Overview
Investment in Oman’s mining sector totals OMR 800 million planned investment, reflecting both sovereign and private capital deployment. The sector’s GDP contribution of ~1% is targeted to reach 3-5% by 2040, requiring sustained capital inflows across the investment pipeline. Deal flow has accelerated since 2020 with Vision 2040 providing a clear policy framework for investor confidence.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Total Investment | OMR 800 million planned investment | Growing |
| GDP Contribution | ~1% | 3-5% |
| Key Investors | Public Authority for Mining, Oman Mining… | Diversifying |
Analysis
The investment landscape for mining in Oman is shaped by a combination of government-led strategic investments and growing private sector participation. Public Authority for Mining, Oman Mining Company, Al Tasnim, Minerals Development Oman represent the core investor base, with increasing interest from international institutional investors and sovereign wealth funds. The Oman Investment Authority (OIA) has prioritised the sector in its portfolio rebalancing strategy. Foreign direct investment is facilitated through free zones, tax incentives, and streamlined licensing processes. However, deal sizes remain modest compared to UAE and Saudi equivalents, suggesting room for growth.
Challenges
Capital mobilisation faces headwinds from 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
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. Green and sustainable financing instruments (sukuk, green bonds) represent an emerging channel for sector investment.
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.