Construction
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.

Articles from this Chapter

Overview

Building towards growth: A slate of major public projects will drive sector expansion
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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…

Interview

Natural advantages: OBG talks to Abdullah bin Nasser bin Abdullah Al Bakri, Minister of Manpower
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Interview:Abdullah bin Nasser bin Abdullah Al Bakri How can the ministry make the private sector more attractive for Omanis and encourage them to actively seek jobs in the sector? ABDULLAH BIN NASSER BIN ABDULLAN AL BAKRI: We are working closely with the Oman Chamber of Commerce and Industry, which represents the private sector’s institutions and enterprises, and directly with the private sector itself to align the government’s mandates with national manpower requirements. During the…

Analysis

Project power: Projects in sectors spanning transport to tourism are driving new builds
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Demand for construction services has extended through 2015 driven by a solid pipeline of major public projects, as well as lively demand from the private real estate sector. Some of the infrastructure developments being implemented should keep contractors busy for years to come, and are expected to help maintain sector momentum through the economic slowdown forecast for 2016. A range of property segments, particularly integrated tourism complexes (ITCs) and affordable housing should also see plenty…

Interview

Both sides at the table: OBG talks to Fawzi Al Harrassy, Executive Director, Teejan Group
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Interview:Fawzi Al Harrassy How can the private sector play a larger role in driving economic growth and development? FAWZI AL HARRASSY: What Oman needs now are more privatisations and to let the private sector take the lead on some aspects of the development process. In many ways, the government still bears the burden of designing, tendering and maintaining most of their projects. Maintenance contracts for buildings and roads can easily be ceded to private companies for a nominal price.…

Analysis

Planning for the future: Oman looks to benefit from a drop in commodity prices
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Since at least the turn of the 21st century, the rising cost of construction materials has been a concern for many emerging markets, particularly those, like Oman, which are dependent on imports to cover a substantial proportion of demand. A dip in prices following the 2008-09 global financial crisis eased some of the pressure, albeit at a time when demand for construction materials was also sagging. Rising Costs As Qatar-based financial services company Alpen Capital noted in a 2015 report on…