Oman’s manufacturing sector contributed about $10.8 billion (RO4.149 billion) to the national economy in 2024, up from $6.3 billion (RO2.438 billion) in 2020, reflecting an annual growth rate of 14.2%, according to H.E. Qais bin Mohammed al Yousef, Minister of Commerce, Industry and Investment Promotion.
Addressing the Majlis A’Shura, the minister presented the ministry’s progress report, attributing the sector’s robust performance to the 10th Five-Year Plan (2021–2025), which focuses on economic diversification and industrial development. The plan prioritizes attracting foreign investment, fostering industrial innovation, and strengthening infrastructure.
He noted that strategic infrastructure improvements, better investor services, and targeted financing initiatives were instrumental in accelerating growth.
Manufacturing continued to drive economic expansion, with significant growth in the food, chemical, mining, and medical industries. The number of registered industrial establishments increased from 180 in 2020 to 243 in 2024, an average annual rise of 7.7%.
Between 2020 and 2024, 32 major industrial projects valued at over $2.3 billion (RO878 million) were licensed, supporting the government’s ambition to raise the sector’s contribution to $30.3 billion (RO11.648 billion) by 2040.
Other sectors also saw positive trends. The trade sector expanded at an annual rate of 6.6%, growing from $6.8 billion (RO2.627 billion) in 2020 to $8.8 billion (RO3.392 billion) in 2024. Real estate and professional services increased from $5.1 billion (RO1.951 billion) to $5.9 billion (RO2.277 billion), with an annual growth of 3.9%.
Foreign direct investment more than doubled, reaching $78.1 billion (RO30.042 billion) in 2024, compared to $37.1 billion (RO14.261 billion) in 2018—a compound annual growth rate of 15.4%. Investments were primarily directed toward energy, mining, chemicals, and logistics.
Reforms such as fee reductions, streamlined licensing, and upgraded infrastructure played a key role in attracting investors.
The Invest in Oman digital platform expanded to offer 68 online services, simplifying business registration and licensing. Annual registration fees for foreign investors were lowered to about $390 (RO150), and several other fees were waived to promote entrepreneurship. By 2024, Oman recorded more than 872,000 commercial registrations.
Efforts to drive exports included launching the National Export Development Strategy, conducting 98 targeted market studies, and rolling out the “Made in Oman” platform to promote domestic products. Support was also provided to 52 companies participating in overseas exhibitions.
E-commerce experienced remarkable growth, with registered online stores rising by 236.4% between 2020 and 2024.
Intellectual property metrics improved as well. Trademark registrations increased from 412 in 2020 to 487 in 2024, and patent applications rose from 35 to 96. A national IP strategy was introduced to encourage innovation and grow the creative economy.
The ministry also enacted new regulations covering social media marketing, trade names, e-commerce, exhibitions, and fair competition.
Initiatives such as “Own It,” “Localisation,” and “Made in Oman,” developed with the Ministry of Housing and Urban Planning, aim to deepen local content and support SMEs.
Despite these advances, the minister acknowledged challenges, including dependence on imports, limited local supply chains, and productivity gaps.
Looking ahead, H.E. Yousef stated that Oman will emphasize industrial innovation, research, and the adoption of Industry 4.0 technologies, focusing on high-potential sectors like food, pharmaceuticals, chemicals, and minerals to meet the goals of Oman Vision 2040.
Source: Muscat Daily
