Programmes launched to raise local production

Muscat – Agreements worth over RO1bn were signed on Monday by companies under the Oman Investment Authority (OIA) and others to promote cooperation in research, development and innovation.

The signings took place on the sidelines of an event that saw the launch of four programmes by OIA to enhance in-country value (ICV).

Asyad group signed two agreements, one with Rihal to initiate a digital database project in which a data warehouse will be developed with analysis capabilities using the latest technologies in data science.

Asyad’s second agreement was signed with German University of Technology (GUtech) to develop a technology that helps in reducing emissions from cargo ships by capturing and liquefying carbon dioxide and facilitating its storage and transportation.

Nama Holding signed 12 contracts with local companies for projects worth over RO1bn covering three key areas – supply of cables and conductors, supply of electric switches, and supply of low-voltage substations.

Fisheries Development Oman announced a cooperation with Khat al Wusta International Company to establish a manufacturing plant for fish container boxes using international standards to meet the existing demand of the group and local market, while building capacity to expand into regional market. The cost of the first phase of the project is estimated at about RO500,000.

OIA has launched several programmes, initiatives and policies to enhance ICV. Additionally, the authority issued a package of supporting measures for SMEs, including sourcing purchases not exceeding RO10,000 from SMEs holding the entrepreneurship card, and allocating ten per cent of its purchases to SMEs, exempting these from tender fees and granting them a preferential percentage of ten per cent in procurements and contracts ranging between RO10,000 and RO50,000 in materials and services.

Four programmes launched to raise local production

Oman Investment Authority (OIA) launched four programmes to enhance in-country value (ICV) as part of its ‘Qimam’ project on Monday.

The programmes have been launched following Royal Directives of His Majesty Sultan Haitham bin Tarik to increase local content and in an effort to empower the private sector to facilitate its role in leading the Omani economy in line with the priorities of Vision Oman 2040, as well as supporting SMEs.

The launch was attended by Abdulsalam al Murshidi, President of OIA, and several government and private sector officials.

Nasser al Harthy, Deputy President for Operations at OIA, said that the authority is committed to empowering the private sector, enriching local content, and developing and incentivising SMEs. To this end, it established a dedicated directorate to manage all matters related to ICV, research, development and innovation, as well as social investment in OIA and its companies.

Al Mutasim bin Said al Sariri, Director of ICV at OIA, informed that the four programmes are Mandatory List of Products and Services; Vendor Development; Ringfencing of Products and Services; and Research, Development and Innovation Guidelines.

Mandatory List Programme

The programme includes services and products that OIA companies are required to purchase and supply from local companies. Initially, the list, which is to be updated regularly, consists of 76 products and 25 services. “This contributes to supporting the local market, giving it priority to compete for opportunities, and encouraging it to manufacture products instead of importing,” said Sariri.

Vendor Development Programme

The programme aims to enhance and develop the capabilities of local companies, including SMEs, in new fields. The programme enables OIA companies to work closely with local companies in order to build and develop solutions. “The programme is expected to improve the performance of suppliers in the local market, encourage innovation and enhance their competitiveness, as well as upgrade the capabilities of the Omani workforce.”

Ringfencing of Products and Services

The programme aims to allocate a certain percentage of the scope of work to local companies in order to increase their market share. The programme, which targets SMEs and local companies, is expected to contribute to developing the capabilities of local companies, creating a competitive and sustainable local market for goods and services.

Research, Development & Innovation Guidelines

The fourth programme aims to enhance the research, development and innovation eco-system in OIA companies by integrating it in their business strategies and industrial activities, with emphasis on certain areas, such as food and circular economy, digital transformation and artificial intelligence, and energy and decarbonisation.

“This will translate into improving the efficiency of operations, adding new products and services and strategic re- search projects that can become viable commercial projects in the future, and making well-in- formed decisions based on data.”