MEED Insights: Oman Projects, H2 2018
Summary
Over the past 18 months, the Sultanate of Oman has emerged as one of the most interesting projects markets in the region, offering good business opportunities for contractors, consultants and investors across a range of industries.
With about $177bn worth of projects planned or underway, the sultanate has a substantial pipeline of projects needed to support Muscat’s aims at diversification into logistics, tourism and manufacturing, as well as improving public services and infrastructure.
Muscat’s diversification drive was boosted in 2017 by the award of contracts worth $5.7bn on the giant Duqm refinery project. These underpinned a 31 per cent year-on-year jump in the value of projects awarded in Oman, and saw the country emerge as the region’s third biggest project market in 2017.
But Oman faces many challenges. Its projects market has seen considerable volatility over the past few years. From 2005 to 2013, project awards were worth between $6.5bn and $9.7bn a year. A leap in the value of awards in 2014 and 2015 prompted optimism about the future of the market. But activity slowed in 2016 due to cuts in government spending as a result of lower oil prices. That contributed to a general slowdown in economic activity, and underlined the need to diversify the economy away from its historic reliance on the oil and gas sector.
Muscat faces the tricky task of balancing the requirement to diversify with the need to ensure its budget deficit does not get out of hand. The pipeline of unawarded projects in Oman is running at over $126bn, but whether Muscat is able or willing to move ahead with all of its plans remains in doubt. Some major schemes, such as the national rail network, have been on hold for several years, with little sign they will be revived soon. The development of industrial facilities in Sohar and Duqm continues to move forward.
assesses the drivers of the Oman projects market and the opportunities the various sectors offer for international and local businesses. These opportunities and their challenges are analysed along with the political and economic environment.
Reasons to Buy
Summary
Over the past 18 months, the Sultanate of Oman has emerged as one of the most interesting projects markets in the region, offering good business opportunities for contractors, consultants and investors across a range of industries.
With about $177bn worth of projects planned or underway, the sultanate has a substantial pipeline of projects needed to support Muscat’s aims at diversification into logistics, tourism and manufacturing, as well as improving public services and infrastructure.
Muscat’s diversification drive was boosted in 2017 by the award of contracts worth $5.7bn on the giant Duqm refinery project. These underpinned a 31 per cent year-on-year jump in the value of projects awarded in Oman, and saw the country emerge as the region’s third biggest project market in 2017.
But Oman faces many challenges. Its projects market has seen considerable volatility over the past few years. From 2005 to 2013, project awards were worth between $6.5bn and $9.7bn a year. A leap in the value of awards in 2014 and 2015 prompted optimism about the future of the market. But activity slowed in 2016 due to cuts in government spending as a result of lower oil prices. That contributed to a general slowdown in economic activity, and underlined the need to diversify the economy away from its historic reliance on the oil and gas sector.
Muscat faces the tricky task of balancing the requirement to diversify with the need to ensure its budget deficit does not get out of hand. The pipeline of unawarded projects in Oman is running at over $126bn, but whether Muscat is able or willing to move ahead with all of its plans remains in doubt. Some major schemes, such as the national rail network, have been on hold for several years, with little sign they will be revived soon. The development of industrial facilities in Sohar and Duqm continues to move forward.
assesses the drivers of the Oman projects market and the opportunities the various sectors offer for international and local businesses. These opportunities and their challenges are analysed along with the political and economic environment.
Reasons to Buy
- Opportunities and challenges in the Oman’s projects market
- Analysis of the pipeline of planned projects and contract awards 2018-2022
- Key policies and drivers shaping the outlook for projects in Oman
- Political and economic background
- The barriers and challenges that may arise
- Sector-by-sector breakdown of future project plans
- Key drivers of projects in each sector
- Oman’s most valuable key projects and major project sponsors.
