With a young and rapidly expanding population, demand for infrastructure projects in Oman is likely toremain high, which will help the sector to weather the current economic climate. Currently, about 43% ofOmanis are under the age of 14. It is estimated that by 2025 the country's population will swell by 41% to5m, from 3.3m in 2008.
BMI estimates that the construction industry value in Oman will be OMR1.07bn in 2009, accounting for5.2% of GDP. While this represents real growth of only 2.67% year-on-year (y-o-y), this comes on theback of nearly five years of solid double digit growth in the sector. The industry is expected to be valuedat OMR1.57bn by 2013.
Transport infrastructure strategy in Oman has been dominated by the government’s desire to move awayfrom a reliance on oil revenues and explore other revenue streams. A key part of this has been a strategycalled 'Vision 2020', an ambitious project that has seen investment of more than £7bn in several majortourism projects.
‘Vision 2020’ includes the construction of ten new resorts across the country within the next five years, aswell as extensive airport developments and upgrades. Upgrade work to Oman’s airports include newrunways at Muscat International Airport, along with the construction of several new airports in thecountry.
The country’s gas sector has continued to grow, with intensive gas exploration activity more thandoubling proven reserves in recent years. While oil has traditionally accounted for the majority share ofenergy production, Oman has recently moved to develop its gas reserves as part of its economicdiversification strategy. This has involved signing gas exploration and sales deals with internationalmajors.
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