OMAN NEWS AGENCY
MUSCAT, OCT 3
A key forum in In-Country Value (ICV), held under the auspices of Dr Saeed bin Mohammed al Saqri, Minister of Economy, concluded here on Wednesday with a call for the formulation on a national strategy to unlock the potential of value addition in support of socioeconomic growth.
Organised by Al Roya newspaper, the ‘Oman Forum on Value Added’ also mooted the establishment of a national-level nodal agency to drive ICV development across multiple economic sectors.
The mandate of this proposed body, according to key delegates and presenters, should encompass, among other things, the roll-out of programmes to support local added value initiatives, boost the competitiveness of local products through dedicated marketing portals, and promote research and innovation in value-addition efforts.
Earlier, in welcome remarks, Hatem al Taie, Editor in Chief of Al Roya, underscored the importance of leveraging Oman's diverse resources to enhance local value addition and promote innovation. Al Taie emphasized the necessity of drawing upon the experiences of advanced nations that align with Oman's needs and policies, all within the framework of the future vision "Oman 2040."
Al Taie described the forum as a valuable platform aimed at discussing mechanisms and efforts to optimize the outcomes of value-added projects and programs. The ultimate goal is to transform these initiatives into sustainable strategies and robust policies that contribute to propelling the national economy towards greater growth and prosperity.
Presenting the vision of Oman Investment Authority (OIA) in promoting ICV development, Eng Al-Mu'tasim bin Saeed al-Sariri, Director General of In-Country Value, said the Authority is presently developing benchmarks that its affiliated companies must meet in providing business opportunities to Omani SMEs.
In 2022, ICV related expenditures by OIA affiliated companies and organisations amounted to RO 187 million, representing around 10.9 per cent of their total spend. Beneficiaries comprises 8,334 small and medium enterprises, he said..
The Authority is presently developing a portal to monitor ICV commitments by corporates and organisations that form part of OIA, and to push companies to build on ICV opportunities via this platform. The project is expected to be operational before the end of this year, said Al Sariri.
According to Eng Zahran bin Mohammed al Abri, Director of In-Country Value at Petroleum Development Oman (PDO), ICV and localized added value efforts amounted to RO 860 million in value in 2022. Of this total, local community contractors (LCCs) and SMEs received RO 535 million in contracts, far exceeding last year’s tally.
Further, PDO plans to boost in-country spend from its total expenditure from the 38 per cent in 2021 to 50 per cent by 2030. To this end, it has identified 111 investment opportunities for local added value, including 21 opportunities linked to current energy transition, decarbonization and digital transformation goals.
In a separate presentation, Dr Hilal bin Hamoud al Sawaei, Director General of Local Content at the General Secretariat of the Tender Board, said the Secretariat is currently working to boost the efficiency of localized spending and enhance the local added value associated with projects, contracts and government procurement in integration with government and private agencies and civil and community institutions.
Sultan bin Saeed Al Khaduri, Head of ICV and Local Content Office at the Ministry of Commerce, Industry and Investment Promotion, said the Ministry is seeking to revamp policies and regulations with a view to incentivizing the growth of local suppliers of intermediate commodities for the manufacturing sector. With the sector contributing around RO 4.6 billion to Oman’s GDP (2022) at current prices, it has the potential for significant localisation, he said, adding that foreign direct investments into the sector crossed RO 1.5 billion in 2022.
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