Oman’s Industrial Rise Gains Global Recognition: What It Means for Investors and Business Growth
MUSCAT: Oman’s industrial sector is undergoing a rapid and transformative evolution, marked by significant progress in legislation, production capacity, and investment. Manufacturing has emerged as a cornerstone of the nation’s economic strategy, redefining Oman’s industrial identity and reinforcing its status as a competitive, diversified player in the global economy.
This dynamic industrial growth is evident in the launch and operation of several key strategic projects nationwide. These include the Karwa Motors vehicle manufacturing plant in the Duqm Special Economic Zone, the Sanfira Carbon factory in Dhofar, the Duqm Refinery, and the Liwa Plastics Industries Complex. Additionally, the completion of the United Solar polysilicon production plant has enhanced supply chain localisation in the solar energy sector, further supporting Oman’s ambitions in renewable energy manufacturing.
The industrial expansion also extends to pharmaceutical security with the establishment of the Flex, Dhofar, and Menagen pharmaceutical manufacturing facilities. These initiatives have boosted domestic production capabilities, facilitated the transfer of advanced technologies, strengthened local supply chains, and created opportunities for skilled Omani professionals in high-value industries.
Economic data underscore the scale of this transformation: industrial output has grown annually by around 7 percent, industrial exports surpassed RO 7 billion by the end of 2024, foreign direct industrial investment reached approximately RO 2.8 billion, and employment in the sector now exceeds 57,000 Omani nationals. These figures highlight the sector’s vital role in economic diversification and job creation.
Internationally, Oman’s progress has been recognized by the United Nations Industrial Development Organisation (UNIDO), which classifies Oman among emerging industrial nations. UNIDO praised Oman’s advancements in high-tech industries and the development of sophisticated value chains, highlighting the Industrial Strategy 2040 as an exemplary model for leveraging innovation and localising technology.
Dr Saleh bin Said Masan, Under-Secretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, emphasized that the next phase of industrial development, aligned with the Eleventh Five-Year Plan, will focus on smart production and adopting Fourth Industrial Revolution technologies. He stated that these efforts are crucial for maintaining industrial leadership and establishing manufacturing as a key driver of economic diversification.
Engineer Khalid bin Salim al Qasabi, Director General of Industry at the ministry, reported unprecedented growth in industrial licence applications, fueled by initiatives such as “Itqan” and the “Smart Production Factories” program. He also highlighted new regulatory and planning tools like the “Industrial Observatory” and the “Tasnee” platform, designed to streamline industrial procurement and enhance local content.
In the downstream industrial sector, Engineer Saeed bin Mohammed al Masoudi, CEO of Sohar Aluminium, noted that the company has laid a robust foundation for downstream industries by attracting quality investments and achieving record Omanisation levels. These efforts have significantly increased local value addition to the national economy.
Engineer Omar bin Ali al Balushi, CEO of Oman Aluminium Rolling Mill Company, described the past five years as a pivotal period for Oman’s industrial sector, marked by substantial structural changes and measurable achievements. He credited supportive government policies and consistent institutional support for growth in aluminium production, exports, operational capacity, and infrastructure development.
Nasser bin Sulaiman al Azri, CEO of Vale Oman, affirmed Oman’s attractiveness for long-term industrial investment. He noted that the company continues to invest annually in advanced industrial technologies serving global steel markets and is preparing to expand its regional presence in line with its commitment to sustainable growth. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s industrial sector is rapidly transforming into a high-tech, diversified manufacturing hub, driven by strategic projects and robust government policies under the Industrial Strategy 2040. For businesses, this creates significant opportunities in advanced manufacturing, renewable energy, and pharmaceutical sectors, while smart investors should focus on leveraging emerging 4IR technologies and local supply chain integration to maximize long-term growth and competitive advantage. However, companies must also navigate evolving regulatory frameworks and increasing emphasis on Omanisation to align with national economic goals.
