Muscat,
The industrial sector in the Sultanate of Oman has achieved remarkable growth. This is evidenced by the sector’s contribution to the Gross Domestic Product (GDP) at current prices, which amounted to RO 4.09 billion by the end of June 2024 (constituting 19.5 percent of the GDP at market prices of RO 20.9 billion).
Converting industries garnered the largest share, posting a total value of more than RO 2.19 billion and constituting 10.5 percent of the GDP, while other industrial activities registered RO 1.9 billion, equivalent to 9.1 percent.
Mazin Humaid Al Siyabi, Assistant Director General for Industry at the Ministry of Commerce, Industry and Investment Promotion, said that the contribution of converting industries grew by 10.5 percent in the first half of 2024, compared to 9.4 percent in 2023 and 8 percent in 2020. He pointed out that this improvement reflects the progress of the industrial sector and the success of government policies in enhancing economic growth.
In a statement to the Oman News Agency (ONA), he said that the Sultanate of Oman’s efforts to develop a well-established industrial future responds to the country’s aspirations. He added that, over the past five years, Oman made many accomplishments in the industrial sector. Those accomplishments, he said, were spearheaded by the Royal endorsement of the Industrial Strategy 2040 in May 2024. To outline the initiatives of this strategy, the ministry organized a number of sessions that were attended by all the parties concerned, he explained.
The industrial sector is increasingly playing an important role in the Omani economy, said Al Siyabi, noting that the total contribution of industrial activities to the GDP at current prices grew from RO 5.88 billion in 2020 to RO 6.88 billion in 2021 and RO 7.7 billion in 2023 (at a rate of 19.1 percent, and later 19.5 percent during the first half of 2024).
Al Siyabi stressed that this continuous growth reflects the effectiveness of development plans approved by the government, which focuses on enhancing production capacities and motivating investments. He pointed out that the number of industrial license applications increased by 62 percent, from 12,100 in 2020 to more than 135,000 by the end of November 2024. This, he observed, reflects the keenness of investors in the industrial sector and the success of policies designed to encourage the establishment of new projects.
In addition, customs exemption requests grew by 42 percent, which indicates an improvment in economic conditions and increased commercial activities, said Al Siyabi.
He added that requests for Certificates of Origin reached 77,300. This, he explained, demonstrates a rise in the volume of foreign trade, reflecting the desire of Omani companies to expand their activities and access international markets.
Customs exemption requests reached 517, up by 42 percent, while customs exemption decisions were issued for 590 requests, said Al Siyabi, noting that this reflects the improvement made in regulatory procedures.
The Ministry is making great efforts to enhance the standard of Omani products to help them compete imported products, said Al Siyabi, noting that these efforts include launching the Local Content Plan (an ICV Plan titled “Converting”), which seeks to support the availability of local products in the local market, augment the added value of the national economy and eventually improve the country’s trade balance.
Al Siyabi added that national industries constitute a major pillar in the realization of self-sufficiency and the diversification of the economy. He affirmed that the Ministry has been embarked on consolidating local added value across various industrial sectors, strengthening local supply chain and reducing dependence on imports.
He pointed out that the number of Omanis working in the converting industries sector grew by 79.5 percent between 2020 and 2023—reaching about 58,100 by the end of 2023, compared to 32,400 in 2020. He pointed out that the total number of Omanis and expatriates working in the converting industries sector stood at more than 249,700 by the end of 2023.
Al Siyabi stressed that, through its initiatives and programmes, the Ministry seeks to hone the skills of national cadres, support converting industries and encourage industrial innovation in line with the objectives of Oman Vision 2040.
