Oman’s non-oil industries recorded the highest growth within the economic diversification sectors through the current five-year development plan thanks to incentives to industrial projects, an Omani Minister says.

But the sector’s contribution to the gross domestic product (GDP) remains dwarfed by the hydrocarbon sector, which accounts for over a third of GDP and provides more than 70 percent of the national income.

Addressing parliament last week, Minister of Commerce, Industry and Investment Promotion Qais Al-Yousef said the non-oil industrial sector surged by 8.6 percent to peak at around 3.6 billion Omani rials ($9.4 billion) in 2024, accounting for 10 percent of GDP.

The sector recorded an average annual growth of around seven percent through the 2021-2025 plan, Oman’s 10th development blueprint.

The Minister’s figures showed industrial exports also swelled to one of their highest levels of around OMR6.2 billion ($16 billion) last year and the sector attracted around OMR2.5 billion ($6.5 billion) in foreign direct investment.

“Growth in the industrial sector was the highest among diversification sectors..it was achieved as a result of facilities and incentives introduced in this sector…we aim for seven percent growth annually during the 2040 industrial strategy to lift the sector’s contribution to GDP to OMR11.6  billion ($30 billion),” Al-Yousef said.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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