Oman’s industrial construction market is gaining strong momentum as major projects in Duqm and Sohar attract large-scale investments and foreign interest. The sector is projected to grow by 3.6% in real terms in 2025, driven by rising foreign direct investment (FDI) and government-led diversification under Vision 2040.

Duqm and Sohar Lead the Expansion

In 2024, FDI surged by 18.2% year-over-year, following a 25.2% increase in 2023. This steady influx of capital is transforming Oman into a regional industrial hub. Both Duqm and Sohar stand out as key contributors to this growth, benefiting from Special Economic Zone (SEZ) incentives, which include tax exemptions for up to 30 years. These policies have made the zones highly attractive to global investors seeking stable, long-term opportunities in manufacturing, logistics, and energy.

The Duqm Refinery project, one of the country’s flagship developments, has become a major catalyst for industrial and construction growth. With a refining capacity of 230,000 barrels per day, it not only anchors regional energy production but also stimulates downstream infrastructure — including storage facilities, pipelines, and port logistics. As a result, Duqm is rapidly transforming into a new commercial and industrial powerhouse, connecting Oman’s southern coastline to global trade routes.

Similarly, Sohar’s industrial zone continues to expand its footprint, supported by SEZ incentives and increasing international partnerships. These expansions are leading to new industrial clusters focused on steel, petrochemicals, and renewable energy. The influx of investors is boosting both construction activity and employment in the northern region, further balancing Oman’s economic landscape between Duqm and Sohar.

Public investment is also supporting this trajectory. In the first quarter of 2025, Oman’s public spending rose by 4% year-on-year, with development expenditures reaching approximately $660 million. Much of this spending aligns with Vision 2040 priorities — particularly industrial and energy infrastructure, logistics corridors, and transport connectivity projects.

Vision 2040: Building for the Future

Oman Vision 2040 places diversification at the center of the country’s long-term development agenda. The plan aims to increase the share of renewable energy to 30% by 2030 and 70% by 2040, creating vast opportunities for industrial and construction investments in green infrastructure and energy transition projects.

These goals are expected to sustain momentum in the Oman Industrial Construction Market, which is projected to maintain an average annual growth rate of 4% from 2026 to 2029. As Duqm and Sohar mature into fully integrated industrial ecosystems, the supporting infrastructure — from power plants to transport terminals — will continue to fuel construction activity.

Ultimately, Oman’s construction market reflects a country in transformation. Through Vision 2040, SEZ incentives, and industrial megaprojects, Oman is shaping a new growth model grounded in innovation, diversification, and sustainable development. Duqm and Sohar, standing at the intersection of policy and progress, are leading the way in building the nation’s industrial future.

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