Oman’s construction industry has been declining since 2017, with output shrinking by an annual average rate of 5% from 2017 to 2019. The COVID-19 outbreak aggravated the weakness in the industry, as it contracted sharply in 2020, plummeting by an estimated 15.6% in real terms, as the industry struggled with the challenges that emerged due to the outbreak, including lockdowns, low oil prices, production cuts owing to OPEC guidelines and the impact of sovereign credit rating downgrades.
The publisher expects the Omani construction industry to rebound in 2021, growing by 4.8% in real terms; this recovery is a reflection of the low base in 2020, however, owing to the depths which the construction industry fell due to lockdowns and fiscal constraints. In 2022, the industry is projected to register growth of 3.3%, and then expand by an annual average rate of 4% over the remainder of the forecast period (2023-2025). The government’s programs to promote the development of affordable housing, transport and renewable energy infrastructure are expected to continue to support the expansion of the industry in the coming years.
Looking further ahead, while Oman continues to enhance its oil recovery techniques to boost oil production, it will keep pursuing its diversification plan ‘Vision 2040’, and construction will continue to be a major contributor to growth in Oman’s non-oil GDP, offering solid prospects for economic diversification. The publisher considers the prospects for capital expenditure projects in the tourism and manufacturing sectors as being key to the construction industry’s recovery; these sectors have been recognized as long-term drivers of revenue diversification and economic growth for the Sultanate.
In January 2021, the government launched the 10th five-year development plan 2021-2025, with an aim to diversify the economy and reduce reliance on oil revenue. Under this, the government plans to increase the contribution of transformative industries in the country’s total GDP from 10.8% in 2020 to 12.2% in 2025, the transportation and logistics sector from 6.4% to 7.5%, the education sector from 4.9% to 6.2%, the tourism sector from 2.5% to 3%, fisheries wealth from 0.9% to 2% and the mining sector from 0.5% to 0.7%.
The downside risk associated with the outlook is the government’s plan to cut public spending to control fiscal deficit. Public sector spending cuts are the government’s priority in 2021, continuing throughout the medium term (2022-2024), as outlined in the Medium-Term Fiscal Plan (MTFP). The fiscal plan is intended to reduce public debt, increase the state’s reserves, and diversify revenue away from oil. In the 2021 Budget, the government decreased its total spending by 17.4%, from OMR13.2 billion (US$34.3 billion) in the 2020 Budget to OMR10.9 billion (US$28.3 billion) in the 2021 Budget.
This report provides detailed market analysis, information, and insights into Oman’s construction industry, including:
Scope
This report provides a comprehensive analysis of the construction industry in Oman. It provides:
Reasons to Buy this Report
The publisher expects the Omani construction industry to rebound in 2021, growing by 4.8% in real terms; this recovery is a reflection of the low base in 2020, however, owing to the depths which the construction industry fell due to lockdowns and fiscal constraints. In 2022, the industry is projected to register growth of 3.3%, and then expand by an annual average rate of 4% over the remainder of the forecast period (2023-2025). The government’s programs to promote the development of affordable housing, transport and renewable energy infrastructure are expected to continue to support the expansion of the industry in the coming years.
Looking further ahead, while Oman continues to enhance its oil recovery techniques to boost oil production, it will keep pursuing its diversification plan ‘Vision 2040’, and construction will continue to be a major contributor to growth in Oman’s non-oil GDP, offering solid prospects for economic diversification. The publisher considers the prospects for capital expenditure projects in the tourism and manufacturing sectors as being key to the construction industry’s recovery; these sectors have been recognized as long-term drivers of revenue diversification and economic growth for the Sultanate.
In January 2021, the government launched the 10th five-year development plan 2021-2025, with an aim to diversify the economy and reduce reliance on oil revenue. Under this, the government plans to increase the contribution of transformative industries in the country’s total GDP from 10.8% in 2020 to 12.2% in 2025, the transportation and logistics sector from 6.4% to 7.5%, the education sector from 4.9% to 6.2%, the tourism sector from 2.5% to 3%, fisheries wealth from 0.9% to 2% and the mining sector from 0.5% to 0.7%.
The downside risk associated with the outlook is the government’s plan to cut public spending to control fiscal deficit. Public sector spending cuts are the government’s priority in 2021, continuing throughout the medium term (2022-2024), as outlined in the Medium-Term Fiscal Plan (MTFP). The fiscal plan is intended to reduce public debt, increase the state’s reserves, and diversify revenue away from oil. In the 2021 Budget, the government decreased its total spending by 17.4%, from OMR13.2 billion (US$34.3 billion) in the 2020 Budget to OMR10.9 billion (US$28.3 billion) in the 2021 Budget.
This report provides detailed market analysis, information, and insights into Oman’s construction industry, including:
- Oman’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Oman’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
Scope
This report provides a comprehensive analysis of the construction industry in Oman. It provides:
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Oman, featuring details of key growth drivers
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy this Report
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate strategy using the publisher's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors.
Table of Contents
1. Executive Summary2. Construction Industry: At-a-Glance6. Construction Market DataContact
3. Context
4. Construction Outlook
5. Key Industry Participants
7. Appendix
List of Tables
List of Figures
