Muscat : This marks a significant 19.5 percent share of the total GDP, valued at RO 20.9 billion, reflecting the sector’s growing importance in Oman’s economy.
Manufacturing industries accounted for the largest share, contributing RO 2.19 billion, or 10.5 percent of the GDP. Other industrial activities followed with a contribution of RO 1.9 billion, representing 9.1 percent of the GDP. This upward trajectory is a direct result of strategic government policies aimed at enhancing industrial growth and diversifying the economy in line with Oman Vision 2040.
Mazen bin Humaid Al Siyabi, Assistant Director General for Industry at the Ministry of Commerce, Industry and Investment Promotion, commented that manufacturing industries saw a marked increase in their contribution, up from 9.4 percent in 2023 to 10.5 percent in the first half of 2024, and from 8 percent in 2020. This upward trend showcases the effectiveness of government efforts to boost production capacities and attract investments.
In a statement to the Oman News Agency, he pointed out that the Sultanate is positioning itself for a strong industrial future, in line with its aspirations. The launch of the Industrial Strategy 2040 in May 2024, which includes discussion sessions with stakeholders, demonstrates our commitment to ensuring that the industrial sector plays a central role in the national economy, he noted.
The sector has shown a steady upward trajectory over the past few years, growing from RO 5.88 billion in 2020 to RO 7.7 billion in 2023. Notably, the first half of 2024 has seen even higher growth, with the sector contributing 19.5 percent of the GDP.
A significant factor in this growth is the sharp rise in industrial license applications, which surged by 62 percent from 12,100 applications in 2020 to over 135,000 applications by the end of November 2024. This increase underscores the heightened investor interest in Oman’s industrial sector, fuelled by government initiatives that make it easier to establish new projects. Additionally, requests for customs exemptions have grown by 42 percent, further signalling improved economic conditions.
The Ministry of Commerce, Industry, and Investment Promotion has continued to implement forward-thinking initiatives to foster growth, such as simplifying industrial licensing procedures, expediting the issuance of certificates of origin electronically, and implementing the Unified Industry Law. These steps aim to streamline the regulatory environment, making it more conducive to industrial development.
Mazen Siyabi highlighted that the government is particularly focused on enhancing local content, reducing dependency on imports, and bolstering national industries to achieve self-sufficiency. As part of this effort, the ministry has launched the Manufacturing Local Content Plan, which seeks to increase the role of domestic products and improve the competitiveness of Omani industries.
The country’s efforts to strengthen the industrial sector have led to significant job creation. The number of Omanis working in manufacturing has increased by 79.5 percent from 2020 to 2023, reaching approximately 58,100 workers by the end of 2023, compared to 32,400 in 2020. This growth is a direct result of targeted programs such as the ‘Itqan’ initiative, which focuses on developing national skills and improving productivity in the sector.
