Oman's industrial growth: FDI surges by 51.9%
The Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) has reported significant growth in Oman's industrial sector, with foreign direct investment (FDI) in manufacturing reaching RO 2.13 billion by the end of Q3 2024—a 51.9% increase compared to the same period in 2023.
INDUSTRIAL SECTOR'S EXPANDING ROLE IN OMAN'S ECONOMY
Dr Saleh bin Saeed Masan, Under-Secretary for Commerce and Industry at MoCIIP, emphasised the importance of public-private partnerships in addressing challenges faced by industrial establishments. Oman's Industrial Strategy 2040, which received Royal approval in May 2024, is a cornerstone of the country's efforts to build a robust industrial future.
Industrial activities contributed RO 6.09 billion to GDP by the end of September 2024, reflecting a 5.4% increase from the previous year. The manufacturing sector alone grew by 8.5%, reaching RO 2.69 billion at constant prices. These figures demonstrate the industrial sector's increasing impact on the national economy, contributing 19.5% to GDP, with manufacturing accounting for 10%.
Dr. Masan also highlighted efforts to modernise the industry, including automation programs, supply chain optimisation, and technology-driven investments. Initiatives such as the Omani Product Identity, Oman Numbering Center, and the Itqan Program aim to enhance local manufacturing capabilities and global competitiveness.
Dr Saleh bin Saeed Masan, Under-Secretary for Commerce and Industry at MoCIIP.
ENHANCING LOCAL SUPPLY CHAINS & LOGISTICS
The 2025 Industry Day, themed 'Supply Chains', will focus on strengthening local content in logistics services to boost efficiency, reduce costs, and attract investment. Mazen bin Humaid al Siyabi, Assistant Director General of Industry at MoCIIP, emphasised that effective supply chain management is crucial in today's rapidly evolving industrial landscape. Al Siyabi reported that from January to November 2024:
- 84,116 industrial licenses were issued
- 697 customs exemption requests were submitted
- 4,466 exemptions were granted for machinery and equipment
- 363 Omani Product Identity certificates were issued
He underscored that strong supply chains enhance operational efficiency, manage risks, improve cash flow, and strengthen Oman's position in the global industrial market.
OMAN'S TRADE BALANCE AND INVESTMENT CLIMATE
According to Eng. Jassim bin Saif Al Jadeedi, Technical Director at MoCIIP, Oman's trade balance reached RO 37.3 billion by November 2024, reflecting an 8.86% increase from 2023. The trade surplus stood at RO 7.14 billion, driven by a 7.7% rise in exports and a 10.6% growth in imports. He attributed this performance to Oman Vision 2040's economic policies, which have successfully:
- Increased non-oil sector productivity
- Enhanced infrastructure for industrial investment
- Created a competitive investment environment
EMPOWERING SMES & LOCAL MANUFACTURING
Tawfiq bin Abdul Hussain Al Lawati, Chairman of the Industry Committee at the Oman Chamber of Commerce and Industry, emphasised that small and medium enterprises (SMEs) account for 90% of Oman's industrial sector. Supporting SMEs through incentives, exemptions, and industrial sone policies will boost local content, enhance job creation, and strengthen economic diversification.
Meanwhile, Shaikh Dr Hilal bin Abdullah al Hinai, Chairman of the Omani Industry Association, highlighted that 70% of Omani industrial firms now hold international quality certifications like ISO, reinforcing their ability to compete globally. He noted that local content in key industries reached 30% in 2023, with plans to increase it to 50% by 2030. — ONA
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