Unlocking Opportunities: How the ICV Strategy Opens $1.8 Billion in Energy Contracts for Omani SMEs
MUSCAT: Oman’s In-Country Value (ICV) strategy has shown impressive results in 2024, significantly enhancing job creation and economic localization within the energy and mining sectors, according to the annual report from the Ministry of Energy and Minerals.
The Ministry reported that spending on small and medium enterprises (SMEs) reached $1.8 billion last year, representing 17.2% of total procurement within the energy sector. The overall ICV rate across the sector was recorded at 31.9%, highlighting efforts to retain more value within Oman’s economy and to bolster domestic supply chains.
A notable outcome of this strategy was the growth in employment. The oil and gas sector achieved an Omanisation rate of 89%, employing over 17,900 Omanis in 2024. Major operators, including Petroleum Development Oman (PDO) and Daleel Petroleum, surpassed the 90% threshold, collectively hiring more than 1,400 nationals throughout the year.
Similarly, the mining sector expanded its local workforce, reaching a 23% Omanisation rate with about 900 Omani employees involved in its operations. Key projects, such as the Al-Ghuzayn and Al Wash-hi copper developments, are directly contributing to employment opportunities, with the former committing to 50 Omani jobs in its initial phase.
The report emphasized a strategic pivot from merely generating extractive revenues to creating a more inclusive economic impact. It noted that localization targets are now integrated into significant energy and mineral contracts.
To further solidify these advancements, the Ministry launched the “Majd” programme in 2024, establishing a unified platform for ICV across the energy and minerals value chain. Additionally, an ICV Certificate system is currently piloting and is set for full implementation in 2025, aiming to reward companies with high local content performance through enhanced bidding privileges.
As part of this broader initiative, 23 specialized service contracts—covering areas such as leak detection, oil tank cleaning, and hydrogen sulfide handling—were awarded to local firms, increasing SME participation in technical and industrial services.
Since the launch of Oman’s ICV policy in 2013, over 100 local workshops and industrial facilities have been established, with over $400 million in localization opportunities realized.
In conclusion, the report stated that a combination of targeted policies, procurement reforms, and national workforce integration is positioning Oman to transition toward a sustainable, diversified, and resilient energy economy, aligning with the core pillars of Oman Vision 2040.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s robust In-Country Value (ICV) strategy is significantly enhancing job creation and economic localization, particularly in the energy and mining sectors. This presents a vital opportunity for businesses to engage with local SMEs and participate in procurement processes, especially with the introduction of the ICV Certificate system rewarding high local content. For investors and entrepreneurs, the focus on inclusivity and sustainability under Oman Vision 2040 means aligning business strategies to not only foster growth but also contribute to a resilient and diversified economy.
