CELEBRATING 54 YEARS OF ECONOMIC PROGRESS AND SOCIAL DEVELOPMENT
1970 - 2024
A NATION ON THE MOVE
Recognising that educational institutions, research, and cultural centres at all levels constitute the foundation of our society’s scientific and intellectual advancement, and act as drivers for our technological and industrial progression, we reaffirm our steadfast commitment to empowering the educational sector. This includes adapting academic curricula to meet the demands of economic development, broadening opportunities for our youth to engage in scientific expertise, and immersing themselves in the broad realms of science and knowledge. We encourage them to use their cognitive and intellectual abilities for creative and innovative endeavours, thereby laying a robust groundwork for authentic investment and establishing themselves as leaders in economic growth.
“In light of rapid global advancements in frontier technologies and their applications, including artificial intelligence (AI) and its potential to amplify productivity and efficiency across myriad sectors, and with our profound recognition of the necessity to diversify sources of income through knowledge, technology, and innovation, we are resolutely intent on positioning the digital economy as a pivotal and central pillar of our national economy. We have promulgated directives to inaugurate a national programme for the adoption and localisation of AI and to expedite the establishment of legislations that will enable AI technologies to become an instrumental force in our developmental sectors.
“Moreover, driven by our firm belief in addressing climate change’s impacts and our commitment to sustainable, renewable energy, in line with the government’s goal to achieve net-zero carbon emissions by 2050—a target we endorse—we have directed efforts to expedite the development of the renewable energy sector. This encompasses the development of its legal and policy framework, the provision of incentives to encourage foreign investment and local industries, thereby fostering the domestic growth of this vital technology ”
Excerpts from His Majesty Sultan Haitham bin Tarik’s Royal Speech opening the 8th session of the Council of Oman in November 2023
Saluting Visionary Leadership
The 54th anniversary of Oman’s National Day of the Renaissance under the visionary leadership of His Majesty Sultan Haitham bin Tarik is being celebrated throughout the Sultanate. Oman’s social development and economic growth over the last 54 years have been nothing short of remarkable.
Moving ahead, Oman Vision 2040 based on sustainability, innovation and technology, is the Sultanate’s gateway to overcome challenges, keep pace with regional and global changes, generate and seize opportunities to foster economic competitiveness and social well-being, stimulate growth, and build confidence in all economic, social and developmental relations nationwide.
Oman is progressing well in line with the stated objectives of Vision 2040 and the tenth five-year development plan (2021-2025). These include ensuring financial, economic and social stability. The plan aims to achieve an economic growth of not less than three per cent, maintain inflation rate at moderate levels, financial sustainability and stimulate investment. Keeping these in mind, the government has managed to improve the state’s economic and financial performance, reduce debt and increase gross domestic product.
OMAN – A NATION ON THE MOVE 1970-2024 is dedicated to His Majesty’s endeavour to transform Oman into a modern state with well-developed infrastructure, vibrant economy and peaceful society offering the highest living standards to the people of the country. It presents an in-depth analysis of the progress made by the Sultanate in the key sectors including energy, information technology, telecommunications, banking, finance, insurance, logistics, infrastructure, real estate, tourism, health, education etc. The economic report unravels the unique measures taken-up in the last few years for development.
Overall, OMAN – A NATION ON THE MOVE 1970-2024 is the latest and the most updated & comprehensive reference point to understand why Oman is widely respected among the international community as a perfect role model of a modern and developed nation connected to its deep-rooted values.
1970 - 2024 A NATION ON THE MOVE
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RISING TIDE
Oman’s oil and gas production and exports have been steady during 2024
HE Salim Al Aufi Minister of Energy & Minerals
The Sultanate of Oman’s oil exports recorded an increase of 0.1 per cent at the end of September 2024 to reach 230,575.5 thousand barrels compared to the corresponding period in 2023 when it was 230,292.3 thousand barrels, according to the data issued by the National Centre for Statistics and Information (NCSI).
production of oil in the Sultanate of Oman decreased by 5.1 per cent at the end of September 2024 to reach 272,411.4 thousand barrels compared to 287,037.5 thousand barrels during the corresponding
Crude oil production decreased by 6.7 per cent, while the production of condensates increased by 0.6 per cent at the end of September 2024 compared to the corresponding period in 2023. Average oil price increased by 3.5 per cent to reach US$82.6 per barrel at the end of September 2024, compared to US$79.9 per barrel at the end of September 2023. Daily average production also decreased by 5.1 per cent at the end of September 2024.
As far as exports are concerned, Oman’s oil exports to China recorded an increase of 4.5 per cent to reach 219,556.9
thousand barrels until of September 2024 compared to 210,172 thousand barrels in the same period of 2023. Oil exports to India decreased by 26.3 per cent and that of South Korea increased by 31.8 per cent. Meanwhile, gas production (including imports and local production) in Oman increased by four per cent to reach 42,221.1 million cubic meters at the end of September 2024 compared to 40,588.5 million cubic meters at the end of September 2023.
Consumption of natural gas in industrial areas decreased by 4.7 per cent at the end of September 2024 compared to the corresponding period in 2023. Further, natural gas consumption increased by 7.6 per cent in power generation plants, and by 9.9 per cent in industrial projects, whereas consumption in industries areas and oil fields decreased by 4.7 per cent and 12 per cent, respectively, at the end of September 2024.
Warmest greetings to His Majesty Sultan Haitham bin Tarik and the people of the Sultanate of Oman on the joyous occasion of the 54th National Day of the Renaissance.
MINERAL RESOURCES USING SOLAR POWER
AL TAMMAN FERRO ALLOYS (FZC) LLC is Sulanate of Oman’s first Ferrochrome Smelter. The production facilities are located at Free Zone Sohar in proximity to Sohar port. The Installed capacity of the smelting plant is 75,000 mtpa high carbon Ferrochrome.
CUSTOMER CENTRICITY
APSR Promotes Sustainability and Supports Economic Growth through Strategic Energy, Water, and Sanitation Projects
The Authority for Public Services Regulation (APSR) continues to play a vital role in regulating Oman’s electricity, water, wastewater, and natural gas transportation sectors. The authority is implementing a range of strategic projects aimed at fostering economic growth, increasing In-country value, and enhancing national workforce participation. These efforts align with the priorities of Oman Vision 2040, focusing on energy, innovation, economic development, sustainable growth, and employment.
Last year, APSR was able to increase Omanisation rates in the electricity, water, and wastewater sectors. The total number of employees in the two sectors during 2023 reached about 13,248 employees, of whom 10,442 Omanis work in these sectors, representing 79 per cent of the workforce in these sectors. The value of projects awarded to local companies and SMEs amounted to about RO35mn.
APSR seeks to implement national targets to reach zero neutrality levels by 2050, having granted its approval for the construction of the Ibri 2 solar power plant, with a total capacity of 500 MW. The plant provided electricity to about 33,000 homes. The project contributed to reducing annual carbon emissions by about 340 tonnes.
APSR has also granted approval to Oman Power and Water Procurement Company (OPWP) for the Manah 1 and Manah 2 solar projects, where the two plants will produce 1,000 MW at a rate of 500 MW
each. The volume of energy generated from solar energy systems from the rooftops of houses and commercial buildings reached about 60 megawatts. The 50 MW Dhofar 1 Wind Power Plant has been successfully implemented, supplying electricity to approximately 16,000 homes. APSR has also announced several new wind energy projects for the next phase, including Duqm (Ras Madrakah) Wind Power Project, with a capacity ranging from 234–270 MW, Sadah Wind Power Plant Project, with a capacity of 81–99 MW, Dhofar 2 Wind Power Project, with a capacity of 114–132 MW and Jalan Bani Bu Ali Wind Energy Project, with a capacity ranging from 91–105 MW.
APSR has issued regulations governing the activity of electric vehicle (EV) charging and has prepared a technical requirements manual for connecting EV chargers to the electricity grid. It has also developed a national sustainable energy program in collaboration with NAMA Distribution and reviewed a power transmission project proposal, subsequently submitting it to the Ministry of Energy and Minerals.
Furthermore, APSR introduced policies on self-generation, direct sales, and energy transmission to promote decentralised energy solutions. It also launched the national campaign “Our Sustainable Energy,” which highlights three core themes: sustainable construction, renewable energy, and electric vehicles. This streamlined approach aligns APSR’s initiatives with Oman’s Vision 2040 and underscores its commitment to advancing sustainability
and innovation across the energy sector. APSR has recently overseen several key projects within the energy sector, focusing on reviewing and approving operational and capital allocations for various licensed companies. It has also established regulatory frameworks to enhance service delivery, increase efficiency, reduce costs, and improve the sector’s financial performance, all while aligning with government efforts to attract more investments in the sector.
One of the most significant initiatives is the electricity interconnection project linking the northern and southern electricity networks of Oman. This strategic project aims to optimise resource sustainability and enhance the efficiency and reliability of the electricity transmission network. The initiative will facilitate the decommissioning of up to 14 high-cost diesel power plants, which also pose environmental risks. The project is expected to reduce approximately 474,000 tons of carbon emissions annually, marking a significant step towards environmental sustainability.
In addition, APSR has developed a direct selling project, enabling large new subscribers to engage directly with energy producers. To support this initiative, a comprehensive regulatory framework has been designed to establish the foundations of energy transmission across licensed networks. APSR also collaborates with stakeholders to liberalise supply activities and foster competition in the energy market, contributing to a more dynamic and efficient energy sector.
50 YEARS OF PATH-BREAKING ACHIEVEMENT
The Oman Chamber of Commerce and Industry has achieved qualitative leaps in empowering the private sector
OCCI is also dedicated to enabling private sector involvement in areas that directly affect the well-being of Oman’s citizens and residents. This includes roles in health and education services, along with a strong focus on social responsibility. The Chamber’s new branding and identity redesign reflect a fusion of heritage and modernity, drawing inspiration from traditional coinage symbols that represent trade and economic exchange— an embodiment of OCCI’s forward-looking stance toward sustainable growth.
HE Sheikh Faisal bin Abdullah Al-Rawas Chairman Oman Chamber of Commerce and Industry
independence. Guided by this new system, OCCI has introduced innovative tools and partnerships designed to support the business community’s alignment with Oman Vision 2040, foster integrated solutions for sectoral challenges, and strengthen Oman’s trade relations worldwide.
In its continuous efforts, OCCI actively channels private sector perspectives, identifies challenges to sectoral development, and works to implement solutions. The Chamber’s strategic focus is closely aligned with Oman Vision 2040, aiming to improve the business environment, support economic diversification, drive regional development, and reinforce governance through updated systems and regulatory practices. These efforts reflect OCCI’s steadfast commitment to the sustained growth and diversification of Oman’s economy and the empowerment of its private sector.
To improve the business environment, the Oman Chamber of Commerce and Industry (OCCI) has been actively reviewing and enhancing laws and regulations related to economic activities in coordination with the relevant authorities. This process includes frequent consultations with government officials and the Majlis Oman to represent the private sector’s perspective on proposed laws and regulations. OCCI has
also reviewed various aspects and executive regulations to ensure that new and existing policies safeguard private sector interests.
In supporting private sector growth, OCCI has initiated targeted programs to boost competitiveness at both the local and international levels. Business councils and economic forums are organised to facilitate networking between Omani business owners, including those from small and medium enterprises (SMEs), and international counterparts, fostering potential partnerships and investment opportunities. These initiatives also extend to OCCI’s branches across Oman’s governorates, underscoring its commitment to regional economic development and alignment with Oman Vision 2040’s goals for economic diversification and foreign investment attraction.
