Oman’s manufacturing sector sees high growth in first quarter 2024

Muscat: The Ministry of Economy has stated that the performance of the manufacturing sector during the first quarter of this year was the highest among the main sectors targeted as pillars to support economic diversification during the tenth five-year plan 2021-2025 in terms of growth rates achieved in the sector and the size of its contribution to the gross domestic product.

The ministry indicated that the sector recorded a real growth of 9.2 percent compared to a decline of 2.2 percent during the first quarter of 2023, as the contribution of manufacturing industries to the GDP rose to 10 percent at constant prices and 10.5 percent at current prices.

Dr. Salem bin Abdullah Al Sheikh, the official spokesman for the Ministry of Economy, said that the performance of the manufacturing sector was supported by the progress of economic diversification efforts, programs and strategies that enhanced the performance of industrial sectors and contributed to the continuous improvement in their competitiveness, the increase in the volume of industrial exports, and the growth of investments in industrial, free and private zones, in addition to the entry into operation of new strategic industrial projects, the most important of which is the Duqm Refinery.

He added in a statement to the Oman News Agency that the GDP growth data reflects the fruits of these developments through the high growth rates recorded by all manufacturing activities, namely the refined petroleum products industry, the basic chemicals industry and other manufacturing industries, with growth rates of 67.6 percent, 6.4 percent and 6.3 percent respectively during the first quarter.

Dr. Salem Al Sheikh attributed the factors of the strong growth of the manufacturing sector at a rate of 9.2 percent to the large investments in industrial projects pumped into establishing new factories and expanding existing factories, which enhanced the production capacities of the sector and improved local and foreign demand as a result of the increase in demand for Omani industrial products in local markets and exports and the development of industrial infrastructure through government investments pumped into improving infrastructure such as roads, electricity and ports, which enhanced the capabilities of the industrial sector.

He also attributed this to the incentives and facilities provided to investors through providing tax incentives and facilities to investors, which encouraged increased industrial investments and improved productivity and efficiency through the adoption of modern technologies by manufacturing industries and programs to improve production processes and raise productivity and efficiency and security and economic stability in the Sultanate of Oman; as stability on the security and economic levels has enhanced the business environment and investor confidence.

The official spokesman for the Ministry of Economy said: The tenth five-year plan (2021-2025) aims to raise the contribution of the manufacturing sector to the gross domestic product by the end of the plan to 12.2 percent.