ICV: Oman's economic imperative, opportunity
Published: 02:03 PM,Mar 24,2025 | EDITED : 06:03 PM,Mar 24,2025
ICV ensures that our nation retains a greater share of the value created here.
In today's interconnected world, Oman stands at an important crossroads. As global economic patterns shift, our nation has a unique opportunity to shape its own economic destiny through the strategic implementation of In-Country Value (ICV). This approach is not just a policy requirement but a pathway to sustainable prosperity that benefits all Omanis.
At its core, ICV is about keeping more of the economic benefits from business activities within Oman. Rather than seeing profits, jobs, and opportunities flow overseas, ICV ensures that our nation retains a greater share of the value created here. This means more jobs for Omanis, stronger local businesses, and a more resilient national economy. ICV encompasses several key elements: creating quality jobs for Omani citizens, developing local businesses and supply chains, transferring valuable skills and knowledge, and building infrastructure that supports long-term growth.
For too long, many resource-rich countries have focused solely on extraction, watching as the majority of benefits flowed elsewhere. ICV reverses this pattern by ensuring that Oman becomes the primary beneficiary of its own economic activities. The numbers tell a compelling story. Countries with effective ICV programs typically retain an additional 20-30% of economic value within their borders. For Oman, this could translate into billions of rials circulating in our economy, creating jobs and opportunities for our people.
While the government establishes the framework through policies and infrastructure, the private sector is the true engine of ICV success. Businesses both large and small play crucial roles in building a stronger Omani economy. Experience from around the world shows that the most effective ICV programs create environments where businesses view local integration as a competitive advantage rather than a burden. When companies recognize the benefits of stronger local supply chains, a skilled local workforce, and deeper community connections, ICV becomes a natural business strategy rather than a regulatory requirement.
Far from deterring international investment, a well-designed ICV program actually attracts higher-quality investors to Oman. Forward-thinking global companies increasingly recognize that countries with robust ICV frameworks offer significant advantages: more stable business environments, reliable local supply chains that reduce operational risks, skilled workforces that improve productivity, stronger community support for business activities, and growing domestic markets fueled by local prosperity. Smart investors understand that while initial costs may be higher in countries emphasizing ICV, these investments typically deliver stronger long-term returns with fewer disruptions and greater sustainability.
To maximize the benefits of ICV, Oman should focus on several key strategies. A gradual implementation gives businesses time to adapt and develop local capabilities without disrupting existing operations. Measuring the actual economic impact rather than rigid quotas ensures that ICV truly benefits Omanis. Targeted training programs help Omanis gain the skills needed for high-value jobs across various sectors. Supporting local businesses to meet international standards creates a stronger domestic supply chain. Creating mechanisms that encourage the sharing of expertise builds Oman's intellectual capital. Rewarding genuine value creation rather than superficial compliance ensures authentic economic benefits.
In line with Oman Vision 2040, ICV represents a collective national effort. Government, private sector, educational institutions, and citizens all have important roles to play in building a more self-reliant and prosperous economy. The experience of countries like Norway demonstrates what's possible. Through thoughtful policies, Norway transformed its oil wealth into a $1.4 trillion sovereign wealth fund and developed world-class expertise that now exports technology and services globally. Malaysia similarly increased local content in manufacturing from 30% to over 60% within a decade, creating thousands of high-quality jobs.
In-Country Value represents a powerful opportunity for Oman to transform its economic future. By keeping more of the benefits from economic activities within our borders, we can build a more diverse, resilient, and prosperous nation. For businesses and investors, embracing ICV means recognizing the long-term advantages of deeper integration with the Omani economy. For citizens, it means greater opportunities for meaningful employment and entrepreneurship.
Oman's economic destiny lies not in choosing between global engagement and local development, but in finding the right balance between them. In-Country Value provides the framework for achieving this balance, creating shared prosperity that benefits everyone with a stake in Oman's future. As we move forward, ICV should be seen not as a regulatory burden but as a national opportunity—a chance to build an economy that truly serves the needs and aspirations of all Omanis while creating sustainable value for those who invest in our nation's promise.
At its core, ICV is about keeping more of the economic benefits from business activities within Oman. Rather than seeing profits, jobs, and opportunities flow overseas, ICV ensures that our nation retains a greater share of the value created here. This means more jobs for Omanis, stronger local businesses, and a more resilient national economy. ICV encompasses several key elements: creating quality jobs for Omani citizens, developing local businesses and supply chains, transferring valuable skills and knowledge, and building infrastructure that supports long-term growth.
For too long, many resource-rich countries have focused solely on extraction, watching as the majority of benefits flowed elsewhere. ICV reverses this pattern by ensuring that Oman becomes the primary beneficiary of its own economic activities. The numbers tell a compelling story. Countries with effective ICV programs typically retain an additional 20-30% of economic value within their borders. For Oman, this could translate into billions of rials circulating in our economy, creating jobs and opportunities for our people.
While the government establishes the framework through policies and infrastructure, the private sector is the true engine of ICV success. Businesses both large and small play crucial roles in building a stronger Omani economy. Experience from around the world shows that the most effective ICV programs create environments where businesses view local integration as a competitive advantage rather than a burden. When companies recognize the benefits of stronger local supply chains, a skilled local workforce, and deeper community connections, ICV becomes a natural business strategy rather than a regulatory requirement.
Far from deterring international investment, a well-designed ICV program actually attracts higher-quality investors to Oman. Forward-thinking global companies increasingly recognize that countries with robust ICV frameworks offer significant advantages: more stable business environments, reliable local supply chains that reduce operational risks, skilled workforces that improve productivity, stronger community support for business activities, and growing domestic markets fueled by local prosperity. Smart investors understand that while initial costs may be higher in countries emphasizing ICV, these investments typically deliver stronger long-term returns with fewer disruptions and greater sustainability.
To maximize the benefits of ICV, Oman should focus on several key strategies. A gradual implementation gives businesses time to adapt and develop local capabilities without disrupting existing operations. Measuring the actual economic impact rather than rigid quotas ensures that ICV truly benefits Omanis. Targeted training programs help Omanis gain the skills needed for high-value jobs across various sectors. Supporting local businesses to meet international standards creates a stronger domestic supply chain. Creating mechanisms that encourage the sharing of expertise builds Oman's intellectual capital. Rewarding genuine value creation rather than superficial compliance ensures authentic economic benefits.
In line with Oman Vision 2040, ICV represents a collective national effort. Government, private sector, educational institutions, and citizens all have important roles to play in building a more self-reliant and prosperous economy. The experience of countries like Norway demonstrates what's possible. Through thoughtful policies, Norway transformed its oil wealth into a $1.4 trillion sovereign wealth fund and developed world-class expertise that now exports technology and services globally. Malaysia similarly increased local content in manufacturing from 30% to over 60% within a decade, creating thousands of high-quality jobs.
In-Country Value represents a powerful opportunity for Oman to transform its economic future. By keeping more of the benefits from economic activities within our borders, we can build a more diverse, resilient, and prosperous nation. For businesses and investors, embracing ICV means recognizing the long-term advantages of deeper integration with the Omani economy. For citizens, it means greater opportunities for meaningful employment and entrepreneurship.
Oman's economic destiny lies not in choosing between global engagement and local development, but in finding the right balance between them. In-Country Value provides the framework for achieving this balance, creating shared prosperity that benefits everyone with a stake in Oman's future. As we move forward, ICV should be seen not as a regulatory burden but as a national opportunity—a chance to build an economy that truly serves the needs and aspirations of all Omanis while creating sustainable value for those who invest in our nation's promise.