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Oman’s Asyad to invest $3bn in shipping projects

Raysut Port in Salalah. State-owned shipping company Asyad plans to increase its facilities in domestic ports Alamy via Reuters
Raysut Port in Salalah. State-owned shipping company Asyad plans to increase its facilities in domestic ports
  • Expanding fleet by 33
  • Meeting demand from Asia
  • Plans for IPO

Asyad, Oman’s state-run shipping company, will this year invest $2.7 billion to expand its fleet by more than a third.

Asyad was established in 2003 and is owned by Oman’s sovereign wealth fund. It operates a fleet of 89 vessels and the expansion plan in 2025 will add a further 33 – a mix of oil tankers, gas and cargo carriers. 

The company said this is to cater to increased demand for shipping services to Europe and Asian countries such as Japan and South Korea.

“Asyad aims to capitalise on growing market dynamics to our European and Asian partners while maintaining a strong focus on sustainable growth, profitability and enhancing shareholder values,” a company statement said.

The fleet expansion project will be funded by medium-term loans from financial institutions, and both local and international banks.

Asyad announced that it was planning to float shares on Oman’s Muskat Security Market. This is expected to happen during the first quarter of this year.

Plans to list 20 percent of its shipping operations will help the company to raise funds for future growth and expand its containers and storage facilities at local ports.

Oman has container ports in the southern city of Salalah, Sohar in the Batnah Region and the strategic city of Duqm, located away from the troubled waters of the Strait of Hormuz.

The sultanate is pushing forward with a privatisation process to attract foreign investors. That strategy, along with fiscal reforms, has helped the country to pay off its debts.

Asyad is considering seeking a valuation of at least $1 billion, sources told Bloomberg. It plans to pay an annual dividend of $150 million in 2025 and 2026, according to the company statement on the IPO.