PDO’s ICV Program Boosts Oman’s Economy with Over $4.3 Billion Impact: What Investors and Business Owners Need to Know
By Jomar Mendoza
MUSCAT — Petroleum Development Oman (PDO), the largest oil and gas producer in the Sultanate, has reaffirmed its pivotal role in driving Oman’s economic diversification through its In-Country Value (ICV) initiatives, which have generated an estimated $4.3 billion in economic impact to date.
PDO’s ICV programme has become a fundamental pillar of national industrial development, enhancing domestic supply chains, boosting employment, and expanding local manufacturing capabilities in line with Oman Vision 2040.
Since launching its ICV framework, PDO has executed seven major national projects aimed at retaining economic value within Oman and reducing import dependency. These initiatives have been instrumental in fostering local industry growth, upskilling the workforce, and encouraging entrepreneurship throughout the energy sector.
The strategy has resulted in the establishment of 83 manufacturing facilities across the country, broadening Oman’s industrial landscape. Currently, approximately 42 percent of PDO’s total supply chain expenditures are sourced locally. Additionally, 14 percent of contracts are awarded to small and medium enterprises (SMEs) and Local Community Contractors (LCCs). Together, these efforts have created over 17,500 job opportunities for Omani nationals across various industries.
Further strengthening this commitment, PDO recently signed two significant contracts aimed at reinforcing local industry. These include a five-year agreement with Oman Cables Industry for the domestic supply of high-voltage and instrumentation cables, and an extended partnership with Flowline Valves LLC, a subsidiary of Technofit Trading LLC, for local production of ball valves.
The partnerships will boost Omanisation, with Oman Cables Industry set to add eight new Omani employees and Flowline Valves expanding its national workforce from 22 to 55 employees. Both collaborations aim to accelerate local manufacturing and enhance the competitiveness of Omani-made products in regional markets.
Saoud al Jabri, PDO’s ICV Development Manager, emphasized the company’s dedication to national value creation, stating: “Our ICV journey is a national mission. Every contract awarded, every job created, and every factory established represents progress towards Oman Vision 2040 and the vision of a diversified, competitive, and self-reliant economy.”
To sustain these impacts, PDO continues to work closely with the Ministry of Labour and the Oman Energy Association (OPAL) to deliver workforce training and development programs for Omani engineers and technicians. PDO has also launched 15 Vendor Development Programmes to support local firms in meeting international quality and performance benchmarks.
Looking ahead, PDO plans to focus the next phase of its ICV transformation on strengthening governance, enhancing collaboration, and improving supply chain resilience. A new transparent framework will align with shareholder expectations and national goals, while promoting public-private partnerships to boost Oman’s competitiveness in global energy markets.
PDO’s ICV programme exemplifies how strategic investment and local empowerment can create enduring value for Oman’s economy and its citizens.
Special Analysis by Omanet | Navigate Oman’s Market
PDO’s In-Country Value (ICV) initiatives, delivering a $4.3 billion economic impact, signal a strategic shift towards strengthening Oman’s industrial base and reducing import dependence, aligning tightly with Oman Vision 2040. For businesses and investors, this presents significant opportunities in local manufacturing and SME growth, while emphasizing the importance of aligning with national diversification goals to capitalize on emerging supply chain and workforce development programs. Smart investors should watch for partnerships enhancing local production and rising Omanisation as key drivers of sustainable competitive advantage.
