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Oman’s industrial sector is a key pillar of its long-term development strategy, as well as a major employer and a steadily growing source of wealth. It covers a wide range of fields, including mining, petrochemicals, aluminium and organic beverages. The recent economic slowdown in both the country and the wider region still poses challenges. With much economic activity driven by government expenditure and investment, the sustained lows in oil and gas prices have strained margins in the private sector. Additionally, government policies related to employment and in-country value have sparked some debate. Nonetheless, Oman continues to offer a strong value proposition for businesses, and rising oil prices in the first half of 2018 bodes well for the future. This chapter contains an interview with Bader Al Nadabi, Vice-chairman and Co-founder, Al Sarh Group.

As Oman’s economy starts to feel the effect of resurgent oil prices, its gradually recovering property market is creating brand new opportunities for both tenants and property buyers. Although a growing number of departing expatriates, rising Omani unemployment rates and limited salary increases have limited the property market’s potential since the decline in oil prices starting in 2014, the sultanate’s young population and carefully managed economy ensure that it continues to possess the fundamentals necessary for long-term investment value. This chapter contains an interview with Sheikh Salim bin Ahmed Al Ghazali, Chairman, Golden Group of Companies.

With the utilities sector continuing its long-term shift towards privatisation, these are changing times for power, water and waste in the sultanate. The year ahead will see further private sector participation in the country’s electricity transmission and distribution networks, while new desalination projects will also come on-line. Oman is keen to secure greater international involvement in all sector plans, with the promotion of foreign direct investment a key part of the sultanate’s overall development strategy. The main goal is diversification away from oil and gas, and utilities are playing an important role as companies turn to renewable energy and even coal. This chapter contains an interview with Yaqoob bin Saif Al Kiyumi, CEO, Oman Power and Water Procurement Company.

As the second-largest driver of non-hydrocarbons growth and the sector that employs the greatest number of people, construction plays a key role in the development of Oman’s economy. While 2017 proved to be a difficult year for the industry, forecasts suggest a return to growth in 2018 and 2019 on the back of higher oil prices and a government-supported diversification plan. For domestic contractors, high Omanisation requirements and stiff competition from international peer companies remain long-term concerns, though clear land legislation and efforts to streamline the permitting process are supporting the overall business environment.

The oil and gas sector is responsible for much of Oman’s economic growth and government revenue; thus, changes in the industry tend to reflect greatly on the sultanate’s overall development. Although recent years have seen a strategic shift towards economic diversification, activity in the hydrocarbons sector still attracts a large share of domestic and foreign investment, with this pattern likely to continue for some time. While the recent prolonged downturn in global oil and gas prices, coupled with the steady depletion of domestic resources, has given Oman some cause for concern, there are signs that the industry has turned a corner. This chapter contains an interview with Ahmed Saleh Al Jahdhami, CEO, Oman Oil Refineries and Petroleum Industries Company.

Despite difficult economic conditions, insurers have succeeded in posting consistent net profits in recent years. With the economy recovering from the decline in global oil prices starting in mid-2014, the industry is well positioned to take advantage of new opportunities. This is especially true as the government moves to implement mandatory health care coverage for both foreign and domestic employees. The sector is not without its challenges, however. Competition remains intense, and in some cases the pursuit of premium has eroded underwriting standards and become a challenge to the long-term sustainability of the sector. Nevertheless, increasing awareness of offerings, a growing population, new compulsory lines and ongoing market reforms are working in tandem to give the industry notable momentum.