With a wave of major public projects being implemented in sectors including energy, manufacturing, transportation and utilities, Oman’s construction industry is growing strongly. Demand also comes from the private real estate sector, where developers are delivering projects in thriving segments from grade-A office buildings to shopping malls and a growing number of Oman’s unique integrated tourism complexes (ITCs). With a strong pipeline of projects underway, and the government committed to…
From The Report: Oman 2016
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Oman’s construction sector was worth an estimated $5.2bn in 2014, up from $4.9bn in 2013, and forecasts show that it will continue to grow rapidly, to $5.6bn in 2015 and $6.0bn in 2016. Although the drop in oil prices will likely curtail public spending in the sector if prices remain depressed, this has certainly not been the case so far. Indeed, the total value of projects planned and under construction in a range of sectors, including energy, manufacturing, transport and utilities, currently stands at $163.5bn – equivalent to twice Oman’s annual GDP. Meanwhile, demand from the private real estate sector is also driving growth, with developers engaged in projects ranging from grade-A office buildings to shopping malls and integrated tourism complexes. Moving forward, tighter resources will likely bring the benefits of PPPs into sharper focus, helping fuel wider private participation in the sector. This chapter contains an interview with Abdullah bin Nasser bin Abdullah Al Bakri, Minister of Manpower; and Fawzi Al Harrassy, Executive Director, Teejan Group.