Table of Contents
Executive SummaryOman Country Overview
Oman Projects Market
Oil & Gas
Construction
Transport
Industrial
Power & Water
List of Tables
Table 1: Oman economic indicators, 2018
Table 2: Biggest megaprojects under construction in Oman ($m)
Table 3: Major projects to be tendered in 2018 and 2019 ($m)
Table 4: Biggest oil and gas megaprojects under construction in Oman ($m)
Table 5: Major oil and gas projects to be tendered in 2018 and 2019 ($m)
Table 6: Biggest construction megaprojects under construction in Oman ($m)
Table 7: Major construction projects to be tendered in 2018 and 2019 ($m)
Table 8: Biggest transport megaprojects under construction in Oman ($m)
Table 9: Major transport projects to be tendered in 2018 and 2019 ($m)
Table 10: Biggest industrial megaprojects under construction in Oman ($m)
Table 11: Major industrial projects to be tendered in 2018 and 2019 ($m)
Table 12: Biggest power and water megaprojects under construction in Oman ($m)
Table 13: Major power and water projects to be tendered in 2018 and 2019 ($m)
List of Figures
Fig. 1: Oman country map
Fig. 2: GDP by sector, 2017 (per cent)
Fig. 3: Nominal GDP ($bn) versus annual real GDP growth (per cent)
Fig. 4: Oman current account balance, 2014-2020
Fig. 5: Oman budget, 2009-2018 (OMR bn)
Fig. 6: Gross official reserves, 2014-2019 ($bn)
Fig. 7: Oman gross government debt, 2014-2020
Fig. 8: Value of all projects planned or underway ($m)
Fig. 9: Breakdown of projects market by project status ($m)
Fig. 10: Breakdown of projects market by sector (per cent)
Fig. 11: Value of contract awards by year ($m)
Fig. 12: Value of contract awards by year and sector ($m)
Fig. 13: Biggest clients in Oman by contracts in execution ($m)
Fig. 14: Biggest contractors in Oman by contracts in execution ($m)
Fig. 15: Projects planned but unawarded, by status ($m)
Fig. 16: Projects planned but unawarded, by sector ($m)
Fig. 17: Oman project contract award forecast, 2018-2022 ($m)
Fig. 18: Oil and gas projects market by project status ($m)
Fig. 19: Oil and gas projects market by subsector (per cent)
Fig. 20: Value of contract awards by year ($m)
Fig. 21: Value of contract awards by year and subsector ($m)
Fig. 22: Biggest clients in Oman in oil and gas sector by contracts in execution ($m)
Fig. 23: Biggest contractors in Oman in oil and gas sector by contracts in execution ($m)
Fig. 24: Projects planned but unawarded, by status ($m)
Fig. 25: Projects planned but unawarded, by subsector ($m)
Fig. 26: Oman oil and gas project contract award forecast, 2018-2022 ($m)
Fig. 27: Construction projects market by project status ($m)
Fig. 28: Construction projects market by subsector (per cent)
Fig. 29: Value of contract awards by year ($m)
Fig. 30: Value of contract awards by year and subsector ($m)
Fig. 31: Biggest clients in Oman in construction sector by contracts in execution ($m)
Fig. 32: Biggest contractors in Oman in construction sector by contracts in execution ($m)
Fig. 33: Construction projects planned but unawarded, by status ($m)
Fig. 34: Construction projects planned but unawarded, by subsector ($m)
Fig. 35: Oman construction project contract award forecast, 2018-2022 ($m)
Fig. 36: Transport projects market by project status ($m)
Fig. 37: Transport projects market by subsector (per cent)
Fig. 38: Value of contract awards by year ($m)
Fig. 39: Value of contract awards by year and subsector ($m)
Fig. 40: Biggest clients in Oman in transport sector by contracts in execution ($m)
Fig. 41: Biggest contractors in Oman in transport sector by contracts in execution ($m)
Fig. 42: Projects planned but unawarded, by status ($m)
Fig. 43: Projects planned but unawarded, by subsector ($m)
Fig. 44: Oman transport project contract award forecast, 2018-2022 ($m)
Fig. 45: Industrial projects market by project status ($m)
Fig. 46: Industrial projects market by subsector (per cent)
Fig. 47: Value of contract awards by year ($m)
Fig. 48: Value of contract awards by year and subsector ($m)
Fig. 49: Biggest clients in Oman in industrial sector by contracts in execution ($m)
Fig. 50: Biggest contractors in Oman in industrial sector by contracts in execution ($m)
Fig. 51: Projects planned but unawarded, by status ($m)
Fig. 52: Projects planned but unawarded, by subsector ($m)
Fig. 53: Oman industrial project contract award forecast, 2018-2022 ($m)
Fig. 54: Power and water projects market by project status ($m)
Fig. 55: Power and water projects market by subsector (per cent)
Fig. 56: Value of contract awards by year ($m)
Fig. 57: Value of contract awards by year and subsector ($m)
Fig. 58: Biggest clients in Oman in power and water sector by contracts in execution ($m)
Fig. 59: Biggest contractors in Oman in power and water sector by contracts in execution ($m)
Fig. 60: Projects planned but unawarded, by status ($m)
Fig. 61: Projects planned but unawarded, by subsector ($m)
Fig. 62: Oman power and water project contract award forecast, 2018-2022 ($m)
