Oman’s Economic Growth driven by manufacturing in 2024

27/08/24

Oman’s Ministry of Economy reported that in the first quarter of 2024, the manufacturing sector has emerged as the leading performer among key economic diversification sectors.

This notable achievement is part of the 10th Five-Year Plan (2021-2025) as the sector experienced a substantial real growth rate of 9.2% in Q1 2024. Its contribution to Oman’s Gross Domestic Product (GDP) rose to 10% at constant prices and 10.5% at current prices. This impressive performance underscores the sector’s critical role in the nation’s economic diversification efforts.

The 10th Five-Year Plan targets an increase in the manufacturing sector's GDP contribution to 12.2% by the end of 2025. This growth is attributed to successful economic diversification strategies, which have strengthened industrial performance, boosted industrial exports and attracted significant investments into industrial, free and private zones. Most importantly, economic incentives and favourable business initiatives encouraging new startups and SMEs to set up business have come to fruition. Consequently, significant opportunities remain for companies looking to enter the market.

Further GDP growth data highlights the positive impact of these strategies, with notable increases across various manufacturing sectors. As a result, the refined petroleum products industry witnessed remarkable growth of 68%. Moreover, the basic chemicals industry and other manufacturing activities recorded growth rates of 6.4% and 6.3%, respectively.

Several factors contribute to the sector's robust performance. Significant investment has enhanced production capacities and spurred both local and international demand for Omani products. Additionally, improvements in industrial infrastructure, supported by government investments in roads, electricity and ports, have fortified the sector’s capabilities. Further incentives including tax breaks, favourable licensing conditions and the stability of Oman’s security and economy continue to foster investor confidence.

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