Market Overview
Oman’s manufacturing sector contributed 10.2% of GDP in 2024, with the government targeting 15% by 2030 as part of its economic diversification strategy. The sector is anchored by petrochemical production at Sohar and Duqm, aluminium smelting, and a growing food processing industry.
The Special Economic Zone at Duqm (SEZAD) has emerged as the flagship industrial development, attracting over OMR 8 billion in committed investment across refining, petrochemicals, and heavy industry.
Opportunity Assessment
Downstream petrochemicals offer the most immediate value-chain opportunities, leveraging Oman’s natural gas feedstock advantage. Food and beverage manufacturing benefits from rising domestic consumption and regional export potential. Building materials manufacturing serves the GCC construction cycle.
| Metric | Value |
|---|---|
| Manufacturing GDP share | 10.2% (2024) |
| Target GDP share | 15% by 2030 |
| SEZAD committed investment | OMR 8+ billion |
| Industrial zones | 9 operational |
| Export growth rate | 7% annually |
| Gas feedstock cost advantage | 20-30% vs regional |
Risk Factors
Energy subsidy reform may increase input costs for energy-intensive manufacturers. Logistics costs for non-coastal facilities remain elevated. Labour productivity metrics trail GCC peers in some sub-sectors.
Entry Strategy
SEZAD offers the most comprehensive incentive package including tax holidays, customs exemptions, and flexible labour regulations. Sohar Free Zone provides proximity to established petrochemical clusters. In-country value (ICV) certification enhances access to government procurement.
Vision 2040 Alignment
Manufacturing is a primary diversification pillar under Vision 2040. The National Programme for Enhancing Economic Diversification (Tanfeedh) has set specific manufacturing output targets, with government co-investment available through the Oman Investment Authority.