A key strategic focus for OCCI is the digital transformation of private sector institutions. Through the integration of advanced digital solutions, such as artificial intelligence, cybersecurity, information technology, and support for e-commerce and financial technology, OCCI is helping businesses stay competitive in a rapidly evolving digital landscape.
OCCI has also enhanced the quality of services provided to its members by streamlining processes, fostering digital transformation, and simplifying procedures to improve the efficiency of internal operations. Initiatives and programs have been implemented to refine internal
regulations, aligning them with best practices to ensure that OCCI operates with greater adaptability and responsiveness to industry developments.
In collaboration with relevant authorities, OCCI is also working to establish a center for economic studies and research to provide insights into the national economy’s future trajectory. This center will monitor economic and geopolitical trends on local, regional, and global levels, helping Oman anticipate and adapt to shifts in the economic landscape.
OCCI’s commitment to social responsibility is reflected in the inauguration of its Social Investment Center. This center focuses on maximizing social impact through partnerships with public and private sectors, charities, and civil society organizations, directing social investment towards initiatives that improve social, environmental, health, and educational conditions. These efforts align with Oman Vision 2040’s sustainable development goals, reinforcing the private sector’s role in social progress.
OCCI remains dedicated to strengthening the strategic partnership between the public and private sectors, enhancing the entrepreneurship environment, attracting international investments, and increasing operational efficiency. By fostering governance principles and updating regulations, OCCI is committed to advancing the private sector’s role in Oman’s economic future.
Warmest Greetings from Muscat Overseas Group to HIS MAJESTY
SULTAN HAITHAM BIN TARIK
And the people of the Sultanate of Oman on the occasion of the 54th National Day of the Renaissance
SINCE 1972
Established in 1972, the Muscat Overseas Group (MOG) has grown steadily and diversified over the past 54 years, mirroring Oman’s emergence as a key regional economic and political power under the leadership of Late His Majesty Sultan Qaboos bin Said and His Majesty Sultan Haitham bin Tarik.
We continue to grow under His Majesty Sultan Haitham bin Tarik’s Renewed Renaissance and Vision 2040 plan.
Our endeavour is to be a trusted partner and valuable contributor to the development of Oman.
A strong rebound
The macroeconomic outlook for Oman’s economy remains favourable, supported by sustained reforms under the strategic direction of Oman Vision 2040 and favorable energy prices
Oinflation rate at moderate levels (around three per cent), attain financial sustainability and to stimulate the investment climate. Keeping these in mind, the government has managed to improve the state’s economic and financial performance, reduce debt and increase gross domestic product.
By the end of September 2024, public revenues had risen to
RO9.198bn, up 4 per cent from RO8.886bn in the same period in 2023. The state’s general budget recorded a surplus of RO447mn, while public debt decreased to RO14.4bn in June 2024, a sharp reduction from RO20.8bn in 2021. Public debt as a percentage of
Foreign direct investment (FDI) also surged, reaching RO25.05bn by the end of 2023, up 21.6 per cent compared to RO20.59bn in 2022. This growth underscores Oman’s appeal as a destination for international investors.
Improved fiscal management has positively influenced Oman’s credit ratings. Standard & Poor’s upgraded the country’s rating to BBB-
from BB+, with a stable outlook, while Moody’s revised its outlook to positive, maintaining the Ba1 rating. These ratings reflect Oman’s enhanced economic environment, regaining investor confidence after nearly seven years of challenges caused by global oil price volatility and the COVID-19 pandemic. The Sultanate has also made strides in global rankings, climbing 39 places in the 2024 Index of Economic Freedom to 56th globally, compared to 95th in 2023. In the Entrepreneurship Index, Oman advanced 27 places to 11th globally. Additionally, the country leapt from 149th in 2022 to 50th in Environmental Performance Index.
Strong fundamentals
The macroeconomic outlook for the Omani economy remains favourable, supported by sustained reforms under the strategic direction of Oman Vision 2040 and favorable energy prices, according to the Central Bank of Oman’s (CBO) annual report for 2023.
‘The oil prices are expected to remain at a higher level, providing crucial support to hydrocarbon activities. Non-hydrocarbon growth is expected to gradually increase to 3.0 per cent over the medium term, supported by global demand recovery, continued reforms, and robust private investment amid a shift in composition towards investments in non-hydrocarbon sectors,’ the CBO said in the report.
It noted that Oman’s fiscal outlook for 2024 is projected to witness further improvement, buoyed by favorable oil prices and fiscal consolidation measures, which have positively influenced both fiscal and external positions.
The Omani economy currently has a favourable outlook notwithstanding some downside risks stemming from global factors. In 2024, economic growth is projected to be higher, while inflation remains low. The year ahead provides Oman with a window of opportunity to accelerate the implementation of structural reforms. These reforms are critical to strengthening the economy’s resilience while enhancing its prospects, which are essential for Oman to effectively address future challenges.
The report indicated that economic activity achieved decent growth levels despite global challenges in 2023, driven by significant improvement in the performance of the non-hydrocarbon sector. Prices also remained stable due to government measures aimed at containing global inflationary pressures. Moreover, the CBO suggested that the macroeconomic outlook indicates the Omani economy can achieve good growth rates in 2024.
The global economic environment remains challenging due to the ongoing threat of inflationary pressures, geopolitical tensions, disruptions in global trade, and extreme climate events. ‘Despite a challenging global environment, the Omani government’s policy measures and reforms have achieved notable success. Economic activity continued to expand and sustain its positive growth trajectory, driven by the recovery of non-hydrocarbon sectors. Inflation has remained low, largely reflecting lower energy prices and subdued global and domestic demand conditions.
THE MANUFACTURING SECTOR RECORDED A REAL GROWTH RATE OF 9.2 PER CENT IN THE FIRST QUARTER OF 2024. A SHARP RECOVERY FROM A 2.2 PER CENT DECLINE DURING THE SAME PERIOD IN 2023. THE CONTRIBUTION OF MANUFACTURING TO GROSS
DOMESTIC PRODUCT ROSE TO
10 PER CENT
AT CONSTANT PRICES AND
10.5 PER CENT AT CURRENT
PRICES
The CBO stated that Oman’s inflation trajectory is significantly influenced by external factors, primarily due to its integration with global markets, as evidenced by fluctuations in oil prices and exchange rate movements. The impact of these factors on domestic inflation has been mitigated by an ongoing appreciation in the nominal effective exchange rate (NEER) and an increased focus on diversification. Additionally, government administrative measures have also helped contain the inflation rate.
Sectoral contribution
Oman’s economy is working on diversifying its economy from hydrocarbons and notable progress has been made in this direction. According to a Ministry of Economy announcement in August 2024, Oman’s manufacturing sector showed the highest performance among key sectors targeted for economic diversification during the first quarter of this year. The sector’s strong growth marks a significant achievement within the framework of the 10th Five-Year Plan (2021-2025).
According to the ministry, the manufacturing sector recorded a real growth rate of 9.2 per cent in the first quarter of 2024, a sharp recovery from a 2.2 per cent decline during the same period in 2023. The contribution of manufacturing to gross domestic product (GDP) rose to 10 per cent at constant prices and 10.5 per cent at current prices.
Looking ahead, the 10th Five-Year Plan aims to increase the manufacturing sector’s contribution to the GDP to 12.2 per cent by the end of the plan. Dr Salem bin Abdullah al Sheikh, spokesman for Ministry of Economy, attributed this growth to success of economic diversification efforts. He highlighted the fact that these initiatives have boosted the performance of industrial sectors, increased industrial exports, and attracted investments in industrial, free and
private zones. Notably, the launch of new strategic projects, such as Duqm Refinery, have played a crucial role in driving this progress.
He noted the remarkable growth rates in the refined petroleum products industry (67.6 per cent), basic chemicals industry (6.4 per cent) and other manufacturing industries (6.3 per cent) during the first quarter.
Sheikh attributed the robust growth in the manufacturing sector to several key factors. These include large investments in new and expanding industrial projects, which have enhanced production capacities and increased both local and foreign demand for Omani industrial products. Development of industrial infrastructure, supported by government investments in roads, electricity and ports, has also consolidated the sector’s capabilities.
In addition, incentives and facilities provided to investors, such as tax breaks, have encouraged further industrial investment. Adoption of modern technologies in manufacturing and programmes to improve productivity have also contributed to the sector’s success. The stability of Oman’s economy has played a vital role in enhancing the business environment and building investor confidence.
According to World Bank’s ‘Spring 2024 Gulf Economic Update, ‘Oman’s economic outlook remains favourable with real growth expected to reach 1.5 per cent in 2024, according to the latest forecast from the World Bank. The update says, ‘Increased gas production and economic diversification efforts are the key drivers of growth in the Sultanate. These include efforts to further improve the business environment, support the role of Small and Medium Enterprises (SMEs) in the economy and accelerate investments in renewable energy and green hydrogen.’
And the people of the Sultanate of Oman on the occasion of the 54th National Day of the Renaissance
Al Tamman Trading Establishment LLC is wholly owned subsidiary company of Al Tamman Investments.
OUR MISSION
Creat a world class platform in the field of education, healthcare, hospitality, other social sectors, Industries that accentuates optimum utilisation of the Nation’s resources and value creation for the stakeholders.
OUR VISION
Contribute actively towards social wellbeing and sustainable development that spurs economic growth.
Growth enablers
Oman is working on a host of development projects to fulfill the country’s socio-economic objectives
THE NEWLY CREATED OMAN FUTURE FUND WITH A CORPUS OF $5.2BN SPREAD OVER FIVE YEARS IS EXPECTED TO GIVE A BOOST TO GOVERNMENT SPENDING. THIS WILL ALSO LEAD TO PUBLIC PRIVATE PARTNERSHIPS BETWEEN THE OIA LINKED OMAN FUTURE
FUND AND THE
PRIVATE
SECTOR
US$10b. The first project, led by a consortium of POSCO and ENGIE, aims to produce over 200 kilo tons per annum (KTPA) of green hydrogen by 2030. The second project, called Hyport Duqm, aims to produce over 50 KTPA of green hydrogen by 2029. Total awarded green hydrogen projects in Oman have a consolidated investment of over $30bn and a production capacity of 750KTPA.
A second round of green hydrogen auction Edprocess has been launched to attract investment proposals for large-scale projects. The goal is to establish Oman as one of world’s largest exporters of green hydrogen by 2030, aligning with Oman Vision 2040 and netzero carbon emissions target by 2050.
Blue Hydrogen and Ammonia project
Shell Oman is developing a Blue Hydrogen and Ammonia project in Duqm to support the transition to sustainable fuels. The Ministry of Energy and Minerals is endorsing the project, which aims to produce blue hydrogen and blue ammonia from natural gas.
Oman-Etihad Rail project
This project is expected to unlock major construction opportunities and save $2bn in road maintenance costs. It includes construction of tunnels, viaducts, culverts, wadi crossings, sand mitigation measures, roads, highway diversions, utility diversions, line side civil works and rail track work. The Oman component covers 163km of the 303km rail link.
