Oman links industrial finance to local content

MUSCAT: The Sultanate of Oman will unveil an initiative aimed at offering preferential bank financing to industrial companies based on their contribution to local content, as it seeks to increase domestic procurement and strengthen manufacturing supply chains.
The Ministry of Commerce, Industry and Investment Promotion will introduce the proposed financing standards at the Local Content in the Industrial Sector Forum on Sunday, alongside a guide to measuring and increasing the sector’s contribution to the national economy.
The initiative, titled “Standards for Financing Industrial Projects and Establishments”, aims to provide banking credit facilities on preferential terms linked to an establishment’s contribution to local content.
The forum, organised by the ministry’s Directorate General of Industry, will bring together government entities, industrial companies and local suppliers to explore opportunities to expand the use of Omani products and services in public and private-sector procurement.
Sultan bin Said Al Khudouri, Head of the ministry’s In-Country Value and Local Content Office, said the event would help turn local content objectives into practical initiatives, linking industrial incentives and support to companies’ contributions to the domestic economy.
He said several initiatives and regulatory tools would be launched, including a comprehensive guide designed to measure industrial establishments’ economic contribution, improve workforce efficiency and encourage the localisation of supply chains and production inputs.
The guide will provide a common framework for defining local content components and assessing companies’ contributions. It also aims to expand procurement opportunities for Omani products and encourage investment and industrial partnerships.
Anfal bint Ibrahim al Ajmi, an economic researcher at the ministry’s Local Content Office, said the forum would showcase initiatives approved under the local content plan, with an emphasis on practical measures to develop national industrial capabilities.
She said closer cooperation between government bodies, factories and domestic suppliers could create business opportunities and increase the use of national products and services.
A workshop for senior industrial executives will examine opportunities and challenges in sourcing procurement requirements and production inputs locally. The programme also includes the signing of strategic agreements and partnerships between manufacturers and local suppliers.
The ministry is working to connect industrial establishments with Omani companies and small and medium enterprises, widening their access to subcontracts and tenders.
Its efforts include identifying imported production inputs that have local alternatives and encouraging factories to use them, alongside promoting locally manufactured goods in government and private-sector purchasing.
The ministry also seeks to incorporate local content requirements into new industrial projects and encourage companies to develop plans to increase their contribution to the national economy.
The measures form part of efforts under Industrial Strategy 2040 and Oman Vision 2040 to expand domestic manufacturing, increase industrial value added and support economic diversification. — ONA