Muscat – Oman aims to raise the share of locally manufactured health products to at least 30% within three years from around 9% currently, under new financing partnerships designed to expand medical industries and reduce dependence on imports.

The Ministry of Health on Tuesday signed memoranda of cooperation with Development Bank and Sohar International to channel funding towards projects aligned with national health priorities.

Imports currently meet around 91% of Oman’s demand for health products, while 20 factories account for the domestic share.

H E Dr Hilal Al Sabti, Minister of Health, said increasing local production is central to strengthening the resilience of the health system and securing medical supply chains.

“The ministry seeks to attract sustainable investments that support national industries and ensure the security of medical supply chains,” he said.

Under the agreement with Sohar International, the ministry will conduct an initial feasibility assessment of proposed projects before referring eligible applications to the bank for financing consideration.

The arrangement is intended to support investors establish new factories or expand existing facilities.

The second memorandum, with Development Bank, will focus more broadly on identifying investment needs across the health sector and helping project promoters understand financing requirements at an early stage.

Health investment opportunities extend beyond hospitals to diagnostics, outpatient care, rehabilitation, long-term care, digital health and medical manufacturing.

Mahmoud bin Abdullah Al Awaini, Chairman of Development Bank, informed that it approved 230 health-sector loans between 2023 and July 2026.

“Through this memorandum, we will help applicants understand financing procedures at early stages and prepare more ready applications and proposals,” Al Awaini said.

He added that the health sector’s value added grew 7.3% in the first quarter of 2026.

According to Abdul Wahid bin Mohammed Al Murshidi, CEO of Sohar International, directing finance towards productive capacity in health industries could generate both economic and social returns.

The ministry said private investment could complement government health services by expanding access to care while creating opportunities for Omani professionals and strengthening domestic value addition.

Both agreements are part of Oman Vision 2040 efforts to increase private-sector participation in healthcare and build a more sustainable national health system.