Construction in Oman - Key Trends and Opportunities to 2018

Published: Nov, 2014 | Pages: 67 | Publisher: Timetric
Industry: Construction | Report Format: Electronic (PDF)

Synopsis This report provides detailed market analysis, information and insights into the Omani construction industry, including:

The Omani construction industry's growth prospects by market, project type and type of construction activity

Analysis of equipment, material and service costs across each project type in Oman

Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Omani construction industry

Profiles of the leading operators in the Omani construction industry.

Data highlights of the largest construction projects in Oman

Executive summary

The Omani construction industry increased in value at a compound annual growth rate (CAGR) of 7.72% during the review period (2009−2013). Industry expansion was supported by government initiatives to transform the country from an oil-based economy to one more reliant on manufacturing and services. This resulted in significant investments in infrastructure development, which positively affected other markets in the industry. Industry growth is expected to continue over the forecast period (2014–2018) as a result of the government’s focus on developing physical and social infrastructure in the country, and an anticipated global economic recovery. Consequently, the industry is expected to post a forecast-period CAGR of 11.59%.

Scope This report provides a comprehensive analysis of the construction industry in Oman. It provides:

Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in Oman using construction output and value-add methods

Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type

Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

Analysis of key construction industry issues, including regulation, cost management, funding and pricing

Detailed profiles of the leading construction companies in Oman

Reasons to buy

Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodology

Assess market growth potential at a micro-level with over 600 time-series data forecasts

Understand the latest industry and market trends

Formulate and validate business strategies using Timetric's critical and actionable insight

Assess business risks, including cost, regulatory and competitive pressures

Evaluate competitive risk and success factors

Key highlights

According to Oman’s National Centre for Statistics and Information (NCSI), the construction industry’s value add at present prices rose by 4.0%, from OMR341.3 million (US$887.6 million) in the first quarter of 2013 to OMR355.1 million (US$923.6 million) in the first quarter of 2014. The total traded value of property in the country grew by 43.2% from OMR680.6 million (US$1.8 billion) during the first five months of 2013 to OMR974.7 million (US$2.5 billion) in the first five months of 2014. This growth was driven by government investments to improve the quality of Oman’s infrastructure and efforts to diversify its economy. The forecast-period outlook for construction in Oman remains positive due to improving consumer and investor confidence, population growth, urbanization, and improved regional and global economic conditions. Large-scale investments in infrastructure development, through government initiatives to transform the country from an oil-based economy to one more reliant on manufacturing and services, will be an important driver of growth.

According to the NCSI, the total number of planned land plots by governorates of Oman grew by 5.0% from 61,101 in 2012 to 64,154 in 2013. The total number of planned land plots for residential construction rose by 0.4%, from 49,845 in 2012 to 50,045 in 2013, while the total number of planned land plots for both commercial and residential construction grew by 30.5% from 2,469 to 3,223. In addition, the total number of land plots granted by governorates for both commercial and residential construction rose from 402 in 2011 to 1,562 in 2013. This reflects healthy growth in the construction of new houses.

Under the eighth five-year (2011–2015) development plan, the government is focusing on infrastructure development to support economic growth and improve transport facilities. The government plans to invest OMR1.2 billion (US$3.2 billion) by 2015 in the construction, repair and maintenance of roads and bridges across the country. The government also plans to invest OMR502.0 million (US$1.3 billion) in the construction, expansion and development of ports in the country during the same period. Consequently, large-scale investments in transport infrastructure development will drive growth in the infrastructure construction market over the forecast period.

A robust and modern transport infrastructure is vital for economic growth and competitiveness. The Omani government is therefore undertaking a railway network project with an expected investment of OMR5.8 billion (US$15.0 billion) to construct 2,244km of rail line by 2018 which will connect the Sohar, Salalah and Duqm port cities with other Gulf Cooperation Council (GCC) countries. This will drive growth in the infrastructure construction market over the forecast period.

According to the World Travel and Tourism Council (WTTC), the travel and tourism sector’s total contribution to the country’s GDP stood at 6.4% in 2013, and the Omani government is keen to support the sector’s expansion. With the aim of increasing tourist arrivals from 1.4 million in 2011 to 12.0 million annually by 2020, the government announced the ‘Vision 2020’ plan for tourism and plans to invest OMR3.1 billion (US$8.0 billion) in tourism-related infrastructure development across the country. This will help support growth in the leisure and hospitality buildings category over the forecast period.

In a bid to create more jobs and diversify and support the country’s economy, the Omani government is developing the Salalah Free Zone, the country’s first special economic zone. The Salalah Free Zone is expected to be developed in three phases by 2028, at an estimated investment of OMR5.8 billion (US$15.0 billion), which will support growth in the industrial construction market over the forecast period.

