Oman stands at a pivotal juncture in its economic journey—a moment that demands bold, strategic decisions to secure long-term prosperity.
For decades, the nation’s growth relied heavily on hydrocarbons, which provided vital revenue and financed large-scale infrastructure. Yet, as global dynamics shift—marked by changing supply chains, digital disruption, and climate transition—a new growth engine is needed to drive sustainable development.
Vision 2040 provides the roadmap, emphasizing diversification, resilience, and competitiveness. At the heart of this transformation lies manufacturing—a sector that multiplies growth across the economy, generates skilled jobs, accelerates technology adoption, and transforms raw materials into high-value exports.
Manufacturing Performance and Growth
The sector has shown consistent resilience and scalability, aligning with national priorities:
During Oman’s Tenth Five-Year Plan (culminating in 2024), the manufacturing sector recorded an average growth rate of 7.35%.
Manufacturing Value Added (MVA) at constant prices reached $9.4 billion in 2024, representing 8.3% of GDP.
Foreign direct investment (FDI) into manufacturing rose sharply, reaching $7.1 billion in Q1 2025, a 27.5% increase year-on-year.
Industrial exports totaled $16.2 billion in 2024, following a 44% surge in 2022 driven by petrochemicals and metals.
FDI has more than doubled in just three years, rising from $5.3 billion in 2020 to $11.9 billion in 2023, now nearly 10% of total foreign investments.
This trajectory signals robust international confidence in Oman’s industrial ecosystem.
Strategic Industrial Transformation
Oman is leveraging its natural advantages to move from extraction to value-added production:
Green Copper Cathode Facility (Duqm): A landmark project marking Oman’s shift from exporting ore to producing sustainable, high-demand refined copper.
Fisheries Industrialization: Traditionally a livelihood sector, now poised for industrial growth through cold chain systems, marine-based products (collagen, bio-plastics), and global export logistics.
Mineral Processing: Copper, gypsum, and limestone reserves are being integrated into higher-value manufacturing chains.
Jobs and Economic Multipliers
Manufacturing is not only about exports—it’s about jobs and value chains:
For every 100 direct jobs created in manufacturing, hundreds more indirect jobs are supported across supply chains.
This multiplier effect is crucial for Omani youth and rural communities, where industrial integration with mining and fisheries can expand employment opportunities.
Four Core Enablers for Growth
Workforce Development
Build domestic capacity in technical, design, engineering, and digital skills.
Reform Omanisation to move beyond quotas and into capacity-building.
Industrial Financing
Develop equity-based instruments, industrial scale-up funds, and export credit tools.
Regulatory Clarity & Speed
Streamline licensing, land allocation, and labor approvals.
Strengthen Invest Easy into a seamless one-stop platform.
Cluster-Based Strategy
Focus on industrial hubs:
Suhar → Advanced Materials
Duqm → Green Industry
Salalah → Agrifood & Fisheries
Clusters create economies of scale, knowledge transfer, and supply chain efficiencies.
The Global Context
According to UNIDO, while global manufacturing slowed in early 2025, high-tech subsectors (electronics, computers) remain resilient. With its energy security, political stability, and strategic geography, Oman is well-positioned to integrate into reconfigured global supply chains.
As the world embraces “friend-shoring” and seeks reliable industrial partners, Oman’s appeal is only set to rise. Yet, global competition is accelerating. Those who act decisively now will define the next era of industrial leadership.
Conclusion
Oman has the foundations in place—rising FDI, export growth, strategic projects, and Vision 2040. The moment demands execution. Manufacturing is the bridge between Oman’s resource wealth and its developmental aspirations.
The future is not only possible—it is being built now.
Right here. Right in Oman.
Source: Oman Observer
