BMI View: Oman's is slated to emerge as an outperforming construction market in the coming years, both on a regional and global basis, on the back of robust structural demand, an ambitious economic diversification agenda, and a favourable regulatory environment. A sudden plunge in the price of oil forms the main downside risk to our otherwise sanguine outlook.
Forecasts And Latest Updates
We continue to expect Oman to be one of the better performers in terms of construction sector growth, both on a global and regional basis. As such, in 2017 we are forecasting growth of 10.1%, while over the next five years we expect the country's construction sector to expand by an annualised average of 10.7%.
Lower oil prices will act as a brake on construction sector growth for the foreseeable future, reflecting the outsized role oil plays in driving government revenue and by extension, funding for infrastructure projects. In this context we highlight that our Oil and Gas team has revised our 2017 outlook for Brent down to USD54 per barrel, down from USD57 previously.