Oman Manufacturing Sector Guide
Manufacturing is central to Oman’s economic diversification under Vision 2040, targeting an increase in the sector’s GDP contribution from approximately 10 percent to 15 percent by 2040. The strategy focuses on downstream industries that add value to Oman’s natural resources, including petrochemicals, metals, food processing, and building materials.
Key Facts
| Indicator | Value |
|---|---|
| GDP Contribution | ~10% |
| Target GDP Contribution (2040) | 15% |
| Industrial Estates | 9 managed by Madayn |
| Major Industrial Clusters | Sohar, Duqm, Salalah |
| Key Sub-sectors | Petrochemicals, metals, food processing |
Industrial Estates
The Public Establishment for Industrial Estates (Madayn) manages nine industrial estates across Oman, providing ready-built infrastructure including roads, utilities, telecommunications, and waste management. The Knowledge Oasis Muscat (KOM) focuses on technology and innovation-driven industries.
Petrochemicals
The Liwa Plastics Industries Complex at Sohar produces polypropylene and polyethylene for regional and global markets. OQ Chemicals operates methanol and ammonia plants. Downstream plastic products manufacturing is growing rapidly with government incentives for value-added production.
Metals and Minerals
Sohar Aluminium produces 390,000 tonnes of aluminium annually, with downstream rolling mills and extrusion plants. Jindal Shadeed Steel produces 2 million tonnes of steel pellets and hot-rolled coil. Vale’s nickel processing facility at Sohar adds further diversity to the metals cluster.
Food Processing
Food processing is a priority sub-sector aligned with food security objectives. The Oman Food Investment Holding Company (OFIC) leads investment in fisheries processing, dairy production, poultry, and date processing. Halal food production for export to Asian and African markets presents significant growth potential.
Investment Framework
Manufacturers benefit from subsidised land and utilities in industrial estates, access to feedstock at competitive prices, duty-free import of machinery and raw materials, and streamlined licensing through the One-Stop Shop at the Ministry of Commerce, Industry, and Investment Promotion.