Oman Projects, H1 2022 - Outlook of Major Projects in Oman - MEED Insights
Oman has historically been one of the smaller markets in the GCC. A smaller population and more limited oil and gas resources than its neighbours have traditionally meant that sits behind Kuwait and Qatar and ahead of Bahrain in terms of annual contract awards. But that is not to say that the Sultanate does not offer a variety of interesting opportunities for contractors, consultants and suppliers alike. In recent years, there have been a number of large-scale projects across different sectors such as the Duqm refinery, the new Muscat international airport, and the Batinah expressway scheme among others.
Like most countries Oman was hit hard by the Covid-19 pandemic. However, unlike most countries in the region, its projects market actually grew by nearly 20 per cent year-on-year, albeit from a much lower base. There was not one single large project award behind this increase; rather it was a series of midrange projects across the transport and water sectors that helped reach the total, many of which were financed by regional development funds.
This year the Sultanate is set to perform a little more badly. Spending on projects for the first 9 months of the year of $3.5bn suggests that it will do well to reach the $5bn 2019 number let alone last year’s $5.9bn.
Future projects performance will hinge more than ever on foreign investment in its major industrial hubs in Sohar, Duqm and Salalah. Chinese investment in particular will be key as part of its Belt and Road Initiative to benefit from Oman’s position on the main East-West shipping axis. Also critical will be the development of the Sultanate’s PPP project plans to obtain more private sector involvement in the funding, construction and operation of future projects. In the absence of major government capital expenditure, private sector financing will be pivotal in getting projects moving again.
The prospects for PPP took a backward step with the disbanding of the Central PPP Unit in 2019, but recent announcements from the government suggest that PPP projects are firmly back on the agenda.
Summary
Oman has historically been one of the smaller markets in the GCC. A smaller population and more limited oil and gas resources than its neighbours have traditionally meant that sits behind Kuwait and Qatar and ahead of Bahrain in terms of annual contract awards. But that is not to say that the Sultanate does not offer a variety of interesting opportunities for contractors, consultants and suppliers alike. In recent years, there have been a number of large-scale projects across different sectors such as the Duqm refinery, the new Muscat international airport, and the Batinah expressway scheme among others.
Like most countries Oman was hit hard by the Covid-19 pandemic. However, unlike most countries in the region, its projects market actually grew by nearly 20 per cent year-on-year, albeit from a much lower base. There was not one single large project award behind this increase; rather it was a series of midrange projects across the transport and water sectors that helped reach the total, many of which were financed by regional development funds.
This year the Sultanate is set to perform a little more badly. Spending on projects for the first 9 months of the year of $3.5bn suggests that it will do well to reach the $5bn 2019 number let alone last year’s $5.9bn.
Future projects performance will hinge more than ever on foreign investment in its major industrial hubs in Sohar, Duqm and Salalah. Chinese investment in particular will be key as part of its Belt and Road Initiative to benefit from Oman’s position on the main East-West shipping axis. Also critical will be the development of the Sultanate’s PPP project plans to obtain more private sector involvement in the funding, construction and operation of future projects. In the absence of major government capital expenditure, private sector financing will be pivotal in getting projects moving again.
The prospects for PPP took a backward step with the disbanding of the Central PPP Unit in 2019, but recent announcements from the government suggest that PPP projects are firmly back on the agenda.
Reasons to Buy
- Opportunities and challenges in Oman’s projects market
- Analysis of the pipeline of planned projects and contract awards
- Key policies and drivers shaping the outlook for projects in Oman
- Political and economic background
- The barriers and challenges that may arise
- Sector-by-sector breakdown of future project plans
- Key drivers of projects in each sector
- Oman’s most valuable key projects and major project sponsors
Table of Contents
- Executive Summary
- Oman Country Overview
- Oman Projects Market
- Oil and Gas
- Construction
- Transport
- Industrial
- Power and Water
List of Tables
Table 1 Top Projects
Table 2 Biggest planned and un-awarded projects in Oman
Table 3 Top Oil and Gas Sector Projects
Table 4 Biggest planned and un-awarded Oil and Gas projects in Oman Due in Bidding Stage
