The latest economic indicators released by National Centre for Statistics and Information (NCSI) provide a positive picture of the continued growth of the manufacturing sector during the first half of 2026. The figures show growth across three important dimensions of industrial development: manufacturing output, foreign investment and non-oil exports. Manufacturing output increased by 16.1% compared with the same period of 2025, reaching approximately RO 2.188 billion at current prices. At the same time, foreign investment in the manufacturing sector increased by 4.7% to approximately RO 2.829 billion, while non-oil exports grew by 10.7% to reach around RO 4.309 billion.
These figures are significant because they demonstrate that the manufacturing sector is experiencing growth not only in production, but also in investment and access to external markets. This combination is particularly important for Oman as it continues to pursue economic diversification under Oman Vision 2040. Manufacturing has the potential to connect investment with productive capacity, productive capacity with exports, and exports with broader economic value creation.
The 16.1% increase in manufacturing output represents one of the most notable indicators in the latest data. Manufacturing output reached RO 2.188 billion during the first half of 2026, indicating continued expansion in industrial activity.
The growth was supported by several major manufacturing activities. Refined petroleum products increased by 40% to RO 397.2 million, while the manufacture of basic chemicals grew by 22.7% to RO 659.6 million. Meanwhile, other manufacturing industries increased by 6.3% to RO 1.132 billion.
These figures suggest that the expansion was not confined to a single industrial segment. At the same time, they highlight the importance of looking beyond output growth and assessing the quality and composition of industrial growth. Higher production becomes more economically significant when it is accompanied by greater domestic value added, stronger linkages with local suppliers, increased technology adoption, higher productivity, and the creation of skilled employment.
The increase in foreign investment in manufacturing is another important indicator. Foreign investment in the sector reached approximately RO 2.829 billion, representing growth of 4.7%. This demonstrates continued interest in Oman's manufacturing opportunities and reinforces the importance of maintaining an attractive and competitive investment environment.
The value of foreign investment, however, extends beyond the financial capital that enters the country. International manufacturing companies can also contribute technology, technical expertise, management practices, international standards and access to global markets. The greater opportunity for Oman is to maximise the domestic economic linkages created by these investments by connecting major industrial projects with Omani companies, SMEs, suppliers and service providers.
At the same time, the 10.7% growth in non-oil exports, which reached approximately RO 4.309 billion, highlights the increasing importance of international markets to Oman's economic diversification. For manufacturing to become a sustainable engine of economic growth, companies must be able to compete beyond the domestic market. Export orientation therefore needs to remain a central component of industrial development.
The growth was supported by several key manufacturing-related export categories. Basic metals and chemical products recorded a significant increase of 26.7%, reaching approximately RO 994 million and RO 627 million, respectively. Plastics and rubber products also increased by 6.4%, reaching around RO 600 million. These developments indicate continued strength in Oman's resource-based and downstream manufacturing industries and highlight their growing contribution to the country's non-oil export performance.
The three indicators—manufacturing output, investment and exports—should therefore be viewed as interconnected elements of the same industrial development process. Investment creates productive capacity, productive capacity generates manufacturing output, competitive production creates opportunities for exports, and successful exports can generate further investment and industrial expansion. Strengthening these connections can create a more sustainable industrial growth cycle.
The next phase of Oman's manufacturing development should consequently focus not only on increasing the size of the sector, but also on increasing its depth and sophistication. This means encouraging industries that generate higher domestic value added, make greater use of local inputs and capabilities, adopt advanced technologies, improve productivity and integrate Omani enterprises into industrial supply chains.
Overall, the latest NCSI figures provide a positive indication of the direction of Oman's manufacturing sector. The 16.1% growth in manufacturing output, the 4.7% increase in foreign investment in manufacturing and the 10.7% growth in non-oil exports demonstrate momentum across production, investment and international markets.
The key challenge now is to convert this momentum into deeper and more sustainable industrial transformation. Oman has an opportunity to move from resource-based advantages towards higher-value manufacturing, from investment attraction towards stronger domestic industrial linkages, and from export growth towards more sophisticated and globally competitive products. If these elements continue to reinforce one another, manufacturing can play an increasingly important role in achieving economic diversification, strengthening national productive capacity and supporting the objectives of Oman manufacturing strategy 2040.
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