Oman Transportation Infrastructure Construction Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Oman Transportation Infrastructure Construction Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Transportation Infrastructure Construction Market is anticipated to register CAGR of over 3% during the forecast period.

COVID-19 severely impacted overall construction sector in Oman and transportation infrastructure construction does not have exception for it. Construction activity was slow downed due to difficulty in supply chain and social distancing factor. As Oman is Oil based economy, fall in oil prices during covid period slowdown the economic activity in Oman. This economic slowdown impacted negative growth in Oman Transportation Infrastructure Construction Market in short term. The speedy recovery has been seen in infrastructure construction in 2021.

Rapid urbanization, growing need for large transportation infrastructure capacity for oil transport, aging existing infrastructure are some of the key driving factor for revenue growth of Oman Transportation Infrastructure Construction Market

Growing transportation infrastructure investment supported by the rapid growth in urban population. As per the World Bank, in 2020 the urban population of Oman reached 4.4 million. In 2010, 75.16% of the population in Oman lived in urban areas. By 2020, the share of the urban population had reached 86.27%.

As the share of the urban population grows, the growth of transport infrastructure is also required to connect them in the urban areas in Oman. Growing urban population boosting the demand for transportaion infrastucture construction. Existing infrastructures in developed countries must be improved to improve resilience, improve the environment, and reduce maintenance costs.

Government of Oman is making more investment in transportation infrastructure to cater transportaion need of urban population.This is creating lucrative opprtunities in infrastuture segment of country. Hence growing urban population boosting the revenue growth of Oman Transportaion Infrastructure Market.

Oman’s economy heavily relies on revenue from oil, a shift is required to diversify sources of income by promoting investments in targeted sectors. The government has focused on pursuing this objective by boosting the contribution of the five target sectors in the Ninth Five Year Plan, including logistics, manufacturing, tourism, fisheries, and mining, as well as moving forward with key strategic projects.

The Sultanate of Oman is executing a successful model of economic diversification, notably, the country’s trade liberalization in goods and services. Oman pursued an active plan of development that focuses on diversification, manufacturing, and privatization to diminish the contribution of the oil sector to the GDP to 9%. The tourism and hydrocarbon industries have become the main components of the government’s economic diversification strategy.

In the manufacturing sector, Tanfeedh (Economic Diversification Plan) was slated for new investments by 2020, although this was brought to a standstill by the pandemic later. The key sub-sectors include the petrochemicals, metals, materials, and the food and energy sectors. Oman’s tourism sector is mostly untapped. The Travel and Tourism Competitiveness Index of Oman in 2019 was 58 globally. Although the pandemic heavily impacted the tourism sector in 2020, an increase in infrastructure spending plans may help the sector recover over 2021‑2022.

Within logistics, the Omani government is positioning Duqm as a major industrial and business zone in the region. One of the objectives of the Special Economic Zone Authority in Duqm is to develop the central arid region of the country and create ample space for international and local investors to build world-class projects. This will help achieve promising growth in the Omani economy, and at the same time, strengthen the country's position at the international level.

The report covers major national and international players operating in Oman transportation infrastructure construction market. The market is fragmented with major player holding the lower market share. The Oman construction market is highly competitive with the presence of major international players. Galfar Engineering and Contracting SAOG, Desert Line Group, STRABAG SE, Bechtel, Khalid Bin Ahmed & Sons LLC are some of the key market player operating in market. The market may present lucrative opportunities for growth during the forecast period, which is expected to further drive market competition.

• The market estimate (ME) sheet in Excel format
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