Oman’s Construction Industry Contracts Sharply In 2020
Oman’s construction industry is set to contract sharply in 2020, plummeting by 10.3%, according to Global Data. The industry is struggling with the challenges presented by the COVID-19 outbreak, low oil prices and the impact of sovereign credit rating downgrades. Further compounding the downside risks to the outlook for the industry, the Omani government has had to rationalize spending, given its weak fiscal position. Public sector spending cuts will be the government’s priority in 2021, continuing throughout the medium term (2022 – 24), as outlined in the MTFP. The fiscal plan is intended to reduce public debt, increase the state’s reserves, and diversify revenue away from oil. Investment in the transport infrastructure sector will be vital, with key projects planned including the $1bn road connecting the towns of Dibba and Khassab in the northern Musandam governorate. There are also plans to build a mining rail in the country’s southern region to carry heavy freight from three locations in the Dhofar governorate to a central location, which will then connect to a separate rail line that runs to Duqm port, where the minerals will be exported to other markets by sea.
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