Oman shifts to demand-led investment with guaranteed-offtake projects

MUSCAT, JUNE 1
Oman is seeking to redefine how industrial projects are developed and financed by introducing investment opportunities backed by guaranteed offtake agreements, a move aimed at reducing market uncertainty and attracting investors seeking greater commercial visibility.
The Ministry of Commerce, Industry and Investment Promotion (MoCIIP), represented by Invest Oman, has launched a package of manufacturing projects under which designated entities commit to purchasing part or all of a project’s future output through pre-arranged contractual agreements.
The initiative marks a shift from the traditional approach of promoting investment opportunities based primarily on land, infrastructure and incentives towards a model built around identified market demand.
Speaking to the Observer, Khalid bin Hamad al Kharusi, Director General of Investment Promotion at MoCIIP, said the programme was designed to address one of the most fundamental concerns facing investors.
“One of the first questions any investor asks is: who will buy my product? Traditionally, investors had to answer that question after establishing a factory and entering the market. Through these opportunities, we are aiming to address this question much earlier by linking investment projects to clear market demand and potential buyers”, Al Kharusi said.
“What makes this model different is that it starts with demand. We are not simply offering investment opportunities and expecting the market to follow. We are identifying real market needs, engaging potential buyers and structuring projects around commercially visible demand”.
The guaranteed-offtake mechanism provides investors with greater visibility over future revenues, improving project bankability and strengthening prospects for securing financing and strategic partnerships.
Industry analysts view guaranteed-purchase arrangements as one of the most effective tools for reducing commercial risk, particularly in manufacturing sectors where demand visibility often determines the viability of new investments.
For Oman, the approach also supports broader efforts to strengthen domestic supply chains, expand local manufacturing capabilities and increase the contribution of non-oil sectors to economic growth.
“Our objective is not merely to increase the number of investment opportunities on paper, but to increase the number of projects that move into implementation, secure financing, create jobs, strengthen local supply chains and generate long-term economic value for Oman”, Al Kharusi said.
The newly announced package includes a range of industrial projects targeting both domestic and export markets. These include refrigerator manufacturing, textiles and fabrics, computer and accessories production, stationery and office supplies, tyre manufacturing, military uniform accessories and energy-efficient air-conditioning systems.
Individual project values range from RO 2.5 million to more than RO 6.5 million, with most developments planned on sites of around 10,000 square metres.
The projects have been structured following technical and economic studies assessing local demand, supply-chain requirements and export potential, according to Invest Oman.
“This initiative reflects a broader evolution in Oman’s investment promotion approach under Oman Vision 2040. We want to move beyond promoting opportunities towards developing investment-ready projects that are commercially viable, scalable and aligned with the needs of both investors and the national economy”, he said.
As competition intensifies among countries seeking foreign direct investment, Oman is increasingly focusing on project readiness and market certainty as key differentiators. Officials believe the guaranteed-offtake model can help accelerate implementation, reduce investor risk and improve the likelihood that announced projects ultimately translate into operating factories, jobs and long-term industrial capacity.
The initiative aligns with Oman Vision 2040 goals to diversify the economy, deepen private-sector participation and attract high-quality investments capable of generating sustainable growth beyond the hydrocarbons sector.