Cement production capacity in Oman to reach 19 million tons by 2023

According to CW Research's 2018 update of the Oman Cement Market Report, cement apparent consumption in the country is forecast to increase to almost eleven million tons in 2023.

This improvement will be encouraged by growing construction activity both due to private and public investments. Production capacity is also projected to rise within the next five years, underpinned by capacity expansions of existing plants and the entry of new market participants.

ÔÇ£The improving trend forecast for both consumption and production contrasts with the evolution of the construction sector in the last couple of years. The country's construction activity declined in 2016 and in 2017 due to the shocks the decline of oil prices had over the sector. However, in 2018, private investments in construction are likely to offset the cut in public investments the government decided on for the 2018 budget. Furthermore, private investors are attracted by the ease of doing business and by the low construction costs in OmanÔÇØ, assesses Raluca Cercel, CW Group's Associate.

A small and consolidated market

The Omani cement industry is fairly consolidated, with four cement plants, and another one starting operating by the end of the year. Two of the cement plants are integrated, whereas the other are grinding ones.

Currently, cement plants only exist in the North and South of the country, and mostly supply their respective regions. Nevertheless, all of the new plants scheduled to start operations after the start of 2019 are located in the Duqm SEZ, in the central part of the country.

Oman's cement market is split among very few players, among them Oman Cement Company, and Raysut Cement Company.

Know more about the Omani cement market here