Interview: Dawood Al Hadabi
Which strategies is Oman using to enhance the competitiveness of its industrial areas?
DAWOOD AL HADABI: The strategies being implemented are deeply integrated with the objectives outlined in Oman Vision 2040. This vision encompasses a comprehensive approach to diversifying the energy portfolio to reduce carbon emissions and the dependency on traditional sources like natural gas. This transition is not just about sustainability, but also about managing and potentially lowering operational costs tied to energy consumption, which can impact the pricing and competitiveness of Omani products in the global market.
Furthermore, the government has initiated agreements with international companies to foster technological innovation and industrial advancement. This includes developing advanced infrastructure to support the production and utilisation of hydrogen as a primary energy source. These initiatives demonstrate an effort towards redefining Oman’s industrial sector as technologically advanced and environmentally sustainable.
Additionally, Oman’s location is leveraged to enhance its competitiveness by improving logistics capabilities. The government’s efforts to expand and upgrade ports aim to accommodate larger vessels, which are crucial for heavy industries like steel manufacturing. By reducing logistical constraints and enhancing energy infrastructure, Oman seeks to attract more foreign direct investment and boost its industrial output.
How have Oman’s industrial cities integrated new technologies to facilitate Industry 4.0?
AL HADABI: Adopting technologies related to the internet of things (IoT) and artificial intelligence (AI) is changing the manufacturing landscape, enhancing efficiency and increasing demand for advanced industrial infrastructure. The focus is on adapting the manufacturing process to be smarter and more cost-effective.
Efforts are underway to encourage factories to upgrade their production lines to include AI-driven systems and IoT solutions to reduce the unit cost of production by optimising various processes. The government also actively supports sectors with locally sourced raw materials to adopt these technologies first. This prioritisation ensures that the benefits of technology adoption are immediately tangible within the local economy and provide a model for other sectors.
Moreover, Oman is investing in programmes that facilitate this shift. For instance, government initiatives help factories implement IoT and AI by sharing costs and providing technical support to alleviate the financial burden on manufacturers following the economic impacts of the Covid-19 pandemic. By fostering a cooperative environment where costs and knowledge are shared, the sultanate’s industrial cities create a robust foundation for sustained industrial growth.
What role do Oman’s industrial cities play in supporting small and medium-sized enterprises (SMEs) within the manufacturing sector?
AL HADABI: Oman’s industrial cities provide crucial infrastructural and financial support, including offering specialised warehouse spaces to SMEs at incentivised rates, helping lower the entry barriers for new and growing businesses. These facilities allow SMEs to focus on innovation and production without the major initial investment typically required for space and equipment.
In addition to physical infrastructure, Oman extends financial incentives to SMEs, including favourable leasing terms and access to long-term rental agreements. Such structures are essential for SMEs as they develop their business and establish themselves in competitive markets. Furthermore, Oman’s industrial strategy fosters partnerships between SMEs and larger enterprises through agreements that allow them to purchase raw materials at reduced costs, decreasing production expenses and enhancing overall competitiveness. Collaboration with larger enterprises enables SMEs to access broader markets and more robust supply chains.
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