Oman’s Ministry of Economy has reported that the manufacturing sector has emerged as a key driver of economic growth in the first quarter of 2024, outperforming other critical sectors of the economy. This achievement is a direct result of the government’s ongoing commitment to economic diversification under the 10th Five-Year Plan (2021-2025). The sector recorded a robust real growth rate of 9.2% in Q1 2024, significantly contributing to Oman’s Gross Domestic Product (GDP). As of Q1, the manufacturing sector accounted for 10% of GDP at constant prices and 10.5% at current prices, highlighting its increasing importance in the Sultanate’s economic transformation.
Economic Diversification Fuels Manufacturing Growth
The government’s economic diversification strategies have had a profound impact on the manufacturing sector, successfully boosting industrial performance and attracting both domestic and international investments. By the end of 2025, the 10th Five-Year Plan aims to raise the manufacturing sector’s GDP contribution to 12.2%. This growth is driven by enhanced industrial performance, an increase in industrial exports, and the establishment of free zones in Oman, which offer significant advantages to foreign and local investors.
Key Sectors Achieve Noteworthy Growth
The manufacturing sector’s strong performance is reflected across various sub-sectors, with notable growth in refined petroleum products, which saw an impressive increase of 68%. Additionally, the basic chemicals industry and other manufacturing activities also recorded growth rates of 6.4% and 6.3%, respectively. These increases underscore the efficacy of Oman’s industrial expansion and the positive impact of strategic investments in infrastructure.
Investment in Industrial Infrastructure Drives Growth
A major factor behind the sector’s success is the substantial investment in Oman’s industrial infrastructure, which has enhanced the sector’s capacity to meet both local and international demand. The government’s initiatives to improve essential infrastructure, such as roads, electricity networks, and ports, have created a more favorable environment for business setup in Oman. These improvements, coupled with favorable business licensing conditions, tax incentives, and the stability of Oman’s economy, have helped secure Oman’s position as an attractive investment destination.
Opportunities for Foreign Investment and Market Entry
Oman’s robust economic strategies and manufacturing growth present significant opportunities for businesses looking to establish a foothold in the region. For companies seeking to explore market entry in Oman, the country’s ease of doing business and business regulations make it an ideal location for company formation in Oman. Whether you are interested in setting up an LLC in Oman, foreign investment in Oman, or tapping into Oman’s economic free zones, the Sultanate provides a wealth of investment opportunities for both local and foreign entrepreneurs.
With favorable policies supporting foreign-owned businesses in Oman and a thriving manufacturing sector, now is the optimal time to start a business in Oman.
Get Started with Business Setup in Oman
If you are considering company registration in Oman or need assistance navigating the steps for business registration in Oman, our expert team is here to help. We offer comprehensive services to guide you through the legal requirements for business in Oman, including advice on business licensing in Oman and the cost of company formation in Oman.
Contact us to learn more about how we can assist you in establishing and growing your business in Oman’s dynamic and rapidly expanding market. Let us help you make the most of Oman’s investment opportunities and ensure a smooth and successful entry into this thriving economy.
