Overview
Technology adoption in Oman’s manufacturing sector is progressing from foundational digitalisation toward Industry 4.0 integration. The Fourth Industrial Revolution Centre (inaugurated 2024) serves as a national accelerator for AI, IoT, blockchain, and advanced analytics deployment across priority sectors. The sector’s current digital maturity level reflects both infrastructure readiness and organisational capacity for technology absorption.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Digital Maturity | Emerging | Advanced |
| Automation Level | Low-moderate | High |
| Data Analytics Adoption | Early stage | Widespread |
Analysis
Technology transformation in manufacturing spans several dimensions: process automation, data-driven decision making, customer experience digitalisation, and ecosystem connectivity. Sohar Aluminium, Raysut Cement, OQ, Oman Cables, A’Saffa Foods are leading adopters, deploying enterprise resource planning, IoT sensors, and cloud-based platforms. However, the broader sector ecosystem, particularly SMEs, lags significantly behind. The 5G rollout provides enabling infrastructure, but enterprise adoption requires complementary investment in skills, change management, and data governance frameworks.
Challenges
Technology adoption barriers include high upfront costs, shortage of local tech talent, legacy system integration complexity, and cybersecurity concerns. High energy input costs for non-subsidised operations, limited domestic supply chains, skill shortages in advanced manufacturing, competition from Saudi and UAE mega-factories, and reliance on imported raw materials.
Opportunities
AI and machine learning applications, digital twins for asset management, blockchain for supply chain transparency, and IoT-enabled predictive maintenance represent high-impact opportunities. Downstream aluminium value addition (extrusions, cables), food processing for regional export, pharmaceutical manufacturing (Oman Pharma), building materials for GCC mega-projects, and defence manufacturing under the IKTIFA programme.
Vision 2040 Targets
Raise manufacturing GDP share to 15 percent; double non-oil exports; create 150,000 new manufacturing jobs; achieve 50 percent Omanisation; establish Oman as a GCC advanced manufacturing hub.