Key facilities include a freight facility and a marshalling yard at Sohar Port, a passenger station at Suhar City, a rail depot at Suhar, maintenance facilities, a second marshalling yard, and a freight facility at Hafeet. The rail project is expected to boost trade, investment, tourism and economic ties between Oman and the UAE, revive Oman’s national rail project and support zero carbon transportation networks.
Oman and Vulcan Green Steel project
The Jindal Steel Group plans to launch the Vulcan Green Steel project in Duqm. The project is scheduled for completion by 2026 and aims to support Oman’s vision to be carbon-neutral by 2050.
Oman’s tallest dam project
The Wadi Adawnib Dam will be one of the largest in Oman when it becomes operational in 2024. The project includes a control room, spillway, diversion culvert, and a public garden to attract tourists. Another project for constructing a flood protection dam in Wadi Annar is also underway. A number of key projects have been planned during 2024 as part of the contribution and other expenditures in the budget. These include:
Subsidising interest on housing loans (Iskan Program): The Iskan Program is a collaboration between the MoF, Ministry of Housing and Urban Planning, and Oman Housing Bank. This program aims to expedite access to housing loans with subsidised interest rates for citizens. MoF intends to contribute to this interest subsidy based on its lending portfolio of RO1.90bn along with partnering with a consortium of local banks.
Allocation for the social protection system/ Social Protection Fund (SPF)
Established through Royal Decree No. 33/2021, the SPF is designed to create a comprehensive social protection system and unify pension funds across public and private sectors, thus enhancing work environments and investment efficiency, while striving to achieve sustainability. The 2024 budget has allocated approximately RO1.31bn for these programs, with RO0.56bn dedicated to programs for vulnerable groups and family income support, and RO0.75bn set aside for extensive social insurance programs. Overall, these policy measures and initiatives have set the stage for sustained economic growth over the coming years in line with the objectives of Vision 2040.
Warmest Greetings to His Majesty Sultan Haitham bin Tarik and the people of the Sultanate of Oman on the joyous occasion of the 54th National Day of the Renaissance
DHARAMSEY GROUP
Smart Revolution
Guided by Oman’s ICT Vision, a transformative shift is underway, leveraging innovation, advanced technologies, and skilled talent to achieve sustainable growth and global economic leadership
Tdiversification, reducing dependency on oil revenues and positioning itself as a leader in the global digital economy.
The strategic vision focuses on leveraging advanced technologies, enhancing human capital, and fostering a culture of innovation to achieve long-term economic and social benefits.
The Executive Programme for Artificial Intelligence and Advanced Technologies launched in 2022 represents a critical milestone in the nation’s transformation. This programme has been expanded for implementation from 2024 to 2026, reflecting the country’s determination to embed AI into its developmental and economic sectors. Led by the Ministry of Transport, Communications, and Information Technology (MTCIT), the initiative aims to propel Oman into the global top 50 of the Government AI Readiness Index.
Key aspects of the programme include integrating AI into diverse industries, developing local talent, and creating regulatory frameworks that prioritise ethical AI usage. This programme also underscores Oman’s ambition to harness the potential of AI to address complex challenges while fostering sustainable development.
Furthermore, this strategy for AI integration is multifaceted. The establishment of initiatives like the Oman Open Data portal and the AI Studio highlight the country’s focus on creating ecosystems conducive to innovation and collaboration. The AI Studio serves as a nexus for industry and academic collaboration, where experts and companies can develop AI-driven solutions tailored to local and regional challenges. Simultaneously, the Oman Open Data portal empowers entrepreneurs, policymakers, and researchers with access to valuable datasets, fueling data-driven decision-making and entrepreneurship.
Oman’s collaboration with the World Economic Forum to establish a Center for the Fourth Industrial Revolution (4IR) marks another significant step in integrating cutting-edge technologies like quantum computing into its developmental framework.
Robust ICT infrastructure is pivotal to building a knowledge-based economy. Investments in 5G technology are currently revolutionising connectivity, paving the way for smart cities like Muscat and Duqm. These cities exemplify the integration of digital solutions to optimise public services, enhance energy efficiency, and drive economic activities. Oman’s ICT advancements are not just about connectivity; they are a critical enabler of its digital economy, which is projected to contribute 10 per cent of GDP by 2040, up from 2 per cent in 2021. Programmes like Oman Data Park’s Sahab initiative illustrate the focus on fostering a digitally skilled workforce, ensuring Omanis are prepared to thrive in a technology-driven global landscape.
Innovation is central to Oman’s economic diversification strategy, supported by institutions like Sultan Qaboos University (SQU) and Innovation Park Muscat (IPM). These hubs provide platforms for collaboration between academia, startups, and industry to advance technologies in renewable energy, biotechnology, and nanotechnology. Oman’s commitment to innovation was on display at the 2024 Ejaad Leadership Forum, where significant research and innovation agreements were announced. These agreements, involving entities like Petroleum Development Oman (PDO), SQU, and international partners, focus on energy efficiency, water sustainability, and addressing environmental challenges. Some standout displays at the forum included research into wave energy technologies and safe disposal methods for industrial waste.
The renewable energy sector is a cornerstone of Oman’s sustainability goals. Abundant solar and wind resources are being harnessed for projects that position the country as a leader in green hydrogen and wave energy technologies. Collaborative efforts between Oman LNG and the German University of Technology aim to integrate green hydrogen into existing gas infrastructure, demonstrating how traditional industries can evolve to align with global decarbonisation goals. These initiatives also underscore Oman’s potential to become a global hub for hydrogen production and export, leveraging its strategic location and resources.
That said, governance plays a critical role in the nation’s journey toward a knowledge-based economy. The MTCIT’s focus on
OMAN
RECOGNISES THAT
THE PROCESS
OF BUILDING A
KNOWLEDGE-BASED ECONOMY HINGES ON ITS PEOPLE. INITIATIVES
LIKE SAHAB AND ACADEMIC PROGRAMS AT SQU EMPHASISE THE DEVELOPMENT OF ADVANCED TECHNICAL SKILLS IN AREAS SUCH AS AI, CYBERSECURITY, AND RENEWABLE ENERGY
governance and ethical AI ensures that emerging technologies are implemented responsibly. Legislative and regulatory frameworks are being developed to safeguard data privacy, enhance transparency, and build trust in AI-driven solutions. This approach balances innovation with societal well-being, fostering an environment where technological advancements can thrive without compromising ethical standards.
Oman recognises that the process of building a knowledge-based
economy hinges on its people. Initiatives like Sahab and academic programs at SQU emphasise the development of advanced technical skills in areas such as AI, cybersecurity, and renewable energy. The Ministry of Higher Education, Research, and Innovation (MoHERI) actively promotes public-private partnerships to bridge the skills gap and prepare Omanis for leadership roles in a digital economy. International collaborations further enrich Oman’s research capabilities and open new pathways for innovation, ensuring that the
But focusing on innovation and digital transformation extends far beyond ICT and AI. It has been reported that the logistics sector is now leveraging AI-powered solutions to optimise supply chains, while the healthcare sector in on course to utilising predictive analytics to improve patient outcomes. These advancements demonstrate the broad applicability of AI and emerging technologies across a multitude of industries, enhancing efficiency, reducing costs, and
Now the onus is now on structuring strong regional and international collaborations through which the Sultanate of Oman can position itself at the forefront of global technological advancements. Modern practices have shown that partnerships with leading organisations and academic institutions can bring best practices and cutting-edge expertise into countries, enabling it to set benchmarks for innovation and knowledge-driven development. These collaborations can underscore the nation’s role as a regional leader in leveraging technology for economic and social progress.
It is this commitment to transitioning into a knowledge-based economy that reflects Oman’s determination to adapt to the evolving demands of the global economy. By integrating advanced technologies, fostering a culture of innovation, and investing in human capital, the nation is building a resilient and diversified economy. This transformation is not just about economic growth; it is about creating a future where sustainability, inclusivity, and innovation are at the forefront.
Eco Revolution
Oman is embracing a transformative energy future, leveraging abundant renewable resources to position itself as a global leader in green hydrogen – revolutionising sustainability and economic resilience
The Sultanate of Oman’s energy landscape is set for a transformative shift as the country pursues leadership in green hydrogen production – a move that could reshape the nation’s role on the global energy stage. Recognised as the ‘oil of the 21st century,’ green hydrogen represents a new, sustainable frontier in the energy sector.
Unlike traditional fossil fuels, green hydrogen is produced through the electrolysis of water powered by renewable energy sources like wind and solar, making it a clean energy option. As demand for low-carbon energy rises, Oman’s ambition to pivot from its petroleum-based economy to a global leader in green hydrogen production is gathering momentum.
The International Energy Agency (IEA) and the World Economic Forum have taken note of Oman’s unique advantages in this emerging sector. With ample sunlight, reliable wind resources, and abundant land for renewable installations, the country is well-positioned to develop a large-scale green hydrogen industry. According to the IEA, Oman could rank as the world’s sixth-largest hydrogen exporter by 2030, capitalising on its natural resources and strategic location. This potential is highlighted in the IEA’s report ‘Renewable Hydrogen from Oman: A Producer Economy in Transition,’ which underscores Oman’s capacity to supply clean energy to the world while aligning its economic future with global sustainability goals.
With plans to produce over one million tonnes of green hydrogen annually by 2030, Oman is on track to become a central figure in
the green hydrogen market. Production is projected to increase to 3.75 million tonnes annually (mtpa) by 2040 and to reach 8.5 mtpa by 2050 – surpassing Europe’s current total demand for hydrogen. These figures are not only a testament to Oman’s ambition but also highlight the growing global need for sustainable energy sources as more countries commit to decarbonisation. At this pace, Oman could become the largest hydrogen exporter in the Middle East, accounting for 61 per cent of the region’s hydrogen exports by 2030, far outpacing its regional counterparts, including the UAE and Saudi Arabia.
Realising these ambitions, however, demands extensive infrastructure. Oman plans to initially export its green hydrogen as ammonia – a more stable form for storage and shipping. This approach will require investments in specialised storage tanks and deep water jetties capable of supporting large-scale ammonia exports. Fortunately, Oman’s green hydrogen costs are expected to decrease significantly by 2030, as global prices for electrolysers, solar panels, and wind turbines continue to drop. Oman’s advantage as a high-output, lowdemand country allows it to produce green hydrogen at a lower cost than larger nations with higher energy demands.
The Sultanate of Oman’s green hydrogen planning and regulatory body, Hydrom, has made substantial progress in this regard, signing two significant green hydrogen projects in Dhofar worth US$11 billion this year (2024). These agreements came after the successful completion of Hydrom’s second round of auctions, which aims to bring the country’s total hydrogen production capacity to an impressive 1.38 mtpa by 2030. The first agreement was signed with a consortium involving Electricité de France S.A. and its subsidiary EDF Renewables (EDF Group), Electric Power Development Co., Ltd. (J-POWER), and YamnaCo Ltd (Yamna). The second partnership was forged with Actis, a leading global investor in sustainable infrastructure, and Fortescue, a global integrated green energy, metals, and technology company. These partnerships underscore Oman’s resolve to advance its green hydrogen capabilities and meet its ambitious production goals.
To further these initiatives, Hydrom had collaborated with the Oman Vision 2040 unit and the Ministry of Energy and Minerals to complete a two-week Ecosystem Readiness Lab in September this year. This effort culminated in the creation of 26 initiatives designed to achieve Oman’s 2030 green hydrogen production targets. These multi-sector initiatives span five key areas – Permits, Contractors, Workforce Development, Logistics, and Local Content (ICV) – and will soon be submitted for approval following a final review by the overseeing steering committee.
