Oman Construction Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2022 |
| Market Size (2023) | USD 6.60 Billion |
| Market Size (2028) | USD 7.76 Billion |
| CAGR (2023 - 2028) | 3.30 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Oman Construction Market Analysis
The Oman Construction Market size is expected to grow from USD 6.60 billion in 2023 to USD 7.76 billion by 2028, at a CAGR of 3.30% during the forecast period (2023-2028).
Pouring investment in the country is one of the major factors driving the market. Furthermore, government initiatives and projects demanding construction megaprojects are also driving the market.
- The Sultanate of Oman's real estate market is anticipated to continue moving forward strongly and favorably as a result of the shifting trends that seem to indicate that investors are once again paying attention to the market. The real estate market has had an upturn since the third quarter of the previous year, supported by a strong structural base and an increase in demand after the pandemic dampened demand.
- The Oman government's new ownership plan, which permits foreigners to buy properties outside of integrated tourism complexes (ITC), along with a plethora of choices and actions, is anticipated to draw capital investments in the real estate market. At the end of July 2022, the overall traded value of real estate activity exceeded Omani Rial (OMR) 1.3 billion (USD 3.38 Billion), while the total traded value of the property increased only by 27.4% from June 2022 to July 2022, reaching OMR 213.1 million (USD 553.45 Million).
- The affordability and accessibility of housing are more important priorities for the Omani government. The campaign for "Homes for All Citizens" increased demand for inexpensive housing, which in turn created much-needed liquidity in the industry. Following the success of its first integrated housing development project in Barka based on the Public-Private Partnership (PPP) model, Oman's Ministry of Housing and Urban Planning has announced plans for five new buildings totalling 4,800 housing units, catering to an estimated 24,000 people.
- The Oman government's ministry has announced new opportunities for domestic and international real estate companies and institutions that specialize in real estate development to submit "Expressions of Interest" to compete which is expected to increase investment in the country's construction market.
Oman Construction Market Trends
This section covers the major market trends shaping the Oman Construction Market according to our research experts:
Sultanate's Economic Diversification Plan (Vision 2040) has Been a Key Growth Factor in the Construction Sector
As an economy that relies heavily on revenue from oil, a shift is required to diversify sources of income by promoting investments in targeted sectors. The government has focused on pursuing this objective by boosting the contribution of the five target sectors in the Ninth Five-Year Plan, including logistics, manufacturing, tourism, fisheries, and mining, as well as moving forward with key strategic projects.
The Sultanate of Oman is executing a successful model of economic diversification, notably, the country’s trade liberalization in goods and services. Oman pursued an active plan of development that focuses on diversification, manufacturing, and privatization to diminish the contribution of the oil sector to the GDP by 9%. The tourism and hydrocarbon industries have become the main components of the government’s economic diversification strategy.
One of the catalysts for the first phase of the executive plan is the National Program for Investment and Export Development. With 135 projects included in the dashboard, it is strongly related to the "Economy and Development" pillar of Oman Vision 2040 and is regarded as the greatest national program in terms of project number. The "private sector, investment, and international collaboration" prioritizes strategic objectives to strengthen and enable the private sector's role in driving economic development, informed the introduction of the program in March 2021.
Within logistics, the Oman government is positioning Duqm as a major industrial and business zone in the region. One of the objectives of the Special Economic Zone Authority in Duqm is to develop the central arid region of the country and create ample space for international and local investors to build world-class projects. This will help achieve promising growth in the Oman's economy, and at the same time, strengthen the country's position at the international level.
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Tourism is Expected to Drive the Commercial Construction Sector in Oman
Due to its ideal location for outdoor activities throughout the winter, Oman is anticipating a significant influx of foreign tourists. In addition to having excellent weather, the country is anticipated to receive more tourists as a result of the FIFA World Cup, which will begin in Doha, Qatar, in November 2022. Before the event, Oman Air, the national airline, and Qatar Airways had already agreed to work together. As a result of this deal, 21 flights per day will be run between Muscat and Doha.
With COVID-19 restrictions in force, just 113,000 people visited Oman in the first five months of 2021. With 794,000 visitors traveling to the sultanate this year, the figure increased by 602%. Extensive marketing initiatives and trade fairs held in other nations have also increased Oman's attractiveness abroad.
By 2040, Oman hopes to diversify its economy away from oil and expects to generate more than OMR 9 billion (USD 22.5 billion) per year from tourism. One of the economic goals of Oman's 2040 Economic Vision is to get more money from tourists. In 2021, the tourism industry contributed 2.4% to the GDP; by 2030 and 2040, the government wants that percentage to rise to 5% and 10%, respectively. By investing USD 51 billion, the target visitor count is expected to rise to 11.7 million by 2040.
