Muscat – Oman’s industrial sector witnessed a boost in the first quarter of 2024 with 9.2% growth compared to the same period in 2023, according to National Centre for Statistics and Information. Production value surged from RO871mn to RO951mn, now contributing 10% to the GDP at constant prices.
The rise in basic chemical industries stood out, growing 6.4% from RO317.8mn to RO338.2mn. Other manufacturing industries saw a 6.3% increase with production value rising from RO513.1mn to RO545.2mn.
H E Dr Saleh bin Saeed Masan, Undersecretary in Ministry of Commerce, Industry and Investment Promotion, informed that Oman’s industrial growth far exceeds the global average. “While the global industrial production increased just 0.9% in the first quarter of 2024, Oman’s industrial sector has outperformed significantly,” he said referring to a report from the United Nations Industrial Development Organization (UNIDO). Global challenges such as inflation, energy price fluctuations, supply chain disruptions and regional conflicts have impacted industrial growth worldwide.
H E Masan attributed the growth to the efforts of Omani industrialists and government institutions. “The industrial sector’s success is driven by continuous support, increased local demand and expansion of exports to new markets,” he explained. Adoption of advanced technologies, improved supply chains and strategic investments have further boosted competitiveness.
Oman’s efforts to modernise its industrial framework have also been reflected in its rise in the Competitive Industrial Performance (CIP) Index 2024. The sultanate secured the 53rd position globally and fourth regionally among 153 countries ranked by UNIDO.
Foreign direct investment (FDI) this year in the industrial sector reached RO2bn by August, with 60 new industrial projects totalling RO885mn in investments signed this year.
Non-oil exports grew 11.2% till the end of May, with notable increases in exports to the UAE (15%), the US (14.6%) and a remarkable 1,000% increase in exports to South Korea, driven by a new free trade agreement between the GCC and South Korea.
Jassim bin Saif al Jadeedi, Technical Director at Ministry of Commerce, Industry and Investment Promotion, highlighted the fact that Omani industrial exports to South Korea reached RO288mn in the first five months of 2024. This surge was mainly due to higher exports of petrochemical products, minerals, food items and building materials, even before the free trade agreement with South Korea was fully implemented.
The strong performance of Oman’s industrial sector underlines its vital role in the country’s economic diversification and growth.
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