Additionally, Nafath Renewable Energy LLC, a leading solar PV and renewable energy company, has signed a collaboration agreement with FuelCell Energy Inc., a U.S.-based leader in sustainable energy technologies. The announcement, made during the third edition of IEEE PowerTalks under the auspices of Dr. Khamis bin Saif al Jabri, Head of the Oman Vision 2040 Implementation Follow-up Unit, strengthens Oman’s positioning in green hydrogen production.
Nafath brings its expertise in solar PV and renewable projects, while
A GREEN HYDROGEN INDUSTRY COULD BE ECONOMICALLY TRANSFORMATIVE FOR THE COUNTRY. AS GLOBAL ENERGY TRANSITION CONTINUES TO REDEFINE TRADITIONAL MARKETS, OMAN’S INVESTMENTS IN CLEAN HYDROGEN ALIGN WITH OMAN
VISION
2040, THE
NATION’S
COMPREHENSIVE PLAN FOR SUSTAINABLE ECONOMIC DIVERSIFICATION
FuelCell Energy provides its knowledge in hydrogen production and clean power generation. Together, they aim to advance hydrogen production, storage, and utilisation, accelerating Oman’s green energy ambitions and fostering innovation in sustainable energy solutions.
These signings are particularly crucial given that most hydrogen today is derived from natural gas or methane – a process that, while economically viable, generates significant carbon emissions and is known as ‘grey hydrogen.’ As the world transitions toward net-zero emissions, green hydrogen, produced without emissions, has emerged as the clear alternative. Oman’s vision of producing green hydrogen directly from desalinated seawater – using its rich renewable resources to power electrolysis – aligns with this clean energy goal, setting a model for future production.
Globally, Oman faces competition from countries with similar aspirations to lead in green hydrogen, including Australia, the United States, and Spain. Market analysts at Rystad Energy predict that Australia will be the top green hydrogen producer by 2030, followed closely by the U.S. and Spain. Yet, Oman’s ambitious targets and prime resources uniquely position it to capture a significant share of the market, particularly in Asia and Europe, where demand for clean hydrogen is accelerating. Partnerships with energy-intensive countries like Germany and Japan, eager for dependable green hydrogen suppliers, could further support Oman’s market entry by providing not only a customer base but also technological and financial investment to help build the necessary infrastructure.
A green hydrogen industry could be economically transformative for the country. As the global energy transition continues to redefine traditional markets, Oman’s investments in clean hydrogen align with Oman Vision 2040, the nation’s comprehensive plan for sustainable economic diversification. Success in this arena could attract foreign investment, create high-value jobs, and reduce Oman’s reliance on oil
and gas, enhancing its economic resilience in the face of fluctuating oil prices and carbon reduction commitments.
Oman’s shift to green hydrogen is also a significant step in environmental stewardship, contributing to global climate efforts. As one of the first petro-states to seriously pursue green hydrogen on a large scale, Oman’s progress could serve as a model for other countries transitioning from fossil fuel-based economies to clean energy hubs. By leveraging its renewable resources, Oman is showing that green hydrogen production can be a viable, long-term strategy, offering a pathway for nations to align their economies with global sustainability goals.
The journey toward a green hydrogen future is not without its challenges. Oman must continue to invest heavily in technology, infrastructure, and skilled labor to realise its hydrogen production goals. Additionally, as technology in hydrogen production, storage, and transport evolves, the country will need to remain adaptable to maintain a competitive edge. However, these challenges are far outweighed by the opportunities. As the global appetite for clean energy continues to grow, the nation’s decision to focus on green hydrogen will likely secure its place among the leading nations in this field. By building strategic partnerships, investing in infrastructure, and continually expanding its renewable energy capacity, Oman is poised to be a pivotal player in the future of sustainable energy.
In a world where climate change demands decisive action, Oman’s commitment to green hydrogen not only strengthens its economic future but also establishes it as a leader in the global transition to lowcarbon energy. This dedication to sustainable development creates a promising legacy of economic resilience, environmental stewardship, and international leadership. As green hydrogen rises to meet global energy needs, Oman’s proactive approach ensures it will be at the forefront of this transition, helping shape a cleaner, more sustainable energy future for generations to come.
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Robust performance
The banking sector has continued playing its role as a key enabler of economic growth in Oman
The banking sector has reported strong earnings, solid capital positions, ample liquidity, and low non-performing loans as per the Central Bank of Oman’s (CBO) Financial Stability Report 2024, highlighting the country’s robust financial system despite global challenges such as geopolitical tensions and tightened monetary policies.
The report noted that while global inflation and economic uncertainties persist, Oman’s financial sector has shown resilience, supported by high oil prices and fiscal discipline. The banking sector has reported strong earnings, solid capital positions, ample liquidity, and low non-performing loans.
The Systemic Risk Survey conducted in January 2024 indicated strong confidence in Oman’s financial stability. Specialised banks and foreign commercial banks were viewed as the most robust, while insurance companies and capital market institutions were seen as more vulnerable. Positive rating reviews from leading agencies since late 2021 underscore international confidence in Oman’s economic prospects.
The Composite Financial Stability Indicator showed sustained stability in 2023, driven by improvements in debt sustainability and banking stability. The banking sector continued to expand, maintaining robust earnings and strong capital positions despite two years of tightened monetary policy. Stress tests revealed that banks could withstand various shocks without breaching minimum capital requirements.
The Central Bank of Oman remains vigilant about rising cyber threats and climate change impacts. Policies are being crafted to mitigate cyber risks and incorporate climate risks into financial institutions’ risk management frameworks. In a foreword of the report, HE Tahir Salim Abdullah al Amri, Executive President of CBO, stated that in the near term, “Our assessment indicates that the risks to the outlook for financial stability in Oman remain low and the Omani banking system is well-poised to leverage its strength to support businesses and households in the event of any unforeseen shocks.”
The CBO remains unwavering in its determination to safeguard financial stability, he added. “We will continue to meticulously take stock of global and domestic developments and adopt international best practices ensuring that our financial system remains resilient and fully capable of supporting the economic growth and prosperity of our nation.”
Oman’s Banking Industry has given a good account of itself in 2024. Total outstanding credit extended by Oman’s banking sector, including both conventional and Islamic banks, grew by 3.8 per cent year-on-year to reach RO31.4bn as of June 2024, according to the statistics released by the Central Bank of Oman (CBO).
Within this total, bank credit to the private sector increased by 3.4 per cent to RO26.3bn. Non-financial corporations received the largest share of private sector credit at 45.2 per cent as of the end of June 2024, followed closely by the household sector at 44.8 per cent. Financial corporations accounted for 6.4 per cent, while other sectors received the remaining 3.6 per cent of private sector credit.
Conventional banks’ total outstanding credit grew by 2.3 per cent year-on-year in June 2024, as per the data given in the CBO’s monthly statistical bulletin. Credit to the private sector by conventional banks rose by 1.6 per cent to RO20.5bn, while their overall investments in securities increased significantly by 22.4 per cent to RO5.6bn, according to the data.
However, banks’ investment in government development bonds decreased by 8.3 per cent year-on-year to RO1.9bn in June, while their investments in foreign securities surged by 67.9 per cent to RO2.2bn. On the other hand, total deposits in Oman’s banking sector grew by 11.6 per cent to RO30.7bn as of June 2024, compared to the same period the previous year. Private sector deposits increased by 14.8 per cent to RO20.7bn. The household sector contributed the most to private sector deposits at 51.8 per cent, followed by nonfinancial corporations at 29.6 per cent, financial corporations at 15.6 per cent, and other sectors at 2.9 per cent.
Deposits held with conventional banks grew by 10.9 per cent yearon-year to RO24.7bn as of June 2024. Private sector deposits, which made up 66.8 per cent of total deposits with conventional banks, increased by 11.5 per cent to RO16.5bn. Government deposits with conventional banks slightly decreased by 0.9 per cent to RO5.3bn, while deposits of public enterprises increased by 12.1 per cent to RO1.8bn.
Islamic banking
The total assets of Islamic banks and windows in Oman increased by 11.4 per cent year-on-year, reaching RO7.8bn by the end of June 2024. Islamic assets constitute approximately 18.1 per cent of the total banking system assets in Oman as of the end of June 2024.
Islamic banking entities provided financing amounting to RO6.4bn at the end of June 2024, reflecting a growth of 10.4 per cent compared to the previous year. Total deposits held with Islamic banks and windows increased by 14.7 per cent to RO6bn. Interest rates in Oman saw a slight increase during the first half of 2024. According to CBO data, the weighted average interest rate on Omani rial deposits with conventional banks rose from 2.313 per cent at the end of June 2023 to 2.651 per cent by the end of June 2024, while the weighted average lending rate increased from 5.434 per cent to 5.581 per cent over the same period.
Meanwhile, the overnight Omani rial domestic inter-bank lending rate increased to 5.402 per cent in June 2024, up from 5.350 per cent a year earlier. ‘This rise in the domestic inter-bank lending rate is a result of the increase in the average repo rate for liquidity injection by the CBO, which moved to 6.00 per cent from 5.750 per cent a year ago, following the US Federal Reserve rate hikes,’ the CBO stated in its bulletin.
Ratings upgrade
According to a Fitch Ratings report, Omani banks’ reasonable credit fundamentals and improved operating conditions will help them withstand potential external shocks in 2024. The Omani banking sector’s continued stability provides banks with some headroom to absorb potential moderate shocks from heightened geopolitical tensions in the region. High-energy prices and the country’s diversification strategy to boost non-oil economy continue to support growth. Asset quality should continue to improve in 2024, but there is limited positive potential for profitability. Funding and liquidity conditions are closely linked to the general macroeconomic environment, and will remain healthy as long as high oil prices prevail. Fitch expects banking sector credit growth of 5.5 per cent to 6 per cent in 2024.
In October 2023, Fitch upgraded the operating environment factor score of Omani banks to ‘bb+’ in line with the sovereign upgrade, which resulted in Viability Rating (VR) upgrades for Bank Muscat, National Bank of Oman, BankDhofar and Sohar International Bank. Omani banks are highly exposed to the sovereign through lending to the government and government-related entities (GREs), holdings of Omani government securities, and high reliance on GRE deposits. Exposures to the sovereign also considers banks’ exposures to public sector employees through their retail loan books.
ISLAMIC BANKING ENTITIES
PROVIDED
FINANCING
AMOUNTING TO RO6.4BN AT THE END OF JUNE 2024, REFLECTING A GROWTH OF 10.4 PER CENT COMPARED TO THE PREVIOUS YEAR. TOTAL DEPOSITS HELD WITH ISLAMIC BANKS AND WINDOWS INCREASED BY 14.7 PER CENT TO RO6BN
‘We have reassessed asset quality risks and expect asset quality metrics will improve slightly over 2024 owing to favourable operating conditions, while write-offs will reduce the sector impaired loans ratio. The vast majority of restructured loans (10 per cent of total sector loans at end-2023) are in Stage 2 and adequately covered.
We do not expect any material migration to Stage 3, despite remaining pressures on the real estate, construction and hospitality sectors. Banks are exposed to event risk due to high single-obligor concentrations, which is largely unavoidable given the narrow nature of the domestic economy,’ says the Fitch report.
