Oman’s construction sector is witnessing robust activities with the value of the total 2,410 active projects in the Sultanate exceeding $190 billion in April 2018, according to a report by BNC Network, a project intelligence provider in the MENA region.
Among these, 1,840 projects worth $61 billion are urban construction projects, while 70 projects, worth $39 billion are in the oil and gas sector, and a further 150 projects worth $32 billion are in the transport sector. Furthermore, as many as 230 developments – worth more than $29 billion – are utility projects, while 110 projects worth $27 billion are industrial sector focused.
With regards to the status of these projects, 1,730 projects, worth $57 billion, are in progress – either under tender or under construction, while 350 projects, worth $71 billion, are in the planning stage, the report said.
Of these, 240 projects worth $55 billion are in concept, while 110 projects worth $15 billion are in design, it added.
“With a significant increase in contract award during Q4, 2017 as compared to the preceding year there is a significant amount of construction work on-going and the project pipeline indicates a stable construction market in the coming two years.” Avin Gidwani, chief executive officer of BNC Network, said.
“If the current oil price holds, we expect several projects that are currently on hold to resume, providing a positive impetus to the overall economy of Oman. The increase in oil price is a good sign for the oil exporting countries of the GCC which helps the current account deficit to turn into current account surplus.”
As many as 330 projects are currently on hold. These projects are worth more than $61 billion, the BNC Oman Construction Intelligence Report said. This means, it explained, that in terms of value, more than a third of the $190 billion worth of projects are currently on hold.
With crude oil price hovering around US$70 per barrel, the GCC countries – including Oman – could see an increase in government reserves. Part of the windfall is then expected to be invested in large infrastructure projects, energy and power projects that will help the economy to grow further, the report said.