 Table of Contents

1 Executive Summary

2 Market Overview
2.1 Key Trends and Issues
2.2 Benchmarking by Market Size and Growth

3 Commercial Construction
3.1 Performance Outlook
3.2 Key Trends and Issues
3.3 Data and Project Highlights

4 Industrial Construction
4.1 Performance Outlook
4.2 Key Trends and Issues
4.3 Data and Project Highlights

5 Infrastructure Construction
5.1 Performance Outlook
5.2 Key Trends and Issues
5.3 Data and Project Highlights

6 Institutional Construction
6.1 Performance Outlook
6.2 Key Trends and Issues
6.3 Data and Project Highlights

7 Residential Construction
7.1 Performance Outlook
7.2 Key Trends and Issues
7.3 Data and Project Highlights

8 Company Profile: Galfar Engineering & Contracting SAOG
8.1 Galfar Engineering & Contracting SAOG – Company Overview
8.2 Galfar Engineering & Contracting SAOG – Business Description
8.3 Galfar Engineering & Contracting SAOG – Main Products and Services
8.4 Galfar Engineering & Contracting SAOG – History
8.5 Galfar Engineering & Contracting SAOG – Company Information
8.5.1 Galfar Engineering & Contracting SAOG – key competitors
8.5.2 Galfar Engineering & Contracting SAOG – key employees

9 Company Profile: Douglas OHI LLC
9.1 Douglas OHI LLC – Company Overview
9.2 Douglas OHI LLC – Main Services
9.3 Douglas OHI LLC – Company Information
9.3.1 Douglas OHI LLC – key competitors
9.3.2 Douglas OHI LLC – key employees

10 Company Profile: Carillion Alawi LLC
10.1 Carillion Alawi LLC – Company Overview
10.2 Carillion Alawi LLC – Main Services
10.3 Carillion Alawi LLC – Company Information
10.3.1 Carillion Alawi LLC – key competitors
10.3.2 Carillion Alawi LLC – key employees

11 Company Profile: Bahwan Engineering Company LLC
11.1 Bahwan Engineering Company LLC – Company Overview
11.2 Bahwan Engineering Company LLC – Main Services
11.3 Bahwan Engineering Company LLC – Company Information
11.3.1 Bahwan Engineering Company LLC – key competitors
11.3.2 Bahwan Engineering Company LLC – key employee

12 Company Profile: Suhail Bahwan Group Holding LLC
12.1 Suhail Bahwan Group Holding LLC – Company Overview
12.2 Suhail Bahwan Group Holding LLC – Main Services
12.3 Suhail Bahwan Group Holding LLC – History
12.4 Suhail Bahwan Group Holding LLC – Company Information
12.4.1 Suhail Bahwan Group Holding LLC – key competitors
12.4.2 Suhail Bahwan Group Holding LLC – key employees

13 Market Data Analysis
13.1 Construction Output and Value Add
13.1.1 Construction output by project type
13.1.2 Construction output by cost type
13.1.3 Construction output by activity type
13.1.4 Construction value add by project type
13.2 Commercial Construction
13.2.1 Commercial construction output by project type
13.2.2 Commercial construction output by cost type
13.2.3 Commercial construction output by activity type
13.2.4 Commercial construction value add by project type
13.3 Industrial Construction
13.3.1 Industrial construction output by project type
13.3.2 Industrial construction output by cost type
13.3.3 Industrial construction output by activity type
13.3.4 Industrial construction value add by project type
13.4 Infrastructure Construction
13.4.1 Infrastructure construction output by project type
13.4.2 Infrastructure construction output by cost type
13.4.3 Infrastructure construction output by activity type
13.4.4 Infrastructure construction value add by project type
13.5 Institutional Construction
13.5.1 Institutional construction output by project type
13.5.2 Institutional construction output by cost type
13.5.3 Institutional construction output by activity type
13.5.4 Institutional construction value add by project type
13.6 Residential Construction
13.6.1 Residential construction output by project type
13.6.2 Residential construction output by cost type
13.6.3 Residential construction output by activity type
13.6.4 Residential construction value add by project type

14 Appendix
14.1 What is this Report About?
14.2 Definitions
14.3 Summary Methodology
14.4 Methodology
14.5 Contact Timetric
14.6 About Timetric
14.7 Timetric’s Services
14.8 Disclaimer

