Rapid industrial development enhances Oman's global economic position

The Omani industrial sector is witnessing rapid progress which is strengthening the Sultanate of Oman’s position on the global economic map.

Thanks to progress in legislation, production and investment, Oman is formulating a renewed industrial identity, placing manufacturing at the heart of its economic policies.

This industrial renaissance is evident in the launch and inauguration of several major strategic projects, including the Karwa Motors plant in the Duqm Special Economic Zone, the Sanvira Carbon plant in Dhofar Governorate, the Duqm Refinery, and the Liwa Plastics Industries Complex.

The industrial sector has also witnessed the completion of the United Solar polysilicon plant, supporting the localisation of supply chains related to the solar panel industry.

In the pharmaceutical sector, the Flex, Dhofar, and Menagen pharmaceutical factories were inaugurated. These projects are contributing to increased industrial output, the transfer of advanced technology, the localisation of supply chains, and the attraction of Omani talent.

Economic indicators reflect the scale of the transformation witnessed by the sector, with industrial output recording annual growth of 7 percent. Industrial exports exceeded OMR 7 billion by the end of 2024, while foreign direct industrial investments reached OMR 2.8b. The number of Omani employees in the sector rose to more than 57,000.

On the international level, the industrial advances in Oman have been praised by the United Nations Industrial Development Organisation (UNIDO), which describes the Oman as one of the emerging industrial countries. It has praised the acceleration of high-tech industries and the building of advanced value chains, stressing that the Industrial Strategy 2040 represents a model in employing innovation and localising technology.

Dr Saleh bin Saeed Masan, Undersecretary for Trade and Industry at the Ministry of Commerce, Industry and Investment Promotion (MCIIP), says that the next phase – with the launch of the eleventh five-year plan – will focus on smart production, adopting the technologies of the fourth industrial revolution to ensure the sustainability of leadership and transform the sector into an engine for economic diversification.

Engineer Khalid bin Salim Al Qasabi, Director General of Industry at the MCIIP, says there has been a record growth in industrial licence applications, supported by enabling programmes such as Itqan and the Smart Production Factories initiatives. He notes that the activation of new tools including the Industrial Observatory and the Tasnee platform are helping to regulate sector purchases and enhance local content.

Engineer Saeed bin Mohammed Al Masoudi, CEO of Sohar Aluminium, says that with regard to downstream industries, the company has succeeded in establishing a solid base by attracting quality investments and raising Omanisation rates to record levels, in turn enhancing local added value in the national economy.

Engineer Omar bin Ali Al Balushi, CEO of the Omani Aluminium Rolling Company, says that the past five years have been a pivotal stage in the journey of the Omani industrial sector and have witnessed qualitative transformations and tangible achievements, strengthening the position of Oman as a promising industrial centre at the regional level.

He notes that government policies and continuous support from various parties have contributed to driving growth and achieving positive results in the areas of economic diversification, especially the aluminium sector, which has recorded rising growth in the volume of production and exports while witnessing a remarkable expansion in operational capacities and infrastructure.

Nasser bin Sulaiman Al Azri, CEO of Vale Oman, says that Oman provides an ideal environment for long-term industrial investments and possesses clear advantages in this field. He notes that Vale invests annually in developing advanced industrial capabilities that serve global steel markets, and is working on a plan to expand its operations in the region in line with its vision for sustainable growth.