Tuesday 23 / April / 2024
Muscat: Contribution of manufacturing to the Sultanate’s GDP has risen to OMR5.3billion in 2015, Dr. Ali bin Masoud Al Sunaidi, Minister of Commerce and Industry, told the Industrial Innovation Forum 2017, on Monday.
Earlier the two-day forum began at Sheraton Hotel under the patronage of Dr. Rawya bint Saud Al Busaidiyah, Minister of Higher Education. It is being organised by the Ministry of Commerce and Industry in tandem with the Omani Industry Day, which falls on February 9.
Dr. Al Busaidiyah stressed the importance of the innovation and entrepreneurship fields, pointing out that much attention should be attached to these fields.
Speaking at the forum the Minister of Commerce and Industry said: “Looking back over the past 15 years of industrial development in the Sultanate, the contribution of manufacturing as a percentage of GDP has increased from 5.7 per cent in 2000 to about 10 per cent in 2014. By end of 2015, Oman’s manufacturing industry steadily contributed about OMR5.3 billion out of the total GDP of OM26.9 billion. Nevertheless, it is clear that the fall in oil price has put pressure on Oman’s total GDP.
“Last year, oil price fell below 30 dollars a barrel. Today, the price has almost doubled. Nevertheless, it is roughly 50 per cent of 2014 oil price. The government has taken various regulatory and fiscal measures over the last two years to manage this challenge, but Oman – and many other nations alike- must still deal with various challenges on local, regional and global level.
“We believe that manufacturing can do better to help compensate for the diminishing returns from oil, here; the way forward would be through industrial innovation. “Some industrialists present today may recall our meeting in February 2016 where we discussed the potential for moving forward with innovation.
“In 2016, The Research Council has actively promoted the Science, Technology and Innovation Policy (STIP) based on a review by UNCTAD, as part of the development of Oman’s National Innovation Strategy.
"The year 2016 has witnessed an expansion of the Intellectual Property Department at the Ministry of Commerce and Industry. We have already begun an intensive “hands-on” job-training program for Omani staff through a contract with the Egyptian Academy of Scientific Research and Technology that includes seconding two experts to Oman.
"The Department has finalised the examination of 20 new patent applications in January of this year 2017 and more applications are under review. Further, we have just finished interviewing nine more Omani staff who will then undergo training by the World Intellectual Property Organization (WIPO).
“Additionally, since our official announcement as a receiving office for Patent Cooperation Treaty (PCT) applications from 1 June 2016, and setting the target to at least two PCT applications for the year, we are pleased to declare three Omani PCT applications at WIPO ePCT portal during 2016.”
He further said “In 2016, the Omani State General Reserve Fund (SGRF) acquired 32.2 per cent in Mecanizados Escribano, a Spanish company that makes precision mechanical components. As part of the investment agreement, the company will replicate its business model in Oman, transferring its relevant expertise. The partnership will create attractive job opportunities and train Omani nationals to work in an innovative and booming sector, increasing capability and technological knowledge.
“Earlier SGRF invested in Glass Point Solar (USA). Glass Point’s solar steam generators have helped Petroleum Development Oman (PDO) lead in the area of Enhanced Oil Recovery using such innovative approach of “solar for steam” while freeing gas for other economic activities. This strategic SGRF-PDO investment would pave the way for more knowledge transfer and localized solar systems manufacturing.
“In October 2016, the Oman Investment Fund (OIF) has launched its US$ 200 million Oman Technology Fund (OTF) in partnership with Atlantic Bridge Capital (Ireland), 500 Startups (USA) and Techstarts Ventures (USA). Some of the Omani executive team are here today. This fund will focus on promoting technology start-ups, to enable, nurture, and grow technology ideas. OTF intends to upgrade Oman’s global competitive index by improving its innovation rating. Prior to that in August 2016, OIF has invested in Cambridge Innovation Capital (UK). OIF has also invested in the Oxford Sciences Innovation (the UK based Oxford University start-up fund). Once again, such strategic investments can only boost knowledge transfer in areas of technology and industrial innovation.
“In 2016, the National Program for Enhancing Economic Diversification (Tanfeedh) has also identified two innovation related enablers for the manufacturing sector. One is to expand the Industrial Innovation Center located at Rusayl Industrial Estate while the second initiative was to establish a center for industrial innovation and excellence in the industrial city of Sohar. The later initiative was based on a submission by the University of Sohar and the University of Sheffield UK. Some of the scholars from both universities will be speaking to you today.”
He pointed out that some factors could further drive innovation in manufacturing. The newly introduced cost-reflective electricity tariffs, peaking in the hot summer afternoons, would certainly prompt some innovative energy saving initiatives, as well as the introduction of solar power.
“We will discuss this in more detail in the Omani Industrial Day on the 9th of this month. The increasing cost of unskilled foreign labor is another reason for technological advancement and innovation. Factory automation is inevitable,” he added.
“He explained “On the international front, global trade growth recorded in 2016 its weakest performance since the global financial crisis. We are facing a slow and uneven recovery of the global economy. Competition is severe and prices are plunging.
“Omani manufacturers need to be even more innovative in order to cut cost. More importantly, Omani manufactures must provide new products and through innovative manufacturing. For example, there are many materials needed for the construction industry as the real-estate market moves towards gated communities, smart cities and buildings, affordable housing etc. Large manufacturers of building materials, metals, minerals and plastics can lead the way towards innovation; some of the famous local and international names are here today.”
“The forum deliberates on the ecosystem that goes on to make a country or a society innovative. Research & Development institutions, governmental organisations, and industries contribute to innovation in the society. The forum provides a common platform for professionals in the field of innovation to share their research and experiences across a wide audience. In addition, the discussions that will follow will provide the key stakeholders with a roadmap for accelerating the pace of innovation.
“The objective of the Forum is to bring together national and international research institutions, captains of manufacturing industry, and government bodies to deliberate and share their experiences in the area of innovation and the creation and nurturing of an ecosystem for innovation within Oman."
