Opening up horizons of investment and free trade

Many factors go into finding the best country for mass manufacturing. Countries with relatively stable political and economic environments, modern infrastructure, and a compatible legal system are ideal for sourcing. Product companies are buzzing about the labour costs, capital costs, and productivity and efficiency of manufacturing.

With the aim of providing a perfect investment climate, the government has been undertaking comprehensive investment approaches over the last five decades. The Sultanate of Oman is characterised by its sustainable economic environment, excellent infrastructure and competent human resources.

The country enjoys investment components that facilitate, encourage and attract local and foreign investments. Its strategic location and world-wide commercial linkages play a major role in opening up the horizons of investment and free trade opportunities. Moreover, the government is undertaking constant efforts to develop sound legal framework that support and encourage local and foreign investments. The country also represents a dynamic investment destination that is well connected to the markets in the Gulf, the Middle East, Asia and Africa.

In recent years, the growing pace of industrialisation, digitisation across the subcontinent has also made production processes more efficient, particularly through the adoption of latest industry technologies coupled with Internet of things, in areas such as supply chain monitoring and asset maintenance.

However, to achieve successful diversification, it is necessary for other capital intensive and knowledge-based industries to emerge. The Sultanate of Oman is aiming at reflecting a more complex production structure. It signals industrial maturity, research and knowledge-based manufacturing industry and the ability to compete internationally through innovation. Manufacturing industries with a higher R&D intensity which are considered high-technology industries. The potential of Oman’s manufacturing industries are classified into four different areas. The first area was the country’s production capacity or its ability to create value added, generate employment and improve labour productivity.

Second was its export potential, namely the basket of manufactured products that the country has potential to export. Thirdly, it was the dynamism or possibility of sustaining high growth and a set of dynamics industries, particularly in connection with rising global demand at current and future stages of development.

Lastly, it was the potential for import substitution, meaning emerging opportunities for the Sultanate of Oman to develop promising yet nascent industries by producing locally.

Oman’s manufacturing industry, is on the right path on “Building resilient infrastructure, promoting inclusive and sustainable industrialisation and fostering innovation.” Specifically, the target of significantly raising industry’s share of employment and GDP in line with national circumstances. Since the Sultanate of Oman’s medium- and high-tech industries already account for 20 per cent of manufacturing value added, an additional 10 per cent was considered feasible, particularly in the light of expected greenfield investments. Since non-priority industries are expected to grow at 6 per cent annually, a 9.4 per cent annual growth rate of medium- and high-tech industries would have to be achieved if medium and high-tech manufacturing value added is to reach a 30 per cent share in total manufacturing value added by 2040.

Manufacturing in the Sultanate of Oman has emerged as one of the high growth sectors within the country. The ‘Made in Oman’ programme to place the country on the world map as a manufacturing hub and give global recognition to the economy. The move, which started some years back, has been gaining momentum sharply. Keeping in view to connect globally and to adopt best international practices, the nation is signatory of Manufacturing for Well-being which is linked to “Sustainable development growth” with local sectoral strategies.

The sustainable development goals are a global development strategy and consist of 17 goals that the signatory countries have committed to achieve by 2030.