Oman Construction Industry Report 2025: Output Grew by 3.6%, Supported by FDI in Manufacturing and Oil and is Projected to Witness a Further AAGR of 4.3% During 2026-2029

Oman's construction industry is poised for growth, fueled by strong FDI in manufacturing, oil, and tourism sectors, government initiatives, and Vision 2040 projects in industrial, renewable energy, and water infrastructure. Key developments include green hydrogen projects and water infrastructure investments.

Dublin, Feb. 23, 2026 (GLOBE NEWSWIRE) -- The "Oman Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Oman is estimated to have grown by 3.6% in real terms in 2025, supported by rising foreign direct investment (FDI) in the country's manufacturing and oil sector.

According to the National Center for Statistical Information (NCSI), the total FDI in the country's manufacturing sector rose by 28.2% year-on-year (YoY) in Q2 2025, preceded by a Y-o-Y growth of 27.5% in Q1 2025 and 39.8% in Q4 2024. Meanwhile FDI in the oil and gas sectors grew by 20.3% YoY in Q2 2025, preceded by a Y-o-Y growth of 24.2% in Q1 2025 and 22.6% Q4 2024.

In September 2025, to fast-track approvals and attract investments, the government of Oman signed four cooperation programs with universities, industry groups and a national digital platform and launched an initiative to regulate and modernize its construction sector. Growth will also be driven by rising investments in tourism sector. Among the major developments, the Ministry of Heritage and Tourism signed 36 development contracts in the first nine months of 2025, under its Vision 2040; these contracts are collectively worth OMR100 million ($260.1 million).

The analyst expects the construction industry in Oman to register an annual average growth of 4.3% from 2026 to 2029, supported by investments in the industrial, renewable energy, water and transportation infrastructure projects, under the Oman Vision 2040. As part of the country's Oman Vision 2040 program, Oman is aiming to produce 1 million tonnes (Mt) of green hydrogen per annum by 2030, with further production increase to 8.5 Mt per year by 2050.

As of early December 2025, Oman was engaged in seven green hydrogen projects aimed at producing one million tons of output each year by 2030, as reported by Oman's national hydrogen agency, Hydrom. Among the major developments, the Indian steel company Jindal Steel is developing an OMR1.2 billion ($3 billion) green steel complex in the Special Economic Zone at the Port of Duqm (SEZAD). With five million tonnes per annum (TPA) of steel production capacity, the new plant is expected to be completed by the end of 2028.

Moreover, Oman's water utility company Nama Water Services's (NWS) has announced an Integrated Master Plan (IMP) in mid-December 2025, which includes an estimated investment of OMR11.1 billion ($28.9 billion) through to 2050 for the development of water and sewerage infrastructure project in Oman. The forecast period will also be driven by Oman's target of raising the total renewable energy production in country's total energy mix from 11.5% in May 2025 to 30% by 2030 and 60% by 2040.

Report Scope

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Oman, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook
4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/tjk56l

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