Oman is betting on local building materials: 3 million tonnes of steel, a USD 465 million cement market

Figures presented at a June 2026 workshop run by the Ministry of Commerce, Industry and Investment Promotion with ESCWA put Oman's cement and clinker market at USD 465.5 million, expected to grow at about 4.8 percent a year through 2029. Domestic iron and steel production has reached roughly 3 million tonnes a year, concentrated in the Sohar Industrial Complex. Cable and electrical wire output exceeds 120,000 tonnes a year and is exported to more than 50 countries. The wider construction materials market is valued at USD 206 million to 300 million, with architectural and decorative materials about 85 percent of it.

Separately, cement producers have been reported raising prices, and market research firms forecast the construction sector itself growing 3.6 percent in 2026 to OMR 3.81 billion after a decline over 2021 to 2025.

Two forces push the same way. Public tenders score In-Country Value, so a bid built on Omani cement, rebar and cable earns points a bid built on imports does not. And a local supply chain shortens lead times and reduces the currency and shipping risk that has moved material prices around since 2021.

Neither happens by accident. A specification written around imported brand names locks the local option out at tender. A specification written around performance, with Omani-manufactured products named as compliant, lets the contractor price the local route and lets the ICV score reflect it.

We benchmark rates against current Omani market data, not imported rate books, and we flag where a local product changes the price or the programme. On public work we build the ICV position into the cost plan from the start rather than treating it as a form to fill at bid stage.