What is the Oman Industrial Status?

When one talks about the industrial development or the urbanization, the first thought that ponders in one’s mind is the economy of the country and the current GDP per capita. Oman, a middle-east country, ranks eighty first in the world for the continuous growth in the economy. Major contributing factor for such a magnanimous growth in economy is the industrial sector of the country. Industries contribute to about 37.5% in overall GDP of the country.

There was increase in the small and medium size industries, which were based on the highly subsidized industrial sector when government imposed a program to diversify from the crude oil industry. This had a great impact on the industrial sector. The country’s first industrial sector was developed in 1980s, at Ar Rusayl, comprising around sixty enterprises which included the manufacturers of copper, soap, cement, crackers and cathodes. The second big industrial sector was a 100-hectare area at Raysut developed in the beginning of 1990s. At Suhar, the third industrial sector was planned which was around fifty hector project. The government is also showing some interest towards development of cottage industries for producing items like pottery, frankincense and rose water. As a result, the overall GDP of Oman was increased by 3.5 percent by 1991. There are some small scale industries though in dearth that produces the ghee, limes, dates and drying of fish.

To compete with the neighbors especially Dubai, which has duty free zones permitting the fully owned foreign subsidiaries, Oman’s economic and commercial laws were revised in early 1992. The ministry of commerce and Industry discussed with Oman Chamber of Commerce and Industry (OCCI) and recommended some amendments in the defined laws. According to the revised laws, GCC nationals, twenty predefined Oman’s companies can own at max 49 percent of the shares. This improved the performance of the country at the competitive platform and improving the economic front of the country significantly in 1999. Currently the country’s GDP is around $67.35 billion, GDP growth is 6.2% and GDP per capita is $20,400.