• PDF: Delivered by email usually within 4 to 8 UK business hours.

Oman Infrastructure Report Q4 2012

  • Publication Date:September 2012
  • Publisher:Business Monitor
  • Product Type: Report
  • Pages:61
  • ISBN:305262

Oman Infrastructure Report Q4 2012

Includes 3 FREE quarterly updates.

BMI View: Despite continuing political unrest in the wider Middle East region, the outlook for Oman's
construction sector for the remainder of 2012 and going into 2013 is broadly positive and, we are
forecasting industry growth of 6.8% and 6.9% in 2012 and 2013, respectively. This growth outlook is
underpinned by the government's five-year (2011-2015) US$78bn spending plan, investment associated
with a burgeoning tourism industry and solid economic growth. That said, while we anticipate robust
construction sector growth through to 2016, we note mounting risks to the outlook beyond 2013, as
declining oil revenues threaten to undermine the government's ambitious infrastructure spending plans.
Key developments in the sector:
- The tender for the development of a new national railway network within the sultanate of Oman
has been delayed until October 5 2012, reports Zawya. A total of five international consortia are
interested in the project to build a 1,000km network between Buraimi and Khatmat Malah in the
north, and Duqm and Salalah in the south. The OMR5bn (US$13.02bn) project will take four
years to complete. The Oman Ministry of Transport and Communication has extended the
deadline of the tender in order to complete a full and comprehensive feasibility study.
- The Omani government announced plans to invest OMR314.9mn (US$817.9mn) in road
infrastructure projects during 2012. OMR60mn (US$155.8mn) will go towards the OMR250mn
(US$649mn) Sur-Bidbid dual carriageway, OMR62.5mn (US$162.3mn) towards the
OMR62.5mn (US$162.3mn) Al Batinah Expressway and OMR10mn (US$25.9mn) towards the
OMR40m (US$103.8mn) Mahdha-Al Rawda dual carriageway. The government has also
announced that 681 infrastructure development projects, worth a total of OMR1.5bn (US$3.9bn),
will begin during 2012.
- Oman's two main cement producers, Raysut Cement and Oman Cement Company (OCC),
have seen a discernible improvement in their fortunes since the start of 2012. Growing
momentum within the country's construction sector has seen cement sales rise, while a
significant reduction in cheap imported cement from neighbouring countries, namely UAE, has
eased margin pressures. These factors combined have seen confidence in the sector steadily
improve, with both companies reporting positive Q112 earnings figures.
- The Omani Public Authority for Electricity and Water (PAEW) announced that it has allocated
OMR390mn (US$1.01bn) for electricity and water infrastructure development in 2012, reports
ameinfo.com. The PAEW is undertaking the construction of four power plants in different
governorates and is also considering building further new facilities in both Duqm and Salalah. A
450MW power and desalination power plant was due to open in Salalah in April 2012.
Oman Infrastructure Report Q4 2012
6
While our country risk analysts are relatively sanguine on the outlook for Omani public finances in 2012,
they stress that the outlook from 2013 and beyond is decidedly less bright. We anticipate the country's
budget dynamics gradually deteriorating and flipping into deficit by 2016. On the revenue front, net oil
receipts are set to hit an all-time high in 2012, but begin steadily decreasing from that point onwards.
With oil production and exports set to continue decreasing over the coming years, the weakening in
hydrocarbon revenues is a structural problem that will soon expose significant weaknesses in the
country's underlying budget dynamics. This deteriorating fiscal position may pose a threat to the
government's ambitious capital expenditure plans over the coming years and, by extension, poses
downside risks to our medium- to long-term forecasts.
BMI Industry View . 5
SWOT Analysis 7
Oman Infrastructure Industry SWOT .. 7
Competitive Landscape . 8
Table: EQS Data 8
Building Materials .. 10
Global . 10
Middle East .. 13
Cement Forecasts . 16
Table: Oman Cement Production and Consumption Data, 2009 - 2016 .. 17
Table: Oman Cement Production and Consumption Long-Term Forecasts, 2014 - 2021 17
Industry Forecast Scenario 18
Table: Oman Construction And Infrastructure Industry Data, 2009 - 2016 .. 18
Table: Oman Construction And Infrastructure Long-Term Forecast, 2014 -2021 .. 18
Construction and Infrastructure Forecast Scenario . 19
Transport Infrastructure . 21
Outlook and Overview 21
Major Projects Table - Transport 22
Table: Major Projects - Transport 22
Energy and Utilities Infrastructure 27
Outlook and Overview 27
Major Projects Table - Energy and Utilities . 28
Table: major Projects - Energy and Utilities .. 28
Residential/Non-Residential Construction and Social Infrastructure 31
Outlook and Overview 31
Major Projects Table - Residential/Non-Residential Construction and Social Infrastructure . 32
Table: Major Projects - Residential/Non-Residential Construction and Social Infrastructure 32


Risk/Reward Ratings . 34
Oman's

Risk/Reward Ratings . 34
Rewards .. 34
Risks . 35
Regional Overview 35
Table: Regional Infrastructure

Risk/Reward Ratings .. 41
Company Monitor 42
Galfar Engineering And Contracting 42
Global Overview .. 45
Table: BMI Infrastructure Index - YTD Top Performers (%) . 48
Table: BMI Infrastructure Index - YTD Worst Performers (%) 48
Methodology .. 49
Industry Forecasts 49
Construction Industry .. 50
Data Methodology . 50
New Infrastructure Data Sub-sectors 50
Oman Infrastructure Report Q4 2012
4
Construction . 51
Capital Investment . 52
Construction Sector Employment 53
Infrastructure

Risk/Reward Ratings . 53
Table: Infrastructure Business Environment Indicators . 54
Project Finance Ratings 55
Table: Design And Construction Phase .. 56
Table: Commissioning And Operating Phase - Commercial Construction 57
Table: Commissioning And Operating Phase - Energy And Utilities 58
Table: Commissioning And Operating Phase - Transport . 59
Sources .. 60
+44 20 8816 8548

Ask a question about Oman Infrastructure Report Q4 2012

Enter the characters you see in the picture below
Captcha