Big boost to manufacturing in last 50 years under HM Sultan Qaboos
The industrial sector has been one of the main pillars of economic development in Oman in the last 50 years of the Blessed Renaissance under Late His Majesty Sultan Qaboos bin Said. It was his vision to support, develop and encourage industrial sector, industrial zones and national products.
The Ministry of Commerce and Industry (MoCI) has said that the visit of His Majesty Sultan Qaboos to the Rusayl Industrial Zone on February 9, 1991, laid the strong foundation of the sector and encouraged owners of industrial organisations to take giant strides.
This was a major support to the local industrial sector for improvement, diversification of industrial investments, expansion in the development of new industrial cities, linking the needs of the industry with the local society and the development of Omani skills in this sector.
All these steps made major contribution in the development of the industrial sector and led to increased revenues and more job opportunities.
MoCI said that the industrial sector is on top of the economic priorities of any country. It is considered as the wheel of development. Oman depends on its economic diversity to boost income.
Contribution to GDP
Quoting statistics of the National Centre for Statistics and Information, Eng Sami bin Salim al Sahib,
Director General of Industries in MoCI, said that the contribution of the manufacturing sector to the GDP in 2018 stood at 9.6 per cent at RO2.91bn. The rate of growth in the sector reached 7.6 per cent. The value of the Omani industrial exports was RO4.3bn in 2018. Omanis occupied 32,335 jobs in the sector in 2019, an increase of 8.4 per cent from 2018.
Data showed that the registered industrial activities at the end of the third quarter of 2019 amounted to RO3.81bn.
The value of foreign investment in the manufacturing sector touched RO1.59bn until the end of the second quarter of 2019, compared to RO1.2bn during the same period in 2018.
Eng Sahib said that the number of industrial licences approved in 2019 reached 9,160 and the number of electronic customs exemptions was 274 compared to 183 in 2018.
The number of ministerial decisions issued in 2019 regarding tax exemptions reached 31. The number of industrial licences issued through Form (B) last year reached 5,586 compared to 4,952 in 2018.
Madayn
Eng Sahib said that the Public Establishment for Industrial Zones has played a leading role in development of the industrial sector. “It has provided facilities and incentives to attract local and foreign investments in industrial projects. The number of industrial areas in the sultanate has reached nine including the Rusayl, Sohar, Raysut, Nizwa, Sur, Buraimi, Samail and Al Mazyouna Free Zone.”
The cumulative investment volume in the various industrial cities by the end of 2018 reached about RO6.57bn.
He said that the plan of the ministry was to establish more industrial zones in different regions of the sultanate.
Industrial strategy 2040
Eng Sahib said that the ministry is focusing on implementation of the Oman Vision 2040. It is making efforts to implement its industrial strategy 2040 to achieve the objective of the Oman Vision 2040. Continued on
“We want our products to reach all nook and corner of the country and find markets abroad as well. We aim to attract investments and create jobs in all economic sectors.”
Omanisation in industrial sector
On the importance of employing Omanis, Eng Sahib said that the ministry has formed a technical team to monitor recruitment in the manufacturing sector and to ascertain if it is according to Ministerial Decision (No 55/2019).
Eng Sahib said that he is heading the team and has members from concerned authorities. “There is another team to support the work of the technical team. With the efforts of these teams, about 10,000 more jobs have been created for Omanis.”
Industrial Excellence Award
To improve the quality of Omani industrial products and encourage competition among them, the Sultan Qaboos Award for Industrial Excellence is organised every two years. “It has brought improvement in quality.”
Challenges
Eng Sahib said that there are many challenges being faced by the industrial projects. “We, in cooperation with the public and private sector organisations, are trying to overcome these challenges. The ministry appreciates the role played by the Oman Chamber of Commerce and Industry and the Omani Industrialists Association in this regard.”
Tanfeedh
He said that there were lots of investments made in the manufacturing sector of the sultanate. Most important of them are projects related to Tanfeedh. “This national programme is headed by the Minister of Commerce and Industry and has the membership of stakeholders from the government and private sector organisations. Those projects which were included in Tanfeedh programme last year performed better.”
Sebasic acid plant
The Sebasic acid production plant is located in the Special Economic Zone of Duqm. It is the largest such plant set up with an investment of RO26mn. “The plant will use raw products produced by local petrochemical plants in the manufacture of nylon.”
Mazoon Dairy Factory
Eng Sahib said that Mazoon Dairy started production in the last quarter of 2019. It will contribute significantly in enhancing food security. Located in Al Sininah, it is one of the food security projects supervised by the Oman Food Investment Holding Company.
It is aimed at achieving selfsufficiency in dairy products by up to 87 per cent by 2030. The investment value of the project is estimated at about RO100mn. The number of jobs created by it by the end of the third quarter of last year was 600. This is with an Omanisation rate of 62 per cent. It is expected to provide more than 2,300 jobs in the next ten years. Of this, 75 per cent will comprise skilled Omani workforce.