Built to inform

Sign up for the daily newsletters

No, Thank you

Construction defies Oman's GDP growth with 13% drop

Oman's GDP increased by 6.5% in Q1 2018 despite a decline in the building sector

Oman's GDP growth was hit by a construction sector decline in Q1 2018 [representational image].
Oman's GDP growth was hit by a construction sector decline in Q1 2018 [representational image].

The economic output of Oman's construction sector declined by 12.6% despite an increase in the country's quarterly gross domestic product (GDP).

The sultanate's GDP increased by 6.5% in Q1 2018, with non-oil growth, including real estate deals, driving an upswing for the economy.

Construction and the service sector were the only two major industries to record a decline in the first quarter, Dr Ali bin Masoud Al Sunaidi, Oman's Minister of Commerce and Industry, said during a talk at the Sultan Qaboos University in Muscat, according to state news agency, ONA.

READ: Omani construction will grow faster next year

Real estate, leasing, and commercial activity in the property market increased by 6.5%, with the best performer being the manufacturing sector, which witnessed growth of 17.6%.

Other non-oil industries that performed well in Q1 2018 were mining and quarrying (15%), basic chemicals (14%), and agriculture and fisheries (7.6%). 

Buoyed by burgeoning tourism, Oman's hotel and restaurant sector registered a 7.2% rise in its contribution to national GDP.

READ: Housing plot allocation up 30% in Oman

News of construction decline, however, contrasts sharply with a 2018 report by BMI Research, which predicted that growth in Oman's building sector would outperform the regional average between now and the end of 2019.

The report's predicted growth of 10.4% in 2018 and 11.5% in 2019 was markedly higher than the regional average of approximately 7%.

 

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 764
May 31, 2020