New strategies to promote local content in manufacturing

MUSCAT: The manufacturing sector in Oman served as a significant contributor in achieving sustainable development and bolstering the national economy, contributing to over 10% of Oman's Gross Domestic Product (GDP).

This insight was provided by Sultan al Khudhuri, the Head of the ICV and Local Content Office at the Ministry of Commerce, Industry and Investment Promotion (MoCIIP). Presenting at the ICV Forum on Wednesday, he said the sector attracted more than RO 1.5 billion in foreign direct investments during 2022 alone. Furthermore, the manufacturing sector is a crucial source of employment, with 34,720 Omani workers actively engaged within the industrial sphere.

Al Khudhuri stated, 'The Ministry of Commerce, Industry, and Investment Promotion is committed to nurturing the industrial sector by harnessing domestic industrial capabilities as a key driver for the coveted economic diversification outlined in Oman Vision 2040.' Considering global geopolitical and economic shifts characterized by inflation in raw material and commodity prices, disruptions in supply chains, and a growing inclination towards protecting domestic products and services, Al Khudhuri revealed that MoCIIP has adopted a policy of promoting local content. This initiative aims to strengthen links between commercial entities and factories, empower small and medium-sized enterprises (SMEs), enhance the production of locally provided goods and services, increase Oman's manufacturing capacity, and develop the skills and capabilities of the national workforce through training and qualification programs.

Value-added programs and local content policies, Al Khudhuri emphasized, are among the primary tools for boosting the national economy, maximizing the circulation of capital within the sector. MoCIIP is currently working alongside public and private sector stakeholders to create a favorable environment for the implementation of local content initiatives at all levels, he said.

Additionally, a specific program is being executed to enhance and enable local content in the industrial sector through the application of industrial integration models, aiming to localize intermediate product industries and utilize domestic production inputs. The ICV and local content office within MoCIIP, as detailed by Al Khudhuri, is actively reviewing policies and analyzing industrial sector data to identify and localize new industries.

Moreover, Al Khudhuri highlighted that a program is being devised to empower national products by providing them with priority and preference in government tenders in coordination with the General Secretariat of the Tender Board. MoCIIP has also introduced the National Product Identity List, which, according to Al Khudhuri, plays a pivotal role in the journey to empower national products.

Oman possesses a wealth of resources and factors that can be harnessed to enhance local content in various industries, whether in natural resources, mining, agriculture, fisheries, or through a generation of specialized factories providing intermediary products required by sectors to create higher local added value, he pointed out.