List of Tables

Table 1: Benchmarking with Other Major Construction Industries
Table 2: Commercial Construction Project 1 – MAF – Mall of Oman – Bausher
Table 3: Commercial Construction Project 2 – OMRAN – Muscat City Hotels – Oman
Table 4: Commercial Construction Project 3 – MoT/QDREIC – Ras Al Hadd Resort Development – Oman
Table 5: Industrial Construction Project 1 – SA – Sohar Aluminum Plant Expansion – Al Batinah
Table 6: Industrial Construction Project 2 – Orpic – Liwa Plastics Complex – Oman
Table 7: Industrial Construction Project 3 – SAIL/OOC – Sohar Gas Based Steel Plant – Oman
Table 8: Infrastructure Construction Project 1 – MoTC – National Railway Network – Oman
Table 9: Infrastructure Construction Project 2 – MoTC – Batinah Expressway – Oman
Table 10: Infrastructure Construction Project 3 – MOTC – Bidbid to Sur Road Development – Oman
Table 11: Institutional Construction Project 1 – MoH – Sultan Qaboos Medical City Complex – Al Batinah
Table 12: Institutional Construction Project 2 – MoH – Batinah Medical Complex – Oman
Table 13: Institutional Construction Project 3 – AMG – Salalah International Medical City – Oman
Table 14: Residential Construction Project 1 – MM – Quriyat Housing Development – Oman
Table 15: Residential Construction Project 2 – PDO – Ras Al Hamra Residential Development – Oman
Table 16: Residential Construction Project 3 – Renaissance – Duqm Special Economic Zone Workers Village – Oman
Table 17: Galfar Engineering & Contracting SAOG, Key Facts
Table 18: Galfar Engineering & Contracting SAOG, Main Products and Services
Table 19: Galfar Engineering & Contracting SAOG, History
Table 20: Galfar Engineering & Contracting SAOG, Key Employees
Table 21: Douglas OHI LLC, Key Facts
Table 22: Douglas OHI LLC, Main Services
Table 23: Douglas OHI LLC, Key Employees
Table 24: Carillion Alawi LLC, Key Facts
Table 25: Carillion Alawi LLC, Main Services
Table 26: Carillion Alawi LLC, Key Employees
Table 27: Bahwan Engineering Company LLC, Key Facts
Table 28: Bahwan Engineering Company LLC, Main Services
Table 29: Bahwan Engineering Company LLC, Key Employee
Table 30: Suhail Bahwan Group Holding LLC, Key Facts
Table 31: Suhail Bahwan Group Holding LLC, Main Services
Table 32: Suhail Bahwan Group Holding LLC, History
Table 33: Suhail Bahwan Group Holding LLC, Key Employees
Table 34: Omani Construction Output by Project Type (OMR Million), 2009–2013
Table 35: Omani Construction Output by Project Type (OMR Million), 2013–2018
Table 36: Omani Construction Output by Cost Type (OMR Million), 2009–2013
Table 37: Omani Construction Output by Cost Type (OMR Million), 2013–2018
Table 38: Omani Construction Output by Activity Type (OMR Million), 2009–2013
Table 39: Omani Construction Output by Activity Type (OMR Million), 2013–2018
Table 40: Omani Construction Value Add by Project Type (OMR Million), 2009–2013
Table 41: Omani Construction Value Add by Project Type (OMR Million), 2013–2018
Table 42: Omani Commercial Construction Output by Project Type (OMR Million), 2009–2013
Table 43: Omani Commercial Construction Output by Project Type (OMR Million), 2013–2018
Table 44: Omani Commercial Construction Output by Cost Type (OMR Million), 2009–2013
Table 45: Omani Commercial Construction Output by Cost Type (OMR Million), 2013–2018
Table 46: Omani Commercial Construction Output by Activity Type (OMR Million), 2009–2013
Table 47: Omani Commercial Construction Output by Activity Type (OMR Million), 2013–2018
Table 48: Omani Commercial Construction Value Add by Project Type (OMR Million), 2009–2013
Table 49: Omani Commercial Construction Value Add by Project Type (OMR Million), 2013–2018
Table 50: Omani Industrial Construction Output by Project Type (OMR Million), 2009–2013
Table 51: Omani Industrial Construction Output by Project Type (OMR Million), 2013–2018
Table 52: Omani Industrial Construction Output by Cost Type (OMR Million), 2009–2013
Table 53: Omani Industrial Construction Output by Cost Type (OMR Million), 2013–2018
Table 54: Omani Industrial Construction Output by Activity Type (OMR Million), 2009–2013
Table 55: Omani Industrial Construction Output by Activity Type (OMR Million), 2013–2018
Table 56: Omani Industrial Construction Value Add by Project Type (OMR Million), 2009–2013
Table 57: Omani Industrial Construction Value Add by Project Type (OMR Million), 2013–2018
Table 58: Omani Infrastructure Construction Output by Project Type (OMR Million), 2009–2013
Table 59: Omani Infrastructure Construction Output by Project Type (OMR Million), 2013–2018
Table 60: Omani Infrastructure Construction Output by Cost Type (OMR Million), 2009–2013
Table 61: Omani Infrastructure Construction Output by Cost Type (OMR Million), 2013–2018
Table 62: Omani Infrastructure Construction Output by Activity Type (OMR Million), 2009–2013
Table 63: Omani Infrastructure Construction Output by Activity Type (OMR Million), 2013–2018
Table 64: Omani Infrastructure Construction Value Add by Project Type (OMR Million), 2009–2013
Table 65: Omani Infrastructure Construction Value Add by Project Type (OMR Million), 2013–2018
Table 66: Omani Institutional Construction Output by Project Type (OMR Million), 2009–2013
Table 67: Omani Institutional Construction Output by Project Type (OMR Million), 2013–2018
Table 68: Omani Institutional Construction Output by Cost Type (OMR Million), 2009–2013
Table 69: Omani Institutional Construction Output by Cost Type (OMR Million), 2013–2018
Table 70: Omani Institutional Construction Output by Activity Type (OMR Million), 2009–2013
Table 71: Omani Institutional Construction Output by Activity Type (OMR Million), 2013–2018
Table 72: Omani Institutional Construction Value Add by Project Type (OMR Million), 2009–2013
Table 73: Omani Institutional Construction Value Add by Project Type (OMR Million), 2013–2018
Table 74: Omani Residential Construction Output by Project Type (OMR Million), 2009–2013
Table 75: Omani Residential Construction Output by Project Type (OMR Million), 2013–2018
Table 76: Omani Residential Construction Output by Cost Type (OMR Million), 2009–2013
Table 77: Omani Residential Construction Output by Cost Type (OMR Million), 2013–2018
Table 78: Omani Residential Construction Output by Activity Type (OMR Million), 2009–2013
Table 79: Omani Residential Construction Output by Activity Type (OMR Million), 2013–2018
Table 80: Omani Residential Construction Value Add by Project Type (OMR Million), 2009–2013
Table 81: Omani Residential Construction Value Add by Project Type (OMR Million), 2013–2018
Table 82: Timetric Construction Market Definitions

