Oman Health Ministry Signs Two Agreements to Boost Investment in Health Sector

Oman Targets 30% Local Production of Health Products Within Three Years

Muscat:  The Ministry of Health today signed two memoranda of cooperation with the Development Bank and Sohar International to strengthen partnerships with national financial institutions and support investment in Oman’s health sector.

The memoranda were signed by Dr. Hilal bin Ali Al-Sabti, Minister of Health, Mahmoud bin Abdullah Al-Awaini, Chairman of the Development Bank, and Abdul Wahid bin Mohammed Al-Murshidi, CEO of Sohar International.

Dr. Al-Sabti said that increasing local production of health supplies and products represents a key priority for strengthening the resilience of the health sector, developing national capabilities and enhancing the security of medical supply chains.

He added that the agreements provide an institutional framework for supporting sustainable investments while maintaining the required technical and commercial evaluation standards. The initiative also supports the objectives of Oman Vision 2040, particularly those related to building a sustainable healthcare system and expanding access to health services.

The memorandum with the Development Bank focuses on identifying investment needs in the health sector and helping project owners understand financing requirements and procedures. It aims to support projects that align with national health priorities and meet the Ministry’s quality and licensing requirements.

Mahmoud Al-Awaini said that the Development Bank approved 230 loans for health-sector projects between 2023 and July 2026, providing the bank with accumulated experience in financing healthcare activities.

He noted that the partnership will help applicants prepare financing proposals at an early stage and facilitate the transition of health projects from the planning phase to implementation.

The health sector’s added value grew by 7.3% during the first quarter of 2026, he added.

The second memorandum, signed with Sohar International, focuses on supporting the localization of medical industries and establishing a framework for evaluating and referring eligible projects for financing.

Under the partnership, Oman aims to increase the share of locally manufactured health products to at least 30% within the next three years, compared with no more than 9% currently. Imports currently account for around 91% of market needs, with 20 existing factories operating in the sector.

The agreement will support investors seeking to establish new medical-product factories or expand existing facilities. The Ministry of Health will conduct an initial feasibility assessment before referring eligible applications to Sohar International for financing consideration.

Abdul Wahid Al-Murshidi said that directing financing towards productive capacities in health industries can create economic and social value while supporting the development of national industries.

The memoranda cover investment opportunities extending beyond hospitals to areas including medical manufacturing, outpatient services, diagnostics, rehabilitation, long-term care and digital health.

The agreements form part of Oman’s efforts to strengthen government-private sector partnerships, expand the role of financial institutions in supporting healthcare investment and develop national capabilities in line with the objectives of Oman Vision 2040.