Overview
Industrial policy in Oman focuses on building a diversified manufacturing base that adds value to the Sultanate’s natural resources and creates high-quality employment for citizens. The strategy leverages special economic zones, competitive energy pricing, strategic port infrastructure, and targeted investment incentives to attract domestic and foreign manufacturers. Downstream hydrocarbon processing, metals production, food processing, and building materials are priority sectors identified for growth and import substitution.
Key Points
Special economic zones at Duqm, Sohar, Salalah, and Khazaen offer streamlined regulations, tax incentives, and integrated logistics infrastructure. The Duqm Special Economic Zone has attracted billions in investment across refining, petrochemicals, and heavy industry. Oman Investment Authority coordinates industrial investment strategy and provides financing through development funds. In-country value requirements in government procurement stimulate local manufacturing and technology transfer from international partners.
Current Status
Manufacturing’s share of GDP has grown steadily, supported by major projects including the Duqm refinery and Liwa plastics complex. Small and medium industrial enterprises benefit from dedicated incubation programmes and access to finance. Industrial workforce development programmes train Omanis in advanced manufacturing techniques, quality management, and industrial safety. Export diversification from industrial zones has expanded Oman’s trade profile beyond hydrocarbons.
Vision 2040 Context
Vision 2040 targets a significant increase in manufacturing’s contribution to GDP, positioning Oman as a regional industrial hub. The strategy emphasises high-value, technology-intensive industries that leverage the country’s energy resources, geographic position, and connectivity. By building an industrial ecosystem that fosters innovation and attracts global supply chains, Oman creates sustainable economic growth and employment for decades to come.