Sunday 12 / January / 2025
Muscat: Oman's industrial sector has achieved significant growth, with its contribution to the Gross Domestic Product (GDP) at current prices reaching OMR4.09 billion by the end of June 2024, representing 19.5% of the total GDP, which stands at OMR20.9 billion.
The manufacturing industries took the largest share, contributing more than OMR2.19 billion, accounting for 10.5% of the GDP. Other industrial activities contributed OMR1.9 billion, equivalent to 9.1%.
Mazin bin Hamid Al Siyabi, Assistant Director-General of Industry at the Ministry of Commerce, Industry, and Investment Promotion, stated that the contribution of manufacturing industries increased by 10.5% in the first half of 2024, compared to 9.4% in 2023 and 8% in 2020. This improvement reflects the progress of the industrial sector and the success of government policies in promoting economic growth.
In a statement to the Oman News Agency, Al Siyabi highlighted Oman's efforts to build a strong industrial future aligned with its aspirations. Over the past five years, Oman has achieved numerous accomplishments in the industrial sector, most notably the Royal endorsement of the Industrial Strategy 2040 in May 2024. The ministry organised a series of discussion sessions involving all stakeholders to hand over the initiatives related to the strategy.
He added that indicators show the industrial sector played an increasingly important role in Oman's economy.
The total contribution of industrial activities to the GDP at current prices was about OMR5.88 billion in 2020, rising to OMR6.88 billion in 2021 and OMR7.7 billion in 2023, with a contribution rate of 19.1%. This rate reached 19.5% in the first half of 2024.
Al Siyabi emphasised that this continuous growth reflects the effectiveness of government development plans aimed at enhancing production capacities and stimulating investments.
He noted the significant increase in industrial licence applications, which rose by 62% from 12,100 applications in 2020 to more than 135,000 applications by the end of November 2024.
This increase indicates investors' interest in the industrial sector and the success of policies encouraging the establishment of new projects.
Additionally, customs exemption requests increased by 42%, indicating improved economic conditions and increased commercial activities.
There were 77,300 applications for certificates of origin, reflecting the growth in foreign trade and the desire of Omani companies to expand into international markets. Furthermore, 517 customs exemption requests were submitted, achieving a 42% growth rate, and 590 customs exemption decisions were issued, reflecting improved regulatory procedures.
Al Siyabi, Assistant Director-General of Industry at the Ministry of Commerce, Industry, and Investment Promotion, stated that the industrial sector has received significant governmental support through the implementation of innovative strategies and initiatives.
These efforts aim to develop manufacturing industries and enhance local value addition. The ministry is working on reducing the time required for customs exemptions, which helps speed up procedures and alleviate burdens on investors. Additionally, the ministry has simplified industrial licensing procedures and activated electronic issuance of certificates of origin.
In line with improving the regulatory environment, the unified industrial law and its regulations have been adopted, along with the issuance of the national product identity regulation and the cooking gas regulation. The ministry is also working on preventing the export of waste and raw materials, thereby enhancing resource efficiency and reducing environmental impact.
Al Siyabi emphasised the ministry's commitment to supporting recycling-based industries to achieve environmental sustainability and strengthen the circular economy. The ministry has signed several agreements between industrial sector establishments to enhance industrial networking and facilitate cooperation between companies.
Efforts are ongoing to provide the necessary raw materials through strengthened cooperation with international markets and support for initiatives contributing to the development of local manufacturing industries.
Al Siyabi pointed out that 2024 marked a qualitative leap for Oman's industrial sector, focusing on launching strategic initiatives to enhance local content, improve national workforce efficiency, and support manufacturing industries as a fundamental pillar of economic growth.
The ministry has successfully created a more developed industrial environment that attracts investments, with a focus on adopting modern technology and automation to enhance productivity and innovation.
Achieving sustainable industrial development requires concerted efforts from all partners in both the public and private sectors. The ministry continues to support the sector to ensure economic objectives are met and to provide opportunities for national cadres in various industries.
The ministry is making significant efforts to enhance the competitiveness of Omani products and protect them from competition with imported products.
These efforts include the launch of the "Tasn'e" local content plan, which aims to strengthen the role of national products in the market by setting a clear roadmap to increase the percentage of local content. This reduces reliance on imports, increases added value to the national economy, and strengthens the competitiveness of local industries, positively impacting the country's trade balance.
National industries are a major driver for achieving self-sufficiency and economic diversification. The ministry has worked on enhancing local value addition across various industrial sectors, which has strengthened the local supply chain and reduced reliance on imports.
Initiatives to protect national products from unfair competition include enhancing quality control of imported products to ensure they meet standards. The ministry established the Local Content and Local Value Office to improve local content percentages in projects and launched the "Ta'meer" program, which gives preference to national products in public procurement. This creates new jobs and increases investments in the sector.
The ministry formed the National Industries Support Committee, responsible for developing strategies and policies to implement "local added value" in the industrial sector. The committee aims to increase purchases from national industries, provide new investment opportunities to boost exports, and replace imports, with programs and mechanisms to raise the quality of Omani products and increase sales in local and international markets.
Regarding the development of national competencies through specialised training programs, Al Siyabi mentioned the launch of the "Itqan" program in 2024, focusing on enhancing the skills and competencies of national cadres through training and development, improving production quality and productivity.
The number of Omanis working in the manufacturing sector increased by 79.5% between 2020 and 2023, reaching approximately 58,100 Omanis by the end of 2023, compared to 32,400 in 2020. Overall, the number of workers in the sector, including Omanis and expatriates, exceeded 249,700 by the end of 2023.
The ministry seeks to refine the skills of national cadres, support manufacturing industries, and encourage industrial innovation through its initiatives and programs, aligning with Oman Vision 2040 goals. Ten factories have been trained on the "CIRI" industrial excellence index, with four ministry employees certified as trainers. The ministry also launched specialized workshops to improve the skills of workers in national factories, focusing on innovation and the use of modern technology. Additionally, training programs were implemented to support recycling-based industries, contributing to environmental and industrial sustainability.
