Oman infra investments buoying construction sector
Cluttons' head of research, Faisal Durrani, said Oman's economic diversification plans are creating more jobs and adding to demand for office and residential spaces
Oman's investments in its infrastructure sector are buoying other industries in the country, such as construction and real estate, according to an expert.
Faisal Durrani, head of research at Cluttons, told Construction Week how Oman's plans for economic diversification are benefitting the country's construction sector.
“You’ve got an economy that has historically been heavily reliant on the hydrocarbon sector for its GDP growth, and that continues till today," he said.
"But given the recent extreme volatility in oil prices and how much they’ve fallen over the last 12 to 18 months – something in the region of 50%-60% – the Omani government has been forced to consider alternative ways of sustaining economic growth.
“One of the ways in which that is being done is through the government’s infrastructure investment programme, which includes the construction of new roads and highways, upgradation of oil infrastructure around the country, construction and upgradation of airports, constructing power plants, and so on.”
Durrani went on to explain the knock-on effect of these public investments on how the Sultanate’s private sector performs: “All these investments are helping create jobs across construction, and we’re seeing a lot of architectural and legal practices moving into the country as a result.
"There is a lot of momentum in Oman’s construction sector through the investment programme.
"The steady creation of jobs means the office [property] market has sustained itself, and on the back of new jobs, you have new households being created, which also boosts the residential sector,” he added.