Oman is advancing its economic diversification strategy by establishing integrated clusters across multiple sectors to reduce dependency on traditional industries. This initiative, detailed in the Oman Vision 2040 Implementation Follow-up Unit’s latest report, reflects the government’s commitment to reshaping the economy and positioning Oman as a prominent economy by 2040.
Integrated economic clusters, recognized globally as models of growth, consist of interconnected industries that share value chains, resources, and services within defined zones. By adopting this approach, Oman aims to stimulate economic growth, increase competitiveness, and broaden its reach in international markets. The government will support this initiative through regulatory frameworks and by fostering an investor-friendly business environment. Five key clusters have been identified: Shaleem, Dakhliyah, Duqm, Najd, and Suhar, each focusing on sectors vital to Oman’s economic progress.
The Shaleem Cluster in Dhofar will center on industrial mineral production, leveraging its strategic location along regional trade routes and its deposits of gypsum, limestone, and dolomite. Developed with the Oman Investment Authority and Madayn, this cluster will include mining, industry, fisheries, tourism, and logistics, aiming to expand Oman’s production and export base while increasing its GDP contribution.
Najd, also in Dhofar, will host an agricultural cluster aimed at bolstering food security, expanding production, and enhancing exports. Known for its year-round farming climate, Najd will connect agriculture with industry and logistics, allowing Oman to meet domestic and international demand. Goals include improved irrigation, storage, and logistics to enhance productivity and encourage investment in agro-processing.
In Dakhliyah, the focus will be on tourism, agriculture, industry, and logistics, aligned with the Tanweer programme. This cluster aims to integrate sectors for efficient resource use, making tourism a substantial GDP contributor. The model seeks to support rural development and can be adapted across regions to drive sustainable growth.
The Duqm Special Economic Zone will host a cold chain cluster to support food and agriculture sectors by improving production and export capacity. Infrastructure for cold storage will ensure quality for fish, agriculture, and other food products, transforming Duqm into a regional hub for food preservation and distribution. Legislation, incentives, and training in cold chain management will attract investment and expertise.
The Suhar cluster will focus on aluminium, linking upstream and downstream industries to expand primary aluminium production and foster high-value product manufacturing. This cluster will provide resources for quality control, training, and market development, enhancing Oman’s aluminium sector’s competitiveness in global markets.
These integrated clusters are expected to drive Oman’s GDP growth, generate employment, attract local and foreign investment, and achieve greater efficiency through economies of scale. By implementing these clusters, Oman aims to become a model for diversified economic development in the region and establish itself as a key industrial and trade hub.
