Introduction
Oman’s hospitality, restaurant, and catering (HORECA) sector is undergoing rapid expansion, fueled by government initiatives, economic diversification under Vision 2040, and a rising tourism industry. This growth creates significant opportunities for international suppliers, particularly those providing high-quality food ingredients to the food manufacturing industry.
The country’s foodservice industry is expanding alongside a network of over 400 hotels and resorts, coupled with an increasing appetite for fine-dining and premium food offerings. This presents a promising market for Malaysian palm oil suppliers, offering a reliable, versatile, and cost-effective solution for high-performance cooking needs.
Oman’s Booming HORECA Sector
The robust growth of Oman’s HORECA industry is driven by a combination of factors:
1. Strategic Economic Diversification
Under Vision 2040, Oman is actively reducing its reliance on oil revenues by investing in tourism and hospitality. The government’s efforts to enhance infrastructure and attract foreign investments are transforming the country into a premium travel destination. This has led to the entry of international hotel chains, fine-dining restaurants, and catering services—all demanding reliable and high-quality food ingredients.
2. Growing Tourism Industry
Oman has positioned itself as a luxury and adventure tourism hub in the Gulf region, recording over 3.5 million visitors between January and November 2024. The government’s investment in tourism infrastructure and its emphasis on sustainable tourism practices are projected to increase the tourism sector’s GDP contribution from 2.1% in 2019 to approximately 5% by 2025 and 10% by 2040. This surge in tourism is driving up demand for foodservice offerings and opening doors for Malaysian palm oil.
3. Urbanization and Evolving Consumer Preferences
Accelerating urbanization has led to lifestyle shifts in Oman, with a growing demand for convenience foods, and ready-to-eat meals. At the same time, Omani consumers are increasingly health-conscious, prompting foodservice providers to seek oils and fats that offer stability, long shelf life, and nutritional benefits—attributes that Malaysian palm oil readily provides.
Why Malaysian Palm Oil is Well-Suited for Oman’s HORECA Sector
Malaysian palm oil is internationally recognized for its quality, versatility, and sustainability, making it an ideal choice for Oman’s dynamic foodservice industry.
Consistent and Reliable Supply
Malaysia’s well-established supply chains and strong regulatory frameworks ensure a stable, consistent, and traceable supply of palm oil, enhancing buyer confidence and positioning Malaysia as a trusted trade partner.
Versatility Across Culinary Applications
Palm oil is integral in a variety of cooking methods—ranging from deep-frying to baking—due to its high smoke point, stability, and ability to enhance texture and shelf life. This versatility is especially valuable in Oman’s diverse culinary scene.
Health and Nutritional Benefits
Free from trans fats and rich in Vitamin E tocotrienols, Malaysian palm oil aligns with the preferences of health-conscious Omani consumers, offering both nutritional value and functionality.
Sustainability and Certification
Malaysia leads in sustainable palm oil production, supported by the Malaysian Sustainable Palm Oil (MSPO) certification. This aligns with Oman’s increasing emphasis on responsible sourcing and sustainability, making Malaysian palm oil a compelling choice for foodservice providers.
The E-Commerce Factor
Oman’s growing e-commerce sector, particularly in food delivery, is creating new demand for high-quality food ingredients. According to Statista, revenue in Oman’s online food delivery market is expected to grow at a CAGR of 12.23% from 2025 to 2029, reaching USD 1.27 billion. This growth trajectory presents a timely opportunity for Malaysian palm oil exporters.
Market Overview: Palm Oil in Oman
Palm oil is the dominant edible oil imported into Oman, accounting for 78% of total edible oil imports in 2023 (236,000 MT). It also leads in consumption, with 44,400 MT, outpacing sunflower and corn oil. However, Malaysian palm oil captured just 19% of the market share, totalling 45,200 MT, while Indonesian suppliers held approximately 75%. Encouragingly, exports of Malaysian palm oil to Oman in Q1 2025 surged by 72% compared to the same period in 2024, signalling growing interest and potential for expansion.
Strategies for Malaysian Palm Oil Exporters
To capitalize on Oman’s expanding HORECA sector, Malaysian suppliers should consider the following approaches:
1. Build Strategic Partnerships
Forge relationships with HORECA distributors, wholesalers, and foodservice suppliers, including major players. Participation in trade fairs like Gulfood, the Saudi Food Show, and local events such as HORECA Oman and Food & Hospitality Oman will boost market visibility and engagement. The Malaysian Palm Oil Council (MPOC) is well-positioned to facilitate connections with leading suppliers in Oman’s HORECA sector, helping Malaysian exporters establish valuable contacts and business opportunities in this growing market.
2. Target Key HORECA Segments
Engage with leading hotels, quick-service restaurants, and institutional caterers. Oman’s hospitality sector is projected to add over 40 new hotels and reach 33,000 hotel rooms by 2025, providing ample opportunities to secure supply contracts by highlighting Malaysian palm oil’s cost-efficiency, performance, and sustainability.
3. Leverage Halal Certification
With Oman’s predominantly Muslim population, compliance with halal standards is crucial. Malaysian palm oil’s halal certification offers a competitive edge in this market.
4. Enhance Market Awareness
Conduct cooking demonstrations, chef training sessions, and digital campaigns to promote the benefits of Malaysian palm oil. Collaborations with culinary institutions and foodservice associations can further strengthen market presence.
Conclusion
Oman’s rapidly expanding HORECA sector represents a promising market for Malaysian palm oil. With its consistent supply, versatility, nutritional benefits, and sustainability credentials, Malaysian palm oil is well-positioned to become a preferred choice in Oman’s foodservice industry.
By adopting a strategic approach—strengthening trade partnerships, targeting key segments, and leveraging Malaysia’s reputation for high-quality and certified palm oil—suppliers can establish a strong presence and unlock significant opportunities in Oman’s growing hospitality and foodservice market.
MPOC stands ready to support exporters in navigating this dynamic sector by facilitating connections with leading edible oil manufacturers and HORECA suppliers, offering insights into market trends, and creating pathways for long-term growth.
Prepared by Muhammad Kharibi
