Market Report, "Oman Infrastructure Competitive Intelligence Report Q4 2010", published

New Construction market report from Business Monitor International: "Oman Infrastructure Competitive Intelligence Report Q4 2010"
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Nov. 23, 2010 - PRLog -- Oman's small but dynamic construction sector, like the wider Omani economy, was relatively insulated from the effects of the economic downturn. A real term y-o-y increase of 14.2% in Oman's construction industry value in 2009, according to BMI estimates, came in stark contrast to the minimal growth witnessed among many of its regional counterparts.

The Omani construction sector is relatively small in size and is therefore dominated by a few domestic companies, the most notable being Galfar Engineering, Oman Cement Company and Raysut Cement Company. While it is a relatively small market, roughly US$3.7bn in size, according to BMI 2010 estimates, the sector has witnessed stellar growth in recent years driven by considerable government investment. Further, we expect Oman's construction industry to continue to see robust growth over the medium-term - averaging 5.8% y-o-y growth between 2010 and 2014 - with the government's strategy to diversify away from oil, likely to generate increased opportunities for local and foreign players in the market.

Despite having limited international diversification, the outlook for Oman's domestic construction firms remains largely positive. While the ongoing uncertainty affects the country's residential sector, with one notable cause being Oman's large expat population, other sectors, such as infrastructure and commercial construction are helping to drive demand within the industry.

One of the key growth areas is the country's burgeoning tourism sector, which is generating significant developer interest in luxury hotels and resorts as the country establishes itself as a regional tourism hub. Indeed, rising demand for large-scale luxury resort developments and five-star hotels have the potential to attract increased interest from foreign developers, such as UAE companies looking to move away from Dubai's still depressed domestic construction market and with the expertise to execute such projects.

There are also likely to be increased opportunities available for local and foreign players within Oman's infrastructure market, particularly within the transport sector, where large rail and road projects will help generate added construction sector growth.

While the positive growth outlook for Oman's construction industry bodes well for firms operating in the sector, a key limitation is the lack of international exposure. In the case of Oman Cement and Raysut, this has left them vulnerable to reductions in local cement prices. Indeed, a huge over supply of cement in neighbouring UAE has resulted in the dumping of cement in Oman, putting downward pressure on cement prices.

BMI notes that with the UAE likely to struggle with over capacity over the short term at least, this remains a downside risk to cement company revenue streams over the short term. Galfar also lacks the international exposure that could shield it from any knocks to the Omani economy. However there are signs that the firm is seeking to address this weakness and the firms securing of three major road projects in India in June 2010 worth around US$783mn, represent a positive step towards addressing the geographical imbalance in Galfar's operations.

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Report Table of Contents:

Competitive Landscape Analysis
- Table: Competitive Landscape
Company Profiles
- Galfar Engineering and Contracting
- Haya Water
- Raysut Cement Company SAOG
- Al-Hassan Engineering Co
- Oman Cement Company
Market Attractiveness Analysis
- Market Overview
SWOT Analysis
- Oman Infrastructure Industry SWOT
- Oman Infrastructure Project Finance SWOT
Risk-Reward Ratings
- Oman Business Environment Overview
- Rewards
- Risks
- Regional Overview
- Middle East Infrastructure Business Environment Ratings
- Table: Regional Infrastructure Business Environment Ratings
- Project Finance Ratings
- Design and Construction
- Commissioning and Operating
- Overall Project Finance Rating
- Regional Overview
- Project Finance Ratings: Outlook For Middle East
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
Business Development Directory

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at

About Fast Market Research

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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Tags:Construction, Cement, Infrastructure, Ratings, Finance, Galfar, Projects, Firms, Uae, Raysut
Industry:Construction, Industrial, Engineering
Location:Massachusetts - United States
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