Oman signs new local supply deals

MUSCAT: The Sultanate of Oman signed cooperation programmes with major industrial companies and the Development Bank on Sunday to expand local procurement, develop domestic suppliers and finance manufacturing projects.
The agreements were announced at the Local Content in the Industrial Sector forum, organised by the Ministry of Commerce, Industry and Investment Promotion, alongside initiatives to support professional licensing and widen market access for Omani products.
The programmes cover supply chain localisation, industrial financing, skills development and closer links between large companies and domestic manufacturers, supporting the Industrial Strategy 2040 and Oman Vision 2040.
Ghalib bin Said al Maamari, Under-Secretary of the Ministry for Commerce and Industry, said the next phase of industrial development required greater emphasis on the economic value generated within the Sultanate of Oman, alongside production growth.
That would involve increasing domestic procurement, developing intermediate and supporting industries, and giving local suppliers and small and medium-sized enterprises wider access to industrial supply chains, he said.
The ministry aims to turn demand from major companies into opportunities for domestic investment and manufacturing, reducing dependence on imports where local production capabilities exist.
An agreement with the Development Bank will support the Tahqiq initiative, which seeks to provide financing solutions and other support for targeted industrial projects and businesses seeking to expand production.
A cooperation programme with Petroleum Development Oman will draw on the company’s experience in local content and supplier development to help manufacturers strengthen domestic supply chains.
The ministry also signed an agreement with Sohar Aluminium to develop links between aluminium production and downstream manufacturers, including greater use of Omani factories to supply related products and materials.
A programme with Vale Oman aims to increase local procurement for its pelletising operations and support the localisation of industrial technologies and services. Other agreements included cooperation with Oman Cables Industry and support for the use of national products in housing projects.
A separate programme with Talabat will introduce a dedicated category for products carrying the Made in Oman label on its Oman app, expanding consumer access to locally produced goods.
The forum also announced an initiative to provide 2,000 subsidised professional licences for jobseekers and graduates, in cooperation with the Ministry of Labour and the industrial sector’s Sector Skills Unit.
The initiative targets technical and specialised occupations with low Omanisation rates, helping prepare Omani candidates for industrial roles under the ministry’s professional classification and licensing system.
Khalid bin Salim al Qassabi, Director General of Industry, said the industrial sector accounted for 9.4 per cent of gross domestic product in 2025. Active industrial establishments increased 5 per cent from 2024 to 31,183.
The number of Omanis employed in the sector rose about 10 per cent to approximately 53,000, from about 48,000 in 2024, he said.
Non-oil merchandise exports increased 7.5 per cent to RO 6.70 billion in 2025, from RO 6.23 billion a year earlier. The stock of foreign direct investment in manufacturing stood at approximately RO 2.76 billion.
The ministry launched a local content guide covering domestic procurement, employment of Omanis, production inputs and the use of national suppliers and services. It also presented a tool to help industrial businesses assess their performance and identify opportunities for localisation.
The inaugural annual Made in Oman industrial exhibition was announced to showcase domestic manufacturing capabilities and connect producers with buyers and consumers.
Sultan bin Said al Khudouri, Head of the ministry’s Local Content Office, said improving information exchange between major companies and suppliers was a priority, enabling local factories to understand procurement requirements and meet technical specifications.
He said the next phase would focus on implementing the cooperation programmes and identifying opportunities that could directly increase domestic procurement and develop national suppliers.
Workshops examined opportunities in clean energy and mining, food security, petrochemicals, and government procurement, with participants identifying potential projects, supply chain constraints and proposals for implementation. — ONA