Oman Paints and Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• In the medium term, the growing demand for decorative and architectural coatings is anticipated to be the major factor driving the demand for the paints and coatings industry.
• On the flip side, with a high dependency on crude oil as a raw material, fluctuations in oil prices are anticipated to hinder market growth during the forecast period. The dip in automotive production in the country is expected to further weaken the demand.
• However, the continued growth of the oil and gas industry and the development of infrastructure associated with the industry in Oman are forecasted to offer various opportunities for the growth of the paints and coatings market in the future.

Oman Paints & Coatings Market Trends

Expansion of the Oil and Gas Industry

• Protective metallic coatings and other chemical resistance paints & coatings are extensively used in the oil and gas industry. Crude oil and natural gas consist of components that are fundamentally harsh and corrosive, which could potentially damage valuable equipment and pipelines.
• Oman is one of the biggest oil producers in the Middle East outside of OPEC, with total estimated reserves of crude oil and condensates increasing by 4% to 4.876 billion barrels by the end of 2021, according to the Ministry of Energy and Minerals.
• The average daily oil production in the country increased by over 10.4% during the first nine months of 2022, reaching 1.06 million barrels per day from 961,300 barrels per day during the same period last year.
• In March 2022, the Government of Oman announced its decision to award 3 oil and gas blocks to increase the overall exploration and production in the country. The Ministry of Energy and Minerals is in negotiation with key players like Shell and TotalEnergies for the sign-off of a commercial agreement that will see the development of one of these 3 blocks.
• The country also launched its second-largest oil and gas project in December 2022, investing around USD 2.6 million into the project. The entire project spans an area of 1.68 sq. km. and will have a daily peak production capacity of 20,000 barrels of crude oil and over 5 million cubic meters of gas.
• The above-mentioned factors indicate great potential for expansion of the oil and gas industry in the country, driving demand for paints & coatings during the forecast period.

Architectural Coatings to Dominate the Market

• Paints and coatings are not only used in the interiors of houses to add colors or decorative purposes but also to perform a wide range of functions in the exteriors as well. Their functions vary depending on the type of environment and room that they are used.
• The growing investments into infrastructure development are also anticipated to boost Oman's construction sector. For instance, in December 2022, the country's private equity infrastructure fund, Rakiza, received a capital commitment fund amounting to USD 300 million from the Public Investment Fund of KSA.
• In the Arab world, Oman was ranked first in the growth rate of total investments in the 2021 report of the Arab Investment and Export Credit Guarantee Corporation. The total investments in the country grew by 37.3%, valued at USD 16.5 billion, and is anticipated to reach USD 18.2 billion by the end of 2022.
• In 2021, Oman Investment Authority (OIA) announced a total of 13 projects with a combined value of USD 9 billion, in line with Oman Vision 2040. One such project, for instance, is the Naseem Resort which will reportedly have more than 250 hotel rooms and suites and an adventure park spanning 8,000 sq. mt. in addition.
• In the Union Budget of 2022, the country also revealed its plan to boost the education sector by constructing 40 new schools under the PPP. Furthermore, there are a total of 2,410 active construction projects in Oman, with a combined value of over USD 190 billion.
• With growth looking strong for the building and construction industry in the country, the architectural coatings segment is anticipated to dominate the market during the forecast period.

Oman Paints & Coatings Market Competitor Analysis

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