The Ladayn Plastics Industries Programme by OQ Group is one of the biggest national programmes that aims to increase local content, diversify the economy and manufacturing sectors in Oman. Furthermore, the programme contributes to achieving the goals of Oman Vision 2040 by adding high value products to the economy, and strengthening the industrial sector’s role to achieve sustainable economic growth.
Based on the data of the programme, investment contracts worth more than RO 85 million have been signed through Ladayn, and nine projects have been implemented with investments of around RO 40 million. This shows the role of the downstream industries to attract investments, create job opportunities and strengthen the national industry.
The programme’s strategic importance is in establishing a local integrated plastics value chain, and adding high value products to local economy by transforming polymers to finished products for various uses including health and agricultural sectors, food processing and other industries.
This reduces the dependence on imported products and provides opportunities in various supporting industries including logistics, maintenance, packaging and product design.
Achieving the goals of local content extends beyond the figures of investments. The real economic impact is in retaining the expenditure in the local economy, creating quality jobs and improving local suppliers, and transferring technologies and know-how.
STRENGTHENING THE PROGRAMME
Small and medium enterprises (SMEs) are important for achieving the goals of Ladayn Programme. The involvement of local industries in the manufacture of plastics or other supporting products and services, will further benefit the programme.
There are three core components to sustainable participation. These include structured supplier development programs, improved access to financing, and technical assistance. The final requirement is compliance to international quality standards.
Sustained procurement partnerships with large OEMs can develop a reliable and sustainable demand and facilitate strengthened and structured domestic supply chains. This would deepen Oman’s participation in the local economy.
INNOVATION AND TALENT DEVELOPMENT
The development of local human capital will always be essential for the sustainable growth of any national industry. Ladayn offers Omanis the opportunity for specialization in polymer and advanced manufacturing as well as in quality assurance, research, and supply chain.
University, college, and vocational training institutions must work hand-in-hand with the industrial sector to foster appropriate skills for the workforce. Other practices that can improve Oman’s manufacturing industries include the transfer of technologies, and integrated research and development partnerships.
PARTNERSHIP AND SUSTAINABILITY
The program illustrates the need for integrated partnerships involving OQ group, governmental institutions, industrial estates, investment authorities, and the private sector.
The principle of protecting the environment through optimal utilization of resources, integration of recycling and other alternative technologies in product development and application of circular economy is equally important.
MEASURING IMPACT OF LOCAL CONTENT
In order to achieve the potential of Ladayn, a comprehensive local content measurement system should be established.
Some of the key indicators are local purchase, employment of Omanis, especially SMEs, industrial exports, import substitution, technology and knowledge transfer, value addition and economic activities.
Measuring the indicators would provide policymakers and investors with concrete evidence on the economic impact of various sectors, and help focus future investments on more valuable sectors.
Ladayn is much more than an investment initiative in heavy industries; it is a proven way of utilising national resources to create sustainable opportunities and strengthen the economy of Oman.
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