Estimation of Economic Loss Due to the Absence of Tanning Industry in Oman

The leather is a durable and flexible material created by tanning animal rawhide and skin. Currently, there is no tannery industry in Oman. People usually throw the hide and skin in the dustbin after slaughtering animals privately at their home. There are some dealers collect the hides/skins from the slaughtering houses and sell it to UAE. This study is an attempt to estimate the economic loss due to the absence of the tanning industry in Oman by analyzing relevant data. Data have been collected from three sources: Ministry of Agriculture and Fisheries of Oman; slaughtering houses; and household survey to estimate the total number of hides of different animals yearly available and destroyed in Oman. These results are used to predict the amount of money and job opportunity that Oman is currently losing due to the absence of the tanning
industry. In Oman, the number of different animals is growing exponentially. The estimated yearly loss due to the negligence of collecting and selling raw hides/skin is approximately USD 3.4 million. These results will help to predict the profit if Oman can build a tanning industry, process the skin here and trade directly to the World Market.