The construction sector is the leading sector and the other sectors follow. Right now the construction sector is struggling because of a delay in payments and it is like a chain reaction affecting other sectors. If contracts slow down or stop, then they are not able to make payments to suppliers and subcontractors and this affects the entire country and prevents development. The only way to keep the sector alive is to attract private investors to open alternative sectors like tourism, where there are many opportunities. It is also a case of finance as the tourism sector can find financing but not the construction sector, and as they are linked then we cannot achieve the goals for growth. Oman has introduced certain rules and regulations that make it easier for investment, protect investors' rights, and provide benefits.
Mar. 30, 2018
Regional Manager, Ozkar Construction
General Manager, Target
Tanfeedh is encouraging and should help strengthen the economy and investment climate. We are keen on it being fully implemented, as it promises great results. As for the overall economy, there is a slowdown in economic growth compared to the previous years. The construction sector in general has followed a similar trajectory. The government and related entities are by far the biggest client drivers of construction activity in Oman. However, over the past couple of years we have seen more activity being generated by the private sector toward the development of the economy. A lot of this activity revolves around touristic, educational, and ITC housing developments. In addition, there is growth in retail projects from the private sector as well as governmental pension funds. Our company's main focus is industrial projects related to water, wastewater, oil and gas, and general civil works. In the last year, we focused on infrastructure. Our portfolio is dynamic and changes from year to year in conjunction with the project intake.
Managing Director, Design Unit Engineering
We see great growth in the services sector. Projects in hospitality, healthcare, retail, and logistics are in high demand. Many private hospital projects are coming up. We have recently completed Burjeel Hospital in Al Khuwair and are currently working on another hospital design. The retail sector is also doing well. In this sector, the local investor constructs a building as per the end users requirement and leases it out for 25-30 years. We have done two such projects whereby we helped the end user connect with the local investor. Because of Oman's focus on tourism, the hospitality sector is booming. There is high demand for hotels in the country, and as we speak, there are quite a few four- and five-star hotels under construction.
Millan Christopher De Silva
According to the World Bank, the construction industry will always have a future. There is a great potential in Oman for development in many sectors. I am confident that, although at present there is saturation in the real estate market, within a couple of years Oman will bounce back. Although the oil sector seems to be stagnant in development, there is great hope in the mining industry. It is evident that Oman is seriously looking into diversification and self-sustainability where possible. This means that there is room for optimization in infrastructure. Additionally, Oman has started focusing on food safety. This gives Milcris an opportunity to work on more projects in the future, where we will be an asset to clients, providing our cost consultancy services. Currently, we are working on over 30 other projects and have employed 70 professionals to execute them.