The Sultanate of Oman still stands on the path of economic diversification due to the strategic orientation of its engagement in the manufacturing sector.
This is in line with the long-term development objectives of the country and will help to increase the share of the non-oil sectors in the GDP, which has been reiterated by the authorities at the ‘Together We Advance’ forum currently happening in Muscat.
The manufacturing industry, which manufactures products in Oman and exports them to other countries all over the world, assisted in increasing the non-oil exports to RO 4.421 billion by the end of August 2025.
It contributes to the GDP with an estimated RO 4 billion and 412 industrial establishments in 17 various sectors, with 166 establishments bearing the National Product Identity and 5,056 Omani products with the “Made in Oman” label.
Qais bin Mohammed al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), reported that the approved manufacturing plan is anchored on the competitive and comparative advantages of the Sultanate of Oman.
He added that the manufacturing sector is among the largest sectors, contributing 10 percent to the GDP, whereas the non-oil sectors grew by 8.3 percent, and this proves that the manufacturing sector is second only to the oil and gas sector, attracting investors.
As part of the introduction of the Eleventh Five-Year Plan, Oman Investment Authority is embarking on strategic projects within the manufacturing sector as an economic driver to support growth, increase local content, and help make the supply chains more local and expand horizons for Omani talent.
Experts have established that manufacturing also plays a positive role in enhancing the amount of value added to the natural resources, which produces good employment opportunities for the Omani youth, and this supports the local supply chains and enhances the exports of the country to the regional and global markets.
The industry also helps in the minimization of dependency on the exportation of raw materials through the processing of the raw materials into a finished product that has a higher economic value.
As a part of the Oman Vision 2040, the Omani government introduced the long-term manufacturing strategy to facilitate manufacturing, enhance the business environment, and increase local production chains.
Other initiatives were also aimed at helping the local content, giving incentives to manufacturers, and streamlining investment processes.
The most noticeable manufacturing industries in the Sultanate of Oman, which is undergoing some considerable growth, include: petroleum and petrochemicals, refining and basic chemicals, food products, metals (aluminium and steel), plastics manufacturing, and renewable energy products.
Industry has not been restricted to heavy industries but has advanced to encompass advanced manufacturing and renewable energy, and therefore, Oman is becoming an industrial hub in the region. Moreover, the new factories are aiming at the Gulf and global markets, which are increasing the non-oil exports.
