Foreign investment in Oman’s industrial sector tops OMR3.4bn

Business Sunday 15/February/2026 17:00 PM
By: ONA
Foreign investment in Oman’s industrial sector tops OMR3.4bn

Muscat: Oman’s industrial sector recorded tangible achievements reflecting its robust performance and growing role in supporting the national economy. The contribution of manufacturing industries to the gross domestic product (GDP) reached approximately OMR3.879 billion by the end of 2025, achieving a growth of 7.2% compared to OMR3.620 billion in 2024.

Foreign investment in the industrial sector also increased to around OMR3.490 billion during 2025, a growth of 24.6% compared to approximately OMR2.800 billion in 2024 – an indicator reflecting rising investor confidence in the industrial sector and the attractiveness of its investment environment.

This was stated by Khalid Salim Al Qasabi at an event marked to celebrate Omani Industry Day. The event was held in Muscat on Sunday under the patronage of Abdulsalam Mohammed Al Murshidi, Chairman of Oman Investment Authority (OIA). Marked annually on 9 February, this year's event was held under the theme: "From Oman to the World: Competitive Industry and Global Vision."

Al Qasabi further affirmed the Ministry's commitment to implementing the targets of the Industry Strategy 2040. This strategy, he said, aims to build a technologically advanced industrial base founded on innovation and enhanced added value.

In his speech, he clarified that the Ministry is proceeding with implementing a package of initiatives and policies supporting the industrial sector's contribution to the GDP, consistent with the national priorities of Oman Vision 2040 for diversifying income sources and enhancing economic sustainability.

He stated that non-oil exports achieved remarkable growth, reaching about OMR6.885 billion during 2025, an increase of 10.5% compared to OMR6.232 billion in 2024, confirming the expanding presence of national products in foreign markets.

The Director General of Industry added that regarding employment, the number of workers in the industrial sector rose to approximately 248,000 by the end of 2025, an increase of 3% compared to 240,761 workers in 2024. This reflects the sector's growing role in providing job opportunities and enhancing job stability.

He noted that the number of industrial facilities holding the National Product Identity reached 166 by the end of 2025, while the number of approved exemption requests reached 439. This demonstrates the effectiveness of incentives and facilities provided to support industrial activities and enhance the competitiveness of the national product.

This year's celebration underscores the pivotal role industrial exports play in strengthening the Sultanate of Oman's economic presence regionally and internationally, highlighting the quality and competitiveness of Omani products in global markets.

It also aims to enhance coordination and integration between government entities, manufacturers, and exporters to address challenges and develop the export ecosystem. Furthermore, it seeks to leverage the outcomes and recommendations of the 2025 Industry Day events in shaping future policies and initiatives, aligning with the goals of Oman Vision 2040 to achieve economic diversification and enhance added value.

Faisal Abdullah Al Rowas, Chairman of Oman Chamber of Commerce and Industry (OCCI), affirmed that the industrial sector is a priority sector in the 11th Five-Year Plan, noting its steady growth in export volumes.

He explained that the OCCI, as the representative of the private sector, serves all factories in the Sultanate and promotes Omani products through specialised exhibitions worldwide.

He stated that the OCCI pays significant attention to the industrial sector, having formed a specialised industry committee to discuss ways to develop the sector by proposing initiatives and overcoming all challenges faced by industrialists and entrepreneurs in the field.

Dr. Hilal Abdullah Al Hinai, Chairman of Oman Association for Manufacturers, explained in his speech that the upcoming phase requires a shift from focusing on export volumes to deepening production knowledge and enhancing the complexity of industrial products. He stated that the Association adopts a renewed vision based on building specialised capabilities, in harmony with the targets of the Ministry of Commerce, Industry, and Investment Promotion and Oman Vision 2040, noting that 2026 represents a turning point towards manufacturing precision products and advanced tools.

Dr. Hilal announced the development of "Oman Association for Manufacturers Award" into the "Oman Industry Excellence Awards 2026." These awards will focus on future-oriented criteria, including awards for High-Complexity Product, Knowledge Transfer and Qualitative Omanization, Export Resilience, and Local Added Value. He called upon industrial facilities to nominate themselves for these awards through the Association's portal starting next week.

The ceremony included a visual presentation titled "From Oman to the World: Competitive Industry and Global Vision," embodying the Sultanate of Oman's industrial ambition to transcend geographical boundaries and launch into international markets. It highlighted the successes of national products in accessing various global markets under the "Made in Oman" identity.

