Overview
Physical infrastructure underpinning Oman’s mining sector spans transport networks, utilities, industrial zones, and specialised facilities. The government has committed significant capital to infrastructure development, with the national infrastructure pipeline valued at over USD 50 billion across all sectors. For mining specifically, infrastructure investment of OMR 800 million planned investment targets capacity expansion, connectivity improvement, and modernisation of existing assets.
Key Indicators
| Infrastructure Element | Current Status | 2040 Plan |
|---|---|---|
| GDP Contribution | ~1% | 3-5% by 2040 |
| Mineral Types Identified | 50+ | Full survey by 2030 |
| Omanisation Rate | ~45% | 60%+ by 2040 |
Analysis
Infrastructure quality and availability significantly determine the competitiveness of Oman’s mining sector. The Sultanate’s geographic advantages (3,165 km coastline, strategic location between Asia and Africa) are leveraged through purpose-built infrastructure. Public Authority for Mining, Oman Mining Company, Al Tasnim, Minerals Development Oman benefit from dedicated industrial zones, port access, and utility connections. However, infrastructure gaps persist in secondary cities and remote governorates, creating geographic disparities in sector development. The Oman Rail project (2,200 km) and road expansion programmes will enhance connectivity, while digital infrastructure (5G, fibre) enables technology-intensive operations.
Challenges
Infrastructure financing gaps, construction delays, maintenance backlogs, and geographic dispersion increase costs. Limited geological survey data for frontier areas, small-scale artisanal operations lacking efficiency, water scarcity for processing, environmental permitting bottlenecks, and low domestic value addition (most minerals exported as raw ore).
Opportunities
PPP models for infrastructure delivery, modular construction approaches, smart infrastructure integration, and cross-sector infrastructure sharing reduce costs and improve utilisation. Copper smelting and refining (Oman has significant sulphide deposits), limestone for cement and construction materials export, rare earth element exploration, marble and dimension stone for luxury markets, and critical minerals for battery supply chains.
Vision 2040 Targets
Raise mining GDP share to 3-5 percent; complete national geological survey; establish three mineral processing zones; double mining exports; achieve 60 percent Omanisation.