Oman Construction Industry Overview
The Oman Construction Market is fragmented and highly competitive with the presence of major international players. Some of the key players are Bechtel, Bouygues, CB&I LLC, Daewoo Engineering & Construction Co. Ltd, Hyundai Engineering & Construction Co. Ltd, and many others. The market may present opportunities for growth during the forecast period, which is expected to further drive market competition. With a few players holding a significant share, the Oman construction market has an observable level of consolidation.
Oman Construction Market Leaders
Bechtel
Bouygues
McDermott
Daewoo Engineering & Construction Co. Ltd
Hyundai Engineering & Construction Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Oman Construction Market News
- September 2022: Sembcorp Industries, an energy and urban development company with its headquarters in Singapore will sell Tanweer Infrastructure Pte. Ltd. of Oman a 100% stake in its Indian subsidiary, Sembcorp Energy India Ltd. (SEIL). An Omani group managed by Oman Investment Corporation S.A.O.C. owns Tanweer Infrastructure Pte. Ltd. Dar Investment SPC, Oman, and the Ministry of Defence Pension Fund are the other members of this group.
- July 2022: Veolia and TotalEnergies (NYSE: TTE, LSE: TTE, Paris: TTE) have agreed to begin building one of Oman's largest solar photovoltaic (PV) systems to power a desalination plant in the city of Sur. On the site of the Sharqiyah Desalination Plant, a landmark in Oman and the Gulf area that provides drinking water to more than 600,000 Sharqiyah residents, the power plant will be built.
Oman Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Method
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS DYNAMICS
4.1 Current Market Scenario
4.2 Market Overview
4.3 Market Dynamics
4.3.1 Drivers
4.3.2 Restraints
4.3.3 Opportunities
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Current Economic and Construction Market Scenario
4.7 Technological Innovations in the Construction Sector
4.8 Impact of Government Regulations and Initiatives on the Industry
4.9 Mapping of Industrial Clusters and SEZs and a Brief Analysis of Investment Opportunities
4.10 Review and Commentary on the Extent of Oman's Economy Diversification
4.11 Comparison of Key Industry Metrics of Oman with Other GCC Member Countries (Analyst View)
4.12 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Sector
5.1.1 Commercial Construction
5.1.2 Residential Construction
5.1.3 Industrial Construction
5.1.4 Infrastructure (Transportation) Construction
5.1.5 Energy and Utility Construction
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Bechtel
6.2.2 Bouygues
6.2.3 McDermott
6.2.4 Daewoo Engineering & Construction Co. Ltd
6.2.5 Hyundai Engineering & Construction Co. Ltd
6.2.6 Larsen and Toubro
6.2.7 Mohammed Abdulmohsin Al-Kharafi & Sons
6.2.8 Petrofac Ltd
6.2.9 Samsung Engineering Co. Ltd
6.2.10 SNC-Lavalin Inc.
6.2.11 VINCI
6.2.12 Bahwan Engineering Group
6.2.13 United Engineering Services
6.2.14 Al Hassan Engineering Co. SAOG
6.2.15 Galfar Engineering and Contracting SAOG
6.2.16 Khalid Bin Ahmed & Sons LLC
6.2.17 Oman Gulf Company LLC
6.2.18 Ray International Group*
- *List Not Exhaustive
7. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS (PROJECT DESCRIPTION, VALUE, LOCATION, SECTOR, AND CONTRACTORS)
7.1 Existing Infrastructure
7.2 On-going Projects
7.3 Upcoming Projects
8. FUTURE OF THE MARKET
9. APPENDIX
Oman Construction Industry Segmentation
A structure's erection, cladding, external finish, formwork, fixture, fitting of a service installation, and the unloading of equipment, machinery, materials, or similar tasks are all considered to be part of building construction.
A complete background analysis of the Oman Construction Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report. The Oman Construction Market is segmented by Sector (Commercial, Residential, Industrial, Infrastructure (Transportation), and Energy and Utilities). The report offers market size and forecasts for the Oman Construction market in value (USD billion) for all the above segments.
| By Sector | |
| Commercial Construction | |
| Residential Construction | |
| Industrial Construction | |
| Infrastructure (Transportation) Construction | |
| Energy and Utility Construction |
Oman Construction Market Research FAQs
How big is the Oman Construction Market?
The Oman Construction Market size is expected to reach USD 6.60 billion in 2023 and grow at a CAGR of 3.30% to reach USD 7.76 billion by 2028.
What is the current Oman Construction Market size?
In 2023, the Oman Construction Market size is expected to reach USD 6.60 billion.
Who are the key players in Oman Construction Market?
Bechtel, Bouygues, McDermott, Daewoo Engineering & Construction Co. Ltd and Hyundai Engineering & Construction Co. Ltd are the major companies operating in the Oman Construction Market.
Oman Construction Industry Report
Statistics for the 2023 Oman Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oman Construction analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Oman Construction Market Report Snapshots
