Muscat – Ministry of Economy has announced that Oman’s manufacturing sector showed the highest performance among key sectors targeted for economic diversification during the first quarter of this year.

The sector’s strong growth marks a significant achievement within the framework of the 10th Five-Year Plan (2021-2025).

According to the ministry, the manufacturing sector recorded a real growth rate of 9.2% in the first quarter of 2024, a sharp recovery from a 2.2% decline during the same period in 2023. The contribution of manufacturing to gross domestic product (GDP) rose to 10% at constant prices and 10.5% at current prices.

Looking ahead, the 10th Five-Year Plan aims to increase the manufacturing sector’s contribution to the GDP to 12.2% by the end of the plan.

Dr Salem bin Abdullah al Sheikh, spokesman for Ministry of Economy, attributed this growth to success of economic diversification efforts. He highlighted the fact that these initiatives have boosted the performance of industrial sectors, increased industrial exports, and attracted investments in industrial, free and private zones. Notably, the launch of new strategic projects, such as Duqm Refinery, have played a crucial role in driving this progress.

“The GDP growth data reflects the positive impact of these developments, with significant growth recorded across all manufacturing activities,” Sheikh said.

He noted the remarkable growth rates in the refined petroleum products industry (67.6%), basic chemicals industry (6.4%) and other manufacturing industries (6.3%) during the first quarter.

Sheikh attributed the robust growth in the manufacturing sector to several key factors. These include large investments in new and expanding industrial projects, which have enhanced production capacities and increased both local and foreign demand for Omani industrial products. Development of industrial infrastructure, supported by government investments in roads, electricity and ports, has also consolidated the sector’s capabilities.

In addition, incentives and facilities provided to investors, such as tax breaks, have encouraged further industrial investment. Adoption of modern technologies in manufacturing and programmes to improve productivity have also contributed to the sector’s success.

Sheikh added that stability of Oman’s security and economy has played a vital role in enhancing the business environment and building investor confidence.

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