Programme Overview
In-Country Value (ICV) is a procurement policy tool that requires major contractors — primarily those working on government projects and energy sector capital expenditure — to maximise the proportion of their spending that creates economic value within Oman. This value creation can take several forms: employing Omani nationals, procuring goods from Omani manufacturers, using Omani-based service companies, or investing in training and capability development within Oman.
The ICV programme represents an attempt to leverage Oman’s large public and energy sector procurement base — PDO alone spends several billion dollars annually on goods and services — as a driver of private sector development, Omanisation, and economic diversification.
ICV Measurement Framework
ICV is measured as a score or percentage representing the proportion of a contractor’s spending that generates domestic economic value. The framework typically includes:
Omanisation weighting: The proportion of the contractor’s workforce in Oman that comprises Omani nationals, weighted by seniority level (higher seniority Omanis score more highly).
Local goods procurement: Goods sourced from Omani manufacturers or distributors, verified by certificate of origin.
Local services: Services procured from Omani-registered companies with genuine local operations (as opposed to shell companies designed merely to pass ICV requirements).
Training investment: Spending on developing Omani workforce skills — both within the contracting company and through contributions to industry training funds.
Technology transfer: Joint ventures and partnerships that transfer technology or managerial know-how to Omani counterparts.
ICV scores are factored into contract award decisions — a contractor with a higher ICV commitment may win a contract at a higher price than a lower-ICV competitor, effectively placing an economic value on local content.
Application Sectors
PDO procurement: PDO pioneered ICV requirements in Oman’s energy sector, with detailed local content requirements for its Block 6 operations. PDO’s Vendor Development Programme supports Omani suppliers to develop capabilities to meet PDO specification requirements.
OQ Group: Similarly requires ICV commitments from major contractors for its upstream, refining, and chemicals operations.
Government infrastructure: Major government infrastructure projects — roads, ports, utilities — include ICV requirements, encouraging the development of Omani engineering and construction capabilities.
Duqm SEZ: The SEZAD (Special Economic Zone Authority at Duqm) uses ICV-type requirements to ensure that major investors in the zone create genuine Omani economic linkages rather than importing all inputs.
SME Development Link
The ICV programme creates a protected domestic demand opportunity for Omani SMEs. If large contractors are required to source locally, this creates a market for Omani suppliers even where they are not yet competitive on global markets.
The National Business Centre (NBC) and related programmes support Omani SMEs to:
- Achieve quality certifications required by energy sector contractors
- Access pre-qualification for major contractor supply chains
- Develop the financial and administrative capabilities to handle major contract requirements
This demand-pull approach to SME development is complementary to supply-side interventions (training, financing) and has shown some success in developing Omani oilfield services businesses.
Results and Benchmarking
Oman’s ICV programme has produced measurable results in specific sectors — particularly in oilfield services, where Omani companies have grown capabilities in areas including well services, maintenance, catering, and logistics.
However, rigorous measurement of ICV programme effectiveness faces challenges:
Verification complexity: Distinguishing genuinely local value creation from “ICV-washing” (establishing nominal Omani entities to pass requirements without real local economic content) requires sophisticated monitoring.
Regional benchmarking: Saudi Arabia’s Vision 2030 local content programme (managed by NUPCO and the Local Content and Government Procurement Authority) is more extensive and systematically monitored. UAE’s ADNOC local content programme provides another regional benchmark.
Leakage to expatriate employment: In sectors where Omani technical skills are scarce, ICV Omanisation requirements can drive surface-level compliance (employing Omanis in lower-skill roles while expatriates hold technical positions) rather than genuine capability transfer.
Despite these limitations, the ICV programme remains one of Oman’s most practical tools for connecting large capital expenditure flows to domestic private sector development.