Oman Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Oman Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData expects Oman’s construction industry to grow by just 1.2% in real terms in 2023, recovering marginally from the sluggish performance in 2022. Efforts to diversify the economy with investment in non-oil and renewable sectors will help to support construction activity. The total value of tenders and projects awarded by the Tender Board in Oman during the first quarter of 2023 reached OMR369.1 million ($960 million), increased by 92% year on year (YoY) compared to OMR192.6 million ($501 million) worth of projects awarded in the first quarter of 2022, preceded by Y-o-Y growth of 100.1% in 2022. Furthermore, the Oman Investment Authority, the Gulf state’s sovereign wealth fund, aims to spend OMR1.9 billion ($5 billion) on investment projects in 2023.

The oil economy is improving, with net oil exports increasing by 10.6% YoY in 2022, to 319.5 million barrels in comparison with 288.9 million barrels in the previous year. According to the Fiscal Performance Monthly Bulletin published by the Ministry of Finance, the state's general revenues increased by 6.3% at the end of the first quarter of 2023, recording OMR3.2 billion ($8.3 billion), compared to OMR3 billion ($7.8 billion) in the same period of 2022. The government repaid OMR1.1 billion ($2.7 billion) in the first quarter of 2023, reducing the total government debt to OMR16.6 billion ($43.2 billion) at the end of March 2023. Despite regaining growth momentum, the Omani construction industry’s output is expected to remain below the pre-pandemic levels (2019) in 2023. Moreover, the ongoing supply chain crisis, cement shortages and rising building and raw materials prices pose a downside risk to the industry's output in the short term.

GlobalData expects the Omani construction industry to register annual average growth of 4% between 2024 and 2027, supported by investments on the construction of oil, electricity, transport, and housing infrastructure projects and implementation of investment plans to achieve the objectives in line with Oman Vison 2040. In March 2023, Oman Power and Water Procurement Company (OPWP), announced that it plans to award solar energy projects to international investors. These projects are worth OMR298.7 million ($777 million) and have secured approvals from the Authority for Public Services Regulation (APSR), which oversees electricity regulation

The report provides detailed market analysis, information and insights into the Omani construction industry, including -

• The Omani 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 the Omani 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 (2018-2022) and forecast (2023-2027) 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

• Identify and evaluate market opportunities using GlobalData'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 GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.