Overview
Oman’s mining and quarrying sector (non-hydrocarbon) contributes roughly 1 percent of GDP, with key minerals including copper, chromite, limestone, marble, gypsum, and silica sand. The Public Authority for Mining holds records of over 50 mineral types across the Sultanate. Vision 2040 aims to increase the sector’s contribution to 3-5 percent of GDP through value-added mineral processing, export diversification, and sustainable extraction practices.
The value chain for Oman’s mining 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 | ~1% | 3-5% by 2040 |
| Mineral Types Identified | 50+ | Full survey by 2030 |
| Omanisation Rate | ~45% | 60%+ by 2040 |
| Mining Exports | ~OMR 300M | OMR 1B+ by 2040 |
| Processing Ratio | ~20% | 60%+ by 2040 |
Analysis
The mining value chain in Oman is characterised by significant upstream concentration, with Public Authority for Mining, Oman Mining Company, Al Tasnim, Minerals Development Oman 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 800 million planned investment signals strong commitment to building out downstream capacity. The sector employs ~15,000 direct workers, though value-chain deepening could multiply employment effects significantly.
Challenges
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.
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.