Oman Construction

Increased private sector participation in Oman’s project pipeline, and draft bills to ease workforce restrictions and allow 100% foreign ownership, look set to help drive continued expansion in the country’s construction sector over the medium to long term.

A multibillion-dollar cash injection from the state is supporting new growth across Oman’s construction sector, amid efforts to encourage the industry to source labour, services and supplies locally to broaden the contribution to its economy.

A programme by the Omani government to pour billions into infrastructure to help support long-term economic diversification is benefiting the Sultanate’s construction sector, which will likely see its order books filled for years to come.

A number of new projects, concentrated on bolstering Oman’s infrastructure backbone, are currently filling the order books of domestic construction firms. However, some industry insiders have warned new regulations and a rising wages bill could see profit margins eroded even as activity increases.

With an increase in both government and private sector spending as a series of new infrastructure, tourism and social services projects are rolled out, Oman’s construction sector is set to experience robust growth in the coming years. The sheer scale of the building programme, however, could test the capacity of the industry.