Creating pathways
The Financial Services Authority seeks to increase market activity by attracting investors from all segments, from large businesses, family-owned enterprises, small and medium-sized enterprises (SMEs) and start-ups
The Financial Services Authority (FSA), Oman’s capital market regulator and other key departments — including the Ministry of Finance (MoF), Ministry of Commerce, Industry and Investment Promotion (MOCIIP), Muscat Stock Exchange (MSX) and Estidamah (National Programme for Fiscal Sustainability and Financial Sector Development) has announced details of the Capital Market Incentives Program, a strategic initiative based on Royal Directives and aimed at enhancing Oman’s investment and business climate. The CMIP is structured to engage private sector entities by providing them with three entry points or pathways for listing on the MSX over a five-year period, with each entry point being complemented by a tailored incentive framework. Through this Program, the FSA seeks
to increase market activity by attracting investors from all segments, from large businesses, family-owned enterprises, small- and mediumsized enterprises (SMEs) and start-ups. The first pathway is designed to include companies in the main stock market. The second pathway introduces the Muscat Stock Exchange-Alternative Investment Market (MSX-AIM), an innovative platform dedicated to the advancement of emerging companies. The third pathway is aimed at facilitating the conversion of limited liability companies (LLCs) to closed joint stock companies (SAOCs), thereby enabling their transition to a more robust corporate stature within the capital market ecosystem. The Financial Services Authority (FSA) was established in Oman on March 25, 2024, by Royal Decree 20 of 2024 (“FSA Law”), with its headquarters based in the Governorate of Muscat. In essence, the FSA has now replaced the Capital Market Authority (CMA). The FSA has approved electronic
platforms for 5 insurance companies out of 17 companies further to a number of electronic platforms of insurance brokers since the issuance of the Regulations for Electronic Insurance Operations, the most recent of which were two electronic platforms to provide integrated insurance services of Takaful Oman and Liva Insurance. FSA granted the approval for the two companies to provide digital services through the approved platforms after ensuring they satisfy all the requirements provided for in the Regulations for Electronic Insurance Operations issued in the last quarter of 2023 vide Decision No. (80/2023), which is a regulatory and legislative framework for providing digital insurance services in the Sultanate of Oman. The regulation obligates each insurance company to establish its own electronic platform to render integrated digital insurance services and permits insurance brokerage firms to establish an electronic platform to provide the licensed services. The regulation prohibits providing any electronic insurance operations in the Sultanate of Oman except after obtaining approval from the FSA.
An awareness campaign titled, “Credit Life Insurance” was launched through different media channels and social media accounts to enhance awareness, ensure the role taken by insurance as an effective tool for risk management, and introduce insurance products especially the mandatory ones. The campaign is meant to increase awareness of the policy issued by decision no. (4/2024) and entered into force in June 1, 2024. Statistics show that almost 70,000 policies were issued within the first six months of the Unified Credit Life Insurance Policy’s approval. This policy is achieving its intended regulatory goals which are based on providing protection to policyholders and other parties. In 2023, the erstwhile CMA announced several legal and regulatory developments in relation to the insurance sector, aimed at achieving the objectives set out in the Tenth Five Year Development Plan 2021 – 2025. During October 2023, it issued three regulations within a span of three days, as well as a policy in January 2024. They are as follows: Regulation for Bancassurance; Regulation for E-Insurance on 12 October 2023; Regulation for Health Insurance Electronic Link and Unified Credit Life Policy. All these regulations and policies help to achieve CMA’s strategic objectives, which according to the 2022 Annual report, include enhancing the financial sustainability level, achieving an average growth of 10 per cent annually in the insurance indices, raising the level of insurance awareness to 25 per cent of the total population by 2025 as well as increasing the level of CMA’s performance efficiency.
With regard to zero carbon neutrality by 2050 and in line with the objectives of the United Nations Sustainable Development 2030 and the targets of Paris Climate Agreement and conferences, the CMA worked to create a framework for green funding as an innovative means of funding available to the companies desirous of funding and socially responsible investors who aim their investment to be in line with the global trend in environmental preservation and sustainability. The procedures for formulation of the legislations regulating the green bond and Sukuk have been completed and are in the final phases of issuance. The CMA is working, to align the capital market and insurance sector with the requirements of green and sustainable funding instruments. Further, it also plans to enhance the level of financial sustainability, achieving a 10 per cent growth in the capital market and insurance sectors’ indicators, and raising the level of awareness in the two sectors among the population to 25 per cent of the total population by 2025.
Growth potential
Oman’s health insurance market is projected to reach a market size of $319m in 2024
Oman’s gross written premium is expected to grow annually at a rate of 6.39 per cent (CAGR 20242029), resulting in a market volume of $434.80m by 2029. Gross direct premiums of Oman’s insurance sector rose by 4.5 per cent to RO565.512mn at the end of 2023 compared to RO541.326mn of 2022, according to published data of the Financial Services Authority (FSA), the regulator of the insurance sector in Oman. Gross direct premiums for health insurance increased by 12.9 per cent to RO216.213mn in 2023, up from RO191.517mn in 2022. In the general insurance segment, gross direct premiums dipped 0.2 per cent to RO 281.882 in 2023 compared to RO282.538mn in
2022. It rose 0.2 per cent to RO67.418mn for Life & Saving insurance, compared to RO67.271mn in 2022.
Further, total claims paid out in 2023 increased by 1.8 per cent to RO322.806mn in 2023, up from RO317.035mn in 2022. According to the FSA, the audited financial statements of insurance companies indicate a decrease in the total claims paid for the general insurance business by 9.8 per cent to RO123.880mn in 2023. Claims paid for the Life & Saving insurance business have decreased by 17 per cent in 2023, while the health insurance segment saw a 17 per cent jump in claims to RO171.434mn. Gross claims paid by the national insurance companies have increased by 5.9 per cent in 2023.
The overall profitability of insurance companies was lower in 2023,
according to the Authority. Total net profits of the insurance companies were RO25.865mn in 2023 compared to RO29.499mn in 2022 decreasing by 12.3 per cent. Profits of the national insurance companies were RO16.501mn in 2023 compared to RO18.359mn in 2022 which represents a decrease of 10.1 per cent. Net profits of the foreign insurance companies were RO9.364mn in 2023 compared to profits at RO11.141mn in 2022, which indicates a decrease by 15.9 per cent.
Oman’s insurance industry is projected to grow at an annualized rate of 4.5 percent, reaching $1.8bn in 2028, up from around $1.4bn in 2022, according to the UAE-based investment banking advisory firm Alpen Capital. Insurance indices of the unaudited financial statements of first half of 2023 indicate that insurance premiums continued to grow by an increase of 11.9 per cent compared to the same period of 2022. Gross written premiums reached RO332.9mn where national companies took over the largest percentage 85.7 per cent at about RO285mn compared to RO250mn in the previous year. As for foreign companies, the premiums reached RO47.8mn. Takaful companies’ premiums accounted for 11 per cent of the total insurance premiums of all companies at a total value of RO37mn, an increase by 4.3 per cent compared to the same period in 2022.
In addition, data indicates an increase by 17 per cent at a value of RO115mn in the volume of paid compensations by insurance companies for damages that the policyholders have incurred. Compared with first half of 2023, Takaful insurance figures decreased by 6 per cent at more than RO9.6mn of the total net compensations.
Moreover, written results of insurance companies illustrated that general insurance recorded the highest percentage of insurance premiums reaching more than RO160mn in first half of 2023 compared to RO153mn at the same period last year, which is an increase by 4.6 per cent followed by health insurance that increased by 22.6 per cent at RO110mn. As for life insurance, the value of total direct premiums amounted to more than RO37mn compared to RO33mn in the previous year.
The data also showed an improvement in the net insurance premiums; which are the premiums retained after the deductions for reinsurance as such premiums rose by 14.1 per cent at a value of RO193mn in comparison to about RO169mn in the previous year. This increase resulted from the increase of net premiums in most insurance types as life insurance recorded the highest increase amongst all insurance types by 69 per cent at RO7.7mn. Additionally, net premiums of property insurance amounted to RO8.7mn, an increase by 37.3 per cent compared to last year, and net premiums of health insurance rose by 18.4 per cent at about RO105mn. Health insurance was the key trend impacting the industry.
Finally, operational results show that earned premiums value, net compensations and administrative and general expenses increased by 10.54 per cent, 17.08 per cent and 6.01 per cent, consecutively. The gross written premium (GWP) of the Oman insurance market was RO574.6mn in 2023. The market will achieve a CAGR of more than 4 per cent during 2024-2028.
Setting new benchmarks
Government initiatives and newly commissioned projects are helping the infrastructure and real estate sector in Oman
The infrastructure sector is a major contributor to Oman’s economy. Over the last couple of years, the sector is being supported by key projects including rail and renewable energy. The output of the construction industry in Oman is expected to expand by 2.1 per cent in real terms in 2024, supported by rising foreign direct investment (FDI) in rail and road infrastructure, renewable energy, and housing projects, according to a report by GlobalData.
According to Oman’s National Center for Statistical Information (NCSI), the total value of foreign direct investment (FDI) in the country rose by 25.2 per cent in 2023, with the FDI in the oil and gas sector
rising by 38.1 per cent during the same period. The growth in 2024 is being mainly supported by construction of several rail and airport infrastructure projects. Rail projects that are planned and underway include the Hafeet Rail project that connects to the UAE, and a planned metro network for Muscat. In January 2024, Oman’s Civil Aviation Authority announced tenders for several airport construction projects, which include development of Jebal Akhdar, Masirah, and Sohar airports.
Looking further ahead, the Omani construction industry is expected to register an annual average growth of 4.2 per cent from 2025 to 2028, supported by investments as part of the Oman Vision 2040 Plan, under which the government plans to allocate RO20bn ($52bn) to the tourism sector and aims to attract 11 million visitors annually by 2040.
Oman also plans to achieve net zero emissions by 2050, and as part of its efforts, the country plans to produce 30 per cent of its electricity from renewables by 2030 and 11 per cent of Oman’s electricity production from solar and wind by 2025. The forecasted period growth in the industry will also be supported by investments in the green hydrogen sector.
Real estate
The real estate sector in Oman is experiencing steady growth, according to the latest ‘Oman - H1 2024 Market Overview’ report by Hamptons International Oman. The positive economic outlook for 2024, with a targeted GDP growth of 2.1 per cent — up from 1.6 per cent in 2023 — supports this trend. The IMF forecasts an even higher GDP growth of 2.7 per cent by year-end, indicating a recovery from previous slowdowns.
The report highlights a surge in demand within Muscat’s real estate market, particularly for residential properties. Luxury waterfront properties are in high demand, contributing to the residential market’s growth. This segment is projected to expand at an annual rate of 3.7 per cent from 2024 to 2029, potentially reaching a market volume of $358bn by 2029.
Buyers increasingly favour modern, luxurious properties with highquality amenities such as landscaped gardens, swimming pools, and state-of-the-art gyms. There is also a rising demand for properties in prime locations, close to commercial, retail, and entertainment hubs like Al Khuwair and Al Ghubra. Several factors are driving the growth of Oman’s real estate market. Government initiatives to attract foreign investment, such as relaxing property ownership laws for foreigners and offering tax incentives for developers, have been pivotal. Investments in infrastructure projects, including new roads and airports, further enhance the market’s appeal.
Oman’s stable political environment and strategic economic diversification, particularly away from oil reliance, have attracted both domestic and international investors. Low interest rates and favourable mortgage terms have made property purchases more accessible, boosting market demand.
