Oman’s manufacturing sector witnessed a significant expansion during the first quarter of 2024, recording a real growth rate of 9.2 percent. This growth marks a sharp recovery from the 2.2 percent decline it experienced during the same quarter last year, raising its contributions to the country’s gross domestic product (GDP) to 10 percent at constant prices and 10.5 percent at current prices.
Notably, Oman’s GDP rose 1.7 percent to OMR9.537 billion in Q1 of 2024 from OMR 9.373 billion during the same quarter last year.
Oman’s Ministry of Economy said that the manufacturing sector was the highest-performing among key sectors for economic diversification under the framework of the 10th Five-Year Plan (2021-2025) during the first quarter of the year.
Industrial exports and investments bolster growth
Dr. Salem bin Abdullah al Sheikh, the spokesman for the Ministry of Economy, attributed the manufacturing sector’s growth to Oman’s success in diversifying its economy.
Other factors contributing to the sector’s growth include the expansion of the country’s industrial sectors, greater industrial exports, and increased investments in industrial, free, and private zones. Al Sheikh also noted the addition of new strategic projects like the Duqm Refinery which played a critical role in driving growth.
Al Sheikh also highlighted the expansion in the refined petroleum products industry, basic chemicals industry, and other manufacturing industries which witnessed growth rates of 67.6 percent, 6.4 percent, and 6.3 percent, respectively during Q1 of 2024.
Oman expands industrial projects
Oman’s manufacturing sector also received a boost from large investments in new industrial projects and expansions of existing projects. Those investments have raised the sector’s production capacity and bolstered demand for industrial products both locally and internationally.
In addition, the government’s investments in roads, electricity grids, and ports have developed the country’s industrial infrastructure, further supporting the sector’s growth.
Al Sheikh added that the 10th Five-Year Plan seeks to raise the manufacturing sector’s contributions to Oman’s GDP from the current 10 percent to 12.2 percent by 2025. To achieve this goal, the government has introduced incentives for investors including tax breaks which have attracted additional funding to the country’s industrial sector.
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