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Construction in Oman - Key Trends and Opportunities to 2025 (Q4 2021)

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    Report

  • 54 Pages
  • December 2021
  • Region: Oman
  • GlobalData
  • ID: 5521369
1h Free Analyst Time
1h Free Analyst Time

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Having contracted for three successive years up to 2019, the construction industry in Oman shrank further in 2020, having been hit hard by the impact of the Coronavirus (COVID-19) pandemic, low oil prices, production cuts owing to the Organization of the Petroleum Exporting Countries (OPEC) guidelines and sovereign credit rating downgrades. The industry contracted by 12.2% last year, and is expected to remain weak in 2021, declining by 0.5% in real terms. In the short term, the industry’s output will be supported by investments on the construction and repair of infrastructure in response to the damages caused by Cyclone Shaheen, which hit parts of the country in early October 2021. However, the recovery will be slow in the coming years, so much so that output will not return to 2019 levels until 2024.

The improvement in output from the lows of 2020 will be supported by investments in the construction of oil, electricity, transport and housing infrastructure projects. In January 2021, the government launched the 10th Five-Year Development Plan (2021-2025), with an aim to diversify the economy and reduce reliance on oil revenue. The plan is expected to create 135,000 job opportunities over the next five years. Some of the main targets of the plan include increasing the contribution of the transformative industries to the total GDP from 10.8% in 2020 to 12.2% to 2025, as well as the transportation and logistics sector from 6.4% to 7.5% and the education sector from 4.9% to 6.2% during the same period.

Rising Foreign Direct Investment (FDI) will also support the industry’s recovery. According to the NCSI, the total value of FDI rose by 4.6% in the first half of 2021, to reach OMR31.9 billion (US$83 billion). Of the total, the oil and gas sector attracted investments worth OMR21.3 billion (US$55.4 billion), while the manufacturing sector attracted investments worth OMR2.9 billion (US$7.6 billion) during the same period.

A downside risk to the industry’s output could arise from the government’s plan to cut public spending to control fiscal deficit. Public sector spending cuts are the government’s priority in 2021, continuing throughout the medium term (2022-2024), as outlined in the Medium-Term Fiscal Plan (MTFP). The fiscal plan is intended to reduce public debt, increase the state’s reserves and diversify revenue away from oil. In the 2021 Budget, the government decreased its total spending by 17.4%, going from OMR13.2 billion (US$34.3 billion) in the 2020 Budget to OMR10.9 billion (US$28.3 billion) in the 2021 Budget.

The publisher’s Construction in Oman - Key Trends and Opportunities to 2025 report provides detailed market analysis, information and insights into the Omani construction industry, including:

  • The Omani construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Omani construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Oman. It provides:

  • Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Oman, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using the publisher's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.

Table of Contents

1 Executive Summary2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index
4.2 Commercial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.3 Industrial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.4 Infrastructure Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.5 Energy and Utilities Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.6 Institutional Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.7 Residential Construction
  • Outlook
  • Project analytics
  • Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
7.4 The Publisher Construction
  • Contact The Publisher

List of Tables
Table 1: Construction Industry Key Data
Table 2: Oman, Key Economic Indicators
Table 3: Oman, Commercial Construction Output by Project Type (Real % Change), 2016-2025
Table 4: Oman, Top Commercial Construction Projects by Value
Table 5: Oman, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: Oman, Top Industrial Construction Projects by Value
Table 7: Oman, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: Oman, Top Infrastructure Construction Projects by Value
Table 9: Oman, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: Oman, Top Energy and Utilities Construction Projects by Value
Table 11: Oman, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: Oman, Top Institutional Construction Projects by Value
Table 13: Oman, Residential Construction Output by Project Type (Real % Change), 2016-2025
Table 14: Oman, Top Residential Construction Projects by Value
Table 15: Oman, Key Contractors
Table 16: Oman, Key Consultants
Table 17: Oman, Construction Output Value (Real, US$ Million)
Table 18: Oman, Construction Output Value (Nominal, OMR Million)
Table 19: The Publisher Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: Middle East and Africa, Construction Output (Real % Change), 2020 and 2021
Figure 2: Oman, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Oman, COVID-19 Confirmed Cases
Figure 4: Oman, Risk Summary
Figure 5: Oman, Risk Regional Comparison
Figure 6: Oman, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: Oman, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: Oman, Construction Value Add, Current Prices, % Change YoY
Figure 9: Oman, Total Foreign Direct Investment, Investment Volume (OMR Million)
Figure 10: Oman, Credit Issued for Construction Industry (OMR Billion), % Share of Total Loan
Figure 11: Oman, Construction Projects Momentum Index
Figure 12: Middle East and Africa, Construction Projects Momentum Index
Figure 13: Oman, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 14: Oman, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 15: Oman, Credit Issued for Construction Industry (OMR Billion), % Share of Total Loan
Figure 16: Oman, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 17: Oman, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 18: Oman, Manufacturing Value-Add, % Change YoY
Figure 19: Oman, Credit Issued to the Manufacturing, and Mining and Quarrying Sectors, In OMR Billion
Figure 20: Oman, Total Merchandise Export (OMR Million), % Change YoY
Figure 21: Oman, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 22: Oman, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 23: Oman, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 24: Oman, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 25: Oman, Total Oil and Gas Export (OMR Million), % Change YoY
Figure 26: Oman, Electricity Production, In GWh, % Change YoY
Figure 27: Oman, Water Production, In Thousand m3
Figure 28: Oman, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 29: Oman, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 30: Oman, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 31: Oman, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 32: Oman, Land Plots Granted for Residential Construction (Number), % Change YoY
Figure 33: Oman, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 34: Oman, Headquarters of Key Consultants (% of Total Project Pipeline)