Business

Local Content in Oman’s Road Projects Exceeds RO 200 Million

Muscat:The total value of local content in road projects carried out by the Ministry of Transport, Communications and Information Technology in Oman has surpassed RO 200 million by the end of the first half of 2026.

According to Oman News Agency, the average local content ratio exceeded 60 percent of the total project expenditure during this period. This achievement underscores the economic value of investments aimed at developing road projects by increasing the participation of Omani competencies and companies, supporting national products, and expanding the awarding of works to small and medium enterprises.

Eng. Mohammed Salim Al Isaee, a Local Content Expert at the Ministry, stated that enhancing local content across various fields is a core priority for the Ministry. They implement a set of requirements and measures in project contracts, such as creating job opportunities for Omanis and purchasing products and services locally. This includes aspects like operation, supply, manufacturing, and knowledge transfer, which contribute to the national economy.

He highlighted that the ongoing road projects across Oman's governorates are significant in manifesting local content opportunities due to their diverse components and connections to economic, industrial, and service activities. Approximately 1,500 Omanis are employed in these projects, gaining skills and responsibilities in supervision, implementation, and management.

Around 70 percent of materials used in road projects are domestically produced, valued at RO 80 million by mid-2026. This reliance on national products supports local industry and strengthens supply chains in construction and infrastructure sectors. More than 95 percent of goods for road projects are sourced from the local market, benefiting local supply and service institutions.

Subcontracts worth over RO 50 million have been awarded to small and medium enterprises, enhancing their capabilities and competitiveness for future projects. Local content measurement is based on indicators like employment and local procurement, which assess the broader economic impact beyond direct expenditure.

The Sultan Faisal bin Turki Road project in Musandam Governorate exemplifies the role of transport projects in development and national empowerment, with an investment exceeding RO 151 million. It reduces travel time significantly, supporting economic and tourism activities in the region. Achieving 100 percent Omanisation for the Diba-Lima package consultant positions reflects the Ministry's commitment to empowering national talents for greater responsibilities in project management and implementation.