Industry & Retail
From The Report: Oman 2023
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Manufacturing activity has undergone a significant expansion in Oman since the turn of the century, with further growth targeted in a number of strategically identified segments to boost self-sufficiency and aid the economic diversification agenda. The Covid-19 pandemic demonstrated the importance of self-sufficiency, particularly in relation to food and medical supplies. Industrial, free and special economic zones are facilitating private investment in manufacturing segments, particularly metals and petrochemicals. Incentives and concessions for entities operating within those areas – alongside new laws – are contributing to an increasingly attractive business environment. The retail sector has experienced growth in recent years thanks to a growing population, higher levels of disposable income, tourist arrivals and the emergence of segments such as e-commerce.

This chapter contains interviews with Ali bin Masoud Al Sunaidy, Chairman, Public Authority for Special Economic Zones and Free Zones; Lujaina Mohsin Darwish, Chairperson of the Infrastructure, Technology, Industrial & Consumer Solutions Cluster, Mohsin Haider Darwish; and Sayyid Azzan bin Kais Tarik Al Said, co-founder and CEO, AZD Technologies.

Articles from this Chapter

Overview

Engine of growth: Steps are being taken to attract investment flows and facilitate expansion by deploying new technologies in industrial zones
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Manufacturing activity has undergone a significant expansion in Oman since the turn of the century, with further growth targeted in a number of strategically identified segments to boost self sufficiency and aid the economic diversification agenda. The Covid-19 pandemic demonstrated the importance of self-sufficiency, particularly in relation to food and medical supplies. Industrial, free and special economic zones are facilitating private investment in manufacturing segments, particularly metals…

Interview

Strategically positioned: Ali bin Masoud Al Sunaidy, Chairman, Public Authority for Special Economic Zones and Free Zones (OPAZ), on attracting foreign investment and hydrogen-related industries
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Interview: Ali bin Masoud Al Sunaidy How does OPAZ contribute to wider efforts to reform the economy, and where do you see the most promising opportunities for investment? ALI BIN MASOUD AL SUNAIDY: OPAZ is working to attract industrial projects to its affiliated special economic zones, free zones and industrial zones. There are 14 existing zones with projects exceeding OR15.2bn ($39.5bn) that provide fully serviced lands with multi-layer service corridors. Similarly, OPAZ is continuously working…

Analysis

Unlocking growth: Diverse incentives in place to promote industrial development
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Oman’s free zones, special economic zones and industrial zones have a central role in advancing Oman’s industrial development through a combination of incentives and targeted efforts to attract investors. The Public Authority for Special Economic Zones and Free Zones (OPAZ) was established in August 2020 to oversee three free zones in Salalah, Sohar and Al Mazunah – a key node on the border with Yemen serving as trade gateway into the country. OPAZ is responsible for implementing related regulations…

Analysis

Consumer driven: Recovery in the retail sector is being driven by the development of infrastructure and the expanding role of e-commerce
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As Oman’s retail sector recovers from the disruption of the Covid-19 pandemic, government efforts are under way to boost the contribution of local producers, particularly small and medium-sized enterprises (SMEs). Indeed, while wholesale and retail trade began to decline in 2015 – with negative macroeconomic trends and headwinds being compounded by the pandemic in 2020 – forecasts for future growth are positive. Retail Revitalised After a relatively long period of subdued performance and…

Interview

Utilising opportunities: Lujaina Mohsin Darwish, Chairperson of the Infrastructure, Technology, Industrial and Consumer Solutions Cluster, Mohsin Haider Darwish, on the benefits of infrastructure investment
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Interview: Lujaina Mohsin Darwish What role can the private sector play in engaging with the international investment community? LUJAINA MOHSIN DARWISH: Oman’s private sector has undergone a significant transformation in recent years, moving from mostly trading to a more contemporary attitude towards manufacturing and services. A new confidence and resilience is seen among business owners, providing impetus to form partnerships with global entities. Public-private partnerships shift risks to the…

Interview

Bright future: Sayyid Azzan bin Kais Tarik Al Said, Co-Founder and CEO, AZD Technologies, on utilising modernisation to improve processes
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Interview: Sayyid Azzan bin Kais Tarik Al Said In what ways can nano-diamond technology boost Omani industry and manufacturing? SAYYID AZZAN BIN KAIS TARIK AL SAID: Until recently Oman did not have the capacity to perform metal strengthening, a process that is especially important in this part of the world due to the corrosion caused by the local climate. This is an issue of particular importance in key sectors such as oil and gas. Metals that needed strengthening had to be sent abroad for this process…

Analysis

Chemical reaction: The factors catalysing investment in the region’s downstream chemicals and petrochemicals production and export capacity
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Russia’s February 2022 invasion of Ukraine has reignited international debate about the pace of the global energy transition and the risks of relying on oil and gas imports from countries with opposing agendas. In the Gulf it is largely framed around how to extract maximum benefit from the remaining hydrocarbons wealth, while also playing a responsible role in global efforts to both mitigate climate change and maintain stability in international energy supply. In October 2022 Oman, along with…

Analysis

Green solutions: The MENA region is poised to lead global steel decarbonisation
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As the global industry sector seeks to reduce or eliminate its carbon footprint, a number of MENA countries are investing in green steel production to capture market share and help meet emissions targets. Industry generates 20% of global greenhouse gas emissions annually, with the steel manufacturing segment accounting for the largest share, at 7%, due in part to a reliance on coal to heat smelting furnaces. According to a September 2022 report from the Institute for Energy Economics and Financial…