Manufacturing sector in Oman hits RO 3.7 billion

MUSCAT: Oman’s manufacturing sector delivered robust growth during the Tenth Five-Year Development Plan (2021–2025), with output rising from approximately RO 3.019 billion in 2021 to nearly RO 3.710 billion in 2025 at constant prices, reflecting cumulative growth of around 22 per cent and an average annual increase of close to 5 per cent.
The Ministry of Commerce, Industry and Investment Promotion attributed the sector’s performance to a combination of flexible economic policies and targeted initiatives aimed at strengthening the industrial base, improving productivity and encouraging investment in value-added activities. These measures have helped position manufacturing as a central pillar in advancing economic diversification and reducing reliance on hydrocarbons.
Officials noted that the growth reflects a tangible expansion in production capacity, supported by enhanced infrastructure, streamlined procedures and a more competitive investment environment. Government-led programmes have also focused on deepening industrial integration, strengthening local value chains and promoting the adoption of advanced technologies in line with the objectives of Oman Industrial Strategy 2040.

Engineer Khalid bin Salim al Qasabi, Director General of Industry at the Ministry, said efforts during the plan period prioritised building an attractive industrial ecosystem by offering incentives and facilities to investors while supporting national industries to enhance their competitiveness in regional and global markets. He added that the next phase will place greater emphasis on advanced manufacturing and high value-added industries, enabling Oman to secure a stronger position within global supply chains.
Alongside industrial expansion, the wholesale and retail trade sector recorded steady growth, with output increasing from RO 2.744 billion in 2021 to around RO 3.213 billion in 2025, representing cumulative growth of approximately 17 per cent and an annual rate of about 3.4 per cent. This reflects the sector’s close linkage to domestic demand and consumption patterns, supported by improvements in the business environment and growing confidence in local markets.

Nasra bint Sultan al Habsi, Director General of Trade, said the Ministry continues to develop the commercial ecosystem by enhancing supply chain efficiency and accelerating digital transformation in trade activities. These efforts are aimed at improving service quality, stimulating consumer activity and increasing the sector’s contribution to gross domestic product.
Engineer Jassim bin Saif al Jadidi highlighted that integration between industrial and commercial sectors has been a key driver of growth, enabling a more resilient and interconnected economic structure capable of adapting to regional and global challenges.
In the external sector, non-oil exports rose to approximately RO 6.7 billion in 2025, compared to RO 6.2 billion in 2024, marking growth of 7.5 per cent. Re-export activity also recorded strong performance, increasing by 20.3 per cent to RO 2.056 billion.
Key export categories included chemicals, metals and related products, plastics, and electrical machinery, reflecting diversification in the production base and enhanced export capabilities. The Ministry indicated that future efforts will focus on strengthening the link between industry and export systems, improving market access and supporting innovation to boost the competitiveness of Omani products in international markets. — ONA