Overview
Oman’s agriculture sector contributes approximately 1.5 percent of GDP, with date palm cultivation being the signature crop (over 8 million trees producing ~370,000 tonnes annually). Traditional falaj irrigation systems (UNESCO-listed) remain vital in interior regions. Vision 2040 aims to double the sector’s GDP share through modern farming techniques, food security initiatives, and agri-tech adoption while managing severe water scarcity constraints.
The value chain for Oman’s agriculture sector encompasses upstream inputs, midstream processing and logistics, and downstream distribution and export channels. Mapping this chain reveals critical nodes where value addition can be maximised and leakage to imports can be reduced.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| GDP Contribution | ~1.5% | 3%+ by 2040 |
| Date Production | ~370,000 tonnes/yr | 500,000+ tonnes/yr |
| Food Import Dependency | ~60% | 40% by 2040 |
| Omanisation Rate | ~88% | 90%+ by 2040 |
| Arable Land Utilised | ~5% | 8%+ by 2040 |
Analysis
The agriculture value chain in Oman is characterised by significant upstream concentration, with Ministry of Agriculture, Oman Food Investment Holding (OFIC), Al Namaa Poultry, Mazoon Dairy dominating primary production. Midstream processing and logistics represent the largest opportunity for value capture, as much of the raw output is currently exported with minimal transformation. Investment of OMR 1.2 billion food security investment programme signals strong commitment to building out downstream capacity. The sector employs ~180,000 (mostly smallholders) workers, though value-chain deepening could multiply employment effects significantly.
Challenges
Acute water scarcity (renewable water ~500 m3/capita/yr vs global average 6,000), arable land limited to ~5 percent of territory, high food import dependency (~60 percent of consumption), climate change stress, and fragmented smallholder farming.
Opportunities
Controlled-environment agriculture (greenhouses, vertical farming), date processing and export (premium Omani dates), organic certification, agri-tech (precision irrigation, drone monitoring), and frankincense value chain development.
Vision 2040 Targets
Raise agriculture GDP share to 3 percent; reduce food import dependency to 40 percent; double date export value; deploy precision irrigation on 50 percent of farmland; establish 5 controlled-environment farming zones.