BMI's Executive Summary

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The Sultanate of Oman is modestly well-off by West Asian standards with substantial oil and natural gas reserves. Oman's GDP in 2006 was estimated at US$27.25bn and its economy has been growing at an accelerated rate for quite some time. But although it grew at a high rate in 2006 as well, the rate of growth has been falling, from 24.9% y-o-y in Q106 to 15.6% y-o-y in Q406. BMI forecasts that the construction industry in the country will grow at an average annual rate of 8.7% over 2008-12.

Oil production and export has fuelled growth in the Omani economy. Oil prices in the international market have, for long, decided the economy's health and prospects. Sustained high prices of oil in the recent years have helped the country build large trade surpluses and foreign reserves. However, Oman has been trying to diversify and modernise for a long time and non oil exports have been registering significant growth over the past few years. The free trade agreement (FTA) signed with the US in 2006 has spurred further growth and opportunities in the economy. Some of the major infrastructure projects on the anvil in the country include the expansion of the Seeb International Airport and Salalah Airport and construction of three new airports at a cost of US$3bn, construction of a port complex in Oman at a cost of US$490mn, and a US$1.34-bn project for the construction of a 252-km long pipeline in the country. Road network construction is also being carried out extensively in the Sultanate.

A high level of unemployment in the economy is one problem which the country has been facing for some time now. The government of the Sultanate introduced a policy of ‘Omanisation', wherein only Omanis can be employed in certain industries. The policy can at times impede foreign investment in the economy. A shortage of skilled labour in the small population further complicates the problem. Continuously decreasing oil reserves are also an area of concern for the country. However, the steady diversification of the economy should help the country overcome this problem.

Oman's real GDP growth rate is expected to be a modest 1.9% y-o-y during 2007 and register a slight increase to 2.1% y-o-y in 2008. BMI forecasts the Omani construction sector to grow at 8.7% per annum during the period 2008-12. Further, the sector is expected to reach a value of US$2.5bn in 2012 and contribute 4.7% to the Omani GDP.

Contents

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Chapter 1 – Industry Trends And Development

Market Overview

Oman's Economy In 2005

Oman's Construction Sector 2005–2006

Major Companies

Some Recent Investment Initiatives

Chapter 2 – Key Projects

Transport

Utilities

Tourism

Residential And Commercial Construction

Table: Oman Major Infrastructure Projects

Table: Oman Major Infrastructure Projects (continued)

Chapter 3 – Business Environment

Introduction

Table: Middle East Business Environment Risk Ranking

Explanation of CHAPTER – BMI Rankings

Middle East And Africa Region

Oman: Business Environment Ranking

Politics — Long–Term Risk

Economics — Long–Term Risk

Chapter 4 – SWOT Analysis

Oman Infrastructure Industry SWOT

Oman Economic SWOT

Oman Political SWOT

Oman Business Environment SWOT

Chapter 5 – Industry Forecast Scenario

Table: Oman Infra/Print Table

Risks

Chapter 6 – Macroeconomic Activity

Table: Oman Infra/BMI workings

Chapter 7 – Country Snapshot: Oman Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Chapter 8 – Competitive Landscape

Chapter 9 – Company Profiles

Galfar Engineering and Contracting

Larsen & Toubro Electromech

Bahwan Contracting Company

Chapter 10 – BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Chapter 11 – Appendix: Regional Demographic Data

Table: The Long View: Data Over The Economic Cycle (2000–2007)

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn

Competitive Landscape for Middle East & Africa Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of Middle Eastern & African Infrastructure Sources

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BMI's Middle Eastern & African Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, Infrastructure industry associations, chambers of commerce and company reports. Information sources include: