The Dubai-Oman Green Corridor has recorded an eight-fold surge in trade activity since its launch in March 2026, with customs declarations jumping from AED 1 billion to over AED 8 billion in just three months, as Gulf businesses rapidly scale alternative logistics infrastructure and cement the UAE-Oman axis as the region’s most important new trade corridor.
Dubai authorities released the first official figures from the corridor this week, confirming that the bilateral logistics route — which connects Dubai’s distribution networks through Oman’s Salalah Port, Sohar Port and Muscat International Airport — has become a critical commercial lifeline for essential goods including food, medicine and industrial equipment.
How the Corridor Works
The green corridor links Dubai directly to Oman’s Arabian Sea-facing ports under an expedited bilateral agreement that reduces documentation requirements and guarantees 24-hour customs clearance for approved operators. Established in March 2026, the corridor has progressively expanded from essential goods to now include automotive parts, electronics and consumer goods — driving the steep increase in declared trade values.
UAE-Oman non-oil bilateral trade already stood at AED 27 billion annually before the corridor launched. Industry analysts now project the green corridor could add AED 20–30 billion in annual trade flows by end of 2026 as more operators join the approved logistics network.
Hafeet Rail: 40% Complete and on Schedule
The Hafeet Rail project — the landmark overland rail link connecting the UAE to Oman — is 40% complete and progressing on schedule for first-phase opening in 2028. When operational, it will reduce logistics costs and transit times between the two countries, creating a permanent infrastructure backbone for the corridor’s trade flows and moving cargo at significantly lower cost than current road and air freight options.
Saudi Arabia has complemented this regional infrastructure push by diverting approximately 70% of its oil exports through an existing Red Sea pipeline, while NEOM is being developed as an alternative logistics and manufacturing hub connecting European and Gulf markets — part of a multi-billion-dollar reconfiguration of Gulf trade geography.
Business Opportunity for UAE Companies
UAE logistics companies, freight forwarders and supply chain operators are reporting a surge in new business enquiries. Jebel Ali Free Zone (JAFZA) recorded a 35% increase in new logistics company registrations in Q1 2026, as the corridor’s growth drives demand for UAE-based logistics expertise. Dubai International Airport also recorded a 28% increase in cargo volumes in May 2026 versus May 2025 as the air freight network absorbs growing transit volumes.
Also Read: Saudi Arabia Q1 2026 GDP Grows 3%: Financial Services Lead Non-Oil Surge
Primary sources: the Ministry of Economy and Tourism and the UAE Government portal.
