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Omani Industrial Sector Seeks to Adopt AI and Factory Automation Technologies

Muscat,

The Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) continuously works towards developing the industrial sector and increasing its contribution to the local GDP. This is achieved through the constant updating of laws, providing incentives and exemptions for Omani factories. The ministry proactively addresses challenges facing the sector, finding appropriate solutions, reviewing available opportunities, and marketing them domestically and internationally. Initiatives aimed at localizing investments and creating added value to the gross domestic product (GDP) are undertaken to position the Sultanate of Oman as a leading investment destination within the framework of the transition towards a sustainable economy.

‘Factory Automation and Artificial Intelligence’ constitute the focal point for the ministry during this year. The objective is to empower private sector entities with global best practices related to technology and digital transformation. The ministry believes that the rapid and systematic adoption of these technologies enhances production efficiency and elevates product competitiveness.

The MoCIIP emphasized that the choice of the slogan ‘Factory Automation and Artificial Intelligence’ for celebrating Oman’s Industry Day this year (2024) is aimed at continuing the growth journey towards broader horizons and sustainable development. It has become imperative for the Omani industrial sector to embrace modern technologies to enhance efficiency, diversify products, improve quality, and enhance environmental and economic sustainability. This aligns with the accelerating global shift towards the Fourth Industrial Revolution.

The MoCIIP affirmed that the industrial sector is a key cornerstone for economic diversification and achieving the targets of Oman Vision 2040. It emphasized that the global shift towards Fourth Industrial Revolution technologies requires the industrial sector to rapidly adopt these technologies to maintain its position, enhance production efficiency, and foster innovation. Underscoring the vital importance of adopting artificial intelligence and factory automation technologies aims to boost the competitiveness of companies in the industrial sector. This adoption is crucial for improving planning and production processes, augmenting productivity, enhancing equipment maintenance, and improving the overall customer experience.

Last week, the MoCIIP launched the initiative ‘Factory Automation and Artificial Intelligence’, the initiative adopts global methodologies to enhance the capabilities of local industries and propel the national industry to advanced positions. The initiative operates on two pathways: the first targets new factories, designed and built according to high standards in manufacturing and production efficiency. The second path focuses on existing factories, encouraging them to transition into facilities that adhere to operational excellence standards and adopt advanced technologies.

As Oman celebrates its Industrial Day, officials and business leaders in the industrial sector praised the progress and growth achieved by the sector. They acknowledged the success due to supportive policies aimed at boosting sector revenues and maximizing reliance on non-oil income, aligning with plans to diversify the economy. Particularly, the manufacturing sector, over the past years, has made significant gains, attributed to direct and indirect support from governmental and private entities. They emphasized that these accomplishments resulted from initiatives and programs implemented by the wise government, fostering sector development, achieving remarkable levels of progress, quality, expansion, competitiveness, and the adoption of technological solutions across production stages. This, in turn, has increased the sector’s contributions to the GDP, attracting capital and investments.

Mazin Al Siyabi, Director of Technical Assistance Office for Trade and Industry at the Ministry of Commerce, Industry, and Investment Promotion, affirmed that the manufacturing sector has become a key driver of the Omani economy since the beginning of the third millennium. The sector has played a crucial role in reducing Oman’s reliance on crude oil.

Al Siyabi explained that the ministry is working to enhance the sector’s role through various initiatives and programs aimed at increasing its contribution to Oman’s overall GDP. Among these initiatives is the Value-Added Localization Program, which seeks to localize several industries, prioritize government procurement, expand and increase the productivity of existing factories, and establish new industries to boost value-added contributions.

The launch of the National Product Identity ‘Made in Oman’ platform is an electronic service platform aimed at expediting the licensing and certification process for the national product identity. It allows the usage of the ‘Made in Oman’ logo on Omani products. The platform’s establishment contributes to creating a database of registered Omani products, serving as a reference for various activities supporting local products, highlighting their quality and diversity, stated Al Siyabi.

Professor Ghassan Al Kindi, Pro-Vice Chancellor for Research and Innovation at Sohar University, noted that since the speech of His Majesty Sultan Haitham bin Tarik in February 2020, he emphasized the importance of focusing on scientific research, innovation, and artificial intelligence to continue the journey of development and construction. Certainly, achieving global competitiveness and industrial progress requires the adoption of modern technologies, including the technologies of the Fourth Industrial Revolution, such as automation.

Oman has made significant strides in establishing its industrial base in recent years. To ensure the sustainability of its industrial activities and enhance the competitiveness of its products in both local and global markets, it has become imperative for Oman to adopt modern automated production technologies and Fourth Industrial Revolution techniques, he added.

Prof. Al Kindi added that there is widespread consensus on the substantial value that the adoption of automation brings to diverse industrial projects. Automation, exemplified by increased production quantities and efficiency, cost reduction, stimulation of innovation, and enhancement of product quality, significantly bolsters the competitive edge of products and services in global markets. The crucial role of automation and the integration of Fourth Industrial Revolution technologies in generating new jobs with elevated professional, technical, and scientific standards further contribute to the development of a knowledge-based economy. This, in turn, results in higher salaries and improved well-being for workers.

The Pro-Vice Chancellor for Research and Innovation at Sohar University explained that the MoCIIP recognizes the importance of encouraging industrial companies in Oman to develop their operations, embrace automation, and adopt Fourth Industrial Revolution technologies to ensure sustainability and continuous improvement. Therefore, the ministry has initiated a promising project to assess and qualify industrial companies in the path of automation and Fourth Industrial Revolution technologies.

