Saturday 27 / April / 2024
Muscat: Infrastructure is Oman is in excellent shape for establishing a manufacturing industry, experts at a panel meeting at Ithraa said.
With free zones established in several places in the country, Oman is already half way down the road to industrial development, Nicolas Barakat, chief executive officer (CEO), OCTAL, and a panel member at Ithraa’s ‘Inside Story’ event stated.
Speaking at the event, Barakat said current facilities in Oman are excellent for the development of a manufacturing industry.
“When we started in 2005 in Salalah, we faced a lot of obstacles, including lack of basic necessities, such as roads and electricity. Today, we have everything that allows a healthy environment for industrial development, such as
free zones.”
According to another panellist, the opportunities available today are a lot more than the ones available at the time they started.
“When we started several years ago, we could hardly find local companies to help in our initiative. It was all trial and error for us, but today the system is open, and it is easier for companies to develop,” she noted.
However, Shadya Al Ismaili, founder of Deema Oman, said Oman is still not entirely ready to take up manufacturing. “Due to the low quality of products available locally, we were forced to go outside. There is still a lack of availability of materials in Oman and human resources are still lagging in creativity. Recently, when we tried to find a designer for our products, all we could find were graphic designers, who belong to a very different field. That clearly showed a large gap in our expertise in specific areas.”
According to OCTAL CEO Barakat, Oman needs to enter more Free Trade Agreements with different countries in the world. “Many of our products have done well in the American markets due to the signing of an FTA with the United States and most people in America save more by buying products that we make in Oman.” He also pointed out that the packaging industry is one of the most lucrative industries in the Sultanate at the moment.
On the other hand, Al Ismaili said people are looking to buy products that showcase a country’s heritage and culture, which can be a good way to proceed when thinking about manufacturing.
Another aspect that was highlighted was the need for a commercial outlook in academics so that students during their time of study are able to develop a mindset for manufacturing products that can generate profit.
A member of Riyada—the public authority for Small and Medium Enterprises (SMEs)—said currently SMEs are not venturing into manufacturing as they are supposed to. “Less than 20 per cent of the 23,000 SMEs registered with us are into manufacturing. Only through further dialogue with bigger industries can this be changed.”
Ithraa had launched ‘Inside Stories’ initiative to hold discussions on the diversification of the Omani economy. This is the second in the series of four events planned. Each of them will have different panellists, who will share their experiences and opinions on diversifying the Omani economy.
