Local content is currently one of the primary strategies utilised to achieve Oman's vision of economic and social development. Traditionally, the focus of Local content has been to maximise domestic spending, support the local business community and provide employment opportunities. However, there has been growing recognition of the role that local content strategies can play to positively affect the community and promote social inclusiveness. Its benefits extend beyond traditional economic measures and encompass the development of the human capital and social stability of a community.
LOCAL CONTENT AND SOCIAL DEVELOPMENT
Social development implies improving the quality of life of the people, giving them the opportunity to access employment, education and skills, and other economic and social services. In Oman, local content policies have the potential to bring about these improvements by ensuring that the benefits of economic development are enjoyed by the citizens and the community.
Competitive local content policies foster employment, generate greater household income and support the attainment of the vision and goals of Oman Vision 2040. Furthermore, local content initiatives can encourage businesses to expand their operations and support employment and the development of the national workforce.
Employment creation should not be assessed solely on the number of jobs generated. There should also be focus on the quality of the jobs, the career and professional development of the employee, and their long term employability. Apprenticeships, technical trainings, graduate development and work-based programs, as well as knowledge transfer programs, can build the skills and competencies required to be employable for evolving and advanced industries.
Such investments increase social mobility and improve the economic wellbeing of individuals and families, allowing them the opportunity to participate and contribute to the development of the country.
SUPPORT TO SMALL AND MEDIUM ENTERPRISES
When local content policies allow for the incorporation of Omani SMEs into the supply chains of large companies, it stimulates the economy and creates jobs.
The inclusion of local SMEs in the supply chain of major contracts creates social value and strengthens communities. Local business owners, in turn, support the local economy through job creation and stimulating demand.
Local SMEs can benefit from financial and capability development programs to build business competitiveness and capacity. Transforming local content from a procurement obligation into a community development and empowerment approach deepens trust and strengthens communities.
ENSURING EVEN REGIONAL DEVELOPMENT
Local content can be incorporated across the various governorates of Oman to encourage economic participation.
Prioritising local suppliers in major projects in energy, manufacturing, tourism, logistics and other infrastructure projects can provide economic opportunities outside of Muscat and stimulate the regional business and industrial ecosystems.
Furthermore, integrating local content with community development programs can increase access to training and business opportunities and enhance community participation in the economy, especially in areas with high unemployment.
STRENGTHENING SOCIAL RESPONSIBILITY AND INCLUSION
Social responsibility and local content can be used in combination to achieve sustainable development. Social responsibility focuses on social inclusion while local content can be used to integrate social value at various levels of a business.
Some of the ways to integrate the two include supporting youth and women entrepreneurship, inclusive employment, and community based businesses.
These can be evaluated using sustainable jobs and household incomes, and improvements in the community such as skill development and participation.
THE WAY FORWARD
To increase the social impact of local content, Oman should focus on ensuring a greater impact through linking social development priorities to local content policies.
For the best outcome, government, private and public sectors, academic institutions and civil society should work hand-in-hand to implement local content policies.
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