Oman Investment Authority (OIA) unveiled four new in-country value programmes yesterday in Muscat.
The programmes fall under the Authority’s ICV project ‘Qimam’ launched in 2021 with the aim of maximising retained value “by contributing to Omanisation efforts through high Omanisation rates, training and investing in Omani competencies, developing local suppliers, supporting SMEs, and encouraging and developing local industries.” Director of In-Country Value (ICV) at OIA, Al Mutasim al Sariri shared the following, “In-Country Value is an important pillar to Oman Investment Authority, through this pillar we ensure the implementation of programmes that support not only small and medium enterprises (SMEs) but local contractors as well.”
The newly launched programmes include a mandatory list programme, vendor development programme, ringfencing of products and services and research, development and innovation guidelines.
According to Al Sariri, the programmes's key objectives are to enhance the capacity of local suppliers, support local manufacturers and service providers, prioritise local products, promote local manufacturing of goods, and foster a culture of research, development and innovation within OIA enterprises.
The mandatory list programme dictates services and products OIA companies are required to purchase and acquire from local companies only. The list includes 76 products and 25 services.
Products include items such as cables, office supplies, uniforms, food and beverages. While services include legal consultations, media, manufacturing quality tests, and waste management.
According to Al Sariri, the programme will significantly contribute to the local economy.
“[Through the programme] we will be reinjecting more funds into the country itself and that will definitely [contribute] significantly towards the GDP.”
Speaking on the vendor development and the ringfencing of products and services programs , Al Sariri shared the following, “Ringfencing and the vendor development programme will primarily focus on providing more opportunities to SMEs and to the local market whereby they will produce products upon the request of our companies themselves.”
Adding “Hence, it will be more focused , more structured and also linked to business needs rather than trying to develop a company that might not be necessarily producing things we require.”
According to the Authority, the ringfencing programme will operate by allocating a fixed percentage of the scope of work to local companies in hopes of increasing their market shares. While the vendor development programme will focus on enhancing and developing the capabilities of local companies within new sectors.
Furthermore, the new research, development and innovation guidelines will aim to enhance RDI within OIA entities with an emphasis on decarbonisation, digital transformation, circular economy and artificial intelligence.
Additionally, OIA unveiled the signing of multiple agreements with local companies and institutions. Most notably Nama Holding’s signing contracts of projects worth over RO 1 billion.
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