Oman’s manufacturing sector is reaching a defining milestone — contributing an estimated USD 10 billion (RO 3.879 billion) to GDP in 2025, marking steady year-on-year growth of 7.2%. This is more than a strong headline number. It signals structural change — and long-term intent.
As global economies accelerate diversification strategies, Oman’s industrial base is emerging as a serious pillar of sustainable growth. Backed by Vision 2040 and successive Five-Year Plans, manufacturing has grown from RO 2.81 billion in 2020 to nearly RO 3.9 billion in 2025. The direction of travel is clear: a deliberate pivot from hydrocarbons toward value-added industry.
For international companies, this matters.
Why This Is Strategically Important
1. Diversification with depth
Growth is not abstract — it’s concentrated in high-demand sectors such as food processing, chemicals, plastics, metals, and electrical equipment. These industries anchor supply chains and create scalable export capacity. For global manufacturers looking to regionalise production, Oman offers an increasingly credible industrial base.
2. Rising Foreign Direct Investment
Industrial FDI is up approximately 24.6% year-on-year, reflecting confidence in Oman’s regulatory reforms, streamlined licensing processes, and investor-friendly incentives. For companies considering a GCC footprint, Oman provides competitive operating costs, strategic port infrastructure, and access to major shipping lanes.
3. Export momentum
Non-oil industrial exports reached RO 6.885 billion in 2025, growing by more than 10% annually. That trajectory signals expanding international demand for Omani-made products and stronger integration into global supply chains. Recent trade agreements — including enhanced partnerships with key markets like India — further strengthen Oman’s position as an export-oriented manufacturing hub.
4. Talent and transformation
Industrial employment has risen to approximately 248,000 jobs, supporting both workforce development and sector resilience. At the same time, smart manufacturing, automation, and digitalisation are gaining traction — opening space for Industry 4.0 providers, ESG-driven innovators, and technology-led manufacturers.
Where Opportunities Lie
International firms should be exploring:
– Advanced and automated manufacturing solutions
– Green and circular production models
– Downstream petrochemicals and value-chain integration
– Export-oriented facilities leveraging Oman’s ports and logistics ecosystem
The Bigger Picture
Oman’s manufacturing growth is not cyclical — it is strategic. With rising GDP contribution, accelerating FDI, and expanding exports, the country is positioning industry as a cornerstone of economic resilience.
For businesses mapping Middle East growth strategies, Oman is no longer a peripheral consideration. It is an industrial market coming into focus — and worth serious attention.