Iron industry drives manufacturing and infrastructure growth in Oman
Published: 02:11 PM,Nov 02,2024 | EDITED : 06:11 PM,Nov 02,2024
These factories, which generated exports valued at RO 687 million in 2022, directly employ 1,681 workers and provide thousands of indirect job opportunities.
MUSCAT: Oman’s iron industry continues to be a cornerstone of the manufacturing and infrastructure sectors, with seven major factories producing iron and its derivatives, collectively contributing approximately 2% to the national GDP. These factories, which generated exports valued at RO 687 million in 2022, directly employ 1,681 workers and provide thousands of indirect job opportunities, supporting an Omanisation rate of 45%.
Dr Saleh Masan, Under-Secretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry explained that Oman’s iron sector is a strategic pillar of the Sultanate of Oman’s industrial plan for 2024. Due to rising local and global demand, the sector has seen substantial growth, fueled by advancements in production technology and a shift toward renewable energy sources that align with sustainability goals.
The sector’s downstream industries, including heavy machinery, equipment, and transportation, all rely on iron as a primary material, amplifying the industry’s role in Oman’s broader economic framework.
Highlighting recent developments, Dr Masan noted the successful signing of an agreement between Vale Oman and Jinnan Iron and Steel Group to establish the first iron ore concentration plant in Oman. Set to be located in Sohar Port and Free Zone, this RO 240 million ($624 million) plant is expected to produce up to 12.6 million tonnes of high-quality iron concentrate, with direct and indirect employment prospects and a positive impact on Oman’s supply chain. The new plant reflects Oman’s capacity to attract international partnerships from major markets in South America and East Asia, reinforcing its global standing in the iron and steel industry.
Dr Saleh Masan, Under-Secretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry explained that Oman’s iron sector is a strategic pillar of the Sultanate of Oman’s industrial plan for 2024. Due to rising local and global demand, the sector has seen substantial growth, fueled by advancements in production technology and a shift toward renewable energy sources that align with sustainability goals.
The sector’s downstream industries, including heavy machinery, equipment, and transportation, all rely on iron as a primary material, amplifying the industry’s role in Oman’s broader economic framework.
Highlighting recent developments, Dr Masan noted the successful signing of an agreement between Vale Oman and Jinnan Iron and Steel Group to establish the first iron ore concentration plant in Oman. Set to be located in Sohar Port and Free Zone, this RO 240 million ($624 million) plant is expected to produce up to 12.6 million tonnes of high-quality iron concentrate, with direct and indirect employment prospects and a positive impact on Oman’s supply chain. The new plant reflects Oman’s capacity to attract international partnerships from major markets in South America and East Asia, reinforcing its global standing in the iron and steel industry.