Overview
The steel and aluminium sector in Oman represents a significant component of the Sultanate’s economic landscape. As Oman pursues its Vision 2040 diversification agenda, this sector has attracted growing attention from policymakers, investors, and industry participants alike. This page provides a comprehensive analysis of steel and aluminium in Oman, covering market fundamentals, competitive dynamics, strategic alignment, and forward-looking investment considerations. Understanding the current state and trajectory of steel and aluminium is essential for stakeholders seeking to participate in Oman’s economic transformation.
Market Size & Growth
Oman’s manufacturing sector contributes approximately 10 percent to GDP, with output concentrated in petrochemicals, metals, food processing, and building materials. The sector generates over 4 billion OMR in annual output and employs more than 100,000 workers. Industrial zones at Sohar, Rusayl, Sur, and Duqm provide the infrastructure backbone for manufacturing activities. Export-oriented manufacturing has grown significantly, with petrochemical and metal products accounting for a substantial share of non-oil exports, exceeding 2 billion OMR annually.
Key Players
Major manufacturers include OQ Chemicals, Sohar Aluminium, Oman Cement Company, and Raysut Cement. The Madayn Public Establishment for Industrial Estates manages the nation’s industrial zone network. Liwa Plastics, part of OQ Group, operates world-scale petrochemical facilities. International companies including Vale, Jindal Steel, and JA Solar have established manufacturing operations. The Ministry of Commerce, Industry and Investment Promotion provides regulatory oversight and incentive programmes to attract industrial investment.
Vision 2040 Alignment
Manufacturing is central to Oman Vision 2040’s objective of building a productive and diversified economy. The Industrial Strategy targets doubling manufacturing’s GDP contribution by focusing on value-added production and technology-intensive industries. Special economic zones offer tailored incentives for priority sub-sectors including food processing, pharmaceuticals, and advanced materials. In-country value requirements for government procurement create guaranteed demand for locally manufactured goods, driving import substitution and building industrial capabilities.
Investment Outlook
Manufacturing investment opportunities range from large-scale petrochemical complexes to small and medium enterprises in niche segments. The Duqm Special Economic Zone offers integrated industrial plots with access to port and refinery infrastructure. Food processing represents a high-growth area driven by food security objectives and regional export potential. Pharmaceutical manufacturing benefits from regulatory support and growing domestic demand. Investors can access competitive energy costs, industrial land at subsidised rates, and duty-free import of raw materials and equipment.