MUSCAT: OQ, the globally integrated energy group, has announced its expenditure on goods and services up to the third quarter of 2023, totalling approximately $974.07 million. Of this, $753.11 million was allocated to goods and services through local suppliers, resulting in $314.17 million being retained as In-Country Value (ICV).
The group has reported spending a total of $172.53 million on small and medium-sized enterprises (SMEs) up to the third quarter of this year. This includes a significant amount of $56.99 million explicitly allocated for SMEs holding the Riyada Card.
This expenditure aligns with the group's strategic focus on enhancing its ICV contribution, in tandem with government efforts and the objectives of Oman Vision 2040, demonstrating a steadfast commitment to invest and support local markets, goods and SMEs.
Recognising the significance of supporting Omani goods, OQ has given special attention to goods made in Oman in its procurement policies. This includes offering up to a 10% price preference for Omani goods and specifically targeting Omani goods in some contracts and procurements. As a result, spending on goods manufactured in the Sultanate of Oman reached approximately $122.41 million.
Furthering its dedication to local industry, OQ has launched initiatives aimed at industry localisation, notably the recently signed agreements to establish projects in the Ladayn Polymer Park. These projects are expected to contribute an ICV of around $6 million annually.
Eng. Mabrook bin Hamed al Siyabi, General Manager of In-Country Value at OQ, remarked, "Our focus at OQ is set on maximising our In-Country Value contribution across all our projects and activities. We recognise the pivotal role local businesses play in building our national economy and driving sustainability. To this end, we invest in programmes that boost the growth and development of local businesses and create opportunities for the supply of local products. Our commitment extends to sourcing goods and services from SMEs and locally registered suppliers, creating job opportunities, and fostering skill development and innovation.
Al Siyabi elaborated that ICV represents the total expenditure retained within the country, contributing to business development, human capacity building, and productivity stimulation in the national economy.
To this end, OQ has established a robust framework aimed at maximising ICV. Key components of this strategy include the formation of a dedicated ICV unit, the implementation of comprehensive group-wide performance metrics to monitor ICV, and the integration of ICV requirements into procurement policies. Furthermore, the group ensures that all tenders are transparently displayed on the e-procurement platform (Tawreed), with ICV being a primary criterion in bid evaluations. The effectiveness of these strategies is continuously assessed through a specialised ICV monitoring and reporting platform.
Emphasising the role of employment, training, and scholarships in OQ's ICV initiatives, Al Siyabi revealed that the group's Omanisation rate reached about 84% by the end of 2022. He further explained that in the training sector, OQ has invested in developing 800 leaders through the "Masar" programme, to foster leadership to guide the group through its transformation phase.
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