it is important to comprehend these difficulties. Resolving these problems will be essential to preserving competitiveness and guaranteeing smooth trade flows, especially in light of the increasing dependence on global supply chains and digital logistics solutions. By providing a current overview of logistical challenges in the GCC area and investigating tactical solutions to lessen their effects, this research will add to the body of existing material.
METHODOLOGY
Research Methodology and Analysis Type
This research employs a mixed-methods approach, including both quantitative and qualitative analysis. The logistical issues and trends in the GCC and Oman will be investigated using a mix of surveys, case studies, and statistical models.
Research Time frame
Using historical data and forecasts for upcoming trends, the study examines logistical advancements and difficulties from 2020 to 2025.
Factors alongside circumstances Examined
The research focuses on how logistics operations are impacted by infrastructural limitations, legal requirements, technology developments, and geopolitical factors.
Samples Population
Salalah, Sohar, and Duqm are some of the main ports in Oman and the GCC area whose logistics statistics are examined in this study. Furthermore, opinions from legislators, business leaders, and logistics specialists will be incorporated.
Initiatives
Based on study findings, policy proposals and strategic solutions will be put forth, but no direct initiatives will be carried out.
Outcomes Measurements
The research will assess efficiency indicators, logistical performance measures, and the effect of outside obstacles on port operations.
Statistical Evaluation
To interpret results, descriptive statistics, trend analysis, and comparative studies will be used.
RESULTS
According to the empirical results, infrastructure constraints continue to be a significant problem in Oman's logistics industry, reducing productivity and raising operating expenses. Despite improvements, the research indicates that regulatory frameworks continue to provide challenges because of bureaucratic hold-ups and uneven policy implementations among GCC countries. With ports using automation and AI-driven solutions reporting higher throughput and fewer delays, the data further validates the idea that digital transformation greatly improves logistics operations.
Geopolitically speaking, the claim that external political issues pose dangers to port efficiency is supported by the reality that regional wars and instability in important trading partners have resulted in changing trade volumes. However, the use of self-reported industry insights and the limits of the data raise questions about validity and reliability. Although expert interviews and secondary data sources offer insightful viewpoints, their accuracy depends on how transparent and comprehensive the records that are now accessible are.
In general, the results show a high degree of dependability in detecting important logistical difficulties; however, to improve validity, future research should include real-time monitoring data and broader cross-regional comparisons. In order to guarantee sustained growth in Oman and the GCC logistics industry, the report emphasizes the necessity of policy harmonization, ongoing infrastructure investments, and the integration of smart logistics technologies.
DISCUSSION
This study demonstrates that Oman's and the GCC's logistics efficiency is greatly impacted by infrastructure, regulatory policies, technological adoption, and geopolitical factors. The results are consistent with other research that highlights the value of legislative changes and digital transformation in improving port operations. The study's limitations, however, are its dependence on secondary sources and the availability of real-time logistical data, which might compromise the validity of some of its findings. To increase generalizability, future studies should concentrate on including real-time supply chain data and comparative case studies from different international ports. More empirical data on the benefits of digitization in logistics may also shed light on long- term strategies for improving port productivity in the area.
- Hamed Al-Wahaibi, M.H. (2019). Logistics Hubs in Oman and Political Uncertainty in the Gulf. Contemporary Review of the Middle East, 6(2), 109-153.
- Abbadi, M.A., Qureshi, M.I., Yasir, M. & Khan, N. (2021). Assessing Challenges and Opportunities in Optimizing Logistics and Supply Chain Performance in Oman. Academy of Entrepreneurship Journal, 27, 1-22.
- Mendoza, J. (2024). Salalah Port a strategic hub for Red Sea logistics challenges: Expert. Oman Observer. Accessed on: 15 February, 2025. Available online at: https://www.omanobserver.om/article/1150784/business/economy/salalah-port-a-strategic-hub-for-red-sea-logistics-challenges-expert
- Abdul Rahman, N.S.F., Lirn, T.-C., Adam Hamid, A., Al Kalbani, K.S.S. (2023). Available online at: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwjova3E_cWLAxWW8LsIHZ1QPVwQFnoECCYQAQ&url=https%3A%2F%2Fjournal.oscmforum.org%2Fjournal%2Fjournal%2Fdownload%2F20230905012022_Paper_4_Vol._16_No_._3%2C_2023_pdf&usg=AOvVaw0gbdhxsokKvt2NdgNQ_wPw&opi=89978449
