Overview
The manufacturing sector in Oman employs ~90,000 direct workers with an Omanisation rate of ~38%. Workforce development is a critical enabler of Vision 2040 objectives, requiring targeted interventions in skills training, career pathway development, and nationalisation policies tailored to sector-specific needs.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Direct Employment | ~90,000 direct | See 2040 targets |
| Omanisation Rate | ~38% | See 2040 targets |
| Key Employers | Sohar Aluminium, Raysut Cement, OQ, Oman… | Expanding |
Analysis
Workforce composition in Oman’s manufacturing sector reflects both historical development patterns and emerging skill requirements. The current Omanisation rate of ~38% indicates strong progress toward nationalisation targets. Key employers including Sohar Aluminium, Raysut Cement, OQ, Oman Cables, A’Saffa Foods are implementing structured training programmes. However, skills gaps persist in technical specialisations, middle management, and digital competencies. The sector must balance rapid Omanisation with maintaining operational excellence and international competitiveness.
Challenges
Skills mismatch between education outputs and sector requirements remains the primary workforce challenge. 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. Additionally, retaining Omani talent in the face of competition from government and higher-paying sectors requires innovative compensation and career development frameworks.
Opportunities
Structured apprenticeship programmes, industry-academia partnerships, and TVET alignment with sector needs can accelerate workforce readiness. 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.