Thursday, March 28, 2024 | Ramadan 17, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Enriching the economy through partnerships

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More than 10 years ago, I wrote a lot on the idea of ‘offset,’ its importance, and the need to create it as an entity to enrich the national economy, markets and add local value to contracts and tenders of different types.


I continued to write till the efforts are made to set up Omani Authority for Partnership for Development (OAPFD) proved fruitful in 2014. It was the first such independent entity in the country.


Earlier, this work was managed by the Ministry of Defence in the area of military procurement and by the Ministry of Commerce and Industry for general purchases. The establishment of an organisation to look after this aspect of economic activity was a remarkable development. The entity was set up in line with rapid economic developments in the Sultanate for building infrastructure with local and international partnerships.


Now the offset programmes of the Sultanate are very clear. The setting up of a Public Authority for Privatisation and Partnership is another major step ahead. It was established under the Royal Decree No 54/2019 to enrich the national economy through contracts, finding mechanisms to create a balance in the money paid by the state in millions for contracts and purchases (which is of more than RO 5 rials) to start partnerships in projects vital for the country. This was seen important to add local value to the national economy. This is bringing positive results in the enrichment of the economy by nationalisation of money, technology and knowledge.


The Omani Authority for Partnership for Development has helped in instilling the concepts of partnerships in the Sultanate through a number of programmes and initiatives. With this idea 14 projects were established till the middle of this year. Perhaps, some of the important of these projects were; Oman Aviation Academy, Advanced Electronic Security Academy, National Youth Program for Skills Development and SME Development Fund.


The Central Date Palm Lab and Modelling Centre and other national projects have crystallized new concepts for the local offset of projects costing more than RO 5 million. Many individuals have already begun to understand the importance of partnership in projects offered as tenders, contracts etc.


The Royal Decree No 54/2019 has not only established the Public Authority for Privatization and Partnership, it has also transferred the powers of Omani authority known as OAPFD to the public authority which was also given other powers including of the Tawazun programme, implementation of the law of privatisation and partnership between private and public sector. This has brought considerable positive results in very short period of time.


This public authority is playing a pivotal role in the national economy due to its areas of work and powers particularly those related to Tawazun programme. This programme would control investment limits in many vital areas. The Royal Decree has already made many aspects of this partnership very clear.


The objectives of the Tawazun programme are also to diversify the sources of national income, enhance military and security capabilities, develop national cadres, transfer knowledge and strengthen the private sector by establishing new and sustainable projects.


The concept of local added value as part of Tawazun program is different from corporate social responsibility. It is broader than that. It is related to the method of enriching the national economy through these contracts and to find a mechanism for balancing the money going out of the state in millions.


The local added value can be achieved only by entering into direct partnerships in contracts for the purchase of raw materials from the factories of the Sultanate and not from abroad. For example, for building an airport, the company which is executing the project enters into contract with a local company for purchase of marbles used for flooring of the airport or iron used for construction from local companies or so on.


ali.matani2@gmail.com


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