Industrial Sector Growth in Oman: A Promising Start to the Year
The industrial sector in the Sultanate of Oman has seen significant growth during the first quarter of this year, attracting around 35 new industrial projects with investments totaling approximately 800 million Omani Riyals. These developments span various industrial and free zones, highlighting the sector’s potential and vitality.
Surge in Non-Oil Exports
Non-oil commodity exports in Oman have experienced a remarkable 45% increase by the end of the first quarter of this year, compared to the same period in 2023. The exports reached 2.338 million Omani Riyals, constituting 36% of the total exports. This growth underscores the country’s ongoing efforts to diversify its economy and reduce dependence on oil.
Manufacturing: A Pillar of Growth
According to His Excellency Dr. Saleh bin Saeed Musin, Undersecretary of the Ministry of Commerce, Industry, and Investment Promotion for Commerce and Industry, the manufacturing sector is a crucial driver of economic growth. It offers the highest return on investments, attracts skilled talent, and generates both direct and indirect job opportunities. This sector is positioned as a cornerstone of Oman’s economic strategy.
Enhancing Economic Competitiveness
Dr. Musin emphasized the importance of enhancing economic competitiveness to support Oman’s industrial strategy. By improving manufacturing and innovation capacities, boosting production and exports, and diversifying national income sources, Oman aims to strengthen its economic foundation. The Industrial Strategy 2040 is a key component of these efforts, focusing on attracting and localizing priority industries, encouraging the establishment of Omani-branded and innovative factories, and upgrading existing ones with advanced technologies to enhance productivity.
Strategic Initiatives for Industrial Development
The industrial strategy includes several critical initiatives:
- Industrial Observatory: Monitoring and analyzing industrial performance and trends.
- Automation and Artificial Intelligence: Integrating advanced technologies in factories to improve efficiency and productivity.
- National Workforce Development: Training and employing national cadres to meet the needs of the industrial sector.
- Priority Industries: Attracting and promoting industries that align with national priorities.
- Promotion of Omani Products: Encouraging the production and export of Omani-made goods.
Dr. Musin highlighted the importance of automation in manufacturing, noting that it not only enhances efficiency but also reduces manufacturing costs, making Omani products more competitive in the global market.
Role of Specialized Industrial Complexes
Specialized industrial complexes are playing a vital role in supporting economic growth and enhancing market competitiveness, both locally and globally. These complexes contribute by:
- Securing Supply Chains: Ensuring a steady and reliable supply of necessary materials and components.
- Increasing Productivity: Implementing efficient production practices.
- Reducing Costs: Streamlining operations to minimize expenses.
- Promoting Innovation and Development: Encouraging continuous improvement and technological advancements.
- Improving Infrastructure: Upgrading facilities to support modern industrial activities.
Conclusion
The first quarter of this year has set a promising tone for the industrial sector in Oman. With substantial investments, a significant rise in non-oil exports, and strategic initiatives aimed at enhancing competitiveness and innovation, Oman is well on its way to achieving its Industrial Strategy 2040 goals. The ongoing development of specialized industrial complexes further strengthens the sector’s foundation, ensuring sustainable growth and economic diversification.
