Market Trends of Oman Construction Industry
Economic Diversification Plan (Vision 2040) has Been a Key Growth Factor in the Construction Sector
As an economy that relies heavily on revenue from oil, a shift is required to diversify sources of income by promoting investments in targeted sectors. The government has been focused on pursuing this objective by boosting the contribution of the five target sectors in the Ninth Five-Year Plan, including logistics, manufacturing, tourism, fisheries, and mining, and moving forward with key strategic projects.
- The Sultanate of Oman is executing a successful model of economic diversification, notably the country's trade liberalization in goods and services. Oman pursued an active plan of development that focuses on diversification, manufacturing, and privatization to diminish the oil sector's contribution to the GDP by 9%. The tourism and hydrocarbon industries have become the main components of the government's economic diversification strategy.
- One of the catalysts for the first phase of the executive plan is the National Program for Investment and Export Development. The 135 projects in the dashboard strongly relate to the "Economy and Development" pillar of Oman Vision 2040. It is regarded as the greatest national program in terms of project number. The "private sector, investment, and international collaboration" prioritizes strategic objectives to strengthen and enable the private sector's role in driving economic development, which was introduced in March 2021.
- Within logistics, the Omani government is positioning Duqm as a major industrial and business zone in the region. One of the objectives of the Special Economic Zone Authority in Duqm is to develop the central arid region of the country and create ample space for international and local investors to build world-class projects. This will help achieve promising growth in Oman's economy and strengthen the country's position at the international level.
Commercial Construction Gaining Traction Due to Growing Tourism
Due to its ideal location for outdoor activities throughout the winter, Oman is anticipating a significant influx of foreign tourists. In addition to having excellent weather, the country received more tourists due to the FIFA World Cup, which began in Doha, Qatar, in November 2022. Before the event, Oman Air, the national airline, and Qatar Airways agreed to work together. As a result of this deal, 21 flights per day will be run between Muscat and Doha.
With COVID-19 restrictions in force, just 113,000 people visited Oman in the first five months of 2021. With 794,000 visitors traveling to the sultanate this year, the figure increased by 602%. Extensive marketing initiatives and trade fairs held in other nations have also increased Oman's attractiveness abroad.
By 2040, Oman hopes to diversify its economy away from oil and expects to generate more than OMR 9 billion (USD 22.5 billion) annually from tourism. One of the economic goals of Oman's 2040 Economic Vision is to get more money from tourists. In 2021, the tourism industry contributed 2.4% to the GDP. The government wants that percentage to rise to 5% and 10% in seven and seventeen years, respectively. By investing USD 51 billion, the target visitor count is expected to rise to 11.7 million by 2040.
