MUSCAT: With the adoption of the 2040 Industrial Strategy, the industrial sector is set to emerge as one of the fastest growing segments, underscoring Oman’s efforts to diversify its economy. In 2023, the industrial sector achieved a remarkable 9 per cent growth in GDP at current prices, marking it as the most labour-intensive sector and a critical pillar of economic diversification under Oman Vision 2040.
The manufacturing sector has made significant contributions to the national economy, accounting for 9.3 per cent of GDP by the end of September 2023. This contribution, valued at RO 2.454 billion at constant prices, highlights the sector's vital role. Additionally, the sector employs over 33,000 Omani workers, with direct foreign investments surpassing RO 1.4 billion.
Speaking to the Sultanate of Oman Radio, Dr Saleh bin Saeed Masan, Commerce and Industry Under-Secretary of the Ministry of Commerce, Industry, and Investment Promotion, commented: “The target indicators in the Industrial Strategy 2040 revolve around achieving growth in the contribution of manufacturing industries to the domestic product by 2024 by three times to reach RO 11 billion. By 2040, we aspire for the value of industrial exports to reach about RO 25 billion, and the total volume of investments to reach about RO 40 billion.” The Omani industrial sector is adopting modern technologies to enhance efficiency, diversify products, and improve quality. These efforts aim to bolster environmental and economic sustainability and integrate artificial intelligence technologies, aligning with the global shift towards the Fourth Industrial Revolution.
The Ministry has meticulously crafted the strategy, moving from setting the vision and goals to developing policies and industrial tools. This process included identifying priority industries, establishing a governance program for follow-up, and creating performance indicators after thorough analysis of regional industrial variables and strategies.
This strategy serves as a transformative pillar to boost economic diversification, focusing on the types of industries, technologies, and models needed. It was developed in collaboration with the United Nations Industrial Development Organization (UNIDO) to stay abreast of the latest global economic trends and align with Oman Vision 2040.
Recent years have seen significant changes in Oman’s economic landscape. The new legal framework reflects a strategic shift by the Ministry of Commerce, Industry, and Investment Promotion, positioning it as an active promoter of industrial diversification through incentives, policies, regulations, and knowledge.
Oman Observer is now on the WhatsApp channel. Click here
