Oman Manufacturing Sector Hits RO 3.7 Billion: What This Growth Means for Investors and Entrepreneurs

Oman’s manufacturing sector expanded markedly during the Tenth Five‑Year Development Plan (2021–2025), with output rising from RO 3.019 billion in 2021 to an estimated RO 3.710 billion in 2025 at constant prices — a cumulative increase of roughly 22 percent and an average annual growth near 5 percent, the Ministry of Commerce, Industry and Investment Promotion reported. The ministry attributed the advance to flexible economic policies, targeted initiatives, improved infrastructure and measures to boost value‑added activity as part of efforts to diversify the Sultanate’s economy away from hydrocarbons.

"Efforts during the plan period emphasized creating an attractive industrial ecosystem by offering incentives and facilities to investors while supporting national industries to boost their competitiveness in regional and global markets," said Engineer Khalid bin Salim al Qasabi, Director General of Industry at the Ministry. He added that the next phase will prioritise advanced manufacturing and high value‑added industries to strengthen Oman’s role in global supply chains.

Context and drivers of growth

The ministry credited a combination of policy flexibility and practical measures for the expansion in manufacturing capacity. Officials pointed to streamlined procedures, a more competitive investment landscape and government‑led programmes aimed at deepening industrial integration and reinforcing local value chains. These measures were framed within Oman Industrial Strategy 2040 and broader government efforts to encourage technology adoption across industry.

• Manufacturing output: RO 3.019bn (2021) → RO 3.710bn (2025), +22% cumulative, ~5% average annual growth
• Wholesale & retail trade: RO 2.744bn (2021) → RO 3.213bn (2025), +17% cumulative, ~3.4% annual growth
• Non‑oil exports: expected ~RO 6.7bn in 2025 (RO 6.2bn in 2024), growth of 7.5%
• Re‑exports: rose 20.3% to RO 2.056bn

Trade officials said the improvement in commercial activity mirrored industrial gains. "The Ministry continues to develop the commercial ecosystem by enhancing supply chain efficiency and accelerating the digital transformation of trade activities," said Nasra bint Sultan al Habsi, Director General of Trade. Engineer Jassim bin Saif al Jadidi highlighted the mutual reinforcement between sectors: "The integration between the industrial and commercial sectors has been a crucial driver of growth, fostering a more resilient and interconnected economy capable of adapting to regional and global challenges."

Key export categories cited by the ministry included chemicals, metals and related products, plastics and electrical machinery — sectors that signal a broader diversification of Oman’s production base beyond raw hydrocarbons.

Outlook for investors and entrepreneurs

The ministry’s analysis, published as a Special Analysis by Omanet, frames the manufacturing gains as a signal for targeted investment opportunities in advanced manufacturing, industrial integration and export expansion. For investors and entrepreneurs, the message is twofold: fiscal and procedural incentives make Oman’s industrial landscape more accessible, while national priorities — from technology adoption to supply‑chain enhancement and market access — set expectations for where growth and support will be concentrated over the coming phase.

As Oman positions itself to move up value chains, companies that align with the Oman Industrial Strategy 2040 and the ministry’s focus areas may find openings in higher value‑added production, export logistics and technology‑driven manufacturing services.