Muscat: Oman’s manufacturing sector has emerged as a star performer in the first quarter of this year, with a real growth rate of 9.2 percent, a substantial rebound from a 2.2 percent decline in the same period last year. The sector’s contribution to the gross domestic product (GDP) surged to 10 percent at constant prices and 10.5 percent at current prices, according to the Ministry of Economy.
Dr Salem bin Abdullah Al Sheikh, the official spokesman for the Ministry of Economy, attributed this remarkable growth to the government’s strategic focus on economic diversification. He highlighted that the success of various programs and strategies aimed at enhancing industrial competitiveness, increasing industrial exports, and fostering investment in industrial, free, and private zones has been crucial. A significant contributor to this growth was the launch of major industrial projects, including the Duqm Refinery.
The manufacturing sector’s impressive performance was driven by robust growth across various subsectors. The refined petroleum products industry led the charge with an astounding 67.6 per cent growth, followed by the basic chemicals industry and other manufacturing industries, which grew by 6.4 per cent and 6.3 per cent, respectively.
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Dr Al Sheikh emphasized that the sector’s strong 9.2 per cent growth was fueled by substantial investments in new factories and the expansion of existing ones, bolstering production capacities and meet rising local and international demand for Omani industrial products. Significant government investments in infrastructure such as roads, electricity, and ports also played a pivotal role in enhancing the sector’s capabilities.
The Ministry of Economy also credited the success to the incentives and facilities provided to investors, including tax breaks and the adoption of modern technologies, which have improved productivity and efficiency. The stable security and economic environment in Oman has further strengthened the business climate, fostering investor confidence.
Looking ahead, the tenth five-year plan (2021-2025) aims to raise the manufacturing sector’s contribution to GDP to 12.2 per cent by the end of the plan.
