Oman: OCCI panel flags energy costs as key threat to manufacturing

Zawya

5 days ago

Muscat – The Industry Committee of Oman Chamber of Commerce and Industry (OCCI) held a meeting recently to discuss the impact of rising electricity and gas prices on manufacturing costs and competitiveness of Omani products.
The meeting was chaired by Tawfiq al Lawati, Chairman of the committee, and attended by committee members and officials of relevant government bodies.
Participants stressed that electricity and gas are among the most significant operational costs for factories. They cautioned that high tariffs drive up the final cost of products, reduce profit margins, and weaken the sector's ability to compete regionally and globally.
'The industrial sector is a key pillar of economic diversification. Any increase in electricity or gas prices directly affects its competitiveness and long-term sustainability,' Lawati said.
The committee also warned that persistently high energy costs could undermine Oman's attractiveness as a destination for industrial investment, especially in energy-intensive sectors such as metals, petrochemicals and cement.
Members called for greater support for renewable energy adoption, including financing mechanisms and tax incentives, which they said could help lower production costs and promote sustainability throughout the industrial value chain.
The meeting reviewed the broader industrial landscape, including proposed reforms and incentives in special economic and free zones.
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