MUSCAT: The Ministry of Commerce and Industry will continue to play a major role in the formulation of the in-country value (ICV) for the manufacturing sector, which is one of the main features of Oman’s industrial strategy 2040. According to a top official, the ministry has been contemplating adoption of the best international practices in accordance with the interests of the stakeholders in the sector. “This is to expand the national efforts aimed at ensuring continuity, sustainability, effectiveness and comprehensiveness of the ICV strategy, in cooperation with various government agencies and the private sector”, saidEng. Sami Salim Al Sahib, Director General of Industry in the Ministry of Commerce and Industry.
The ministry is supervising preparation of ICV strategy and is looking forward to presenting it within a year. “During the work on ICV, likely a short- term additional commitment will be applied on companies operating in the manufacturing sector. However, ICV offers the possibility of reducing long-term supply chain costs while providing new opportunities for the local economy,” he said.
JOBS FOR NATIONALS
Eng. Al Sahib expressed his expectation that the implementation of the ICV would help in expansion of manufacturing base and manufacturing in the country, encourage the transfer of technology, increase employment of locals and expand the local ownership base, as well as help in increasing investments in the manufacturing sector.
The Sultanate’s gross domestic product (GDP) achieved a real growth rate of 2.9 per cent from 2015 to 2017. This is in the period when the world economy started recovering since the end of 2016.
Oman’s manufacturing sector has maintained a stable growth of 2.6 per cent in the period from 2015 to 2017.
“This resulted from the initiatives launched by the National Programme for Enhancing Economic Diversification (Tanfeedh) and thanks to the continuous investments in the manufacturing sector in the country”, Engineer Al Sahib said.
As part of the Manufacturing Strategy 2040, the government has been endeavouring for a massive expansion in strategic industries and adapting Fourth Industrial Revolution, Engineer Al Sahib said.
Manufacturing remains the engine of growth to Omani’s economy
He said the statistics showed that the purchase of the raw material from local sources by the manufacturing sector has increased year after year to be used for industrial process in the local industries. Al Sahib expressed his optimism about the important role the new investments would play in the manufacturing sector.
“The new investments will strengthen and expand the manufacturing sector of the Sultanate. This is especially as the sector has succeeded in consolidating its position as a leading element in the local economy.
Dr Charles Fang Chin Cheng, an economic affairs leading expert to the Ministry of Commerce and Industry, said that in view of the current changes in the global trade scenario and geopolitical uncertainties in the trade routes, the industrial establishments which are producing for export were considered very sensitive to the rates of change in global demand for industrial products.
Despite Oman’s economy shows fundamental strength, continuous industrial upgrading and diversification are keys to achieve targeted results set for Manufacturing Strategy 2040. Omani factories must keep abreast of the Fourth Industrial Revolution by adopting state-of-art technology especially in the area of industrial automation, reskilling and upskilling the existing workforce in order to capitalize the window opportunities”, Said Dr. Charles Fang Chin Cheng.
“Manufacturing strategy 2040 sets out long-term manufacturing projection for Oman, by 2040, the 30 strategic sub-sectors across resource-based, capital-intensive and knowledge-driven clusters will likely be the main contributors of manufacturing growth.” Dr. Charles added. “Streamlining existing policies and procedures is expected to play an important role in promoting new startups, especially in the high-tech sector, which will act as a booster to the economic development”.
*Source: National Center for Statistics & Information, National Accounts (2018).
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