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Oman Infrastructure Report Q3 2012
Business Monitor International, July 2012, Pages: 64
The Oman Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Oman's infrastructure industry.
BMI View: Despite continuing political turmoil in the wider region, Oman’s construction sector shows positive signs for the rest of 2012. Construction industry value is forecast to rise to US$5.4bn by 2016, up from US$3.8bn in 2012. Year-on-year (y-o-y) growth of 6.8% is expected for 2012, with annual average growth of 5.7% forecast between 2012 and the end of our forecast period in 2021. The main driving forces for this positive development are the energy and utilities industry, as well as the transport sector.
However, we are also seeing encouraging signs concerning the government’s wider commitment to boosting investment in its tourism industry – a key sector for diversifying the Omani economy.
Key highlights include:
- The Omani government announced plans to invest OMR314.9mn (US$817.9mn) in road infrastructure projects during 2012. OMR60mn (US$155.8mn) will go towards the OMR250mn (US$649mn) Sur-Bidbid dual carriageway, OMR62.5mn (US$162.3mn) towards the OMR62.5mn (US$162.3mn) Al Batinah Expressway and OMR10mn (US$25.9mn) towards the OMR40m (US$103.8mn) Mahdha-Al Rawda dual carriageway. The government has also announced that 681 infrastructure development projects, worth a total of OMR1.5bn (US$3.9bn), will begin during 2012.
- The Omani Public Authority for Electricity and Water (PAEW) announced that it has allocated OMR390mn (US$1.01bn) for electricity and water infrastructure development in 2012, reports ameinfo.com. The PAEW is undertaking the construction of four new power plants in different governorates and is also considering building further new facilities in both Duqm and Salalah. A 450MW power and desalination power plant will open in Salalah in April 2012.
- State-owned Oman Oil Company was granted a mandate to develop an Independent Power Project (IPP) in the governorate of Musandam, following a 'closed' procurement process. The gas-fired project will have a power generation capacity of nearly 120MW in its initial stages, and will be developed alongside the US$600mn Musandam Gas Plant project. The plant is scheduled to become operational in early 2014.
Oman's Consultative Council, which was elected for the first time on October 15 2011, is unlikely to bring major changes to the country's political system, which is dominated by Sultan Qaboos bin Said al- Said. While Qaboos's decision to change the Council from a purely advisory appointed body, to an elected one that participates in the legislative process has brought about minor changes thus far, we do not expect significant concessions to be made.
Oman's economy is set to hit a cyclical peak in 2012, and we have raised our real GDP growth forecasts to 5.4% and 4.0% y-o-y in 2012 and 2013 respectively, from 4.5% and 3.4% previously. Elevated oil receipts will drive this expansion, which will feed through to government consumption and fixed investment. Oman's fiscal situation is set to worsen over the medium-term. Expenditure, mainly geared towards current consumption, will rise by 11.0% y-o-y in 2012, owing to governmental efforts to create greater public sector employment opportunities. These commitments will be difficult to pull back in the future. At the same time, oil revenues are set to decrease on the back of falling prices and export volumes.
BMI Industry View 5
SWOT Analysis 7
Oman Infrastructure Industry SWOT 7
Competitive Landscape 8
Table: EQS Data 8
Building Materials 10
Global Overview 10
Middle East Overview 13
Cement Forecasts 17
Table: Oman Cement Production and Consumption Data, 2009 - 2016 17
Table: Oman Cement Production and Consumption Long-Term Forecasts, 2014 - 2021 17
Industry Forecast Scenario 19
Table: Oman Construction And Infrastructure Industry Data, 2008 - 2016 19
Table: Oman Construction And Infrastructure Long Term Forecasts, 2013 - 2021 19
Construction and Infrastructure Forecast Scenario 20
Transport Infrastructure 22
Outlook and Overview 22
Major Projects Table – Transport 23
Table: Major Projects - Transport 23
Energy and Utilities Infrastructure 28
Outlook and Overview 28
Major Projects Table - Energy and Utilities 29
Table: Major Projects – Energy And Utilities 29
Residential/Non-Residential Construction and Social Infrastructure 32
Outlook and Overview 32
Major Projects Table – Residential/Non-Residential Construction and Social Infrastructure 33
Table: Major Projects – Construction And Social Infrastructure 33
Risk/Reward Ratings 34
Oman’s Risk/Reward Ratings 34
Regional Overview 36
Table: Regional Infrastructure Risk/Reward Ratings 41
Company Monitor 42
Galfar Engineering And Contracting 42
Global Overview 45
Industry Forecasts 52
Construction Industry 53
Data Methodology 53
New Infrastructure Data Sub-sectors 53
Capital Investment 55
Construction Sector Employment 56
Infrastructure Risk/Reward Ratings 56
Table: Infrastructure Business Environment Indicators 57
Project Finance Ratings 58
Table: Design And Construction Phase 59
Table: Commissioning And Operating Phase – Commercial Construction 60
Table: Commissioning And Operating Phase – Energy And Utilities 61
Table: Commissioning And Operating Phase – Transport 62