During the ceremony, digital platforms were launched, and an expert committee was formed, representing the first phase of the "Industrial Observatory." This observatory serves as a national center for accurate industrial data and information in the Sultanate of Oman. It aims to enable decision-makers to access realistic analyses and real-time performance indicators that support efficient planning and formulation of industrial policies, in line with the Industry Strategy targets. The observatory constitutes a pivotal step towards enhancing transparency and developing the investment environment by providing reliable digital data contributing to sustainable, knowledge-based industrial growth.

The Mu'tamad platform for professional classification was also launched. This qualitative initiative aims to establish clear regulatory frameworks for skills and jobs in the industrial sector, enhancing the alignment of education and training outputs with the actual needs of factories. The platform seeks to raise the level of quality and production efficiency by granting recognised professional classification certificates, thereby enhancing the professionalism of the national workforce and opening broader career development paths for them, supporting the goals of Oman Vision 2040 in building a knowledge society and developing competitive human capabilities.

During the event, a committee named “The Expert Committee for the Industrial Sector” was formed. This committee will be responsible for enhancing coordination between the public and private sectors and working to align the needs of the industrial sector with the outputs of the education and training systems, thereby supporting the industrial development journey and enhancing the readiness of national competencies for the requirements of the upcoming phase.

The celebration included presentations of success stories from several national companies that embodied the spirit of innovation and perseverance in the industrial sector.

Several strategic programmes, agreements, and initiatives were inked during the event, in a bid to enhance the efficiency and competitiveness of the industrial sector in the Sultanate of Oman and employ innovation and modern technologies in developing production processes.

The Kafa'a programme for lean manufacturing was signed to adopt the Lean methodology through collaboration between the Ministry of Commerce, Industry and Investment Promotion, Petroleum Development Oman (PDO), and the Public Establishment for Industrial Estates (Madayn). The programme aims to transfer and localise expertise in the Lean methodology to Omani industrial facilities, enabling factories to improve their production processes, reduce operational waste, enhance product quality, and raise competitiveness locally and internationally. The programme is an important step towards establishing principles of sustainability and managerial innovation in the sector, in line with the targets of the Industry Strategy 2040.

The programme was signed for the Ministry by Eng. Ghalib Said Al Maamari, Undersecretary of the Ministry for Commerce and Industry; for Madayn by Dawood Salim Al Hadabi, the CEO; and for PDO by Hamoud Hilal Al Hasani, Executive Director of Engineering & Projects.

An agreement was also signed for a strategic partnership with ITHCA Group to support and operate the Advanced Automation Centre. The agreement aims to integrate automation and artificial intelligence solutions into manufacturing processes, thereby raising production efficiency and reducing operational costs according to the highest international standards, including the Sirius methodology. The agreement contributes to operating the Advanced Automation Centre as a hub for technological innovation and enhances the building of a smart industrial base, supporting the comprehensive digital transformation sought in Oman Vision 2040.

The agreement was signed for the Ministry by Eng. Ghalib Said Al Maamari, and for ITHCA Group by Eng. Said Abdullah Al Mandhari, the CEO.

The celebration programme also included a video titled Harak (Movement) showcasing the development of the industrial sector in the Sultanate of Oman. It highlighted qualitative transformations from the historical roots of manufacturing to the adoption of Fourth Industrial Revolution technologies and reflected the record-breaking leaps in the sector's indicators during the recent period, affirming industry's role as a key driver of sustainable economic diversification and a prosperous future based on knowledge and innovation.

The Office of the Governor of North Al Sharqiyah presented a visual presentation highlighting the Governorate's efforts to attract qualitative industrial investments by organising a manufacturing industries competition in partnership with the Ministry of Commerce, Industry, and Investment Promotion and the Ministry of Agriculture, Fisheries and Water Resources, aiming to enhance the Governorate's position as a distinguished industrial destination.

In the context of promoting sustainable and competitive industries, Shell Oman Marketing Company presented a working paper showcasing its industrial experience spanning over four decades, particularly its oil blending plant in the Sultanate of Oman and its role in enhancing local added value and expanding exports to regional markets, alongside employing advanced technologies to develop high-performance products that support operational efficiency and sustainability.

A panel discussion titled "Omani Exports – From Factory to Global Markets" was held, featuring in-depth discussions on ways to empower Omani exports and enhance the competitiveness of national products in regional and international markets, with participation from a group of industrialists and national experts.

During the celebration, a discussion session on industrial exports and their importance was also held with Omani industrialists, involving several specialists from the public and private sectors. Views were exchanged on the challenges and opportunities available to Omani companies, and the session highlighted ways to enhance cooperation among various stakeholders to support sustainable growth in the sector.

The ceremony was attended by Anwar Hilal Al Jabri, Minister of Commerce, Industry and Investment Promotion, along with a number of ministers and officials from the government and private sectors.