Muscat – The manufacturing sector recorded an annual growth rate of 14.2% with its contribution to the national economy rising to RO4.149bn in 2024 from RO2.438bn in 2020, H E Qais bin Mohammed al Yousef, Minister of Commerce, Industry and Investment Promotion, stated to Majlis A’Shura on Wednesday.

Presenting the ministry’s progress report, H E Yousef said the growth reflects outcomes of the 10th Five-Year Plan (2021-2025) which is focused on economic diversification and industrial development. The plan prioritises foreign investment, industrial innovation and infrastructure support.

He cited strategic infrastructure upgrades, improved investor services and targeted financing programmes as key enablers.

The manufacturing sector continued to lead economic growth with key expansions in the food, chemical, mining and medical industries. Registered industrial establishments grew from 180 in 2020 to 243 in 2024, an average annual increase of 7.7%.

Thirty-two major industrial projects worth over RO878mn were licensed during this period, in line with the government’s goal to raise the sector’s contribution to RO11.648bn by 2040.

The broader trade sector expanded from RO2.627bn in 2020 to RO3.392bn in 2024, growing at an annual rate of 6.6%. Real estate and professional services rose to RO2.277bn from RO1.951bn, showing an annual growth of 3.9%.

Foreign direct investment doubled reaching RO30.042bn in 2024 from RO14.261bn in 2018, with a compound annual growth rate of 15.4%. Investment was concentrated in the energy, mining, chemicals and logistics sectors.

Fee reductions, licensing simplifications and upgraded infrastructure played a major role in attracting investors.

The Invest in Oman digital platform expanded to offer 68 electronic services, helping streamline licensing and registration.

Foreign investor registration fee was cut to RO150 annually, and several fees were waived off to promote entrepreneurship. By 2024, Oman had more than 872,000 commercial registrations.

Efforts to enhance exports included the launch of the National Export Development Strategy, 98 targeted marketing studies and the ‘Made in Oman’ platform to promote local products. Support was extended to 52 companies participating in overseas exhibitions.

In e-commerce, the number of registered online stores grew by 236.4% between 2020 and 2024.

Intellectual property also saw improvements. Trademark registrations rose to 487 in 2024 from 412 in 2020, and patent applications increased from 35 to 96. A national IP strategy was launched to support innovation and foster the creative economy.

The ministry also introduced legislation to regulate social media marketing, commercial naming, e-commerce, exhibitions and fair competition.

Programmes like ‘Own It’, ‘Localisation’ and ‘Made in Oman’ were launched in partnership with Ministry of Housing and Urban Planning to deepen local content and support SMEs.

Despite the gains, the minister acknowledged challenges including weak local supply chains, dependence on imports and productivity gaps.

Moving forward, H E Yousef said Oman will prioritise industrial innovation, research and adoption of Industry 4.0 technologies, focusing on high-potential sectors such as food, pharmaceuticals, chemicals and minerals to meet Oman Vision 2040 targets.

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