MUSCAT: A forum highlighting the role of In-Country Value (ICV) in developing governorates took place yesterday, Thursday, October 3, 2024, under the auspices of Sayyid Saud bin Hilal al Busaidi, Governor of Muscat.
The fifth edition of the Oman Forum for In-Country Value (ICV), with the theme "Investing in the Development of Governorates", focused primarily on the role ICV plays in achieving economic diversification.
Speaking at the forum, Dr Yousuf bin Hamed al Balushi, founder of the Smart Investment Gateway, highlighted the critical need for Oman to reduce its reliance on hydrocarbon revenues.
According to the expert, Oman has been relying primarily on oil revenues over the last five decades, which has made the economy vulnerable to global market shifts. As a result, strategic diversification is essential for achieving long-term economic sustainability, he stressed.
One of the key economic drivers is ICV, which Dr Yousuf said, plays an instrumental role in retaining resources within the national economy. He explained that due to ICV’s important role in reducing reliance on imports and boosting local industries, it has the potential of creating job opportunities in various sectors such as manufacturing and services. He argued that this approach will grow the contribution of non-oil sectors to the GDP in line with Vision 2040.
Earlier this year, the National Local Content Policy (2024-2030) was approved by the Council of Ministers. The policy, which is spearheaded by the General Secretariat of the Tender Board, aims to dedicate portions of government procurement and tenders towards local products and services.
Speaking at the forum, Eng Ghalib al Hinai, Director General of Local Content at the Tender Board, highlighted that the policy primarily focuses on three main aspects: governance, capacity building, and culture building.
He shared that the number of ICV contracts and projects awarded to local SMEs totaled around 1,700 in 2023 and has exceeded 1600 so far in 2024. Furthermore, he added the mandatory list of national products includes 2,083 items, 127 services, and 249 job streams.
The Secretary-General and Chairman of the Forum’s Higher Committee, Hatem bin Hamad al Taie, stressed the importance of expanding the scope of ICV efforts in the country, “ICV efforts have been focused on assigning some tasks to SMEs and purchasing a portion of large projects' needs from local markets, but these efforts have not fully met expectations for several reasons. These include the inability of local companies to meet all project requirements, particularly in the services sector, which lags despite its promising economic potential,” he shared.
Instead, Al Taie called for the need to localise entire industries within governorates, which he believes has the potential of boosting the local economy.
The forum was attended by several government officials from various sectors, in addition to governors and industry specialists.
Presentations and panel discussions addressed key themes including ICV frameworks, investment opportunities, the localisation of industries, supporting SMEs, employment and the creation of an ICV fund.
Caption:
The forum aimed to discuss the role ICV can play in boosting the economy of governorates and the country as a whole
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