Industrial strategy promotes competitiveness in industrial sector, increases level of technology in manufacturing
The MOCI is reviewing and updating its industrial strategy 2040, in cooperation with the United Nations Industrial Development Organization (UNIDO). This is within the future vision of the Sultanate of Oman 2040 aimed at promotion of competitiveness and growth in the industrial sector and upgradation of the use of technology in manufacturing which can play its role in increase in the added value, employment and reduction of economic risks caused by depletion of natural resources, as well as creation of new and diversified activities in this sector.
Most of the work in the industrial sector in Oman are concentrated in activities which use natural raw materials such as oil, gas, minerals and quarries. Statistics show that there is growth of refineries, petrochemicals and minerals sectors which is more than that of food, textile and other sectors. The added value of the industry contributes in income and use of technology. The statistics and studies of the United Nations Industrial Development Organization (UNIDO) indicate an increase in income when technology is used in manufacturing. Statistics show that 70% of the factories in the Sultanate of Oman depend on natural resources and 20% of factories use advanced or medium level technologies and 10% use low level technologies.
When we compare Sultanate of Oman with other Gulf and Middle Eastern and North African countries as well as developing and emerging countries and China, it appears that the Sultanate is growing at a good rate in line with the Gulf countries along with Gulf countries in terms of the contribution of the added value of the industry compared with the GDP of the Sultanate.
Since the dawn of the blessed Renaissance, the government has paid attention to the industrial sector, and made laws and legislations for industrial zones, free zones and economic zones have been formulated to create industrial entities in the field of oil refining, gas liquefaction, petrochemicals, minerals and quarries, as well as in food, textile, medicine and other fields. In addition to this, it provided facilities and incentives to create attractive environment for industries. It also allocated two years 1991 and 1992 for industrialisation to give the sector greater impetus for growth. This reflected its contribution to the GDP in its reach to 10% and employment of 5% of the total population, according to the statistics of the National Centre for Statistics and Information (NCSI) for the year 2017.
The economic growth rate in the world is rising with the contribution of the industrial sector, where manufacturing is 84% of the total world trade. But the contribution of the industrial sector has remained relatively stable in industrialized countries at constant prices since 1970, while it has grown faster in developing countries.
With the growing interest in innovation, research and development, the rate of products and services based on the industrial sector has increased. The statistics are showing that in the United States every US dollar invested in manufacturing sector produces US dollar 1.73 as value added. It also shows that 40% of the Americans consume products of local industry. Statistics also show that half a billion of the world's 7 billion people work in the industrial sector at a rate of 7% with high wages, high productivity, more advanced use of technology and modern technology.