How the New Local Content System Boosts Oman’s National Economy and Business Opportunities
MUSCAT: The Ministry of Energy and Minerals (MoEM) is making significant strides with its “Majd” programme, a cornerstone strategic initiative designed to enhance local content and diversify Oman’s economy. This programme focuses on increasing the participation of small and medium-sized enterprises (SMEs), supporting local products, and strengthening national expertise, all in line with the goals of Oman Vision 2040.
By the end of the first quarter of 2025, local content in the energy and minerals sector had increased to 30.3 percent, while SME procurement reached 16.3 percent. These figures reflect the growing engagement of local suppliers and contractors in the sector’s operations.
Dr. Ali bin Salem al Rajhi, Director General of the Planning Department at MoEM, emphasized that the Majd programme is fundamental to the Ministry’s efforts to maximise in-country value. He highlighted the achievements of local content labs, which have generated 13 new investment opportunities. These include the establishment of an oil and gas pipeline manufacturing plant and a marble waste recycling facility dedicated to producing precipitated calcium carbonate.
Dr. Al Rajhi also reported ongoing development of a local content certification system, which will prioritise national companies in government tenders based on their economic contributions. Additionally, the Ministry has introduced a Mandatory List comprising 38 locally manufactured products and 63 services required in tender processes. This initiative is intended to stimulate local investment and create employment for Omanis.
In collaboration with the Industrial Innovation Academy, MoEM supported the creation of a RO 10 million mortar factory in Sohar, utilising local clay resources.
A strong focus on national talent development is evident, with 1.2 percent of oil and gas contracts allocated to the Employment and Training Support Centre at the Ministry of Labour. In 2024 alone, contributions amounting to RO 30.9 million have been directed towards training Omani professionals to meet international standards.
Omanisation in oil and gas operating companies currently stands at an impressive 93 percent. The Ministry is now working to implement a similar strategy in the minerals sector to boost employment in mining and related industries.
“These initiatives reflect the Ministry’s dedication to transforming challenges into opportunities and empowering local enterprises within national supply chains,” Dr. Al Rajhi stated. “They align with Oman Vision 2040’s objectives of developing a competitive, resilient, and sustainable energy and minerals sector that supports long-term economic growth and quality employment.” — ONA
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The Ministry of Energy and Minerals’ Majd programme marks a strategic shift toward enhancing local content and SME participation, driving Oman’s economic diversification in line with Vision 2040. For businesses, this means increased opportunities in government tenders favoring national companies, while investors should focus on emerging sectors like pipeline manufacturing and recycling. Smart entrepreneurs must capitalize on government-backed initiatives and local talent development to stay competitive in Oman’s evolving energy and minerals landscape.
