MUSCAT, NOV 24
The National Centre for Statistics and Information (NCSI) has released its November bulletin, highlighting notable growth in Foreign Direct Investments (FDI) across key sectors in the second quarter of 2024 compared to Q2 2023. Total investments increased by 17.4 per cent year-on-year, reaching an impressive RO 25.98 billion.
The oil and gas exploration sector remains the largest contributor, with investments rising by a substantial 20.5 per cent to RO 20.31 billion. This growth underscores Oman’s commitment to optimising its natural resource capabilities and adopting modern extraction techniques. Additionally, the manufacturing sector emerged as a key driver of economic diversification, achieving an exceptional 45.1 per cent growth.
Sectors such as transport, storage, and communication, grew by 10.7 per cent. These gains highlight Oman’s strategic investments in enhancing its connectivity and logistics infrastructure, including the development of ports, airports, and road networks. The real estate and business services sector maintained steady performance, reflecting continued investor confidence in Oman’s commercial potential.
Water and electricity saw a decline of 31.9 per cent, while trade and financial intermediation recorded slight downturns. These variations underscore the importance of a balanced approach to economic planning and investment allocation. However, the growth across major sectors reflects the resilience and adaptability of Oman’s economy.
The United Kingdom and the United States emerged as the leading sources of foreign investments in Oman. Investments from the UK grew by 19.7 per cent, reaching RO 13.17 billion, while US investments surged by 36.2 per cent, totaling RO 5.06 billion. This strong performance reflects the deepening economic ties between Oman and these global powers. Additionally, countries such as India and Qatar also contributed significantly to Oman’s investment portfolio, with growth rates of 32.4 per cent and 11.6 per cent, respectively.
However, not all regions showed positive trends. Investments from China and the United Arab Emirates saw notable declines, with China’s investments falling by 35.4 per cent and the UAE’s by 6.0 per cent. Despite these setbacks, Oman's diversified investment sources ensure that its overall economic trajectory remains positive.
The ability of the Sultanate of Oman to attract foreign and domestic investments reflects its commitment to sound fiscal governance, economic diversification and prudent debt management. By focusing on long-term strategies and leveraging its geographical advantage as a gateway between Asia, the Middle East, and Africa, the Sultanate of Oman is building a stable and resilient economy.
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