Fourth Industrial Revolution and the Omani economy

Late in the 18th century, the British Empire shot up to the status of invincibility as the expansion of its manufacturing industry aided its existing intercontinental trade, courtesy of the first Industrial Revolution. A century later, the Germans started to rapidly mechanise their production facilities while adding more industries to become the strongest nation in Europe before World War 1. And, in the final third of the 20th Century, digital technology assisted by silicon semiconductors brought about the third Industrial Revolution.

Decades later, we are on the brink of another Industrial revolution, one that can have a more profound and lasting effect on the world than the others before it and certainly tip the scales in favour of early researchers and practitioners. Unlike previous versions, this revolution has a levelled playing field and countries like Oman have more chances to sparkle on the world map than they know.

The Sultanate itself is undergoing a fundamental transformation, moving from a hydrocarbon-based economy to a knowledge-based one. In 2016, the government highlighted 121 projects in the areas of manufacturing, tourism, logistics, finance and employment as a part of its Economic Diversification Programme, Tanfeedh, to make a major socio-economic impact and standout on the world map.

Considering Oman’s geographical location, its well-endowed landscape, a well-developed infrastructure and young talented workforce, there is little argument as to why such goals were set or these sectors chosen. The question really is, how can it be achieved?

This is where the 4th Industrial Revolution comes into play. As with earlier industrial revolutions, the emergence of new ideas based on latest technology can lead to the emergence of an economic powerhouse.

Oman’s bid to become a global hub can only become real if its local SMES are able to prevail in these sectors over their international rivals, which in turn is only possible if they adopt technologies that give them an edge over their competitors. At present, SMES in Oman contribute to less than a fifth of the GDP of the country and with most manufacturing sector companies limited to oilfield services, none look like future forerunners.

Instead, if SMES were to act as disruptive innovators, it would be a game changer for Oman. Armed with 4th IR technologies like AI, Additive Manufacturing, Analytics, Blockchain and IOT, these companies can help large organisations disrupt status quo and shape what Oman has to offer to the world.

With Omani ports within days from more than half the world’s population, a development in manufacturing industry like 3D printing for the automotive industry, mass customisation or rapid manufacturing can see Oman turn into an industrial and research and development hub for the world. Leveraging its location to become a major exporter of value added products and services is something that Oman must consider, especially with the development of port cities of Duqm, Salalah and Sohar.

Similarly, developments in AI and analytics and using AR and VR can help Oman leverage its exceptional topography to promote itself as a tourist hub around the world, something it has clearly fallen short of for decades. Technology can also help Oman in easing logistical barriers, improve operational efficiency of organisations, better customer or tourist engagement and upgraded quality of living.

While most countries in the region face massive gaps in technical knowledge to achieve such a dramatic transformation, Oman doesn’t. Thanks to a generous education budget over the past decades, the Sultanate has given rise to thousands of graduates that are tech savvy and have sound STEM and ICT capabilities, a defining competency for the future. These graduates have sufficient basics to turn entrepreneurs who provide such services to companies in Oman. Opportunity to shape the future of Oman is huge for the young generation and it only requires keen observation and the will to act. [The writer may be contacted at: syedhaithamhasan@gmail.com

@Syedhaitham]