5 days ago
Manufacturing, FDI and exports drive Oman's industrial momentum
Muscat – The industrial sector recorded a 27.5% increase in foreign direct investment during the first quarter of 2025, taking total FDI in the sector to RO2.749bn, according to figures released by Ministry of Commerce, Industry and Investment Promotion (MoCIIP). The manufacturing sector also posted steady gains, supported by higher demand across regional and international markets.
Non-oil exports grew 7.2% between January and May 2025 to RO2.7bn. The United Arab Emirates remained the top importer of Omani goods with RO485mn, up 22.9%, followed by Saudi Arabia at RO451mn, up 34.9%, and India with RO280mn, up 38.9%.
H E Dr Saleh bin Saeed Masan, Undersecretary for Commerce and Industry, said the figures reflect the impact of policies to build a resilient and competitive industrial base, in line with Vision 2040 and Industrial Strategy 2040. He highlighted the role of incentive plans and efforts to improve services in industrial zones.
Khalid bin Salim al Qassabi, Director General of Industry, noted that Omani factories managed to expand production despite global market volatility and supply chain pressures. He attributed this to public-private sector collaboration and reduced operational costs, which led to higher project activity and improved Omanisation rates in industrial zones. MoCIIP continues to support initiatives focused on local value chains and broadening the national production base. Khalid bin Salim al Qassabi, Director General of Industry
Jassim bin Saif al Jadidi, Technical Director at the Undersecretary's Office, said investor confidence remains strong due to improvements in the business environment, updated regulatory frameworks and enhanced incentives. These include targeted industrial financing, logistics upgrades, technology localisation and international partnerships.
The petrochemical and electrical conductors sectors led the growth in manufacturing. Iron and aluminium industries also reported consistent gains, while cement companies began to recover from earlier losses. Tiles and ceramic production showed signs of revival, though glass manufacturers continued to face operational issues. Jassim bin Saif al Jadidi, Technical Director at the Undersecretary's Office
Food processing firms – including milling and beverage producers – posted higher profits, driven by operational efficiency and increased demand across local and regional markets.
Investments were concentrated in sectors identified as strategic – renewable energy technologies aligned with Oman's green economy goals; mineral production and exports; and food and medical industries supporting national security.
