Oman Industry

New legislation could boost investment and growth in Oman’s mining sector, although gaps in infrastructure could inhibit expansion in the short to medium term. 

From the start of this year, Oman has doubled gas tariffs for industrial producers, with the move expected to squeeze margins for operators.  However, the higher prices may spur a move towards greater efficiency, which could benefit the sector over the long-term. 

While cement manufacturers in Oman are expanding operations to meet new domestic and international demand, they continue to face a challenging business environment due to intense foreign competition. However, the outlook for future growth remains positive as the government rolls out infrastructure projects as part of its current five-year economic development plan.

The government is moving to boost Oman’s mining industry, announcing plans to review additional licence applications in 2014. However, any new concessions are likely to be tied to amended investment conditions that will require raw materials to be processed before export. Such stipulations create local employment and add value to the exports.

New investments in Oman’s agro-industries will not only help bolster the Sultanate’s food security and ease reliance on imports, but also have the capacity to provide increased business opportunities in food processing and support services.

In line with government plans to boost production and draw foreign investment to the aquaculture sector, Oman is encouraging foreign investors to take advantage of opportunities in fisheries and maritime exports.