The Sultanate is considered as one of the fastest growing countries when it comes to infrastructure. Due to the flourishing construction industry, it has become a sought-after destination for investment.

RO3.7bn allocated for infrastructure development

Giving a fillip to infrastructure sector, the Sultanate’s government has allocated RO3.7bn for infrastructure development, industrial and services projects in its 2019 budget.

Total investment spending is estimated at RO3.7bn in 2019, including RO1.2bn allocated for infrastructure projects, which are overseen by various government units; and an amount of RO2.5bn to be utilised by some state-owned-enterprises for the implementation of projects in industrial and services sectors.

The 9th five-year development plan (2016-2020) attaches great importance to construction development by ensuring optimum utilisation of resources and investment opportunities in the various governorates in the Sultanate.

The private investments shall be in:

  • commodities production activities (32.6%)
  • services activities (37%)
  • infrastructure (29%)

Contribution to Oman’s GDP

The construction industry accounts for a 9 per cent share of Oman’s GDP and is the country’s largest employer.

The Oman construction market is expected to register a CAGR of 6% over the forecast period, 2019-2024.

The government has said that the spending on development projects will not be cut to ensure the completion of all ongoing projects without delay.