Opinion

OPAL: Driving the success of Oman’s local content certification scheme

Local content has become one of Oman’s most important tools for translating investment into measurable national value. More than a procurement requirement, it is a strategic approach to strengthening national capabilities, supporting economic diversification, and advancing the goals of Oman Vision 2040.
At the centre of this effort is the Local Content (LC) Certification Scheme, a national framework that measures, verifies, and certifies the economic contribution of companies operating in the Sultanate of Oman. The scheme provides a transparent and standardised method for assessing local value creation across industries.
STRONG GOVERNANCE AND INDEPENDENT VERIFICATION
The credibility of the certification scheme is built on a clear governance model that combines policy leadership with independent assurance.
The Ministry of Energy and Minerals (MEM), working with the Projects, Tenders and Local Content Authority, provides strategic oversight and policy direction through a steering committee that ensures alignment with national priorities.
The Oman Energy Association (OPAL) serves as the operational manager of the scheme. It oversees implementation, coordinates with participating companies, validates submissions, and issues the official local content scorecard certificates.
To maintain transparency and confidence, OPAL appoints Financial Services Authority (FSA)-approved auditing firms as independent local content verifiers. These firms examine company submissions against audited financial statements before certification is granted.
OPAL: THE ENGINE BEHIND THE CERTIFICATION SCHEME
OPAL's contribution extends far beyond managing the certification process. As the energy sector's leading industry association, it acts as the link between government regulators, operators, contractors, suppliers, and independent verification firms, ensuring that the local content certification scheme is implemented consistently across the industry.
A key responsibility of OPAL is building industry capability. The association organises awareness campaigns, technical workshops, and training programmes that help companies understand the certification methodology, improve the quality of local content reporting, and prepare for independent verification. These initiatives strengthen industry confidence while encouraging greater participation in the scheme.
OPAL also supports the development of qualified local verification professionals and promotes the adoption of international assurance practices, enhancing the credibility of the certification framework. By working closely with both the public and private sectors, OPAL helps create a culture of transparency, accountability, and continuous improvement in local content performance.
Looking ahead, OPAL will play an important role in integrating the certification scheme with the Taqah digital platform. Digitalisation will simplify data submission, automate verification workflows, reduce administrative effort, and provide policymakers with reliable, real-time information on the economic contribution of certified companies. This positions OPAL not only as an administrator of the scheme but also as a strategic partner in strengthening Oman's industrial ecosystem and supporting sustainable economic development.
CERTIFICATION PROCESS
The certification process follows three simple stages:
1.Companies submit standardised local content data based on audited financial statements.
2.Accredited third-party verifiers conduct an independent review and issue an agreed-upon procedures (AUP) report.
3.OPAL performs a final validation before issuing the official local content scorecard certificate.
ADVANCING COMPETITIVENESS AND SUSTAINABLE ECONOMIC GROWTH
Obtaining a Local Content Certificate offers organisations a distinct competitive advantage. Procuring entities can integrate certification into their tendering strategies by requiring certification as an eligibility criterion, recognising higher local content performance during bid evaluations, or applying exemptions where specialised procurement justifies alternative approaches. This encourages companies to invest more strategically in Omani suppliers, workforce development, and local capability enhancement.
While the certification framework was initially developed for the energy sector, its long-term ambition extends well beyond oil and gas. With the continued development of the Taqah digital platform, the scheme is expected to expand across additional sectors of the national economy, creating a unified and data-driven approach to measuring local economic contribution and supporting evidence-based policymaking.
By integrating robust governance, independent verification, digital technologies, and OPAL's operational expertise, Oman is establishing a credible and internationally aligned local content certification scheme.
More than a compliance mechanism, the framework is becoming a strategic instrument for attracting investment, strengthening domestic industries, developing national capabilities, and generating measurable economic impact. As adoption grows across sectors, the scheme is poised to become a key enabler of Oman Vision 2040, ensuring that investment creates lasting value for businesses, communities, and the national economy.