Market Overview

Oman – A Logistics Hub

In its eighth five-year plan (2011-15), the Oman government has increased spending on key infrastructure projects, which is enhancing Oman's status as a logistics hub in the region.

Development of major Ports

The development of major ports and the massive expansion work of Sohar port, which was completed at a cost of around $130m, fructify the strategic long-term plan of the sultanate to diversify its economy beyond oil and gas sector.

Expansion of Airports

A major upgrade to the international airports, the entire project costing around RO1.85bn, are also under way.

National Railway Network

The first phase of the sultanate's $15bn national railway network set to cover 2244 km is due for completion in 2018.

Building of Oman Convention and Exhibition Centre

The building of the $1bn Oman Convention and Exhibition Centre in Muscat will boost the sultanate's offering in the MICE segment.

Biggest Project

Oman's industrial sector, particularly the petrochemicals segment, is poised for large expansion with ongoing investment in downstream infrastructure and new facilities in the pipeline for the Sohar and Salalah industrial regions anticipated to contribute significantly to output before 2020. The biggest project of Sohar Refinery Expansion costing $2.100m is expected to complete in 2016. The construction sector is witnessing rapid expansion on the back of government investment in major infrastructure projects. The government has budgeted an estimated $77.68bn for development projects as part of the 2011-15 five-year plan, up 113% over the previous five-year plan.

A record budget for 2015

The unveiling of a record budget for 2015 with the government expenditure raised by 4.5 percent to $36.7bn and a projected GDP growth of 3.6 percent a year until 2017, an optimistic 5 percent growth rate is expected in 2015.

A strong growth predicted

Moreover, increasing levels of non-oil activity is high on the agenda with the Oman Vision 2020 long-term development plan aiming to ensure economic and financial stability by boosting private sector participation and diversifying the economy. The strong growth is envisaged to continue with government investment in the industrial sector projected to reach $517.88m between 2014 and 2020.