Sohar Port: India’s $10bn Lifeline as Hormuz Shuts Down
Oman’s deepwater hub sees feeder services from India quadruple since Strait of Hormuz disruption
Oman’s Sohar Port has emerged as a key transit point for Indian exporters targeting markets in the Gulf Cooperation Council (GCC) region. The shift follows growing disruptions in the Strait of Hormuz, a critical maritime chokepoint, which have forced shipping companies to seek alternative routes.
Since tensions escalated in the region, the number of feeder ship services connecting Indian ports to Sohar has quadrupled. This rerouting has also benefited other ports east of Hormuz, including Jeddah, Khorfakkan, and Salalah, as businesses adapt to avoid risks in the Persian Gulf. Raid Al Rubaiey, Deputy CEO of Sohar Port, confirmed the surge in cargo, particularly in packaged food and consumer goods like rice. He noted that many shipments previously sent directly to GCC nations via Hormuz are now being redirected through Sohar.
The port’s location outside the Gulf allows vessels to avoid the Strait entirely, reducing exposure to geopolitical risks. Sohar’s deepwater facilities and connections to Oman’s road and logistics networks make it a practical alternative for trade with West Asia. However, while it offers a safer route, Sohar cannot match Hormuz’s capacity. Cargo must still be transported overland or via smaller waterways, increasing long-term costs.
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Strengthening India-Oman Trade Ties: sohar port
Oman has actively promoted Sohar as a gateway for Indian businesses expanding into the Middle East. At a recent investment roadshow in New Delhi, Omani officials highlighted opportunities for Indian companies to establish manufacturing and logistics operations within the port and its free zone. Oman’s ambassador to India emphasized that Indian firms are increasingly using Sohar and other Omani ports to sustain growth in regional and global markets.
The push aligns with the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which took effect in June 2026. The deal provides preferential market access, aiming to boost bilateral trade and investment. Alongside Sohar, Oman’s other logistics hubs—Duqm and Salalah—are also positioning themselves as links between India, the Gulf, and broader international markets.
Despite these advantages, challenges persist. A prolonged disruption in Hormuz could still disrupt supplies of LNG, fertilizers, and crude oil to Asian markets. For now, though, Sohar remains a critical alternative for businesses navigating regional instability.
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