Oman's industrial growth drives economic diversification
Published: 03:01 PM,Jan 12,2025 | EDITED : 07:01 PM,Jan 12,2025
Manufacturing industries led the way with a contribution of RO 2.19 billion, accounting for 10.5% of GDP.
MUSCAT: The industrial sector in Oman continues to establish itself as a key pillar of economic growth, contributing RO 4.09 billion to the country’s GDP at current prices by the end of June 2024. This marks 19.5% of Oman’s total GDP, which stood at RO 20.9 billion. Manufacturing industries led the way with a contribution of RO 2.19 billion, accounting for 10.5% of GDP, while other industrial activities added RO 1.9 billion, equivalent to 9.1%.
Mazen bin Humaid al Siyabi, Assistant Director General for Industry at the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), attributed this growth to government policies aimed at enhancing economic diversification. He noted that manufacturing’s contribution to GDP rose from 8% in 2020 to 10.5% in the first half of 2024, reflecting steady progress in the sector.
The Royal endorsement of the Industrial Strategy 2040 in May 2024 was a pivotal moment, following extensive stakeholder engagement. The ministry has implemented policies to strengthen the regulatory framework, including approving the Unified Industry Law and the National Product Identity Regulation, while simplifying licensing processes and accelerating customs exemptions.
These measures have sparked a surge in industrial activity. Industrial license applications rose by 62%, from 12,100 in 2020 to over 135,000 by November 2024. Customs exemption requests increased by 42%, and certificates of origin applications reached 77,300, reflecting growth in foreign trade and investor confidence.
“The ministry's efforts to enhance production capabilities, attract investments, and stimulate innovation have transformed Oman’s industrial landscape,” Al Siyabi said, highlighting the role of modern technology and automation in driving efficiency.
The ministry is also prioritising sustainability by supporting recycling-based industries and implementing initiatives to reduce environmental impacts. Partnerships with industrial establishments have fostered collaboration, while measures to prevent waste exports are enhancing resource efficiency.
Al Siyabi emphasised Oman’s commitment to developing local supply chains, reducing reliance on imports, and fostering self-sufficiency. The “Tasnee” Local Content Plan aims to strengthen national industries, boost competitiveness, and enhance Oman’s trade balance.
Significant strides have been made in workforce localisation, with the number of Omanis employed in the manufacturing sector increasing by 79.5% from 32,400 in 2020 to 58,100 in 2023. Overall, the sector employed over 249,700 workers by the end of 2023.
To develop national competencies, the ministry launched the “Itqan” program in 2024, providing specialised training and skill-building initiatives. Ten factories were trained on the Siri index for industrial excellence, and workshops were conducted to promote innovation and sustainability.
Al Siyabi affirmed that Oman’s industrial sector is poised for sustained growth, supported by initiatives like the “Taamir” program, which prioritises local products in public procurement. The formation of the National Industries Committee underscores the government’s commitment to increasing investments, boosting exports, and enhancing the quality of Omani products.
With strategic planning and collaborative efforts, Oman’s industrial sector is not only driving economic diversification but also aligning with the broader goals of Oman Vision 2040. — ONA
Mazen bin Humaid al Siyabi, Assistant Director General for Industry at the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), attributed this growth to government policies aimed at enhancing economic diversification. He noted that manufacturing’s contribution to GDP rose from 8% in 2020 to 10.5% in the first half of 2024, reflecting steady progress in the sector.
The Royal endorsement of the Industrial Strategy 2040 in May 2024 was a pivotal moment, following extensive stakeholder engagement. The ministry has implemented policies to strengthen the regulatory framework, including approving the Unified Industry Law and the National Product Identity Regulation, while simplifying licensing processes and accelerating customs exemptions.
These measures have sparked a surge in industrial activity. Industrial license applications rose by 62%, from 12,100 in 2020 to over 135,000 by November 2024. Customs exemption requests increased by 42%, and certificates of origin applications reached 77,300, reflecting growth in foreign trade and investor confidence.
“The ministry's efforts to enhance production capabilities, attract investments, and stimulate innovation have transformed Oman’s industrial landscape,” Al Siyabi said, highlighting the role of modern technology and automation in driving efficiency.
The ministry is also prioritising sustainability by supporting recycling-based industries and implementing initiatives to reduce environmental impacts. Partnerships with industrial establishments have fostered collaboration, while measures to prevent waste exports are enhancing resource efficiency.
Al Siyabi emphasised Oman’s commitment to developing local supply chains, reducing reliance on imports, and fostering self-sufficiency. The “Tasnee” Local Content Plan aims to strengthen national industries, boost competitiveness, and enhance Oman’s trade balance.
Significant strides have been made in workforce localisation, with the number of Omanis employed in the manufacturing sector increasing by 79.5% from 32,400 in 2020 to 58,100 in 2023. Overall, the sector employed over 249,700 workers by the end of 2023.
To develop national competencies, the ministry launched the “Itqan” program in 2024, providing specialised training and skill-building initiatives. Ten factories were trained on the Siri index for industrial excellence, and workshops were conducted to promote innovation and sustainability.
Al Siyabi affirmed that Oman’s industrial sector is poised for sustained growth, supported by initiatives like the “Taamir” program, which prioritises local products in public procurement. The formation of the National Industries Committee underscores the government’s commitment to increasing investments, boosting exports, and enhancing the quality of Omani products.
With strategic planning and collaborative efforts, Oman’s industrial sector is not only driving economic diversification but also aligning with the broader goals of Oman Vision 2040. — ONA