Manufacturing strategy to strengthen Oman’s non-oil economy

MUSCAT: The Sultanate of Oman continues its journey towards economic diversification, driven by a strategic focus on the manufacturing sector. This aligns with the country's long-term development goals and aims to enhance the contribution of non-oil sectors to the GDP — an objective reiterated by officials at the ‘Together We Advance’ forum currently underway in Muscat.
The manufacturing sector, which produces goods in Oman and exports them to countries worldwide, helped boost non-oil exports to RO 4.421 billion by the end of August 2025. Its contribution to the GDP, estimated at RO 4 billion, comes from 412 industrial establishments across 17 different sectors, including 166 establishments holding the National Product Identity and 5,056 Omani products bearing the 'Made in Oman' label.
Qais bin Mohammed al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), stated that the approved manufacturing plan is built upon the Sultanate of Oman's competitive and comparative advantages. The manufacturing sector is one of the largest sectors, contributing 10% to the GDP, while non-oil sectors grew by 8.3%, confirming that the manufacturing sector ranks second only to the oil and gas sector in attracting investors, he noted.
With the launch of the Eleventh Five-Year Plan, Oman Investment Authority is launching strategic projects in the manufacturing sector to serve as an economic engine supporting growth, enhancing local content, contributing to the localisation of supply chains and opening up broader horizons for Omani talent.
Experts have confirmed that manufacturing contributes positively to increasing the added value of natural resources, creating quality job opportunities for Omani youth, supporting local supply chains and boosting national exports to regional and global markets. This sector also contributes to reducing reliance on raw material exports by transforming them into finished products with higher economic returns.
The Omani government launched a long-term manufacturing strategy within Oman Vision 2040 to support manufacturing, improve the business environment and expand local production chains. Initiatives also included supporting local content, providing incentives for manufacturers and facilitating investment procedures. The most prominent manufacturing sectors in the Sultanate of Oman, which are experiencing significant growth, include: petroleum and petrochemicals, refining and basic chemicals, food products, metals (aluminium and steel), plastics manufacturing and renewable energy products.
Industry is no longer limited to heavy industries but now includes advanced manufacturing and renewable energy, making Oman a growing industrial hub in the region. Furthermore, new factories are targeting Gulf and global markets, boosting non-oil exports.