Manufacturing grows 7.2% in 2025, contributes RO3.9bn to Oman's GDP

09/02/2026 04:47 AST

Oman's industrial sector delivered strong growth in 2025, expanding its contribution to gross domestic product (GDP), foreign direct investment (FDI), exports and job creation.

The manufacturing sector - the main driver of industrial growth in the sultanate - recorded 7.2% year-on-year growth in 2025, with its GDP contribution rising to RO3.879bn from RO3.620bn in 2024, according to data released by the Ministry of Commerce, Industry and Investment Promotion (MoCIIP) on Sunday.

Foreign direct investment in the industrial sector climbed to RO3.490bn in 2025, marking a 24.6% increase from RO2.8bn in 2024, reflecting rising investor confidence in the sector and its business environment.

The sultanate marks Omani Industry Day annually on February 9. This year's theme, 'From Oman to the World: Competitive Industry and International Vision,'highlights the geographical and economic advantages of Oman's industrial cities and their role in boosting exports.

Supported by manufacturing growth, Oman's non-oil exports rose to RO6.885bn in 2025, up 10.5% from RO6.232bn in 2024, underscoring the expanding presence of Omani products in international markets.

The 2026 observance of Omani Industry Day focuses on the growing role of industrial exports in strengthening Oman's global economic presence, while highlighting the quality and competitiveness of national products. The occasion also reflects joint public-private sector efforts to expand access to global markets and foster a competitive environment for national industries, in line with Oman Vision 2040 goals to promote economic diversification and enhance In-Country Value (ICV).

According to MoCIIP data, employment in the industrial sector increased to 248,000 in 2025, up 3% from 240,761 in 2024, reinforcing the sector's importance in job creation.

H E Ghalib bin Said al Mamari, Undersecretary of MoCIIP for Commerce and Industry, said the 2025 results reflect the success of government policies in strengthening the industrial business environment and the effectiveness of incentives offered to investors. He added that growth in manufacturing output, foreign investment and non-oil exports demonstrates the sector's capacity to support economic diversification targets.

Mamari said MoCIIP will continue to enhance the legislative and regulatory framework governing the industrial sector, streamline procedures and strengthen private sector partnerships to improve the competitiveness of national products and attract quality, value-added and technology-driven investments in line with Oman Vision 2040.

MoCIIP will host an event on February 15, under the theme 'From Oman to the World: Competitive Industry and International Vision,' under the auspices of H E Abdulsalam bin Mohammed al Murshidi, President of the Oman Investment Authority, with the participation of several Their Excellencies and senior public and private sector officials at Al Bustan Palace Hotel.

Industrial Strategy 2040
Oman's industrial sector continues to advance its role as a key pillar of economic diversification under the Industrial Strategy 2040, which aims to build a modern manufacturing base driven by advanced technologies, Omani innovation and modern production techniques.

According to MoCIIP, the strategy seeks to enhance the quality and competitiveness of Omani industrial products locally, regionally and internationally. The strategy is built around four strategic programmes and five key objectives, including diversifying manufacturing into technology- and knowledge-based activities, developing specialised industrial products that support public health and wellbeing, expanding the regional footprint of Omani industries, upgrading manufacturing capabilities through advanced technologies, and promoting industrial innovation.

Industrial Strategy 2040 targets three priority segments: resource-based industries, capital-intensive industries and knowledge-based industries. These include oil refining, food processing, metals and mining, electrical and mechanical industries, marine equipment and transport manufacturing. The strategy also covers solar panels, hydrogen and recycling industries.

The strategy 2040 includes 90 strategic initiatives implemented in partnership with 125 entities from MoCIIP and 140 strategic partners. Progress indicators show that 7% of initiatives have been completed, while 13% are currently under implementation.

H E Faisal bin Abdullah al Rawas, Chairman of the Oman Chamber of Commerce and Industry (OCCI), said Omani Industry Day reflects the advanced progress achieved by the sector and its vital role in supporting economic growth, strengthening diversification efforts and reinforcing sustainable and competitive development.

He said this year's Omani Industry Day theme reflects a strategic push to expand the global reach of Omani industry through maximising ICV, increasing production capacity, encouraging quality industrial investment and raising the sector's GDP contribution in line with Oman Vision 2040.

Sheikh Dr Hilal bin Abdullah al Hinai, Chairman of the Oman Manufacturers Association, said the theme highlights the transition of Omani industry from serving domestic demand to competing in regional and international markets, driven by higher value addition, improved quality standards and the adoption of innovation and modern technologies.

Muscat Daily