Oman is currently experiencing a growth spurt, which has been reflected in rising cement demand as public spending on infrastructure and real estate climbs steadily. Domestic producers are beginning to satisfy the market through increases in capacity and the prospects for the industry going forward are very encouraging. By Vijay Sridharan, Gulf Baader Capital Markets, Oman.
Oman has taken measures to diversify its economy and to reduce its oil dependency by 2020. Over the last 10 years, the sultanate’s nominal GDP has shown a CAGR of 15.4 per cent which reveals the steady pace of growth in the economy and in allied sectors like real estate and construction. During 2012, GDP increased by 11.6 per cent YoY to OMR30.034bn (US$78bn) owing to higher oil prices in addition to an increasing contribution from the non-oil sector. Oil GDP for 2012 rose by 10.9 per cent YoY, while non-oil GDP grew by 12 per cent YoY, due to higher income from the services segment. The industrial and services sector activities for 2012 increased by four and 16.4 per cent YoY, respectively.
