Manufacturing sector grows 10% in first half of 2024
Oman’s manufacturing sector grew by more than 10% in the first half of this year compared to the same period last year, according to data from the National Centre for Statistics and Information.
The sector’s output at fixed prices rose to 1.868 billion Omani rials with much of the expansion in oil refining, petrochemicals and basic chemicals.
Mazin Al Siyabi, Assistant Director General of Industry at the Ministry of Commerce, Industry, and Investment Promotion (MCIIP), acknowledged the sector’s role in boosting domestic production, creating job opportunities, improving Oman’s trade balance and diversifying sources of income beyond oil.
He said the sector’s expansion supports the development of other industries by generating demand for raw materials, logistics, technical services and infrastructure.
This expansion also encourages investment in research, development and innovation.
Jassim Al Judi, Technical Director at the MCIIP, said manufacturing is a primary driver of economic growth in many industrial countries, bolstering other sectors through extensive supply chain linkages.
Local content is a fundamental pillar for strengthening Oman’s economy by supporting the private sector, increasing employment opportunities and improving supply chains.
This approach fosters the growth of local small and medium enterprises (SMEs), particularly in oil and gas, aiding sustainable development and reducing import dependence thereby enhancing Oman’s economic resilience and providing future investment prospects.
In the energy and minerals sector, the Local Content Programme, launched in 2013, has created more than 100 local investment opportunities and 3,000 direct jobs, with an Omanisation rate of 92%.
The Ministry of Energy and Minerals has launched eight green hydrogen projects in Al Wusta and Dhofar governorates, targeting an annual production of 1.38 million tonnes of green hydrogen by 2030.
Oman aims to leverage local mineral resources while the manufacturing sector is a key driver of economic diversification under Oman Vision 2040, supporting related industries and building national capacities.
Efforts are ongoing to enhance the role of SMEs to encourage entrepreneurship . These enterprises received government procurement contracts worth more than 100 million Omani rials in the first half of 2024.