“We want to be in the top ten logistics companies in the world by 2040. It is an aggressive vision that we are persuading. We are taking steps to achieve that target and that means we have to expand our business outside Oman also,” Abdulrahman al Hatmi, CEO of OGLG, said.
Hatmi was speaking to media-persons on the sidelines of a ceremony to launch the Group’s new brand name ‘Asyad’. OGLG is a holding government company to consolidate all the government investments in the ports, free-zones, rail, maritime and land transport companies.
As the company aspires to become a global player in logistics sector, Hatmi said it needs to look beyond current ports and free-zones. “They need to go beyond that and look at integrating services between host of supply chains in logistic sector. That is a key for us and for that we need to go outside Oman.”
Hatmi declined to provide details on proposed expansion outside Oman but said the group most likely will target inorganic growth for spreading business into other countries.
“For the first 18 months or two years, we need to focus on Oman. We are not going to pursue overseas expansions but [after initial milestone is achieved] it will be through merger and acquisitions. We do have ideas and plan how to do it but we are not going to reveal more at this point of time.”
When asked about OGLG’s initial target, he said “the entire focus would be on restructuring current companies and making them profitable to make our financial base solid.”
Besides restructuring, he said the group also wants to reduce government’s stake and is open for talks with private players as well as foreign investors for attracting investment.
“We will also be looking at raising capital from overseas markets by creating special purpose vehicle (SPV) such as Khazain, where we are trying to get investment from privater players both within and outside the country. We want more of private investment or foreign investment and less of government money,” Hatmi said.
OGLG’s brand name ‘Asyad,’ symbolises the leading marine role of Oman and its mastering of seas. The brand also gives an indication about Oman’s contribution to marine sciences and its distinguished business and trade relations with the old cultures in Iraq, Iran, India, China and Africa.