Oman launches “Majd” initiative to enhance local content in energy and minerals sectors
Published: 02:09 PM,Sep 22,2024 | EDITED : 05:09 PM,Sep 22,2024
The Majd programme is aimed at transforming challenges into opportunities through innovation, positioning local companies as key partners in the national economy’s growth and development.
MUSCAT: The Ministry of Energy and Minerals has launched the “Majd” programme, a strategic initiative designed to enhance local content in Oman’s energy and minerals sectors. The launch event was held under the auspices of Dr Said bin Mohammed al Saqri, Minister of Economy, and was attended by Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, along with representatives from major companies in the oil, gas, renewable energy, and mining sectors, as well as public and private sector guests.
The Majd programme is aimed at transforming challenges into opportunities through innovation, positioning local companies as key partners in the national economy’s growth and development. The initiative seeks to empower Omani youth, harnessing their productive and creative energies, while building a unified identity that enhances collaboration among stakeholders, including local investors and international partners. This approach is expected to foster a favourable investment environment and boost investor confidence in the Omani economy.
The new visual identity of the Majd programme symbolises the positive values of local focus in the energy and minerals sectors, aligning with Oman Vision 2040. The programme emphasises enhancing local procurement and building sustainable human and industrial capabilities, which are vital for economic and social development.
Dr Said bin Mohammed al Saqri highlighted the Council of Ministers' recent approval of the National Policy for Local Content (2024-2030), emphasising that this policy embodies Oman’s strategic directions to support national industries and service activities.
“The energy sector is a significant driver of economic and social development in Oman and plays a leading role in initiatives that enhance local content,” said Dr Al Saqri. He noted that spending on small and medium enterprises (SMEs) in the oil and gas sector in 2023 accounted for about 16 per cent of the total value of purchases and tenders.
The launch of the local content programme package in energy and minerals aims to expand this focus across all sectors and increase the value of local content in the energy sector, especially in emerging areas like renewable energy, green hydrogen, and mining.
The Majd programme is built on four main pillars. The first pillar focuses on supply chains, encompassing all activities from raw material sourcing to product delivery. The second pillar emphasises workforce development, with the local content system playing a crucial role in creating job opportunities and training programmes that build national capabilities.
The third pillar aims to stimulate innovation and technology transfer, enhancing Oman’s industrial landscape. The fourth pillar focuses on entrepreneurship, prioritising local SMEs in government project contracts and procurement.
Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, underscored the importance of the Majd programme in achieving sustainable economic development. “Through the Majd Local Content Programme, we are committed to strengthening the role of local companies, localising industries, and developing national cadres,” he said. Since its inception in 2013, the local content initiative has contributed over $33 billion to Oman’s economy, resulting in the establishment of more than 100 industrial facilities and workshops, with investments exceeding $400 million.
The programme has also created over 3,000 direct jobs in the private sector and facilitated significant spending on SMEs, which totaled over $1.5 billion in 2023. The unified registration platform developed under this initiative now includes more than 6,500 companies, of which over 5,500 are local. The Omanisation rate in companies operating in the oil and gas sector has reached 92 per cent, reflecting the sector’s commitment to developing Omani talent.
The Majd programme represents a strategic approach to overcoming economic challenges, diversifying income sources, and building a competitive labor market. Its focus on sustainable job creation, supporting the industrial base, and fostering strategic investments underscores Oman’s commitment to enhancing local content and achieving the economic diversification goals of Vision 2040.
The Majd programme is aimed at transforming challenges into opportunities through innovation, positioning local companies as key partners in the national economy’s growth and development. The initiative seeks to empower Omani youth, harnessing their productive and creative energies, while building a unified identity that enhances collaboration among stakeholders, including local investors and international partners. This approach is expected to foster a favourable investment environment and boost investor confidence in the Omani economy.
The new visual identity of the Majd programme symbolises the positive values of local focus in the energy and minerals sectors, aligning with Oman Vision 2040. The programme emphasises enhancing local procurement and building sustainable human and industrial capabilities, which are vital for economic and social development.
Dr Said bin Mohammed al Saqri highlighted the Council of Ministers' recent approval of the National Policy for Local Content (2024-2030), emphasising that this policy embodies Oman’s strategic directions to support national industries and service activities.
“The energy sector is a significant driver of economic and social development in Oman and plays a leading role in initiatives that enhance local content,” said Dr Al Saqri. He noted that spending on small and medium enterprises (SMEs) in the oil and gas sector in 2023 accounted for about 16 per cent of the total value of purchases and tenders.
The launch of the local content programme package in energy and minerals aims to expand this focus across all sectors and increase the value of local content in the energy sector, especially in emerging areas like renewable energy, green hydrogen, and mining.
The Majd programme is built on four main pillars. The first pillar focuses on supply chains, encompassing all activities from raw material sourcing to product delivery. The second pillar emphasises workforce development, with the local content system playing a crucial role in creating job opportunities and training programmes that build national capabilities.
The third pillar aims to stimulate innovation and technology transfer, enhancing Oman’s industrial landscape. The fourth pillar focuses on entrepreneurship, prioritising local SMEs in government project contracts and procurement.
Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, underscored the importance of the Majd programme in achieving sustainable economic development. “Through the Majd Local Content Programme, we are committed to strengthening the role of local companies, localising industries, and developing national cadres,” he said. Since its inception in 2013, the local content initiative has contributed over $33 billion to Oman’s economy, resulting in the establishment of more than 100 industrial facilities and workshops, with investments exceeding $400 million.
The programme has also created over 3,000 direct jobs in the private sector and facilitated significant spending on SMEs, which totaled over $1.5 billion in 2023. The unified registration platform developed under this initiative now includes more than 6,500 companies, of which over 5,500 are local. The Omanisation rate in companies operating in the oil and gas sector has reached 92 per cent, reflecting the sector’s commitment to developing Omani talent.
The Majd programme represents a strategic approach to overcoming economic challenges, diversifying income sources, and building a competitive labor market. Its focus on sustainable job creation, supporting the industrial base, and fostering strategic investments underscores Oman’s commitment to enhancing local content and achieving the economic diversification goals of Vision 2040.