Manufacturing plays a vital role in the development of a country. Oman has a small open economy with oil and gas as its main export resources. To have a balanced rate of growth, manufacturing should be extended to provide more job opportunities and social and economic welfare for Omanis. Manufacturing development in Oman started at the beginning of the Seventies. The first five year plan was introduced between 1976 and 1980 and followed by others and the current, the seventh five year plan, will end by 2010. In those plans the government encouraged national and foreign companies to invest in various sectors to improve the economy. Though the beginning was very simple, manufacturing now contributes nearly 11% of GDP. This will increase over the coming years, especially when some firms jointly owned by the government and international companies, mainly in the areas of petrochemicals, fertilizers, and basic industries start production and begin to export. The government is encouraging these foreign investments to attain its strategic aims. The future linkages of these industries with related intermediate and primary industries would be great, and it is expected that the contribution of manufacturing to GDP will rise sharply. Nevertheless, the manufacturing base in Oman has to be expanded and enlarged to include other manufacturing industrial sectors, which are expected to make a useful contribution to the export markets, both at regional and world levels. Data from the annual industrial reports and Statistical Yearbook are used to analyze the results in order to conclude some outcomes and suggest some recommendations.

Manufacturing plays a vital role in the development of a country. Oman has a small open economy with oil and gas as its main export resources. To have a balanced rate of growth, manufacturing should be extended to provide more job opportunities and social and economic welfare for Omanis. Manufac...