MUSCAT: The Ministry of Economy has stated that the performance of the manufacturing sector during the first quarter of this year was the highest among the sectors targeted under the economic diversification goals of the tenth five-year plan 2021-2025.
The Ministry indicated that the sector recorded a real growth of 9.2 per cent compared to a decline of 2.2 per cent during the first quarter of 2023, as the contribution of manufacturing as the contribution of manufacturing industries to the Gross Domestic Product (GDP) rose to 10 per cent at constant prices.
Dr Salem bin Abdullah al Sheik, the official spokesman for the Ministry of Economy, said that the performance of the manufacturing sector was supported by the progress of economic diversification efforts, programs and strategies that enhanced the performance of industrial sectors and contributed to the continuous improvement in their competitiveness, the increase in the volume of industrial exports, and the growth of investments in industrial, free and private zones, in addition to the entry into operation of new strategic industrial projects, the most important of which is the Duqm Refinery.
He added that the GDP growth data reflects the fruits of these developments through the high growth rates recorded by all manufacturing activities, namely the refined petroleum products industry, the basic chemicals industry and other manufacturing industries, with growth rates of 67.6 per cent, 6.4 per cent and 6.3 per cent respectively during the first quarter.
Al Sheikh attributed the factors of the strong growth of the manufacturing sector at a rate of 9.2 per cent to the large investments in industrial projects pumped into establishing new factories and expanding existing factories, which enhanced the production capacities of the sector and improved local and foreign demand as a result of the increase in demand for Omani industrial products in local markets and exports and the development of industrial infrastructure through government investments pumped into improving infrastructure such as roads, electricity, and ports, which enhanced the capabilities of the industrial sector.
He attributed this to the incentives and facilities provided to investors through providing tax incentives and facilities to investors, which encouraged increased industrial investments and improved productivity and efficiency through the adoption of modern technologies.
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