Local development has become essential for Oman’s economic and social development. The Sultanate of Oman has begun to interpret development beyond the construction of infrastructural and other public facilities and services. For Oman Vision 2040, development is progressively understood as the creation of sustainable development opportunities and adequate employment in governorates, reinforcing the national private sector, and maximising the benefits to citizens from capital and economic activities.
Different forms of opportunities and comparative advantages in various sectors of the economy abound in the governorates. Large scale business, finance, and service activities dominate in Muscat. Large scale agriculture and other rural activities, manufacturing, tourism and logistics activities, and other economic activities offer opportunities for the other governorates.
Given the varying opportunities and comparative advantages, the same model of development cannot be applicable to all the governorates. Each can develop in line with its comparative advantages.
Different models of development can be aligned to investment and other opportunities within the governorates. It is imperative that the models be integrated to maximise development in the country.
Consistent with the above, local development and local content policies are complementary. The goal of both policies is to ensure that opportunities created by large scale projects in the country benefit the national economy, people and entrepreneurs of Oman.
When new major projects are launched in various sectors in a governorate, it is important to evaluate the outcomes of the projects broadly. The value of the investment and completion of project works are not sufficient for evaluation. More importantly, it is critical to assess the extent of procurement kept within Oman, the number of local businesses and Omanis employed in the project, and the project’s potential to stimulate new businesses.
Measuring outcomes of projects and investments in this manner allows Oman to more effectively track the country’s expenditure, and evaluate the impact of its investments.
The same is true for SMEs. In competitive markets, local enterprises may be better positioned than larger firms to understand the particular requirements and preferences of local customers and thereby differentiate their offerings in the market. However, for SMEs to be successful, there must be an integrated approach which involves, for example, provision of finance and business skills, modern management and production methods, and other support, in addition to public and private sector procurement opportunities.
Large firms can contribute, for example, through support and training of SMEs, in order to build the capabilities of SMEs in productivity and other areas necessary to access larger markets.
Beyond these, there must be similar integration of the efforts of public, private and non-governmental sectors in Oman, to promote and build the necessary knowledge and skills required for business development in various economic sectors, especially at the local level.
The use of technology can expedite this process. Investment, supplier, and workforce digital information can be integrated and presented at the governorate level. If integrated with data on the SME sector and public expenditure on contracts and grants, this technology can assist in locating potential economic (business) opportunities and evaluating the impact of investments.
Measurable objectives should be established for the development of the workforce, including employment, entrepreneurship, and business (both SME and large enterprise) creation, investment and public procurement, as well as community and economic development.
Oman needs to assess the total impact of development expenditure, rather than just the total development expenditure.
Developing the workforce through the creation of a viable and sustainable local economy is the goal of local area development. Such development enables Oman Vision 2040 to be actively integrated at the community, business, and individual level. Development becomes resilient and includes the formation of local enterprises and jobs.
Ultimately, successful local development means transforming the unique resources and capabilities of every governorate into sustainable economic value. By connecting local content, investment, SMEs, human capital, innovation, and effective governance, Oman can build stronger regional economies while ensuring that national growth creates opportunities throughout the Sultanate.
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