Oman Agriculture Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Oman Agriculture Market Trends and Insights

Water-efficient irrigation subsidies

Targeted subsidies promote subsurface drip systems that save up to 7,565 m³ per hectare relative to basin methods, moving average water-use efficiency from 1.3 kg to 4.7 kg of produce per m³. Royal Decree 40/2023 now requires permits for all water extraction, steering growers toward compliant, low-volume technologies. The Ministry caps ground-water draw at 112 million m³ annually, creating a market for sensors, controllers, and high-efficiency pumps^{[1]Source: Boubaker Dhehibi et al., “Economic and Technical Evaluation of Different Irrigation Systems for Date Palm Farming,” ccsenet.org}. Date farmers integrating liquid pollination and drip lines cut labor outlays by 89% and raise hectare revenues by 20%. Aggregated gains feed directly into the Oman agriculture market through lower unit costs and higher output.

Agri-tech venture funding inflows

The USD 5.2 billion Future Fund commits 90% of its resources to commercially viable projects and 10% to start-ups, with agriculture named a priority sector. Venture capital inflows enable cloud-based crop-decision platforms that triple regional revenue for providers such as FarmERP. International collaborations exemplified by the Angola–Oman agritech accord channel artificial-intelligence tools for remote sensing and disease forecasting. A 12.62% CAGR for the broader Middle East and North Africa (MENA) agritech domain suggests sustained deal flow into the Oman agriculture market. Incubators in Muscat and Duqm Special Economic Zone provide equity-free grants that shorten commercialization cycles and raise digital-tool penetration.

Rising domestic demand for high-value crops

Urban households increasingly favor premium dates, grapes, and greenhouse vegetables, elevating the specialty segment to 37.20% of the 2024 value. Date palm cultivation exemplifies this trend, with Oman producing approximately 1,000 metric tons of grapes representing 4.2% of local consumption, while model farm projects in North Al Sharqiyah include tourism agriculture components targeting premium markets. Research indicates significant production potential increases for tomatoes, eggplants, and okra, supporting Vision 2040's target of 4.5% annual agricultural growth. Contract-farming models now link smallholders with hospitality buyers, trimming the 60% vegetable-import dependency. Model farms in North Al-Sharqiyah combine agro-tourism and grape production, supporting expansion over 11 years. Resulting shifts diversify the Oman agriculture market and spur investments in cold-chain and grading facilities.

Expansion of GCC food-security mandates

Gulf Cooperation Council (GCC) states import more than 85% of their food, prompting joint ventures that position Oman as a supply-chain hub with lower freight distances to Saudi and UAE consumption centers. The AED 129 billion (USD 35.1 billion) UAE–Oman framework earmarks renewable-powered greenhouses and logistics corridors that streamline cross-border flows. GCC declarations at the World Economic Forum endorse shared R&D for arid-zone crops, allowing Oman to co-finance trials while gaining access to new germplasm. A UAE–Oman rail project worth USD 11 billion further cuts lead times for perishable produce. These linkages extend the Oman agriculture market beyond national borders and reinforce price stability.

Scarcity of arable land constrains expansion potential

Only 4.25% of Oman’s land qualifies as cultivable, well below regional peers, and seawater intrusion is forcing plot abandonment in Al-Batinah, where 60% of national production occurs^{[2]Source: MDPI, “Remote Sensing Drought Assessment,” mdpi.com}. Controlled-environment agriculture offers partial relief, but capital outlays hinder rapid scale-up, despite state grants that cover greenhouse structures. Soilless systems recover yields on salt-damaged ground yet still trail soil production by 15% under local conditions. Vertical farms minimize land use but face high cooling loads that erode margins under summer temperatures. Land scarcity thus clips acreage-driven gains in the Oman agriculture market.

Ground-water salinity threatens production sustainability

Analyses of 58,000 wells confirm rising salinity, with extraction exceeding safe yield in several districts, generating a 378 million m³ annual water deficit. The Oman Salinity Strategy proposes well-closure zones and recharge dams, but implementation costs are steep. Elevated salinity raises greenhouse water and electricity use by 50%, pushing some growers out of production. Blending reclaimed wastewater with brackish supplies boosts grain yields over 300% yet demands pipeline investments beyond many cooperatives’ means. Persistent salinity weighs on the Oman agriculture market through higher input costs and reduced yields. The Ministry of Agriculture and Fisheries has developed the Oman Salinity Strategy to address these challenges, though implementation faces significant technical and financial constraints.

Segment Analysis

By Crop Type: Specialty Crops, along with Fruits and Vegetables Segments, Show Varied Growth and Innovation

Specialty and high-value crops commanded 37.20% of 2024 revenues, the largest slice within the Oman agriculture market share. Date cultivation underpins this leadership, with eight million trees generating significant export earnings despite occupying just 25% of arable land. Long-term, specialty crops are set to widen their Oman agriculture market size contribution as date by-products such as syrup and powder enter personal-care and nutraceutical channels. Blockchain traceability pilots safeguard provenance, unlocking premium GCC retail lanes. The segment’s resilience to climate stress and policy alignment makes it the fulcrum of future growth.

Fruits and vegetables ranked as the quickest-expanding category, advancing at a 5.40% CAGR through 2030, buoyed by protected-cultivation subsidies. The Oman agriculture market size for this segment is forecast to reach USD 1.02 billion by 2030, underscoring policy priority. Market integration initiatives align harvest periods with regional peak prices, yielding 15% premiums on Muscat wholesale platforms. Labeling programs for Omani-grown tomatoes and cucumbers strengthen brand recognition across GCC supermarkets. Consequently, the fruits and vegetables category enhances the Oman agriculture market share of domestically sourced produce while thinning import reliance.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The Al-Batinah Plains deliver over 60% of national farm output yet face rising ground-water salinity, prompting accelerated deployment of drip lines and pilot desalination skids backed by ministerial grants. Coastal well closures divert investment toward protected cropping, while proximity to Sohar port offers exporters shorter logistics windows into Bahrain and Kuwait. Despite salinity, Al-Batinah remains the anchor of the Oman agriculture market through its established value chains and produce hubs.

Dhofar enjoys khareef monsoon rains that cut irrigation needs, enabling double cropping of bananas and coconuts. Government programs expand deep-aquifer wells and farm-to-market roads, allowing Dhofar to raise its fruits and vegetables in the Oman agriculture market. Green hydrogen developments in the governorate provide future low-carbon power, lowering refrigeration costs for specialty produce^{[3]Source: SaudiGulf Projects, “Green Hydrogen Contracts Awarded,” saudigulfprojects.com}.

Interior regions such as Nizwa and surrounding wadis depend on the ancient aflaj channel network. Upgrades in flow monitoring and scheduled maintenance have restored 18 million m³ of gravity-fed water annually, curbing pump electricity bills. Extension agents promote fertigation in these systems, gradually modernizing traditional farms. The Duqm Special Economic Zone attracts agri-processing investors with 50-year land leases and tariff waivers, enhancing downstream diversification. A USD 11 billion green-hydrogen platform in Dhofar further integrates clean energy into agricultural cold chains. Together, the geographic mosaic diversifies risk and adds resilience to the Oman agriculture market.