The ministry has detailed plans to promote these companies by providing scientific assessment services based on globally recognized standards. This aims to determine the readiness of these companies to transition to higher levels of automation and Fourth Industrial Revolution technologies. Additionally, the ministry has outlined plans to offer support and incentives to encourage companies to upgrade their production lines, reduce reliance on unskilled labour, especially expatriate workers, and shift towards modern production technologies, creating suitable jobs for Omanis.

Prof. Al Kindi emphasized the necessity of overcoming challenges facing the technological transformation towards automation and Fourth Industrial Revolution technologies. Among the crucial challenges is encouraging company management to believe in the necessity of transitioning towards automation. It is also essential to prepare qualified and fully trained Omani professionals who align with the needs of modern technologies.

He noted that the success of the technological transformation program requires collaboration between the academic sector, vocational training, and the business sector to implement innovative programs. These programs aim to equip Omani professionals with specialized skills in designing, installing, and programming automated equipment and complementary control systems. They also involve building computer systems necessary for data collection and analysis, decision-making using some artificial intelligence techniques. Consequently, these Omani professionals will be ready to provide continuous development, maintenance, and operation services for modern technologies in various factories. This enhances the successful local value and ensures the sustainability and competitiveness of industrial companies.

Ahmed Al Barwani, Chairman of the Board of Directors of the Sectorial Skills Unit for the Industrial Sector (SSUM) hosted by the Omani Industrialists Association, said that the unit aims to enhance the skills of the Omani industrial sector, increase its competitiveness, and build a skilled and competitive workforce in the Omani industry.

He pointed out that the unit works towards achieving this by studying the current and future skill needs in the industrial sector, defining them, and developing national standards that establish professional and national standards for various professions in the industrial sector. The unit also implements skills accreditation programs, confirming that individuals have the necessary skills for specific jobs. It actively participates in setting national standards for training and professional assessment in the industrial sector.

Additionally, the unit provides support and advice to economic sectors on developing the skills of their workforce, conducts research on the labour market to identify current and future skill needs, and encourages companies to enhance the skills of their employees through training and education programs.

Al Barwani added, “In the future, the unit will issue certificates of professional competence that recognize individuals’ skills and their ability to work in specific jobs.”

He emphasized that the Sectorial Skills Unit for the Industrial Sector works closely with various stakeholders in the industrial sector, including the Ministry of Labour, the Ministry of Higher Education, Research and Innovation, public and private technical training institutes, the Omani Industrialists Association, and the industrial sector in general, to achieve its goals.

He explained that developing the skills of the industrial sector is essential to enhance the competitiveness of the sector and contribute to the growth of the national economy.

He pointed out that Oman’s Industrial Day is an opportunity to discuss the developments in the industrial sector and envision its future. After developing the necessary plans and strategies to address the challenges posed by both the domestic and international environments, he affirmed that the industrial sector is one of the promising economic sectors. It has a significant impact and economic benefits by generating added value for all economic sectors, opening up vistas for local and global investments, and creating new prospects for the future of the Omani industry. It aligns with Oman’s economic trajectory and contributes to achieving Oman Vision 2040.

Hilal Al Hosni, CEO of Cimat Global stated “The meeting with officials at the Ministry of Commerce, Industry, and Investment Promotion represents an opportunity to activate the partnership between the government and the private sector by considering the views of industrialists and investors regarding the necessary mechanisms to attract investment, develop exports, and establish partnerships aimed at supporting the competitiveness of Omani products in local and international markets”.

He noted that celebrating Omani Industry Day serves as an impetus for the sector to enhance its role in economic diversification, especially as Oman, represented by government and private entities, is committed to organizing a meeting with industrialists, project owners, and investors as part of the celebrations. This meeting serves as a platform to review the challenges and difficulties facing the sector and find appropriate solutions.

He emphasized that adopting modern technologies in manufacturing processes contributes to reducing errors, minimizing manual labour, increasing production speed, and enhancing quality.

He also highlighted the creation of modern and advanced industries and the increased percentage of domestic supply chains for the industry.

The CEO of Cimat Global affirmed that the upcoming phase will witness a transition to more competitive industries, especially with the advent of the Fourth Industrial Revolution and artificial intelligence. This necessitates preparation through training and qualification. Leveraging indicators and forecasts that determine market and modern technology trends should be integral to scientific research efforts aimed at developing local industries, reducing production costs, and preserving and sustaining the environment.

Abdul Hakeem Al Qasmi, Acting Managing Director of Sohar Sulphur Fertilizers, stated: “Omani Industry Day is an icon of pride for all industrialists in the Sultanate of Oman, reflecting the importance of the industry in Oman and the government’s commitment to this vital sector. Direct interaction with officials at the Ministry of Commerce, Industry, and Investment Promotion is a fundamental cornerstone for addressing the challenges faced by industrialists in terms of government procedures and other internal and external challenges.

He added, “The trend of Omani factories towards modern technologies used in manufacturing processes contributes to maximizing the utilization of raw materials and reducing the margin of waste materials, ultimately increasing their production quantities.

Sohar Sulphur Fertilizers produces granulated sulphur fertilizers along with minor elements, with an annual production capacity of 60,000 metric tons. The factory exports 99% of its products outside Oman, serving 25 countries worldwide. Al Qasmi emphasized that the shift towards automation reduces production losses, decreases unskilled labour, resulting in improved productivity and profitability for companies.

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