Local content is a strategic pillar for strengthening the national economy in the Sultanate of Oman. It contributes to enhancing the private sector, increasing job opportunities, and improving the efficiency of the local supply chain. By supporting small and medium-sized local businesses and enabling them to compete in vital sectors such as oil and gas, local content initiatives help achieve sustainable development and reduce dependence on imports. This approach aims to build a solid economic base that relies on national capabilities, which enhances Oman's ability to face economic challenges and provides promising investment opportunities in the future.
In the energy and minerals sector, the launch of the local content program in 2013 has contributed to providing more than 100 local content opportunities, with investments exceeding USD 400 million, creating 3,000 direct jobs in the private sector, and exceeding spending on small and medium enterprises (SMEs) at over USD 1.5 billion in 2023.
The local content in direct contracts for companies involved in oil and gas production operations reached approximately USD 5.7 billion, with operating companies achieving a 92% Omanization rate, reflecting the sector's commitment to developing national workforce and contributing to economic development.
The Ministry of Energy and Minerals has launched eight green hydrogen projects in the Al Wusta and Dhofar governorates, expected to produce 1.38 million tons of green hydrogen annually by 2030. These projects aim to support the national economy by attracting foreign investments and creating job opportunities for Omani citizens.
In the mining sector, Oman seeks to capitalize on non-oil mineral resources, with the ministry working to enhance local content in sectors such as mining and renewable energy.
The manufacturing sector is one of the promising sectors highlighted in the five-year executive plans for the Oman Vision 2040, aimed at economic diversification and enhancing local content. This sector contributes to expanding supply chains, supports allied industries, helps develop technological innovations, and enhances national capabilities.
The Ministry of Commerce, Industry, and Investment Promotion places great emphasis on developing the manufacturing sector as one of the key drivers of economic growth by improving systems, regulations, and creating an investment-friendly environment.
In light of global interest in clean and sustainable energy, the Sultanate of Oman is giving significant attention to the hydrogen sector, reflected in green hydrogen production and export projects, which are expected to enhance Oman's position in global markets, provide job opportunities for citizens, and develop related sectors.
The "Majd" program, launched by the Ministry of Energy and Minerals earlier this year, is a prime example of local development and initiative. The program focuses on boosting local content investments across all sectors and supporting initiatives to enhance domestic productivity through a series of measures and projects aimed at increasing the national contribution to strategic and developmental projects.
The program's significance lies in its ability to turn challenges into opportunities with an innovative spirit to create a national economy where local companies play a pivotal role in growth and development. Its unified identity enhances local investors' confidence in international partners, contributing to a favorable investment environment and strengthening confidence in Oman's economy.
Entrepreneurship
Efforts in the entrepreneurship sector have led to significant leaps in enhancing local content and supporting small and medium-sized enterprises (SMEs) through effective initiatives and programs implemented by the Public Authority for Small and Medium Enterprises Development (PASMED). These initiatives have led to a noticeable increase in the proportion of SMEs receiving business opportunities from tenders and direct and indirect procurement by directing government and private sector spending to the local market. In the first half of 2024, the government's procurement and tender contracts awarded to SMEs totaled 13 contracts worth more than OMR 100 million. Additionally, PASMED has worked to enhance the readiness of SMEs through supplier development programs to meet local market requirements and provide high-quality products and services. By the end of 2023, SMEs' contribution to GDP increased to 21.3%. PASMED has also financed 218 enterprises with a total of more than OMR 22 million by the end of August 2024 through its credit portfolio.
To keep up with technological advancements, PASMED launched a dedicated page on its website to display business opportunities platforms and register suppliers for various government and private entities in a single window, simplifying access to and competition for opportunities. The page includes platforms such as supplier registration links for OQ, Oman Oil Marketing Company, Esnad (General Secretariat of the Tender Board), and the Unified Supplier Registration System.
National Office
The National Local Content Office at the Tender Board Secretariat works on several tasks, including setting national policies and strategies related to local content in collaboration with relevant authorities. It prepares market analysis studies to identify investment opportunities, gaps, and enablers to maximize local content, establishes a unified and comprehensive database to support strategic decision-making, and defines national and sectoral indicators for local content in line with Oman Vision 2040. The office also works to standardize systems, practices, and regulations governing local content to enhance its competitiveness and role in the national economy, in addition to supporting national products, localizing industries, and facilitating knowledge transfer across different sectors in Oman.
The Secretariat of the Tender Board aims to achieve its goals by enhancing the value of local content in contracts and procurements. It has issued a mandatory list to support local products, industries, and services by requiring contracting companies to purchase listed products and services from national manufacturers. This will positively impact the productivity of local industries and the national economy by creating job opportunities, providing training and development programs, using national products as inputs for manufacturing, and giving opportunities to SMEs listed on the list. This will increase local content and is expected to have a positive impact throughout the supply chains, adding value locally and strengthening the local economy. The national system plays a role in studying the application of the mandatory list across different sectors and aligning it with ongoing efforts.