Investment Opportunities in Oman’s Healthcare Sector
Muscat: Investment in the health sector in the Sultanate of Oman is considered promising due to the government’s orientation towards improving and developing the health system and increasing demand for health services as a result of the increase in population and the rise in the level of health awareness.
The Ministry of Health seeks to enhance investment in this sector as a strategic step within the economic diversification efforts, with the existence of the infrastructure and regulatory framework supporting it and the promising future prospects for this sector.
Rashid bin Salim Al-Aghbari, Investment Advisor at the Ministry of Health, explained that the health sector in the Sultanate of Oman is witnessing an increasing demand due to the population increase, which provides opportunities for investment in hospitals and health centers and a move towards improving health services through the government’s efforts to improve the quality of health services and expand their scope, which enhances investment opportunities in this sector and public-private partnerships with a move towards strengthening partnerships between the public and private sectors and providing an opportunity for investors to develop new health projects and infrastructure.
He said in a statement to the Oman News Agency: The Sultanate of Oman seeks to attract medical tourism, which increases investment opportunities in hospitals and health centers and the trend towards innovation in health care and medical technology and benefiting from the investment opportunities available in the sector through the “Invest in Oman” hall and access to accurate and detailed information about current and future projects.
He pointed out that in order to attract more investments to the health sector in the coming period, this requires focusing on several basic aspects, most notably improving the regulatory environment for the sector by simplifying procedures, developing special regulatory policies, granting some incentives to encourage investment in the sector, facilitating obtaining licenses and approvals, overcoming the challenges facing investors, developing, improving and modernizing the health infrastructure, focusing on innovation and technology, investing in advanced medical technologies, and training, developing and improving medical and technical human cadres.
Regarding the total investments in the health sector, Rashid bin Salim Al Aghbari confirmed that the Ministry of Health is making continuous and intensive efforts to develop the health sector in the Sultanate of Oman by implementing several major investment projects, noting that there are several private hospitals and medical factories that were launched during the years 2023 and 2024, most notably two human medicine factories in the governorates of Dhofar and Muscat, a transparent dental braces factory in the governorate of Muscat, a hospital for health care services in the governorate of North Al Batinah, and a multi-specialty hospital in Muscat.
He said that there is cooperation and strategic partnerships between the public and private sectors in the health sector, with a continued focus on developing the health infrastructure and developing the system, which reflects the Sultanate of Oman’s commitment to achieving the goals of the “Oman 2040” vision in improving the quality of health services and enhancing the role of the private sector in development.
The Investment Advisor at the Ministry of Health added that a number of important investment projects have been implemented in the health sector in the Sultanate of Oman in recent years. In 2023, several projects and investment opportunities were announced within this sector, as well as enabling initiatives to empower human resources and improve health services, stressing that these projects are in line with the directions of the health sector strategies and focus on developing medical industries and improving the quality and efficiency of health services.
He explained that these large investments and new opportunities demonstrate the government’s growing interest in strengthening the health sector and making it more attractive to foreign and local investments in the future, noting that work is underway to study some investment opportunities in the medical industries sector in joint cooperation between the Ministry of Health, the Ministry of Commerce, Industry and Investment Promotion, and the National Program for Investment and Export Development “Nazdar”.
He stressed that the Ministry of Health is constantly seeking to encourage investment in the health sector within the framework of the enablers of the “Oman 2040” vision to encourage investments and establish projects that contribute to economic diversification, enhance the economic position of the Sultanate of Oman and provide job opportunities, including the vital pharmaceutical and medical supplies sector, as local pharmaceutical and medical supplies industries constitute one of the important and strategic industrial sectors with an economic dimension for the Sultanate of Oman; due to their important role in enhancing health care, providing basic health products and services and contributing to achieving drug security.
He pointed out that the Sultanate of Oman pays great attention to enhancing the local added value of these industries, which contributes to deepening their positive impact on the national economy. This strategy is evident in encouraging the localization of advanced technologies, developing local competencies, and strengthening the local value chain in the pharmaceutical and medical supplies industry.
Rashid Al-Aghbari said: The Sultanate of Oman seeks to achieve a balance between meeting its local health needs and enhancing its position as a leading regional center in the field of pharmaceutical and medical industries, as it has recently witnessed remarkable growth in the medical industries sector, as the number of factories operating in this field has increased significantly as a result of increased investments and the government’s encouragement to localize medical industries to reduce dependence on imports.
He pointed out that the government has launched several initiatives to attract foreign direct investment, especially in the pharmaceutical and medical supplies industries, explaining that the Sultanate of Oman enjoys several competitive advantages that make it an attractive destination for investment in the medical industries through its strategic location, easy access to the markets of the Middle East and Africa, and the free trade agreements it has with the United States of America and Singapore, in addition to other attractive incentives it offers to investors.
He explained that the medical industries sector has achieved investments estimated at more than RO 55 million distributed over 4 investment projects that were opened during 2023, and it is expected that the sector will achieve additional investments during the coming years for investment projects under construction and within the implementation plan, in addition to the fact that there is a group of investment projects in their final stages of procedures that have obtained initial approval from the Drug Safety Center affiliated with the Ministry of Health.
He said that the products manufactured by medical factories in the Sultanate of Oman are not limited to the local market, but a portion of them are exported to other markets in the region and abroad, indicating that these factories contribute significantly to meeting the needs of the local market and reducing dependence on imports, adding that there is a trend to increase investments in the manufacture of advanced medical equipment and biological medicines in addition to enhancing research and development in the health sector.
He stated that Omanisation in the industrial sector constitutes a fundamental pillar in the comparison strategy that is implemented before approving the establishment of investment projects, as this approach aims to ensure that these investments contribute to achieving sustainable development by providing job opportunities for Omani citizens and developing local competencies.
He said that the development in technology has contributed to improving diagnosis and treatment, speeding up the provision of health services and providing new job opportunities for Omani youth in various fields, including nursing, medicine, pharmacy and biotechnology.
He added that the ongoing training and professional development programmes provided by hospitals and health institutions have enabled youth to acquire the skills necessary to work in this vital sector.
He pointed out that with the increase in investment, additional resources were directed towards medical education and training. Specialized educational and training programs were created that focus on qualifying Omani youth to work in various medical and technological specialties, and that investment in health research and development encouraged medical and technological innovation.
At the end of his statement to the Oman News Agency, the Investment Advisor at the Ministry of Health confirmed that the future of investment in the health sector in the Sultanate of Oman is encouraging, and with the continuation of government efforts to overcome challenges and create an attractive investment environment, the sector will play a pivotal role in promoting public health and achieving sustainable development in the Sultanate of Oman.
