In its Vision 2040, Oman has drafted a plan to boost and develop the Sultanate society into a knowledge-based economy, able to compete on a global scale. Oman’s finance and economy were both impacted by the pandemic, but to a certain extent less than other countries that are currently still suffering from both a health crisis and a wealth downturn.
However, for Oman the future might be brighter than expected. By building new smart and sustainable cities and technologically-powered infrastructure facilities, the Sultanate aims to be a pioneer in the GCC and throughout the Middle East.
In a recent trend forecast published by Research and Markets, Oman’s Facility Management Sector was projected to grow significantly by 2025. Facility Management is a relatively new field that gravitates around logistics as a whole and industrial production. It encompasses a wide range of services and solution designed to boost efficiency and standardisation of productivity.
In a world that has become progressively more stringent and demanding around import and export regulation, conforming with strict guidelines has become key to achieve international success. We have seen Facility Management at work with disinfection and sanitisation services around production facilities, a niche market that has already seen a 95 per cent increase over the past 18 months.
As a global growing trend, Facility Management can shape the near future for the Sultanate’s industrial production and logistics. In 2019, the sector was valued at US$400 million, but according to the recent projection it is likely to reach $750 million by 2025, nearly doubling in its value. The Compound Annual Growth Rate (CAGR) is estimated to average 13.5 per cent for the next 4 to 5 years. This growth will in turn increase the competitiveness of Oman’s economy with the rest of the region.
In 2020, the public establishment for industrial sectors, Madayn started working on implementing projects at Nizwa Industrial City including the expansion of Phases III and IV, on an area of approximately 1 million square meters, and providing a second entrance to the industrial city.
During the first quarter of 2020, the total investment volume of Nizwa Industrial City was at $956 million.
In the second quarter of 2020 - in the middle of the pandemic - Madayn managed to sign a memorandum of cooperation with Petroleum Development Oman (PDO) to build an industrial city within the Marmul industrial and logistics complex. With such an agreement in place, Madayn has further financed, developed, and attracted investments to the proposed industrial city, which sits some 800 km from Muscat.
In November 2020, Al Maha Petroleum Products Marketing Company secured a 15 years long contract from PDO to build retail filling stations, with an option to extend it for five more years until August, 2040.
With so many projects upcoming, the Facility Management sector in Oman is therefore expected to provide a solid economy boost as well as a new employment opportunity for Omani citizens. As a consequence, with the standardisation of all facilities, the chances and likelihood of more foreign investment coming to the Sultanate remain high. [The columnist is a member of the International Press Association]
stefano@virgilli.com
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