Overview
Oman’s healthcare sector contributes approximately 4 percent of GDP, with significant milestones including the nation’s first heart transplant in 2023 and the launch of the Oman Genome Programme for precision medicine. The Ministry of Health operates over 250 health facilities, complemented by a growing private sector. Vision 2040 aims to expand healthcare to over 7 percent of GDP while developing medical tourism and pharma manufacturing capabilities.
The value chain for Oman’s healthcare 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 | ~4% | 7%+ by 2040 |
| Health Facilities | 250+ | 400+ by 2040 |
| Omanisation Rate | ~62% | 75%+ by 2040 |
| Pharma Import Dependency | ~90% | 50% by 2040 |
| Life Expectancy | ~77 years | 80+ years by 2040 |
Analysis
The healthcare value chain in Oman is characterised by significant upstream concentration, with MOH, SQU Hospital, Diwan of Royal Court hospitals, Badr Al Samaa, Aster DM 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 1.8 billion annual public health expenditure signals strong commitment to building out downstream capacity. The sector employs ~55,000 direct workers, though value-chain deepening could multiply employment effects significantly.
Challenges
Rising non-communicable disease burden (diabetes ~15 percent prevalence), specialist physician shortage, geographic access disparities in Al Wusta and Dhofar, limited private insurance uptake, and high pharmaceutical import dependency (~90 percent).
Opportunities
Medical tourism from GCC and East Africa, pharmaceutical manufacturing (Oman Pharma City), digital health and telemedicine, genomics-driven personalised medicine, and PPP models for new hospitals.
Vision 2040 Targets
Increase healthcare GDP share to 7 percent; reduce pharmaceutical import dependency to 50 percent; train 5,000 Omani specialist physicians; achieve universal health insurance coverage; establish a regional genomics research centre.