Manufacturing Sector Growth Boosts Oman’s In-Country Value: Key Opportunities for Investors and Business Owners
MUSCAT: Oman’s manufacturing sector continues to play a vital role in the country’s economic diversification by reducing dependence on oil, enhancing in-country value, and generating employment opportunities.
The Ministry of Commerce, Industry and Investment Promotion is actively advancing the Industrial Strategy 2040, which aims to increase the sector’s contribution to over RO 11.6 billion by 2040, attract RO 40 billion in industrial investments, and prioritize green industries alongside advanced technologies.
Recent economic data highlight the sector’s strong performance, with a 7.45 percent growth in 2024, reaching more than RO 3.6 billion at constant prices, accounting for 9.4 percent of Oman’s GDP. This positive trend continued into 2025, with a 5.4 percent increase in the first quarter compared to the same period in 2024, demonstrating vibrant industrial activity and an appealing investment environment.
Non-oil commodity exports rose by 7.2 percent between January and May 2025, totaling RO 2.7 billion. The UAE, Saudi Arabia, and India remained Oman’s leading export markets, underscoring the competitiveness of Omani products in both regional and global markets.
In 2024, the industrial sector employed over 57,000 Omanis, reflecting ongoing initiatives to develop local talent and enhance Omanisation rates.
Engineer Khalid bin Salim al Qassabi, Director General of Industry, emphasized that the sector’s robust growth is a testament to effective government policies and ministry-led efforts to support manufacturers, localize supply chains, and provide incentives. He described the sector as a dynamic hub for innovation and advanced technology, attracting investors from both domestic and international markets.
He further highlighted key strategic initiatives within the Industrial Strategy 2040, including the “Local Content Plan in the Industrial Sector – Manufacturing,” which focuses on boosting local procurement, strengthening supply chains, and supporting small and medium enterprises (SMEs).
Notable achievements in the first half of 2025 include the inauguration of the Advanced Automation Centre for Industry 4.0, implementation of 262 initiatives in collaboration with 14 partner organizations, partnerships with the United Nations Industrial Development Organization (UNIDO) and the Gulf Organisation for Industrial Consulting (GOIC), and the completion of strategic studies on national industrial development.
Additionally, 20 factories were evaluated using the Smart Industrial Readiness Index (SIRI), and 55 new factories received National Product Identity Certificates. — ONA
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Oman’s manufacturing sector is emerging as a pivotal driver for economic diversification, with strong growth and increasing in-country value signaling robust opportunities. For businesses, this means capitalizing on government-backed industrial expansion, green technologies, and localized supply chains can unlock significant returns. Smart investors should focus on advanced manufacturing, innovation hubs, and SMEs aligned with the Industrial Strategy 2040, while entrepreneurs can leverage the growing export markets and incentive ecosystems to scale competitively.
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