Opinion

Current status of local content in Oman

Local content is essential to not just job creation and diversification of the economy, but to the growth of domestic industries in Oman, and is integral to the country’s economic development strategy. As part of Oman Vision 2040, the government is rolling out programs which have the local workforce, businesses, and suppliers at the forefront.
Oman has introduced a new National Local Content Policy, which broadens beyond the sector-specific, In-Country Value (ICV) programmes that were previously in use. This new policy states that government agencies, state-owned enterprises, and the private sector are encouraged to use local goods, services, and labour, in order to retain value within the Sultanate. This policy provides a framework for a sustainable economy by decreasing the reliance on imports.
In 2025, the government underwent a substantial institutional change and developed the Authority for Projects, Tenders and Local Content. The new authority was established to oversee the government’s procurement, local content in tenders, and to optimize the efficiency of government spending. It aims to design metrics to gauge performance, harmonize initiatives for local content, and provide added economic value to public projects in Oman.
A major accomplishment was developing a national framework for assessing local content performance. Companies are assessed on their use of local goods and services, employment of Omani nationals, efforts to build local suppliers, investment in Oman, innovative and research support, among others. Having a consistent framework allows for clear transparency and enables policymakers to analyze the effectiveness of local content measures in various sectors.
The leading sector for local content development continues to be the energy and minerals sector. The Ministry of Energy and Minerals has rolled out programmes to enhance supply chains and provide Omani businesses with better opportunities. Recent measures have prompted all businesses in the sector to implement local content plans and improve their dealings with local suppliers and contractors. Local content programs are said to have provided Omani SMEs with great contract opportunities and are having a positive impact on the economy and job creation.
The establishment of the Local Content Certification is a further achievement. The certification, which is currently in the energy sector, assesses the extent to which a company supports the local economy. Firms with excellent local content performance may benefit from preference in government contracts and sourcing activities. The programme is anticipated to progressively move to other sectors, providing more competition and compelling companies to better their investments in local capacity and local partnerships.
Local content objectives have digital platforms designed to help them. For instance, the Rabt platform helps businesses find local sourcing options and build supply chains by connecting local manufacturers, suppliers, and service providers. It hosts thousands of industrial goods and helps Omani businesses network and cooperate.
While impressive strides have been made, there is still a long way to go. Omani businesses must work to improve their productivity and innovation in order to be more responsive to the expanding market. Manufacturing, workforce, and technology sustainment challenges must also be met to achieve success over the long term. Public and private stakeholders work in tandem to address these challenges through diverse training, investment, and regulatory incentives.
In closing, Oman’s local content policy is an integrated national strategy for socioeconomic diversification, job creation, and industrialization. Focused governance, coupled with certification, supplier development, and digital platforms, is evidence of the drive toward a more self-sufficient and competitive economy. As implementation efforts increase across various sectors, local content will be pivotal to fulfilling the tenets of Oman Vision 2040.