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Phase II of Manufacturing Strategy 2040 unveiled

The Ministry of Commerce and Industry has initiated the second phase of the manufacturing strategy project aimed at identifying policy instruments to implement Sultanate’s Manufacturing Strategy 2040 (2021-40). The second phase is undertaken in collaboration with the United Nations Industrial Development Organisation (UNIDO).
Following the completion of the first phase of industrial diagnostics, which identified upcoming manufacturing priorities across knowledge-driven (high-tech), capital- and resource-intensive industries; and the enablers of governance, technological and human capital to promote those priorities, the second phase of the Manufacturing Strategy 2040 will review on the fifteen policy areas and focus on how and when to achieve those manufacturing priorities. In line with the preparation of the tenth five year plan led by the Supreme Council of Planning, the Ministry of Commerce and Industry is reviewing the necessary measures, action plan and time frame for the manufacturing development as part of the Sultanate’s greater Vision 2040.
The second phase has begun with an estimation of the manufacturing investment required to the socio- and economic-goals set for the Manufacturing Strategy 2040. The investment requirements outline the financial efforts that will be required during the next 20 years and help to understand the level of investment that the private sector will have to take on in the coming years.
The estimation of investment was followed by the identification and selection of policy instruments for the fifteen areas. Approaches to enhance further the business environment as well as financial and tax incentives will be explored in order to attract quality local and foreign investments. Technical and vocational education and training (TVET) programmes aimed at upskilling and reskilling the workforce will be developed in order to improve the readiness of Omanis to the upcoming demands of the Fourth Industrial Revolution (4IR).
Incentives to encourage research and development, in-country value and entrepreneurship (SMEs) as well as mechanisms to attract and adapt advanced foreign technologies, such as, 3D printing, Internet of Things, robotics and energy-efficient solutions will be devised to increase the efficiency of the Omani productive structure. Ways of streamlining coordination across industrial estates, free zones and government entities, defining clear mandates and roles and producing smart rules and regulations are essential to modernize the generation and delivery of manufacturing related public services.
Thus far, the Ministry has done more than 100 consultations with stakeholders at all levels, from government authorities and councils, free zones and industrial estates to private sectors.
The second phase will also address the timing of the measures in coordination with the Supreme Council of Planning as well as Tanfeedh. Since all policy instruments cannot be deployed at the same time, the strategic ‘quick-win’ measures to be implemented in the first five years of the strategy will be suggested. This will be followed by measures to be implemented in the medium- to long-term in line with the Sultanate’s Vision 2040. To ensure an inclusive, transparent and evidence-based policy making process, the Ministry of Commerce and Industry adopts the international good practices, such as, multi-stakeholder approach including an external technical team which coordinates with all relevant government stakeholders.
A much wider stakeholder consultation is expected once the first draft of the policy document is completed.
Furthermore, the Ministry of Commerce and Industry is developing a timely and effective monitoring and evaluation mechanism for the Manufacturing Strategy 2040 KPIs in cooperation with the Supreme Council of Planning. The socio- and economic-targets set for the strategy are fully aligned with the Sultanate’s Vision 2040, with the use of national and industrial statistics by the Ministry, the technical team at the Ministry will constantly review the KPIs of manufacturing sector.
  • #manufacturing
  • #OMAN
  • #Industrialdevelopment
  • #technology
  • #Investment
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