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Industrial exports projected at RO 10.7 bn by 2040

The value of Oman’s industrial output is projected to soar four-fold over the next two years with exports poised to climb to RO 10.7 billion by 2040, according to a key official of the Ministry of Commerce, Industry and Investment Promotion.

Eng Salim bin Suleiman al Hatmi, Acting Director of the Planning and Industrial Studies Department, said the Sultanate’s ‎Industrial Strategy 2040 is designed to endow Oman with a modern and ‎technically advanced manufacturing base.‎

“Since ‎the publication of the first phase of the Industrial Strategy 2040 in January 2019, the key ‎performance indicators have been reviewed and formulated ‎again. These reviews show that the data of ‎recent years as well as those of available ‎investment opportunities and priority ‎industries were made available. They included ‎those of recycling industries and ‎transportation handling industries — data of which ‎were not available earlier,” Al Hatmi noted.‎

The Strategy is designed to deliver a ‎nearly six-fold increase in the constant added ‎value of high-tech and medium-sized industries. Priority industries are expected to grow ‎very swiftly and much faster than any other ‎industry. High-tech industries are also ‎expected to expand. It is also likely that high-‎tech and medium non-priority industries may ‎also increase at five per cent annual growth rate, he said.

Additionally, there are plans to establish ‎industrial complexes catering to investments in health, ‎environment, commodity production, electrical ‎and mechanical equipment, transportation ‎equipment, steel and glass, and foodstuffs.

“There is an expectation that health and ‎recycling clusters will grow faster. Both will ‎start from an exceptionally low base. It is ‎also expected that the electro-mechanical sector ‎would show strong performance,” he further stated.‎

Significantly, Strategic or priority industries will expand by ‎‎4.5 times over the next 20 years, according to the official. They will be ‎driven by the group of high-tech industries ‎notably focused on steel, glass and foodstuff complexes. ‎

The petrochemical sector is expected to ‎expand slightly less than other priority and ‎average manufacturing industries. It will ‎also remain the most important industry in 2040, ‎representing at least 37 per cent of the manufacturing ‎sector.‎

The 4th Industrial Revolution will have ‎wide-ranging effects on manufacturing ‎processes. The production with modern ‎technologies will become faster and more ‎diversified. The integration between companies‎ and their customers will ‎also grow.

These developments will lead to ‎significant increase in productivity and ‎decrease in job opportunities if countries ‎would not innovate and produce new products and ‎industries to compensate for the losses in the ‎old products, he said.

It is also expected ‎that the Industrial Strategy 2040 will ‎contribute to incentives for research and ‎development, in addition to closer and stronger ‎relations between universities and industry. ‎This will allow the graduates to get a deeper ‎understanding of the new technologies and ‎contribute largely to the production activity.
  • #Industry
  • #exports
  • #projected
  • #tech
  • #production
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