Oman manufacturing output advances 16.1% in first half

Oman’s manufacturing output rose 16.1 per cent year on year to about RO2.188 billion in the first half of 2026, with chemicals and refined petroleum products driving a broad expansion in industrial activity.

Data from the National Centre for Statistics and Information showed basic chemicals manufacturing increased 22.7 per cent to RO659.6 million, while refined petroleum products climbed 40 per cent to RO397.2 million. Other manufacturing industries grew 6.3 per cent to RO1.132 billion, indicating that the increase extended beyond the two largest growth categories.

The figures add to evidence of stronger investment and overseas demand for Oman’s manufactured and non-oil goods. Foreign investment in manufacturing rose 4.7 per cent to approximately RO2.829 billion during the period, while broader trade data showed non-oil exports of national origin increased by about 11 per cent.

Ghalib bin Said al Maamari, Undersecretary at the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, said non-oil exports of national origin reached roughly RO3.6 billion by the end of June, against RO3.3 billion in the corresponding period of 2025. Export growth accelerated in the second quarter, when shipments reached around RO2 billion after approximately RO1.6 billion in the first three months.

Total merchandise exports increased 15.3 per cent to about RO13.2 billion in the first half, while re-exports rose 20 per cent. Oman’s merchandise trade surplus widened by about 51 per cent to RO4.7 billion as export growth outpaced imports.

The export composition also showed gains in manufacturing-linked categories. Chemicals and base metals were among the main non-oil product groups, alongside plastics and rubber products. Earlier NCSI data for the first quarter showed chemical-industry exports rising 17 per cent to RO216 million and base metals and related products increasing 10.8 per cent to RO376 million.

The manufacturing expansion comes as Oman seeks to raise industrial value added under its Industrial Strategy 2040. The Ministry of Commerce, Industry and Investment Promotion said manufacturing contributed approximately RO3.7 billion to gross domestic product at constant prices in 2025 and RO869 million in the first quarter of 2026. The strategy targets a manufacturing contribution of RO5.44 billion by 2030 and RO10.702 billion by 2040.

Investment data have also pointed to sustained foreign interest in the sector. NCSI’s preliminary figures for the first quarter put foreign direct investment in manufacturing at RO2.87 billion, up 5.4 per cent from a year earlier, making it the second-largest recipient after oil and gas extraction. Manufacturing attracted RO146.7 million in investment inflows during that quarter.

The stronger headline manufacturing figures nevertheless mask divergent trends within individual industrial activities. NCSI data on refineries showed total petroleum refinery products falling 5.1 per cent to 108.8 million barrels during the first six months, from 114.7 million barrels a year earlier. Diesel output declined 7.5 per cent and regular petrol production fell 4.7 per cent.

Some petrochemical products moved in the opposite direction. Benzene production increased 12.9 per cent to 97,100 metric tonnes and exports rose 16.6 per cent. Paraxylene output advanced 14 per cent to 322,600 tonnes, with exports up 6.1 per cent to 331,700 tonnes.

Polypropylene was weaker, with production dropping 29.4 per cent to 124,600 tonnes and exports declining 26 per cent to 97,000 tonnes. Domestic polypropylene sales, however, increased 32.6 per cent to 20,500 tonnes.

Listed industrial companies also recorded stronger earnings during the first half. Aggregate net profit among industrial companies on the Muscat Stock Exchange rose to about RO86.5 million from RO57.2 million a year earlier, though company results varied and do not represent the manufacturing sector as a whole.

The ministry’s industrial policy places emphasis on technology, local supply chains, higher value-added production and workforce skills rather than expansion in plant numbers alone. Officials have also been working to broaden export markets, with companies targeting destinations including Iraq, East Africa and Asian markets.