The Greater Muscat Structure Plan 2040 plays a crucial role in shaping the real estate landscape. This vision emphasises economic diversification, smart city developments like Sultan Haitham City, and sustainable, modern technology in new projects such as The Sustainable City - Yiti. The plan aims to address challenges like the adaptability of old buildings and land availability constraints, especially in areas like Ruwi, which is evolving into a logistics and industrial hub. The Greater Muscat Plan focuses on integrating state-of-the-art public services, recreational spaces, and advanced infrastructure, including road networks and high-speed rail links.
Demographic shifts in Muscat are also influencing real estate trends. The National Centre for Statistics & Information (NCSI) projects significant growth in the capital, with a noticeable move away from traditional areas like Ruwi and Al Qurum. Expansion is more
prominent on the west side, in areas such as Al Ghubra, Al Khuwair, and Airport Heights. This shift is characterised by the rise of new mixed-use and residential complexes, corporate headquarters, hospitality venues, shopping malls, and enhanced public sector infrastructure. Development continues further west to Al Mabellah and the vast undeveloped lands designated for Sultan Haitham City.
Real estate activity in Oman for the first half of 2024 has been robust, with property sales contracts peaking in May at 6,638 and mortgage contracts at 2,114 — the highest volumes recorded this year. These figures underscore the dynamic nature of Oman’s real estate market, driven by strategic economic policies and evolving urban landscapes.
Sultan Haitham City
Sultan Haitham City is the first project within a larger program that Oman’s Ministry of Housing and Urban Planning is undertaking to implement a paradigm shift in the country’s urban development. As part of Oman Vision 2040, the country’s strategic long-term vision, the project is designed to accommodate 100,000 residents of Muscat’s growing population made up of locals, expatriates, and visitors.
The City constitutes a futuristic urban icon, a treasure for the future and a sustainable gift from His Majesty Sultan Haitham bin Tarik to
Housing and Urban Planning. It envisages transition into sustainable urban development that benefits thriving communities through the implementation of national strategic projects for urban development in line with Oman Vision 2040.
The City represents the cornerstone of upcoming projects and a new model for building sustainable cities. It simulates modern life and epitomises the aspirations of young people in Oman. It occupies an area of 14,800,000 square metres, has been planned to reflect sound and sustainable urban planning based on the utilisation of green spaces on an area of 2,900,000 square metres. It is designed to house 100,000 people and it will have 20,000 housing units ranging between separate villas, semi-attached villas, townhouses and flats.
The housing units are distributed over 19 integrated residential neighbourhoods, supplied with various facilities and services to meet the needs of the residents. It will have 23 mosques and a grand mosque. The city will also have 11 health facilities, including two health centres that cater to the needs of 20,000 patients and another set of six health centres with a capacity to serve 10,000 patients. It will have a referral hospital with a capacity of 1,200 beds, a private hospital and a centre to serve persons with disability and elderly people. There city will have 39 government and private schools,
sustainable systems—all of which played a role in drawing out the city’s masterplan. The city will have an internal transport network whose distances are carefully calculated to provide access to the largest possible number of facilities. The network will be suitable for public and private transport vehicles that smoothly crisscross the roads from the centre to the periphery.
In the meantime, there is scope in the city for green spaces, shaded corridors and lanes allowing the flow of gentle breeze and give an extra sense of comfort. The city boasts other features like pedestrian passages and bicycle paths to help diversify the methods of traffic, healthy lifestyles and sustainability of the environment. These include options for the use of renewable energy and measures for water conservation. The city’s overall configuration enhances interaction and communication among various segments of society that benefit from common spaces and designs of neighbourhoods.
The design of the city’s residential quarters also provide privacy a range of options that combine high and low densities to accommodate all income groups.
public facilities, such as parking lots, playgrounds and parks, and contributes to achieving optimal use of spaces and amenities in the heart of metropolis.
The designs of the city’s external areas are inspired by the natural surroundings, with options for utilizing the natural shade of trees during the daytime—which will be much in harmony with the urban structures. The overall idea is to provide natural outdoor spaces in the vicinity of buildings and well-designed streets.
The city has also been designed to raise the quality of life by optimizing the use of solar energy as a sustainable source. In this setup, waste energy production systems and wastewater outputs will act as key factors in the protection of natural resources. The outcome will be the control of waste and the recycling of materials.
With its fascinating and captivating designs, the city promises transition into a future of happiness and prosperity. Yet, its concepts will never miss out on the country’s heritage. While it builds a vision for the future of generations that celebrate modern life, it will also build solid grounds for harmony among cultural groups.
The city’s designs also respond to climatic changes and cater to future developments, with its engineering infrastructure tailored to adapt to the needs of population growth and the cost of maintenance. In Sultan Haitham City, community facilities occupy strategic locations that have been carefully selected to allow residents to access them
It is more than a city. It is a thriving ecosystem, a welcoming community and a unified society built on the notion that real generosity towards the future lies in giving all to the present. That life is a journey forward. It must be lived looking ahead, as tomorrow belongs to those who
Taking on challenges
The manufacturing sector has been playing a key role in boosting domestic production, creating job opportunities, improving Oman’s trade balance and diversifying sources of income beyond oil
Oman’s manufacturing sector has showed the highest performance among key sectors targeted for economic diversification during the first quarter of 2024.
The sector grew by more than 10 per cent in the first half of 2024 compared to the same period last year, according to data from the National Centre for Statistics and Information. The sector’s output at fixed prices rose to RO1.868bn with much of the expansion in oil refining, petrochemicals and basic chemicals. The sector’s expansion supports the development of other industries by generating demand for raw materials, logistics, technical services
and infrastructure. This expansion also encourages investment in research, development and innovation.
Local content is a fundamental pillar for strengthening Oman’s economy by supporting the private sector, increasing employment opportunities and improving supply chains. This approach fosters the growth of local small and medium enterprises (SMEs), particularly in oil and gas, aiding sustainable development and reducing import dependence thereby enhancing Oman’s economic resilience and providing future investment prospects.
The Ministry of Energy and Minerals launched eight green hydrogen projects in Al Wusta and Dhofar governorates, targeting an annual production of 1.38 million tonnes of green hydrogen by 2030. Oman aims to leverage local mineral resources while the manufacturing
sector is a key driver of economic diversification under Oman Vision 2040, supporting related industries and building national capacities. Efforts are ongoing to enhance the role of SMEs to encourage entrepreneurship. These enterprises received government procurement contracts worth more than RO100mn in the first half of 2024.
According to the ministry, the manufacturing sector recorded a real growth rate of 9.2 per cent in the first quarter of 2024, a sharp recovery from a 2.2 per cent decline during the same period in 2023. The contribution of manufacturing to gross domestic product (GDP) rose to 10 per cent at constant prices and 10.5 per cent at current prices. Looking ahead, the 10th Five-Year Plan aims to increase the manufacturing sector’s contribution to the GDP to 12.2 per cent by the end of the plan.
The growth is attributed to the success of economic diversification efforts. These initiatives have boosted the performance of industrial sectors, increased industrial exports, and attracted investments in industrial, free and private zones. Notably, the launch of new strategic projects, such as Duqm Refinery, have played a crucial role in driving this progress. There were remarkable growth rates in the refined petroleum products industry (67.6 per cent), basic chemicals industry (6.4 per cent) and other manufacturing industries (6.3 per cent) during the first quarter. The robust growth in the manufacturing sector can be attributed to several key factors. These include large investments in new and expanding industrial projects, which have enhanced production capacities and increased both local and foreign demand for Omani industrial products. Development of industrial infrastructure, supported by government investments in roads, electricity and ports, have also consolidated the sector’s capabilities.
In addition, incentives and facilities provided to investors, such as tax breaks, have encouraged further industrial investment. Adoption of modern technologies in manufacturing and programmes to improve productivity have also contributed to the sector’s success. The stability of Oman’s security and economy have played a vital role in enhancing the business environment and building investor confidence.
Vale, a global leader in iron ore production, and Jinnan Iron & Steel Group, a renowned Chinese steelmaker in advanced separation technologies, announced a joint partnership to establish Oman’s first iron ore concentration plant in SOHAR Port and Freezone. With an initial investment exceeding $600mn, the state-of-the-art facility is expected to support the development of Oman’s iron and steel industry, positioning the country as a key player in the global supply chain for Direct Reduction (DR) grade iron ore. The Concentration Plant, scheduled to commence operations by mid-2027, will process 18 million tons of iron ore annually, producing 12.6 million tons of high-grade concentrate. Vale will invest $227mn to connect the plant to its agglomerate facilities in the region while Jinnan will invest approximately $400mn to build, own and operate the plant.
At the heart of this collaboration is a commitment to innovation;
MANUFACTURING SECTOR
RECORDED A REAL GROWTH RATE OF 9.2 PER CENT IN THE FIRST QUARTER OF 2024, A SHARP RECOVERY FROM A 2.2 PER CENT DECLINE DURING THE SAME PERIOD IN 2023
iron ore shipped from Brazil will be upgraded into a higher-grade concentrate to produce high-quality agglomerates with reduced environmental impact. With its strategic location, the new plant will therefore strengthen the Sultanate’s role as a key supplier to regional and international steel markets. The joint partnership between Vale and Jinnan represents a significant milestone for both companies and the Sultanate of Oman. As Jinnan’s first project in the country,
this collaboration highlights Oman’s appeal as a destination for high-value industrial investments. Jinnan, with its leading edge in magnetic separation technology, brings a wealth of experience that will integrate seamlessly with Vale’s expertise, creating a world-class production process in Sohar.
The Concentration Plant is expected to create economic benefits
AL JAZEERA STEEL PRODUCTS CO.
IS ONE OF THE LEADING
STEEL TUBE
& STRUCTURAL PRODUCT MANUFACTURERS IN THE MIDDLE EAST
Al Jazeera Steel Products Co established in 1996, is a well-known steel producer listed in the Muscat Stock Exchange. The company operates a 600,000 MT per annum Tubes and Merchant bar mills in Suhar, Oman. Apart from catering to its core GCC markets, company exports its products to more than 25 countries including Australia, EU , UK, USA. Al Jazeera Steel Products Co is presently upgrading its existing facilities in Sohar, Oman
OU R PRODUCTS
Merchant Bar Mill
Square: 12 mm to 50mm; Rounds : 16mm to 50mm
Angles: 40mmx40mm to 110mm x 110mm
Flats: 38mm x4mm to 120mm x 20mm
Channels:75mm x40mm to 100mm x 50mm; PFC 100x50 & PFC 125 x 75mm, UPN 120 Coming soon
IPE, IPEA, IPEAA 80, 100, 120, 140 UB 127x76x13
Tube Mill
ERW Pipes: Black & Galvanized ½” to 8”
Square/Rectangular Hollow Sections: 12x12 to 125 x 125/40x20 to 150 x 100
Al Jazeera Steel Products Co. SAOG, PO Box 40, PC 327, Suhar Industrial City, Suhar, Sultanate of Oman
Corporate Office: Al Jazeera Steel Products Co. SAOG; PO Box. 40, Postal Code 327, Suhar Industrial City, Sultanate of Oman.
