Oman’s industrial sector continued to demonstrate strong momentum in the first quarter of 2026, supported by improved market conditions and rising demand across key sectors. Industrial companies listed on the Muscat Stock Exchange recorded a notable growth of 28.5% compared to the same period in 2025, reflecting enhanced operational efficiency and sector resilience.
This growth was primarily driven by the strong performance of companies operating in the food manufacturing and cement industries. These sectors benefited from increased demand, higher production volumes, and improved cost management strategies, enabling firms to strengthen their financial results. The positive performance also reflects the sector’s ability to capitalise on ongoing infrastructure development, and the gradual stabilisation of supply chains.
However, performance across the industrial landscape remained uneven. Some companies in the metal and mining industries—particularly those involved in ceramic and tile production—reported a slight decline. This was largely attributed to rising input costs, including energy and raw materials, declining product prices in certain markets, and intensifying competition from imported goods. This divergence highlights the need for continued efforts to enhance productivity and competitiveness in more vulnerable industrial segments.
On the external trade front, recent data released by the National Centre for Statistics and Information indicates that Oman’s non-oil exports maintained a positive growth trajectory. By the end of February 2026, non-oil exports increased by 11.4%, reaching approximately RO 1.129 billion, compared to RO 1.013 billion during the same period in 2025.
This expansion reflects a significant improvement in external demand, particularly for high-value industrial products. Metal products emerged as a key growth driver, supported by robust demand in regional and international markets. In addition, electrical machinery and equipment recorded remarkable growth, signaling the gradual shift of Oman’s industrial base toward more technologically advanced and value-added activities.
In terms of key trading partners, the United Arab Emirates remained the largest destination for Omani exports, registering a strong growth rate of 37.5%. This underscores the depth of economic integration between the two countries and the strength of their interconnected supply chains, supported by efficient logistics and trade facilitation.
In addition, exports to the Saudi Arabia increased by 9.3%, reflecting continued expansion of Omani products in the Saudi market. This growth aligns with ongoing bilateral efforts to enhance economic cooperation and unlock new trade and investment opportunities for the private sector.
Overall, these positive indicators highlight the growing strength and resilience of Oman’s industrial sector, reinforcing its central role in advancing economic diversification. The sector continues to contribute to increasing the share of non-oil activities in GDP, boosting exports, and creating sustainable employment opportunities.
Experts emphasise that sustaining this growth momentum will require accelerating the adoption of advanced manufacturing technologies, attracting investment into high-value industries, strengthening local supply chains, and enhancing the global competitiveness of Omani products.
As Oman progresses toward its long-term economic goals, the industrial sector remains a key pillar in building a diversified, competitive, and sustainable economy—positioning the Sultanate as an emerging industrial and logistics hub in the region.
ENG JASIM SAIF AL JADEEDI
The writer is Director of the Technical Office of the Under-Secretary of Commerce and Industry, MoCIIP
Oman Observer is now on the WhatsApp channel. Click here
