Industry & Retail
From The Report: Oman 2013
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As part of a strategy to diversify the economy away from the oil and gas sector, efforts are continuing apace within the industrial sector. In particular, the government is working to expand steel production, as regional demand is expected to increase in line with large-scale projects underway in the GCC region. The aluminium industry, for example, is showing signs of good growth, with new rolling plants expected to become operational by the end of 2013. In retail, a number of factors continue to shape the market. While competition has increased as more companies have set up retail outlets, salaries have also grown, boosting consumer spending as a consequence. In spite of some labour difficulties and increased competition, the retail sector presents a variety of investment opportunities – not only in the larger, more traditional segments, but also in a number of niche markets.

This chapter includes an interview with Khalil Abdullah Al Khonji, Chairman of the Oman Chamber of Commerce & Industry (OCCI).

Articles from this Chapter

Overview

Heavy duty: Several segments are expanding as part of ongoing diversification
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For an economy in the process of diversification, the expected further growth of Oman’s industrial sector is a welcome sign. Although a significant share of the sultanate’s GDP is currently derived from the petroleum industry, Oman’s oil and gas supplies are expected to be depleted before those of most oil producers within the region. As a result, the country is energetically working to expand other sectors. Further diversification efforts are also taking place within the industrial sector.…

Interview

OBG talks to Khalil Abdullah Al Khonji, Chairman, Oman Chamber of Commerce & Industry (OCCI)
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Interview: Khalil Abdullah Al Khonji How can investment be increased in the value-added, industrial manufacturing segment? KHALIL ABDULLAHAL KHONJI: The OCCI is looking to increase value-added investment with the aim of developing higher value projects and diversifying the services provided in various sectors. This includes the industrial sector, which plays a large role in boosting economic development. The projects implemented in this sector are highly important and they generate significant…

Analysis

Dig deep: Natural resource wealth is focusing new attention on extraction
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The mining industry in the sultanate is changing in a number of positive ways. Most notably, output has increased substantially for laterite and several minerals, including gypsum. According to data released by the Ministry of Culture and Industry (MoCI) in 2012, laterite production climbed by over 92%, from around 375,000 tonnes in 2010 to over 720,000 tonnes in 2011. The MoCI calculates that total laterite output was worth more than OR2m ($5.2m) in 2011–an increase of roughly 80% when compared…

Analysis

Estate practices: Special economic zones are helping to spur development
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In order to ensure more balanced economic growth throughout the sultanate, a number of industrial estates have been developed. The management of these properties falls under the responsibility of the Public Establishment for Industrial Estates (PEIE), a government body set up in the early 1990s. In large part, Oman’s industrial parks accommodate light and consumer industries, though companies such as Sohar Aluminium located at the Sohar Industrial Estate (SIE) are an exception to this trend. Built…

Analysis

Heavy mettle: The aluminium segment is weathering tough times and investing in preparation for future demand
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Throughout their modern histories, GCC countries have searched for ways to extract extra value from their massive oil and gas reserves. In the 1970s, aluminium offered these opportunities. The metal, prized for its lightness, flexibility and strength, has made its way into the production of everything from construction components to soda cans. The Hall-Héroult process that produces aluminium, however, requires electrolysis, and that calls for significant amounts of energy. It is this requirement…

Overview

A destination for everyone: Rising incomes mean outlet options continue to diversify
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A number of factors are shaping Oman’s developing retail market. While competition has increased as more companies have set up retail outlets in the sultanate, salaries have also grown, boosting consumer spending as a consequence. Other, less obvious factors are influencing the market including increased infrastructure spending, more contemporary retail formats and a rise in tourism. Selling Wide The country’s unique demographics also play a substantial role in the sector. Unlike many of its…

Analysis

All things, great and small: Growth in sales options is coming in a number of shapes and sizes
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Oman’s retail market is largely split between shopping malls and relatively small roadside shops or ground floor retail units. While shopping malls are relative newcomers, the segment is growing quickly both within the capital area and in other, less-populated cities. The two largest shopping malls in Oman are Muscat City Centre and the recently opened Muscat Grand Mall. Follow The Leader The property consultancy Cluttons reported in April 2012 that City Centre leads the market in terms of both…