Table 5 Biggest planned and un-awarded Oil and Gas projects in Oman at Design, FEED or Study Stage
Table 6 Top Construction Sector Projects
Table 7 Biggest planned and un-awarded Construction projects in Oman Due in Bidding Stage
Table 8 Biggest planned and un-awarded Construction projects in Oman at Design, FEED or Study Stage
Table 9 Top Transport Sector Projects
Table 10 Biggest planned and un-awarded Transport projects in Oman Due in Bidding Stage
Table 11 Biggest planned and un-awarded Transport projects in Oman at Design, FEED or Study Stage
Table 12 Top Industrial Sector Projects
Table 13 Biggest planned and un-awarded Industrial projects in Oman Due in Bidding Stage
Table 14 Biggest planned and un-awarded Industrial projects in Oman at Design, FEED or Study Stage
Table 15 Top Power and Water Sector Projects
Table 16 Biggest planned and un-awarded Power and Water projects in Oman Due in Bidding Stage
Table 17 Biggest planned and un-awarded Power and Water projects in Oman at Design, FEED or Study Stage
List of Figures
Figure 1 Oman country map
Figure 2 GDP by sector, 2020 (%)
Figure 3 Oman Nominal GDP vs. GDP Growth, 2012-24
Figure 4 Oman budget, 2012-22 (OMR bn)
Figure 5 Gulf Projects Index Value of all projects in Oman ($m)
Figure 6 Projects market by project status ($m)
Figure 7 Projects market by sector ($m)
Figure 8 Value of contract awards by year ($m)
Figure 9 Value of contract awards by year and sector ($m)
Figure 10 Value of contracts awarded in Oman in July to December, 2012-21 ($m)
Figure 11 Number of Contracts Awarded 2012-21
Figure 12 Biggest clients in Oman by value of contracts in execution ($m)
Figure 13 Biggest contractors in Oman by contracts in execution ($m)
Figure 14 Projects planned but un-awarded by status ($m)
Figure 15 Projects planned but un-awarded by sector ($m)
Figure 16 Biggest clients in Oman by value of contracts planned ($m)
Figure 17 Oman contracts award forecast 2022-25 ($m)
Figure 18 Value of Oil and Gas contract awards by year ($m)
Figure 19 Oil and gas projects market by project status ($m)
Figure 20 Oil and gas projects market by subsector (%)
Figure 21 Value of Oil and Gas contract awards by year and subsector ($m)
Figure 22 Biggest Oil and Gas Sector clients in Oman by value of contracts in execution ($m)
Figure 23 Biggest Oil and Gas Sector contractors in Oman by contracts in execution ($m)
Figure 24 Oil and Gas Projects planned but un-awarded by status ($m)
Figure 25 Oil and Gas Sector Projects planned but un-awarded by subsector ($m)
Figure 26 Biggest Oil and Gas Sector Future Clients
Figure 27 Value of Construction contract awards by year ($m)
Figure 28 Construction projects market by project status ($m)
Figure 29 Construction projects market by subsector (%)
Figure 30 Value of Construction contract awards by year and subsector ($m)
Figure 31 Biggest Construction Sector clients in Oman by value of contracts in execution ($m)
Figure 32 Biggest Construction Sector contractors in Oman by contracts in execution ($m)
Figure 33 Construction Projects planned but un-awarded by status ($m)
Figure 34 Construction Sector Projects planned but un-awarded by subsector ($m)
Figure 35 Biggest Construction Sector Future Clients
Figure 36 Value of Transport contract awards by year ($m)
Figure 37 Transport projects market by project status ($m)
Figure 38 Transport projects market by subsector (%)
Figure 39 Value of Transport contract awards by year and subsector ($m)
Figure 40 Biggest Transport Sector clients in Oman by value of contracts in execution ($m)
Figure 41 Biggest Transport Sector contractors in Oman by contracts in execution ($m)
Figure 42 Transport Projects planned but un-awarded by status ($m)
Figure 43 Transport Sector Projects planned but un-awarded by subsector ($m)
Figure 44 Biggest Transport Sector Future Clients
Figure 45 Value of Industrial contract awards by year ($m)
Figure 46 Industrial projects market by project status ($m)
Figure 47 Industrial projects market by subsector (%)
Figure 48 Value of Industrial contract awards by year and subsector ($m)
Figure 49 Biggest Industrial Sector clients in Oman by value of contracts in execution ($m)
Figure 50 Biggest Industrial Sector contractors in Oman by contracts in execution ($m)
Figure 51 Industrial Projects planned but un-awarded by status ($m)
Figure 52 Industrial Sector Projects planned but un-awarded by subsector ($m)
Figure 53 Biggest Industrial Sector Future Clients
Figure 54 Value of Power and Water contract awards by year ($m)
Figure 55 Power and Water projects market by project status ($m)
Figure 56 Power and Water projects market by subsector (%)
Figure 57 Value of Power and Water contract awards by year and subsector ($m)
Figure 58 Biggest Power and Water Sector clients in Oman by value of contracts in execution ($m)
Figure 59 Biggest Power and Water Sector contractors in Oman by contracts in execution ($m)
Figure 60 Power and Water Projects planned but un-awarded by status ($m)
Figure 61 Power and Water Sector Projects planned but un-awarded by subsector ($m)
Figure 62 Biggest Power and Water Sector Future Clients