Regional Office: PO Box 391841, Arenco tower, Office #1208, Level 112, Al Safouh 2nd Media City, Dubai, UAE, Tel. +97144229687
Sharjah Warehouse: Al Sajaa Industrial Area, Near Big Bazar, PO Box 38648. Tel. +971 65581927
Mubailla Warehouse: Al Mubailla Sanaiya, Way No. 7749. Bldg. No. 10011,Oman; Phone (+968) 24267844, Mobile +968 9238953
Riyadh Branch: After Exit 18 New Kharj Road, Al Manakh Industrial Area, Riyadh, KSA. Tel. +966 501201151
Dammam Branch: Novotel Business Park , 2nd Floor Tower No. 4 . Tel : +966 505808613 / +966 547995428
beyond the steel industry. By generating direct and indirect employment, driving technological advancement, and increasing export capacity, the plant will boost Oman’s export capabilities and further integrate the Sultanate into global steel trade route, supporting efforts to diversify the industrial base. With an emphasis on sustainability, the facility will utilise advanced technologies to minimise its environmental footprint, ensuring efficient resource use, in line with Oman’s commitment to responsible and sustainable industrial growth.
Meanwhile, an agreement was signed paving the way for the establishment of the world’s second largest Polymer Manufacturing Plant in SOHAR Port, catering to diverse applications including production of energy, agriculture, wastewater management, and the pulp and paper industry in Middle East, North and South America and the European Union. The Polymer Manufacturing Plant represents a remarkable investment of $300mn, encompassing future plant expansion. Occupying an impressive land area of 240,000 square meters within SOHAR Port, this project not only showcases a commitment to technological advancement but also enhances the industrial landscapes development.
The innovative venture promises to revolutionise energy production, agriculture, water management, and beyond. This pioneering project enhances the commitment of both entities to advancing technology and fostering sustainable growth across diverse sectors.
This agreement has positioned SOHAR Port into the forefront of global exporters of industrial chemicals. The infusion of substantial foreign direct investment from Singapore and China enhances the attractiveness of SOHAR Port as a premier investment destination, reinforcing its global competitiveness. Locally, the venture amplifies supply chains, attracts related industries, and strengthens local trade networks, significantly contributing to economic prosperity. By integrating within SOHAR Port’s Petrochemical Cluster, the project not only amplifies its significance but also attracts downstream industries and stimulates regional business growth. The polymer plant will be equipped with innovative technologies. It will produce polyacrylamide and related monomers. The main plant product –polyacrylamide is used for enhanced oil recovery, water treatment, paper industry, agriculture and other applications.
The scope of this project extends beyond regional boundaries, with a strategic focus on serving markets in the GCC, North and South America, and the European Union. By strategically targeting these diverse and expansive markets, the collaboration between SOHAR Port and Universal FINE Chemicals SPC aims to establish a strong foothold in key economic zones, effectively delivering innovative solutions and contributing to economic growth on a global scale.
This global outlook reflects the partnership’s commitment to not only fortifying the local economy but also creating a lasting impact on a broader international stage.
Heartiest felicitations to His Majesty Sultan Haitham bin Tarik and the people of Oman on the occasion of the 54th National Day of the Renaissance
Al Tamman Trading is well-positioned to serve as a key facilitator for strategic investments and sustainable development thereby stimulating the growth of Oman’s mineral industry
Al Tamman Trading Establishment LLC is a major player in Oman’s mineral sector, dedicated to strategic investments and sustainable development. The company is engaged in the exploration and mining of mineral resources in Oman and is a subsidiary of the Muscat Overseas Group—a diversified conglomerate with over 40 years of experience across sectors such as real estate, trading, contracting, industrial, oil & gas, travel & tourism, and mining. The Group has expanded its operations throughout the Middle East and Africa, positioning itself as a top investor in both listed and private investments in Oman. Al Tamman is involved in following mining and processing projects in OmanTahwa-Black & Brown Marble Quarry; Dima Wa Tayin-Grey Marble Quarry; Gypsum Quarry and Processing, Thumrait; Ferrochrome Plant, Suhar; Block-7 Copper and Gold, Batinah Region and Chromite Quarry, Al Ram. The company primarily exports Chromite to China.
The company’s main goal is to make
strategic investments that capitalise on the increasingly opportunities within Oman’s mining sector, aligning with the government’s objectives to expand and enhance the industry. Specialising in the extraction and sale of minerals such as chromite, manganese, gypsum, and marble, the company also plans to explore copper and gold deposits. The company has one of the largest Gypsum Quarry and Processing plant and intends to set up a plant in the downstream sector soon.
Established in 2008 with a vision to develop chromate mining exploration activities, Al Tamman Trading supplies major domestic and international steel manufacturers, including Tata Steel, Jindal, Essar, Posco, and so on. Additionally, the joint venture Al Tamman Indsil Ferrochrome LLC (ATIFC) has already set up Oman’s first ferrochrome smelter. Looking ahead, the company’s foresees immense prospects for growth of the mining sector as the government has set up well established systems and have improved the tendering system.
Felicitations to His Majesty Sultan Haitham bin Tarik and the people of the Sultanate of Oman on the occasion of the 54th National Day of the Renaissance
Digital Transformation
Oman’s telecommunications sector is evolving rapidly, with significant investments in mobile, broadband, and 5G infrastructure, positioning the country as a regional leader in digital connectivity
The telecommunications landscape in the Sultanate of Oman is undergoing a dynamic transformation, driven by substantial investments in advanced technologies and an increasing demand for connectivity. This growth is not limited to urban hubs but extends into remote areas, reshaping how people connect, work, and access essential services. As Oman progresses toward its economic diversification goals and societal advancement, these developments position it as a rising digital leader in the region.
According to the latest data from the National Centre for Statistics and Information (NCSI), Oman’s telecom sector has experienced
impressive growth, particularly in mobile and broadband adoption, 5G infrastructure, and a strong regulatory focus on consumer interests. By September 2024, the total number of mobile subscriptions had reached 7,240,909, reflecting a 1.2 per cent increase from the previous year. While prepaid subscriptions saw a 6 per cent decline, dropping to 5,077,026, postpaid subscriptions grew by 23 per cent, reaching a total of 2,163,883. This shift towards postpaid options highlights a growing demand for stable, consistent data plans, particularly among younger users and business customers. The increase in postpaid subscriptions is a sign of the market’s maturation as consumers seek more reliable services. Mobile broadband (4G and 5G home internet) subscriptions also saw significant growth, rising to 5,821,865 by the end of September.
These reports also show that broadband services are expanding, reinforcing Oman’s commitment to creating a robust digital ecosystem essential for socio-economic development. Fixed broadband subscriptions increased by 3.5 per cent, reaching 576,011.
While the demand for fixed broadband continues to rise, traditional fixed-line services have been on the decline. Fixed-line subscriptions reportedly dropped by 25.1 per cent, totaling 430,585 by the end of September. Among these, analogue fixed lines experienced an even sharper decrease, falling by 72.6 per cent to 62,749. In contrast, the number of fixed lines based on Internet Protocol (IP) technology grew by 10.5 per cent, reaching 318,149, showing a clear trend toward more modern communication technologies.
The 5G infrastructure in Oman has seen remarkable progress too, with 5,431 5G stations installed by the end of September 2024, a 19 per cent increase from the previous year. This expansion has been vital in providing faster, more reliable connectivity, with coverage spreading beyond urban centers to rural areas. The country is positioning itself as a leader in next-generation networks, with plans to further enhance 5G availability, including extending coverage to more than 90 per cent of residential units by the end of 2024. This rollout is part of Oman’s broader strategy to align with its Vision 2040 goals, which emphasise a digitally empowered economy.
The Telecommunications Regulatory Authority (TRA) plays a crucial role in overseeing the sector’s development. In addition to ensuring quality service for consumers, the TRA has implemented various regulatory changes, such as the phased shutdown of 3G networks, reallocating spectrum to boost 4G and 5G services. This move is designed to improve the efficiency of the telecom infrastructure, supporting the latest technological applications. Furthermore, the TRA’s consumer protection efforts were highlighted by the recovery of RO 64,000 in 2023, addressing nearly 1,900 complaints related to mobile and fixed services. These efforts have helped maintain consumer trust, which is crucial as the sector faces rising expectations for service quality.
The competitive landscape within the sector has intensified, particularly with the entry of Vodafone Oman in 2022, alongside established players Omantel and Ooredoo Oman. Vodafone aims to cover 60 per cent of the population with its 5G network by the third quarter of 2024, further enhancing connectivity in both urban and rural areas. Other alternative providers, including Awasr, Redbull Mobile, Friendi Mobile Oman, and Renna, have expanded the market with diverse services catering to different consumer needs, injecting innovation and fostering competitive pricing.
Satellite-based connectivity is another key development contributing to the sector’s expansion, especially in underserved regions. The partnership between Space Technologies Company and Oman Broadband extends satellite-based services to 598 villages, 100 schools, health centers, and government facilities, ensuring even the most remote areas have access to essential communication services.
Sustainable living
With a strategic focus on sustainable urban development and enhancing the overall quality of life, Oman is poised to sustain its momentum in the real estate market
Real estate market has witnessed a surge in demand, with real estate transactions surpassing RO2.6bn by the end of December 2023. Despite fluctuations in the sales segment, the rental sector has emerged as a key driver of growth, reflecting shifting trends in the sultanate’s real estate landscape.
According to data released by the National Centre for Statistics and Information (NCSI), the value of lease contracts experienced a notable uptick, rising by 18.3 percent to RO1.55bn. This surge in rental transactions indicates a strong demand for residential and commercial properties in Oman’s real estate market.
While Oman’s rental sector thrived, the sales segment witnessed a slight decline. Both the value and number of sale contracts decreased by 7.7 percent and 4.3 percent, respectively. Despite this dip, Oman’s real estate market remains robust, supported by ongoing infrastructure development projects and government initiatives. The number of ownership deeds recorded by the end of 2023 reached 235,390, marking a modest increase of 0.9 percent.
The NCSI also noted the significant growth in ownership deeds granted to GCC citizens, which surged by 48.9 percent reaching 1,316. This increase in ownership deeds granted to GCC citizens highlights the attractiveness of Oman’s real estate market to regional investors. Oman’s government continues to implement measures to bolster the real estate sector and attract investment, including
regulatory reforms and infrastructure development projects. Urban planning takes centre stage with initiatives like the Greater Muscat City structural plan and plans for major centres like Greater Sohar and Salalah. Moreover, future cities like Sultan Haitham City and Al Jabal Al Akhdar also signal Oman’s growing interest in supporting development projects. Oman’s residential real estate market size is estimated at $4.38bn in 2024, and is expected to reach $6.80bn by 2029, growing at a CAGR of 9.19 per cent during the forecast period (2024-2029).
The Muscat residential rental market has begun to reap the benefits of this notable growth in the expatriate population. Rental values have been stabilising, and in some areas, there are even signs of growth. Key localities such as Al Mouj, Qurum, Shatti Al Qurum, Madinat Al Sultan Qaboos, and others have experienced increased demand due to their central locations, amenities, and the quality of properties they offer. Despite the ongoing supply and demand imbalance in Muscat, achievable rental values for mid-range to higher-quality office spaces have remained largely stable. Landlords, whilst not lowering headline rents, have been offering incentives to attract and retain tenants, such as extended rent-free periods. In the coming year, the market is expected to remain tenant-favoured, with rental values remaining stable, especially for mid-to-high-end units. However, there may be moderate upward pressure on rental values in some locations. Similar to other markets in the region, serviced office facilities have seen a significant expansion across Muscat over the last decade. Despite the increasing supply, demand for serviced office space has kept pace resulting in generally good uptake and occupancy levels.
