Industrial sector adds Ro5.2bn to Oman’s GDP during Jan-sept 2023

OMAN'S INDUSTRIAL SECTOR ACCOUNTED FOR NEARLY 17% OF THE COUNTRY'S NOMINAL GDP DURING THE FIRST NINE MONTHS OF 2023

The contribution of Oman's industrial sector to the country's nominal gross domestic product (GDP) amounted to Ro5.360bn during the first nine months of 2023, according to the latest data released by the National Center for Statistics and Information (NCSI).

Within the industrial sector, manufacturing industries contributed Ro2.559bn to the sultanate’s GDP in the first nine months of last year, while the construction sector contributed Ro1.750bn.

Oman's total nominal GDP stood at Ro31.416bn during the January – September 2023 period. The industrial sector accounted for around 17% of the total

GDP during the first nine months of last year, according to the NCSI data.

Nonetheless, Oman's total non-oil exports in 2023 experienced a slight decline of 1.1% to Ro7.442bn. Notably, the industrial sector dominated Oman's non-oil exports, indicating robust growth in this segment.

Furthermore, foreign direct investment (FDI) in the manufacturing sector reached

Ro1.406bn by the end of Q3 2023, compared to Ro1.873bn recorded at the end of 2022.

Over past decades, Oman's government has shown a strong commitment to supporting the industrial sector exports through initiatives such as establishing industrial zones, enhancing port infrastructure, and promoting Omani products in international markets.

Competitiveness

As a result of the Omani government's concerted efforts to promote industrial growth, the sultanate's rank in industrial competitiveness has significantly improved in recent years.

In its latest report released in August 2023, the United Nations Industrial Development Organization (UNIDO) ranked Oman 56th globally and 5th among Arab nations for industrial competitiveness in 2023. This marks a substantial improvement from 72nd place in 2016.

The Competitive Industrial Performance (CIP) Index, which evaluates industrial competitiveness across more than 153 countries worldwide, attributed Oman’s remarkable progress to its diversified industrial activities and increased volume of industrial exports.

This significant 16-place rise in global rankings over just seven years underscores Oman's burgeoning industrial competitiveness, according to the Ministry of Commerce, Industry, and Investment Promotion (MOCIIP).

This positive momentum is expected to continue, supported by the industrial strategy implemented by MOCIIP, which aims to stimulate the sector and enhance its contribution to GDP, thereby solidifying Oman’s position as a global manufacturing hub.

According to MOCIIP, Oman’s improved ranking in the index reflects the sultanate’s steadfast commitment to enhancing the competitiveness of its industrial sector, driven by the execution of the Industrial Strategy 2040, the cornerstone of industrial development in Oman.

The ministry is actively formulating initiatives to improve industrial efficiency, promote the adoption of Fourth Industrial Revolution technologies in production processes, and empower local industries to compete in international markets.

The significant 16-place rise in global rankings over just seven years underscores Oman’s burgeoning industrial competitiveness