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Omani construction will grow faster next year

Growth in Oman's construction sector is set to outperform the regional average, according to a UK study

Muscat International Airport opened in 2018.
Muscat International Airport opened in 2018.

Growth in Oman's construction sector will outperform the regional average, according to a report by BMI Research, a unit of Fitch Ratings. 

Rising oil and gas production will boost Omani exports at the same time as the government increases investment in non-oil sectors to diversify the economy. As a result, the country's economy is tipped to enjoy strong growth in the coming years, according to the report that was picked up by the news organisations in Abu Dhabi and Oman.

A stronger economy will support real industry growth in the Sultante's construction sector, with BMI predicting growth of 10.4% in 2018 and 11.5% in 2019. To put this figure into context, the regional construction industry is only expected grow by approximately 7.1% and 7.3% respectively.

READ: SNC-Lavalin wins $1.5bn contract for Omani plastics plant

In recent years, Oman has invested heavily in construction projects spanning aviation, shipping, logistics, and infrastructure.

In June, Oman Tourism Development Company and Majid Al Futtaim have entered into a joint venture to create the country's largest-ever urban development project.

Located in the western area of Madinat Al Irfan, the mixed-use community aims to revitalise Muscat by creating a new urban centre with 11,000 residential units.

It is expected to cost $13bn (OMR5bn), will be built over a period of of 20 years, and is set to create more than 30,000 local jobs.

Meanwhile, global consultancy firm Atkins has been named lead consultant for Khazaen Economic City, a 51km² master-planned megaproject in the northern part of Oman. 

The economic city will become the centre of Oman's logistics industry when it is finished.

Separately, the $4.4bn new Muscat International Airport opened for business this year.

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Latest Issue

Construction Week - Issue 747
Aug 03, 2019