Oman set for construction boom
Heavy investment in infrastructure is expected to see Oman’s construction industry grow by an average of 10 per cent for each of the next four years
A report from data firm Timetric said the Gulf country’s building sector would have a compound annual growth rate of 10.4 per cent from 2013 to 2017.
This would see it expand from OMR3.7 billion (£5.8 billion) to OMR6.1 billion over that period.
Under its Eighth Five-Year Plan, which takes it to 2015, the Omani government is set to pump money into transportation infrastructure. This is expected to have knock-on effects throughout the economy, with residential and other buildings work growing in value.
The commercial construction market was worth OMR342 million in 2012. Continuing economic growth, rising disposable incomes, increasing retail sales and the expanding tourism sector will see it grow at a CAGR of 5.4 per cent over the forecast period, according to Timetric.
Industrial construction will soar by an average 4.9 per cent per year to reach OMR241 million, according to Timetric. The firm said demand for oil and natural gas would remain high despite moves to diversify the economy.
Education and healthcare provision is expected to improve in Oman over the next four years, driving an average annual increase in institutional work of 4.65 per cent. The sector would then be worth OMR161 million in 2017.
An agreement on cross-border real estate ownership has seen an increase in people from other Gulf states buying homes in Oman. The residential sector is expected to have a CAGR of 5.4 per cent over the forecast period, to reach OMR1.9 billion.
Meanwhile infrastructure work will have a CAGR of 15.7 per cent over the forecast period, according to the report, being worth OMR3.3 billion by 2017 – more than half the entire industry. New road, railway, airport, energy and water projects are already under construction in the country.