List of Figures

Figure 1: Growth Matrix for Construction Output in Oman (%), 2009–2018
Figure 2: Benchmarking with Other Major Construction Industries (%), 2009–2018
Figure 3: Omani Commercial Construction Output (US$ Million), 2009–2018
Figure 4: Omani Industrial Construction Output (US$ Million), 2009–2018
Figure 5: Omani Infrastructure Construction Output (US$ Million), 2009–2018
Figure 6: Omani Institutional Construction Output (US$ Million), 2009–2018
Figure 7: Omani Residential Construction Output (US$ Million), 2009–2018
Figure 8: Omani Construction Output by Project Type (OMR Million), 2009–2018
Figure 9: Omani Construction Output by Cost Type (OMR Million), 2009–2018
Figure 10: Omani Construction Output by Activity Type (OMR Million), 2009–2018
Figure 11: Omani Construction Value Add by Project Type (OMR Million), 2009–2018
Figure 12: Omani Commercial Construction Output by Project Type (OMR Million), 2009–2018
Figure 13: Omani Commercial Construction Output by Cost Type (OMR Million), 2009–2018
Figure 14: Omani Commercial Construction Output by Activity Type (OMR Million), 2009–2018
Figure 15: Omani Commercial Construction Value Add by Project Type (OMR Million), 2009–2018
Figure 16: Omani Industrial Construction Output by Project Type (OMR Million), 2009–2018
Figure 17: Omani Industrial Construction Output by Cost Type (OMR Million), 2009–2018
Figure 18: Omani Industrial Construction Output by Activity Type (OMR Million), 2009–2018
Figure 19: Omani Industrial Construction Value Add by Project Type (OMR Million), 2009–2018
Figure 20: Omani Infrastructure Construction Output by Project Type (OMR Million), 2009–2018
Figure 21: Omani Infrastructure Construction Output by Cost Type (OMR Million), 2009–2018
Figure 22: Omani Infrastructure Construction Output by Activity Type (OMR Million), 2009–2018
Figure 23: Omani Infrastructure Construction Value Add by Project Type (OMR Million), 2009–2018
Figure 24: Omani Institutional Construction Output by Project Type (OMR Million), 2009–2018
Figure 25: Omani Institutional Construction Output by Cost Type (OMR Million), 2009–2018
Figure 26: Omani Institutional Construction Output by Activity Type (OMR Million), 2009–2018
Figure 27: Omani Institutional Construction Value Add by Project Type (OMR Million), 2009–2018
Figure 28: Omani Residential Construction Output by Project Type (OMR Million), 2009–2018
Figure 29: Omani Residential Construction Output by Cost Type (OMR Million), 2009–2018
Figure 30: Omani Residential Construction Output by Activity Type (OMR Million), 2009–2018
Figure 31: Omani Residential Construction Value Add by Project Type (OMR Million), 2009–2018