Al Mouj Muscat, Oman’s premier lifestyle destination has set a new standard in golf course living by introducing the Golf Link Residences, a collection of elegant apartments and residences nestled on the lush fairways of Al Mouj Golf. The highly anticipated neighbourhood is set to become one of the most desirable residential options as it redefines luxury living with breathtaking views, premium amenities, and unmatched benefits.
Featuring only 28 luxurious four-bedroom residences and a range of one to three-bedroom apartments, the exclusive neighborhood seamlessly integrates ‘the luxury of nature’ into every detail of its design to catch the eye of today’s discerning homebuyers and investors. The bespoke residences are designed for medium to large families, and are spread over two floors with living, entertainment, and workspaces. Catering for smaller families and individuals and astute investors, the apartments offer spacious and adaptable spaces, ensuring ample convenience and comfort for residents.
With the aim to become the largest operational sustainable community in the world, the Sustainable City – Yiti is set to reduce the per capita emissions footprint of its residents by 78 per cent compared to conventional housing. Located just outside of Muscat, the ambitious project spans one million square meters and has an aspiration to become the largest operational sustainable community in the world. It will reduce the per capita emissions footprint of its
OMAN’S RESIDENTIAL REAL ESTATE MARKET SIZE IS ESTIMATED AT $4.38BN IN 2024, AND IS EXPECTED TO REACH $6.80BN BY 2029, GROWING AT A CAGR OF 9.19 PER CENT DURING THE FORECAST PERIOD (2024-2029)
residents by 78 per cent compared to conventional housing. This includes relying on 100 per cent renewable energy, 100 per cent water recycling, 100 per cent waste diversion from landfill, and up to 80 per cent self-sufficiency in food calorific requirements. Slated for completion in 2026, the infrastructure of The Sustainable City – Yiti has reached 75 per cent completion.
The Sustainable City – Yiti, is poised to replicate the success stories of The Sustainable City in Dubai, Sharjah Sustainable City and The Sustainable City – Yas Island in Abu Dhabi, which prove that today’s investors and end users understand the long-term value of embracing sustainable communities. These developments show clear evidence that sustainability can be achieved at no additional cost to either developers or residents.
Dar Global, the renowned luxury international real estate development company, has unveiled Trump Villas at AIDA, one of Oman’s most expansive urban developments. This launch follows the strategic collaboration between Dar Global and The Trump Organisation to develop a signature Trump community within AIDA. Once completed, the Trump Villas will be an unrivalled destination, showcasing superior luxuries that will elevate the ultimate lifestyle.
The ‘Trump Signature Villas’ collection is comprised of luxurious villas, each designed to embody the pinnacle of opulence and exclusivity that the Trump name conveys. With a combined value of $200 million, Phase 1 of this collection will represent an unprecedented level of luxury living.
Located within Trump International Golf Club Oman, which will be one of the most spectacular golf courses in the world, the Trump Villas are an exclusive enclave designed by internationally acclaimed luxury experts. Offering breathtaking sea views from an elevation of over 130 meters, they will not only epitomise opulence but will also represent a new, powerful landmark.
Beyond their architectural splendour, the Trump Villas will offer an array of unparalleled privileges. Residents of these distinguished homes will be given elite membership of Trump International Golf Club Oman, granting them access to a wealth of world-class amenities, including a state-of-the-art clubhouse, expansive parks, and recreational spaces. Furthermore, each property owner will also receive a beautiful Trump branded golf cart, thereby fully enhancing their overall experience and convenience.
Amazi, the latest and highly sought-after waterfront residential resort development in Hawana Salalah was launched by Muriya, Oman’s leading real-estate and tourism developer. Muriya, a subsidiary of Orascom Development Holding, an internationally acclaimed developer, and OMRAN, the leading government arm for tourism development in Oman, has teamed up with renowned SB Architects to design the project. The project’s units that all offer exclusive waterfront living have already been selling quickly, luring discerning buyers tempted by the many appealing benefits of owning a property within the residential resort. Situated along Oman’s stunning Indian Ocean coastline, Amazi, Hawana Salalah will offer spectacular and unobstructed vistas juxtaposing turquoise waters and white sand beaches with breathtaking landscapes. Each thoughtfully designed residence will capitalise on its prime location with access to an array of hotel resort-like amenities and personalised services that will make future residents feel like they are on a vacation.
As part of its diversification strategy, Oman is focusing on its tourism industry as a key growth driver of the economy with the aim to boost the share of the sector’s contribution to GDP to 6-10 per cent by 2040. With a strategic focus on sustainable urban development and enhancing the overall quality of life, Oman is poised to sustain its momentum in the real estate market and capitalise on emerging opportunities in the years ahead.
Oman Unfolded
Oman’s tourism sector is growing rapidly, fueled by strategic investments and Vision 2040 initiatives, positioning the country as a top destination for luxury, adventure, and sustainability
Tby investments aimed at strengthening its role in the national economy. Aligned with Oman Vision 2040, these efforts are positioning tourism as a key pillar in the country’s future economic strategy. The government’s investment in infrastructure, marketing, and sustainability has begun to bear fruit, positioning Oman as a premier destination in the GCC for both luxury travelers and adventure seekers alike.
This year, Oman is witnessing an impressive 24.7 per cent growth in tourist arrivals, with the country expected to surpass 5 million
Subash Rajesh / Shutterstock.com
visitors (by the end of 2024), a milestone that signals both a recovery post-pandemic and an increasing global recognition of Oman’s tourism appeal. This increase is supported by targeted international campaigns such as ‘A Journey to Explore Oman’ in India and ‘Experience Oman’ in London, UK, which highlight the nation’s diverse offerings – from rich historical sites to modern resorts nestled along its stunning coastline.
Oman’s natural landscapes, including its mountains, deserts, and pristine beaches, are being increasingly recognised as major attractions, alongside its rich cultural heritage and commitment to sustainable tourism.
The sector’s economic impact is equally noteworthy. In 2023,
Oman’s travel and tourism sector contributed RO2.8 billion to the nation’s GDP, marking a 35 per cent increase from the previous year. This figure is expected to rise further in 2024, with projections that tourism will contribute over RO3.3 billion, accounting for 7.6 per cent of Oman’s GDP. The expansion of the tourism sector is also reflected in employment figures, with more than 206,000 people expected to work within the industry by the end of 2024. This represents a substantial portion of the national workforce, underlining the sector’s role in providing jobs and supporting local communities.
International visitors have been key drivers of growth in Oman’s tourism economy. In 2023, according to the World Travel & Tourism Council, spending by international tourists grew by 69 per cent, totaling RO1.1 billion, and domestic spending also showed a strong recovery, reaching RO1.4 billion. These numbers reflect the nation’s growing reputation as a preferred destination in the Middle East. The government’s investment in transport infrastructure, including the expansion of Muscat’s airport (which opened in 2018) and better road connectivity across the country, has played a pivotal role in facilitating this growth.
The country’s hospitality sector has also witnessed an increase in both the quantity and quality of its offerings. The luxury tourism segment, in particular, has flourished, with high-end hotel chains expanding their presence in the country. Some new developments that opened doors in 2024 include the now-iconic St. Regis Al Mouj Muscat Resort, Hotel Indigo Jabal Akhdar Resort & Spa, and the Mandarin Oriental Hotel.
Oman’s Minister of Heritage and Tourism, His Excellency Salim Mohammed al Mahrouqi, recently also revealed ambitious plans to further expand the nation’s tourism infrastructure, announcing the addition of 40 to 47 new hotels, resorts, and guest houses over the next two years. This initiative is part of the government’s broader vision to position Oman as a leading regional tourism destination.
The growth in Oman’s hospitality sector is already evident. By the end of January, revenues from 3-5 star hotels surged by an impressive 17.1 per cent, reaching RO24.75 million. Hotel guest numbers also saw a robust increase, climbing by 20.5 per cent to reach 215,660 visitors. Additionally, hotel occupancy rates experienced a significant rise of 16.2 per cent, reflecting the growing demand for accommodation across the country.
New resorts and eco-friendly tourism developments have been particularly important in attracting international tourists who seek both exclusivity and sustainability. This growth is mirrored by a rise in the number of boutique hotels and specialised travel services catering to niche markets, including wellness retreats and adventure tourism.
Furthermore, the integration of cultural experiences, such as guided tours of Oman’s historical forts, museums, and ancient souks, has enriched the country’s tourism product, making it appealing to a broad range of international visitors.
MINISTRY OF HERITAGE AND TOURISM IS FOCUSED ON CREATING A THRIVING TOURISM ENVIRONMENT IN OMAN. EFFORTS INCLUDE SIMPLIFYING VISA PROCESSES FOR CITIZENS FROM OVER 100 COUNTRIES AND INVESTING HEAVILY IN INFRASTRUCTURE AND ATTRACTIONS. WITH OVER $5.9 BILLION ALREADY COMMITTED TO MORE THAN 360 PROJECTS, OMAN’S TOURISM SECTOR IS POISED FOR GROWTH
Beyond the immediate economic contributions, the tourism sector’s long-term growth is integral to Oman’s broader diversification efforts. Tourism is seen as a critical component in reducing the country’s reliance on oil revenues and driving economic growth in
achieving greater economic resilience through diversification, with a particular focus on sectors such as tourism, manufacturing, and technology. The government has also put in place several policies and initiatives to foster tourism growth.
For instance, the Ministry of Heritage and Tourism is focused on creating a thriving tourism environment in Oman. Efforts include
simplifying visa processes for citizens from over 100 countries and investing heavily in infrastructure and attractions. With over US$5.9 billion already committed to more than 360 projects, Oman’s tourism sector is poised for growth.
Additionally, the country is targeting US$31 billion in investment by 2040, while aligning with its 2050 Net-Zero goals and prioritising sustainability, heritage conservation, and eco-friendly practices in tourism development.
As a result of these efforts, Oman has gained international recognition in several tourism rankings. It has been praised for its well-preserved cultural sites, commitment to environmental sustainability, and the growing sophistication of its tourism offerings. Oman’s government aims to continue building on this momentum, creating a seamless and enriching travel experience that integrates modernity with tradition.
Efforts to establish South al Sharqiyah as a key tourist destination are also ramping up. These include key projects that align with Vision 2040’s commitment to sustainable development, including
significant initiatives in fisheries, tourism, manufacturing, logistics, and mining. The region’s tourism development is taking shape with projects such as the Mebam Tourism Village in Tiwi, the development of the Al Ashkharah waterfront, and the completion of Al Ayjah beach in Sur, which is now 90 per cent complete.
These projects aim to increase the region’s appeal to tourists, especially those seeking authentic experiences away from the more urbanised areas of the country. The completion of the second phase of the Sharqiyah Expressway is also set to improve accessibility, further bolstering the region’s tourism infrastructure and making it easier for tourists to explore.Looking ahead, the future of Oman’s tourism sector appears bright. In the short term, the country’s tourism GDP contribution is expected to grow gradually but steadily, with international visitor numbers continuing to rise as Oman strengthens its position as a key regional hub for tourism.
But the long-term projections are even more promising, with tourism expected to become a crucial engine of economic growth, generating jobs, and fostering socio-economic development across the country through a plethora of new strategic developments.
