Oman’s Iron ore production contributes 2% to GDP, Omanization 45 pc

Oman’s Iron ore production factories reaches 7, contributes 2% to GDP

Muscat: The Directorate General of Industry at the Ministry of Commerce, Industry and Investment Promotion (MoCIIP) stated that the number of factories producing iron ores in the Sultanate of Oman is 7 factories, contributing about 2 percent of the gross domestic product.

The 2022 industrial survey data showed that the exports of these factories amounted to RO 687 million, and 1,681 employees work directly in them, in addition to thousands of indirect jobs, with an Omanization rate of up to 45 percent.

His Excellency Dr. Saleh bin Saeed Masan, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, stressed that the iron industries and their downstream products represent one of the main directions in the Sultanate of Oman’s industrial strategy for the year 2024, due to the great local and international demand for them, and their role in strengthening global supply chains in the iron and steel markets.

His Excellency explained in a statement to the Oman News Agency that these industries rely on the best advanced technologies and innovation in production processes, in addition to the shift towards renewable energy to achieve sustainability.

His Excellency stressed that the iron industry is one of the vital sectors that plays a pivotal role in the global economy, through its contribution to the gross domestic product, providing job opportunities, and supporting other industries, such as heavy industries, machinery, equipment, and transportation.

Many industries depend on iron as a basic material for manufacturing a variety of products. His Excellency pointed out the increasing ability of the industrial sector in the Sultanate of Oman to attract quality investments, which contribute to enhancing the sector’s contribution to the national economy.

His Excellency explained that the sector has recently been able to attract partnerships with foreign investors from South America (Brazil) and East Asia (China).

These efforts were crowned by the signing of an agreement between Vale Oman and Jenaan Iron and Steel Group to establish the first iron ore concentration plant in the Sultanate of Oman, in Sohar Port and Free Zone, with investments amounting to RO 240 million (624 million US dollars) to produce 12.6 million tons of high-quality iron concentrate products. This plant will contribute to creating direct and indirect job opportunities, in addition to strengthening supply chains in the global iron and steel market, and providing inputs for local industries.

His Excellency the Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Trade and Industry stressed that this partnership is based on the integration of industrial capabilities and logistical potential, which contributes to achieving sustainable growth and enhances the position of the Sultanate of Oman as a major leader in the iron and steel industry at the global level.