Initiatives to fuel new phase of Oman’s growth

MUSCAT, NOV 18

Oman is poised to enter a new phase of industrial development, driven by its ambitious Industrial Strategy 2040 and Local Content Plan (ICV). These initiatives, launched by the Ministry of Commerce, Industry, and Investment Promotion, represent a transformative approach to redefining the country’s industrial future. Through innovation, sustainability, and strategic integration of local resources, Oman aims to solidify its position as a leading industrial hub, aligned with the aspirations of Oman Vision 2040.

Mazen al Siyabi, Acting Director General of Industry at the Ministry, emphasized these ambitions during a recent workshop, describing the strategy as not just a framework for economic growth, but a comprehensive vision to create a competitive, technology-driven, and resilient industrial sector.

The Industrial Strategy 2040 sets a clear roadmap to establish a technologically advanced industrial ecosystem. The vision emphasizes leveraging Omani creativity and adopting cutting-edge technologies to enhance the quality, diversity, and competitiveness of locally produced goods. By 2040, the Sultanate aims to elevate its industrial sector to a global stage, fostering innovation and sustainable development.

According to Al Siyabi, the strategy revolves around five key objectives: Diversifying Oman’s manufacturing sector into knowledge- and technology-driven industries; Developing innovative products that enhance societal well-being; Expanding the global footprint of Omani industries; Modernizing industrial processes with advanced technologies aligned with the Fourth Industrial Revolution; and Cultivating a culture of innovation as the cornerstone of industrial growth.

These objectives reflect a forward-thinking and integrated approach, designed to foster long-term prosperity and sustainability.

To achieve these objectives, the strategy outlines a series of transformative programmes tailored to address specific challenges and opportunities in Oman’s industrial sector:

• High-Tech Industries: Oman plans to establish industrial clusters focused on high-tech sectors such as medical devices, solar panels, and recycling. These industries represent the future of sustainable manufacturing and align with global trends towards clean energy and efficient resource utilization.

• Entrepreneurship and Innovation: Recognizing the importance of entrepreneurial energy, the strategy seeks to foster innovation through technology incubators and dedicated support for startups. Government procurement will play a catalytic role in promoting innovative solutions while driving sustainable practices in local industries.

• Modernization and Sustainability: A critical pillar of the strategy involves upgrading existing industries to incorporate advanced technologies, improving efficiency, and transitioning to green resources. Support for small and medium enterprises (SMEs) is also prioritized, ensuring their integration into the larger industrial framework.

• Governance and Regulation: Strengthened governance structures will underpin the strategy’s implementation. This includes updating legal and regulatory frameworks, creating supervisory committees to oversee progress, and enhancing the technical and professional skills of ministry employees.

Integral to Oman’s industrial transformation is the Local Content Plan, a strategic initiative aimed at boosting domestic industries and fostering economic resilience. By prioritizing local products and services in public procurement, the plan seeks to empower SMEs, encourage collaboration with larger corporations, and protect emerging industries.

The Local Content Plan also focuses on increasing transparency and efficiency through digital procurement platforms. This, coupled with efforts to promote Omani products in domestic and international markets, is expected to strengthen the integration of local businesses into the global economy.

“Local content is not just a policy—it is the foundation of our industrial future,” Al-Siyabi stated, emphasizing the central role of domestic capacity-building in achieving the strategy’s broader goals.

The combined impact of the Industrial Strategy 2040 and the Local Content Plan is expected to drive significant economic and social benefits for Oman, including: Improved quality and global competitiveness of Omani products; Expansion of export markets, enhancing Oman’s industrial footprint; Creation of new employment opportunities, fostering sustainable economic growth; and Strengthening Oman’s position as a leading industrial hub in the region.

Al Siyabi underscored the importance of collaboration across all sectors—governmental, private, and entrepreneurial—to realize these ambitious goals. He emphasized that the strategy’s success depends on fostering an ecosystem where innovation, sustainability, and industrial excellence thrive hand in hand.