Oman’s Industrial and Manufacturing Push Gains Traction with Global Investors

Oman’s manufacturing sector grew 8.6 percent in 2024, attracting OMR 2.48 billion (US$6.45 billion) in foreign investment, as new digital platforms, regulatory reforms, and targeted industrial programs drive non-oil growth under Vision 2040.

Oman’s economic diversification strategy is beginning to bear tangible results. According to the National Centre for Statistics and Information, Oman’s gross domestic product (GDP) reached OMR 10.53 billion (US$ 27.3 billion) in the first quarter of FY 2025-26, reflecting a 4.7 percent year-on-year expansion. The growth was powered not by hydrocarbons but by strong performances in non-oil sectors. The industrial sector posted a 2.8 percent increase, while the services sector expanded by 4.2 percent.

Oman’s manufacturing sector has increasingly emerged as a cornerstone of this diversification effort. The 10th Five-Year Development Plan, which spans from 2021 to 2025, has identified manufacturing as a national priority, and the sector’s growing contribution to GDP, 10 percent in 2024, is a sign of momentum gathering on the ground.

Manufacturing output rises as foreign capital pours in

Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed al Yousef recently told the Shura Council that Oman’s manufacturing sector grew by 8.6 percent in FY 2024-25. The sector attracted foreign investments worth more than OMR 2.48 billion (US$6.45 billion), while industrial exports reached OMR 6.2 billion (US$16.1 billion). These are not marginal gains but a reflection of a sector becoming globally competitive.

Over the past four years, manufacturing’s contribution to GDP increased from OMR 2.4 billion (US$6.2 billion) in 2020 to OMR 4.1 billion (US$10.6 billion) in 2024, an annual average growth rate of 14.2 percent. The government has set an ambitious target to grow this figure to OMR 11.6 billion (US$30 billion) by 2040, underscoring its commitment to nurturing industrial depth.

The period between 2020 and 2024 saw the registration of 243 major industrial establishments, up from 180. In the same span, 32 large-scale industrial projects worth over OMR 878 million (US$2.2 billion) were licensed. Food processing, chemicals, medical devices, and the broader mining ecosystem have synced with the regional and global supply chains to ease goods and services flow into Oman.

Digital governance and reduced red tape improve investor confidence

The government’s “Invest in Oman” platform, launched in 2023, has become a central node in the country’s investment ecosystem. As of the end of 2024, the platform had received 90 investment applications worth over OMR 5.3 billion (US$13.7 billion), and of these, 43 projects with a total value of OMR 2.2 billion (US$5.8 billion) were already localized. These projects span strategic verticals such as renewable energy, advanced manufacturing, logistics, and pharmaceuticals.

The digital-first approach does not end there. The expanded “Oman Business” platform completed more than 800,000 transactions in 2024 alone. Twenty-four new services were added during the year, and administrative fees were reduced across the board. The foreign investor registration fee now stands at OMR 150 (US$390) annually, with licensing charges either reduced or waived.

Such policy clarity and ease of doing business are essential in a region where countries compete aggressively for Foreign Direct Investment (FDI). Oman’s ability to streamline entry points and reduce procedural friction can give it a distinct edge.

Regulatory shifts align with global norms

Parallel to digital reforms, Oman is attempting to move swiftly on regulatory modernization. In 2024, the Ministry of Commerce, Industry and Investment Promotion issued more than 7,500 new Omani standard specifications and simplified 17 technical services. It was aimed at ensuring Omani products and services meet international compliance standards and appeal to a global customer base.

The country has also placed emphasis on intellectual property (IP) rights. Trademark registrations rose from 412 in 2020 to 487 in 2024, while patent applications nearly tripled, increasing from 35 to 96. The introduction of a national IP strategy, under development in 2024, aims to support innovation, protect inventors, and create legal certainty in high-tech industries.

E-commerce regulations have also been updated. Oman introduced rules on online commercial naming and digital marketing, and launched the “Ma’roof Oman” platform to authenticate e-stores. As a result, the number of registered e-commerce licenses surged by over 236 percent between 2023 and 2024.

New industrial programs aim to link policy with local production

The government’s industrial policy is attempting to direct capital inflow in strategic sectors. The Ministry has launched several programs aimed at deepening industrial capabilities. The “Industrial Observatory Program” helps track performance metrics and resilience gaps, while the “Automation and Artificial Intelligence (AI) Program” promotes factory modernization.

Small and medium-sized enterprises (SMEs) are not being left behind. Initiatives such as Own It, Made in Oman, and Localization support small businesses by providing market access, especially in construction and services linked to megaprojects. These programs are run in collaboration with the Ministry of Housing and Urban Planning.

Read more: Oman’s Personal Income Tax Begins in 2028, Signaling Major Fiscal Shift

Non-oil exports and property market reflect wider growth

Industrial growth is not occurring in a vacuum. Oman’s non-oil export sector recorded an 8.6 percent increase in early 2025, reaching OMR 1.61 billion (US$4.1 billion) and accounting for 28.6 percent of all outbound trade. The insured value of these exports under Credit Oman stood at OMR 61.2 million (159.1 million) in Q1 FY 2025-26, a 6 percent year-on-year rise. This indicates not only growing trade volumes but also improved risk coverage and financial resilience.

Simultaneously, Oman’s real estate market, often a barometer for investor confidence, has shown positive momentum. In the first quarter of FY 2025-26, residential property prices rose by 5.5 percent quarter-on-quarter. Apartment prices in May surged 17 percent year-on-year, while land and villa prices climbed by 6.5 percent and 6.4 percent, respectively.

Vision 2040 and the road ahead

FDI inflows into Oman have more than doubled since 2018, reaching OMR 30 billion (US$78 billion) by end-2024. Oman’s National Program for Investment and Exports Development Strategy is now enhancing global market access through trade outreach, and the government is backing this with support for exhibitions and targeted marketing studies.

As global supply chains adjust and regional competition intensifies, Oman can position itself as a global business hub to build on its manufacturing base.

(OMR 1 = US$2.6)

Read more: Oman’s New Foreign Investment Rules Explained 

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