Tuesday, 31 Jan 2023
Oman’s construction sector growth best in Mideast: Report

Oman’s building sector development very best in Mideast: Report

Muscat – 

Oman’s building sector has continued to record robust development and is outpacing the MENA building sector typical, according to a new report from BMI Research. According to BMI, which offers macroeconomic, business and monetary marketplace evaluation, covering 24 industries and 200 international markets, this overall performance will continue more than the course of subsequent 5 years.

This is due to favourable regulations in the sultanate that incentivise foreign investment, as effectively as an ambitious financial diversification agenda, robust government help for infrastructure sectors like renewables, water and logistics.

The report outlined a quantity of infrastructure projects driving the sector’s development, which includes a US$155mn contract awarded by the Oman Power and Water Procurement Company to a consortium involving ACWA Power and Veolia Middle East to set up the Salalah Independent Water Project in Dhofar. Other infrastructure projects highlighted by BMI consist of a proposed new port close to Sur Industrial Estate in South Sharqiyah, for which a feasibility study is anticipated to be submitted in H1 2018.

“Investment into port infrastructure will form an increasingly important means of facilitating economic diversification in GCC countries over the coming years, as they seek to mitigate the effects of low hydrocarbon prices and boost their appeal as logistical and trading hubs,” the report mentioned. “We expect this trend to be particularly salient in Oman, as the government looks to capitalise on the country’s favourable geographic location.”

Additionally, the report noted that particular financial zones will probably serve as an investment concentrate for businesses searching for to improve their exposure to Oman’s infrastructure sector, as effectively as tourism-associated projects. The report added that GCC is searching for to decrease the impacts of low oil costs and boost its attractiveness as centres for logistical and industrial activities. “This will be particularly prominent trend in Oman, where the government is looking to take advantage of excellent geographical location of the country.”

(With inputs from ONA)

Information Source: Muscat Daily

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