Definition
In-Country Value (ICV) is a policy framework that measures and incentivises the retention of economic value within a host nation from major procurement contracts, particularly in the oil and gas sector. ICV scoring evaluates suppliers based on local spending on goods and services, employment of nationals, investment in training and technology transfer, and contributions to local supply chain development. The higher a supplier’s ICV score, the greater competitive advantage it receives in tender evaluations.
Context in Oman
Oman pioneered the ICV concept in the GCC region through collaboration between the Ministry of Energy and Minerals and major operators like Petroleum Development Oman (PDO). The ICV Blueprint, first introduced in 2013, requires oil and gas operators and their contractors to report ICV metrics annually. Companies with higher ICV scores receive preferential weighting in bid evaluations, creating a powerful incentive to hire Omanis, procure locally, and invest in domestic manufacturing capacity. The framework has since expanded beyond hydrocarbons into other government procurement categories.
Key Data Points
| Metric | Value |
|---|---|
| ICV Blueprint launch year | 2013 |
| Sectors covered | Oil and gas, expanding to others |
| Key ICV metrics | Local spend, Omani jobs, training |
| PDO annual procurement value | ~USD 5+ billion |
| ICV score weighting in tenders | Up to 10 % of evaluation |
Vision 2040 Connection
ICV aligns directly with Vision 2040 goals of building local industrial capacity and creating skilled employment for Omanis. The strategy calls for extending ICV principles to all major government procurement, broadening the policy beyond hydrocarbons to sectors like defence, construction, and IT, thereby maximising the domestic economic multiplier from public spending.
Further Reading
- [[What is Omanisation]]
- [[What is Economic Diversification]]
- [[Oman Company Formation Guide]]