Muscat: The first half of 2025 saw the Sultanate’s industrial sector deliver impressive performance indicators, underscoring the effectiveness of government initiatives aimed at boosting competitiveness, localization, and foreign direct investment (FDI). According to the Ministry of Commerce, Industry and Investment Promotion, FDI inflows into the industrial sector soared by 27.5% in Q1 alone, reaching a total of RO 2.749 billion.
His Excellency Dr. Saleh bin Saeed Masan, Undersecretary for Commerce and Industry, attributed this success to integrated policies under the Industrial Strategy 2040, which focuses on enabling quality investments, simplifying investor procedures, and improving services in industrial zones.
Industrial momentum was reflected across various sub-sectors. The manufacturing industry posted significant gains, particularly in petrochemicals and electrical conductors. The iron and aluminum industries continued on an upward trajectory, while cement companies reduced losses. Tile and ceramic factories showed signs of recovery, though glass producers still face operational hurdles.
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In the food and beverage domain, companies in milling and soft drinks posted notable profits, buoyed by increased operational efficiency and regional demand. These gains were supported by public-private collaboration, incentive packages, and cost-reduction measures.
Eng. Khalid bin Salim Al Qassabi, Director General of Industry, emphasized that the Ministry remains committed to supporting Omanization, encouraging local production, and expanding industrial capacity—especially within economic zones and free zones.
Further reinforcing the sector’s momentum, Omani non-oil exports surged 7.2% from January to May 2025, reaching RO 2.7 billion. The UAE led as the top importer of Omani products (RO 485 million), followed by Saudi Arabia (RO 451 million) and India (RO 280 million), all posting double-digit growth rates.
Eng. Jassim bin Saif Al Jadidi, Technical Director at the Undersecretary’s Office, pointed to improved investor confidence, supported by a pro-business legal framework and the rollout of targeted incentives such as industrial financing, logistics development, and technology localization.
Key sectors attracting investment include renewable energy technology manufacturing, mineral extraction, and food and medical industries.
