This Oman Projects H1 2021 analysis module will cover:
- Opportunities and challenges in Oman’s projects market
- Analysis of the pipeline of planned projects and contract awards
- 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
Oman has historically been one of the smaller markets in the GCC. A smaller population and more limited oil and gas resources than its neighbors have traditionally meant that sits behind Kuwait and Qatar and ahead of Bahrain in terms of annual contract awards. But that is not to say that the Sultanate does not offer a variety of interesting opportunities for contractors, consultants, and suppliers alike. In recent years, there have been a number of large-scale projects across different sectors such as the Duqm refinery, the new Muscat international airport, and the Batinah expressway scheme, among others.
The Sultanate’s more delicate economic position has meant that it has been hit hard by Covid-19. Faced with a reduction in revenues, the government reacted by cutting back on projects spending and slowing new tenders on the tender board to a crawl.
However, some major contracts have been awarded in 2020 because they have been funded by development funds from Oman’s richer GCC neighbors. These projects have ensured that the Sultanate has not seen a sharp year-on-year fall in projects spending so far.
Faced with an economic downturn, the outlook for Oman’s future projects market will hinge on foreign investment in its major industrial hubs in Sohar, Duqm, and Salalah. Chinese investment in particular will be key as part of its Belt and Road Initiative to benefit from Oman’s position on the main EastWest shipping axis.
Also critical will be the development of the Sultanate’s PPP project plans to obtain more private sector involvement in the funding, construction, and operation of future projects. In the absence of major government capital expenditure, private sector financing will be pivotal in getting projects moving