BUSINESS REPORTER -
MUSCAT, Dec 27 -
The value of Oman’s industrial output is projected to soar four-fold over the next two years with exports poised to climb to RO 10.7 billion by 2040, according to a key official of the Ministry of Commerce, Industry and Investment Promotion
Eng Salim bin Suleiman al Hatmi, Acting Director of the Planning and Industrial Studies Department, said the Sultanate’s Industrial Strategy 2040 is designed to endow Oman with a modern and technically advanced manufacturing base.
“Since the publication of the first phase of the Industrial Strategy 2040 in January 2019, the key performance indicators have been reviewed and formulated again. These reviews show that the data of recent years as well as those of available investment opportunities and priority industries were made available. They included those of recycling industries and transportation handling industries — data of which were not available earlier,” Al Hatmi noted.
The Strategy is designed to deliver a nearly six-fold increase in the constant added value of high-tech and medium-sized industries. Priority industries are expected to grow very swiftly and much faster than any other industry. High-tech industries are also expected to expand. It is also likely that high-tech and medium non-priority industries may also increase at five per cent annual growth rate, he said.
Additionally, there are plans to establish industrial complexes catering to investments in health, environment, commodity production, electrical and mechanical equipment, transportation equipment, steel and glass, and foodstuffs.
“There is an expectation that health and recycling clusters will grow faster. Both will start from an exceptionally low base. It is also expected that the electro-mechanical sector would show strong performance,” he further stated.
Significantly, Strategic or priority industries will expand by 4.5 times over the next 20 years, according to the official. They will be driven by the group of high-tech industries notably focused on steel, glass and foodstuff complexes.
The petrochemical sector is expected to expand slightly less than other priority and average manufacturing industries. It will also remain the most important industry in 2040, representing at least 37 per cent of the manufacturing sector.
The 4th Industrial Revolution will have wide-ranging effects on manufacturing processes. The production with modern technologies will become faster and more diversified. The integration between companies and their customers will also grow.
These developments will lead to significant increase in productivity and decrease in job opportunities if countries would not innovate and produce new products and industries to compensate for the losses in the old products, he said.
It is also expected that the Industrial Strategy 2040 will contribute to incentives for research and development, in addition to closer and stronger relations between universities and industry. This will allow the graduates to get a deeper understanding of the new technologies and contribute largely to the production activity.
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