Oman Manufacturing Market Report and Forecast 2024-2032

Oman Manufacturing Market Outlook

The Oman manufacturing market size is projected to grow at a CAGR of 1.10% between 2024 and 2032, owing to the expanding implementation and adoption of Industry 4.0.

Key Takeaways

• The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) announced around OMR122 million in investment in manufacturing projects.

• The establishment of industrial zones such as Sohar Industrial City and Salalah Free Zone is expected to aid the market growth.

• Integration of renewable energy sources is becoming prevalent in the manufacturing sector in Oman.

Manufacturing refers to the process in which new items are created or produced using tools, labour, and machinery, as well as chemical or biological processing and formulation in addition to equipment. Production of automobiles, furniture, chemicals, heavy machinery, clothes, consumer electronics, refined petroleum products, ships, steel, tools, and dies are some of the most significant manufacturing industries.

The manufacturing sector is viewed as the foundation of both social and economic advancement as it aids in modernisation and the reduction of the population's dependency on agriculture by creating jobs in the secondary and tertiary sectors which can fuel the Oman manufacturing market growth. When deciding whether to build global manufacturing hubs in the Gulf region, manufacturers heavily weigh the availability of raw resources in countries like Oman. The demand from residential end-users is supporting the market as manufacturers concentrate on increasing their market share through decorative glass and glass-based goods. In addition, the booming real estate market and rising consumer interest in home decoration are further accelerating the market growth.

Key Trends and Developments

Increased investment in renewable energy; focus on global export; rising demand for value-added manufacturing; and adoption of Industry 4.0 are the major trends impacting the Oman manufacturing market development

March, 2024

Oman LNG, an LNG company, signed a Memorandum of Understanding (MoU) with Hitachi Zosen, a Japan-based energy firm, for the establishment of an e-methane pilot project to promote decarbonisation.

March, 2024

Sohar Industrial City announced a contract with Multi Bond Metal Company for the establishment of a manufacturing plant that focuses on plastic-based projects such as sheets, pipes, and hoses, among others.

March, 2024

United Solar Polysilicon (FZC) SPC is set to start working on the construction of a polysilicon production facility in Sohar Freezone, Oman, which can produce around 100,00 tonnes of metallurgical silicon.

March, 2024

Sanvira Carbon (FZC) announced an agreement for the establishment of a manufacturing facility for prebaked carbon anodes in Sohar Freezone.

Increased investment in renewable energy

There is a surge in investments in solar and wind energy projects to decrease the overall usage of fossil fuels in the manufacturing sector.

Focus on global export

With Oman located at a global trade route, it offers easy access for the transport of manufactured goods to the international market.

Rising demand for value-added manufacturing

There is a rising focus on finished goods that can generate higher profits in the international market which boosts their production rate.

Adoption of Industry 4.0

Real-time analysis and synchronisation have been made possible by smart technology for the manufacturing sector, helping to cut costs and save time.

Oman Manufacturing Market Trends

The manufacturing sector in Oman has grown at a significant rate owing to the rising automation and software-based procedures. Automation has significantly enhanced the overall effectiveness and reduced downtime whereas IoT and data analytics offers real-time insights into inventory management as well as the supply chain operations for better optimisation of processes. Moreover, increased collaboration between market players, government, and technology providers to foster new opportunities in smart sensors, and cybersecurity, among other areas, can also aid the adoption of Industry 4.0 in the market.

Market players in manufacturing market in Oman are increasing collaborations to diversify their product offerings in several end-use sectors. For instance, Sohar Industrial City signed a contract with Multi Bold Metal Company in March 2024 for the establishment of a manufacturing plant in Oman which is involved in the production of hoses, pipes, and sheets, among other products, that are utilised largely in construction and automotive sectors. Sohar Industrial City is an industrial hub based near Sohar Port in Oman which makes it a suitable choice for manufacturing projects and international exports.

Market Segmentation

“Oman Manufacturing Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Category

• Refined Petroleum Products

• Plastics and Rubber Products

• Basic Metals

• Chemicals and Chemical Products

• Non-Metallic Mineral Products

• Food and Beverages

Refined petroleum products are expected to gain significant Oman manufacturing market share due to the increase in demand for petroleum products

In the near future, the refined petroleum products in Oman manufacturing market is anticipated to be driven by an increase in demand for petroleum products used in the production of petrochemicals. Crude petroleum is used to create refined petroleum products. Diesel fuel, gasoline, naphtha, and liquefied petroleum gas are some of the refined petroleum products that are commonly sold. The demand for refined petroleum products is driven by rising electricity demand and a rapidly expanding population.

During the forecast period, important drivers increasing the demand for refined petroleum products in the Oman manufacturing market include the capacity expansion of existing refineries and the construction of new brown-field and green-field refineries. Additionally, expanding oil and gas development activities and the presence of major businesses in the area will spur market expansion.

As per the Oman manufacturing market analysis, chemicals and chemical products sector is also anticipated to register growth in the coming years owing to the rising focus on the production of high-value chemical products in Oman. The establishment of the Sohar Industrial port as well as the Salaah free zone which facilitates the production of chemicals is expected to aid the segment growth.