Oman’s Manufacturing Sector Surges with $6.45 Billion in Foreign Investment Amid Vision 2040 Push

Oman’s manufacturing sector experienced significant growth in fiscal year 2024-25, expanding by 8.6% and drawing foreign investments totaling OMR 2.48 billion (US$6.45 billion). This surge reflects the country’s ongoing economic diversification efforts under Vision 2040, which emphasize non-oil sector development through digital innovation, regulatory reforms, and strategic industrial programs.

According to the National Centre for Statistics and Information, Oman’s gross domestic product (GDP) reached OMR 10.53 billion (US$27.3 billion) in the first quarter of fiscal year 2025-26, marking a 4.7% year-on-year increase. This growth was driven primarily by non-hydrocarbon sectors, with the industrial sector growing 2.8% and the services sector expanding 4.2%.

Manufacturing has emerged as a key pillar of Oman’s diversification strategy. The 10th Five-Year Development Plan (2021–2025) prioritizes manufacturing, which contributed 10% to GDP in 2024. Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed al Yousef reported to the Shura Council that industrial exports reached OMR 6.2 billion (US$16.1 billion) in the same period, underscoring the sector’s increasing global competitiveness.

Between 2020 and 2024, manufacturing’s GDP contribution rose from OMR 2.4 billion (US$6.2 billion) to OMR 4.1 billion (US$10.6 billion), reflecting an average annual growth rate of 14.2%. The government aims to further increase this figure to OMR 11.6 billion (US$30 billion) by 2040, demonstrating a strong commitment to industrial expansion.

During this period, Oman registered 243 major industrial establishments, up from 180, and licensed 32 large-scale industrial projects valued at over OMR 878 million (US$2.2 billion). Key sectors such as food processing, chemicals, medical devices, and mining have integrated with regional and global supply chains, facilitating smoother trade flows.

The government’s “Invest in Oman” platform, launched in 2023, has become central to attracting investment. By the end of 2024, it had received 90 investment applications worth more than OMR 5.3 billion (US$13.7 billion). Of these, 43 projects valued at OMR 2.2 billion (US$5.8 billion) were localized, spanning strategic sectors including renewable energy, advanced manufacturing, logistics, and pharmaceuticals.

Oman’s digital-first approach extends to the expanded “Oman Business” platform, which processed over 800,000 transactions in 2024. The platform added 24 new services and reduced administrative fees, including lowering the foreign investor registration fee to OMR 150 (US$390) annually and waiving or reducing licensing charges.

These reforms enhance Oman’s ease of doing business, a critical advantage in a region competing aggressively for foreign direct investment (FDI). Streamlined procedures and clear policies position Oman favorably for global investors.

Regulatory modernization has also advanced. In 2024, the Ministry of Commerce, Industry and Investment Promotion issued over 7,500 new Omani standard specifications and simplified 17 technical services to ensure compliance with international standards.

Intellectual property (IP) protections have strengthened alongside industrial growth. Trademark registrations increased from 412 in 2020 to 487 in 2024, while patent applications nearly tripled from 35 to 96. Oman is developing a national IP strategy to support innovation, safeguard inventors, and provide legal certainty for high-tech industries.

E-commerce regulations were updated with new rules on online commercial naming and digital marketing. The “Ma’roof Oman” platform was launched to authenticate e-stores, resulting in a 236% increase in registered e-commerce licenses between 2023 and 2024.

The government’s industrial policy directs capital toward strategic sectors through programs like the “Industrial Observatory Program,” which monitors performance and resilience, and the “Automation and Artificial Intelligence (AI) Program,” which promotes factory modernization.

Small and medium-sized enterprises (SMEs) benefit from initiatives such as Own It, Made in Oman, and Localization, which provide market access, particularly in construction and services linked to megaprojects. These programs are coordinated with the Ministry of Housing and Urban Planning.

Non-oil exports rose 8.6% in early 2025 to OMR 1.61 billion (US$4.1 billion), accounting for 28.6% of total outbound trade. The insured value of these exports under Credit Oman increased 6% year-on-year to OMR 61.2 million (US$159.1 million) in the first quarter of fiscal year 2025-26, indicating improved financial resilience.

Oman’s real estate market also reflects investor confidence, with residential property prices rising 5.5% quarter-on-quarter in early 2025. Apartment prices surged 17% year-on-year in May, while land and villa prices increased by 6.5% and 6.4%, respectively.

FDI inflows have more than doubled since 2018, reaching OMR 30 billion (US$78 billion) by the end of 2024. Oman’s National Program for Investment and Exports Development Strategy is enhancing global market access through trade outreach, exhibitions, and targeted marketing studies.