Trade sector fuels Oman's economic growth

MUSCAT: The trade sector has emerged as a cornerstone of the Sultanate of Oman's economy, bolstered by forward-looking policies and legislation designed to create a thriving investment environment. These efforts align with the goals of Oman Vision 2040, which prioritizes economic diversification and financial sustainability through robust public-private sector partnerships.

Recent data underscores the sector's remarkable growth trajectory. By the end of 2023, the trade sector's contribution to Oman's GDP reached an impressive RO 18.4 billion, a significant 18.6% increase from RO 15.5 billion in 2020. The sector's share of GDP also climbed to 46.7% in the first half of 2024, up from 45.3% in 2023, with a contribution of RO 9.79 billion. This growth reflects strong investor confidence and government strategies aimed at enhancing commercial activity.

Wholesale and retail trade, a vital sub-sector, saw its GDP contribution rise from RO 2.46 billion in 2020 to RO 3.16 billion by the end of 2023—a 28.4% increase. In the first half of 2024 alone, its contribution grew to RO 1.72 billion, lifting its GDP share from 7.8% in 2023 to 8.2% during this period. This growth highlights a rising demand for goods and services across the Sultanate.

Real estate activities also demonstrated notable improvements, with contributions increasing from RO 1.025 billion in 2022 to RO 1.060 billion in 2023, a 3.4% rise. In the first half of 2024, real estate activities contributed RO 560.5 million, reflecting growing investment interest in infrastructure and sustainable urban development.

Other trade-related activities collectively achieved robust growth, with their GDP contributions surging from RO 11.4 billion in 2020 to RO 14.2 billion in 2023—a 24.1% increase. In the first half of 2024, their contribution reached RO 9.7 billion, emphasizing the sector's diversification and innovation-driven competitiveness.

Nasra bint Sultan al Habsi, Director General of Commerce at the Ministry of Commerce, Industry, and Investment Promotion, credited these achievements to the ministry’s efforts to improve the business environment and develop critical infrastructure such as ports and logistics zones. "These results underscore the trade sector's role as an economic driver, pivotal to achieving sustainable growth and economic diversification under Oman Vision 2040," she noted.

The ministry has launched various initiatives to simplify procedures, enhance investment opportunities, and support small and medium enterprises (SMEs). This includes efforts to develop e-commerce, streamline export and import processes, and position Oman as a regional trade hub.

Al Habsi emphasized the importance of regulatory and technical reforms in creating an attractive investment climate, adding that the government remains committed to fostering entrepreneurship and empowering SMEs to integrate into the broader economic ecosystem.

With a continued focus on diversifying the economy and strengthening non-oil sectors, the trade sector is poised for further growth. Al Habsi affirmed, "We are working hand-in-hand with public and private sector partners to maintain this momentum and achieve transformative milestones in the trade sector, ensuring sustainable development that bolsters Oman's status as a leading commercial and investment destination."

As Oman advances its efforts, the trade sector is expected to play an increasingly pivotal role in achieving the nation’s long-term economic objectives.