Oman’s efforts to boost industrial growth through In-Country Value (ICV) initiatives have increasingly demonstrated how localisation policies can drive economic diversification and strengthen domestic manufacturing capabilities. While some local manufacturers view ICV requirements as costly compliance burdens, industry leaders and policymakers argue that these measures are critical to fostering long-term competitiveness and expanding Oman’s industrial base.

In 2025, Oman’s manufacturing sector grew by 7.2 percent, contributing approximately RO 3.9 billion to the country’s GDP and employing nearly 248,000 workers, a substantial increase from around 20,000 in 2020. Non-oil sectors now represent over 73 percent of GDP at constant prices, with non-oil exports reaching RO 6.885 billion—a 10.5 percent rise from the previous year. These gains align with Oman Vision 2040, which aims to raise manufacturing’s share of GDP from about 5 percent to as much as 14 percent by fostering localisation and domestic value creation.

Petroleum Development Oman (PDO) stands out as a pioneer in applying ICV principles as a strategic economic tool rather than a regulatory obligation. Since adopting an ICV-focused procurement approach, PDO has increased its local supply chain spending from 18 percent in 2012 to around 42 percent currently, with a target of 52 percent by 2030. The company’s investment of nearly $2.5 billion into ICV initiatives, including $900 million directed to small and medium-sized enterprises (SMEs), has helped establish 83 manufacturing facilities and created more than 17,500 jobs for Omanis. PDO’s Vendor Development Programmes and procurement agreements have supported the emergence of suppliers meeting international quality standards, reinforcing localisation as a competitive industrial strategy.

Similarly, OQ, Oman’s integrated energy group, has generated over $1.57 billion in ICV value between January 2024 and June 2025 at its Al Duqm industrial complex. Local spending surpassed $1 billion, representing 64 percent of total expenditure, with more than $36 million allocated to SMEs and over $24 million to Riyada-registered firms. This approach exemplifies the development of a sustainable local supply ecosystem around anchor investments, a key factor in enhancing productivity and retaining value within the economy.

Voltamp Energy, a manufacturer of power and distribution transformers based in Suhar and Al Rusayl, demonstrates the role of ambition and innovation in advancing localisation. In 2023, Voltamp produced the first 400 kV, 500 MVA power transformer manufactured in the Gulf Cooperation Council region, a technology only available in about 30 countries worldwide. In May 2026, the company launched “Watenha,” a localisation initiative in partnership with the Authority for Public Services Regulation and the SMEs Development Authority. It targets the local production of ten high-demand imported components by providing guaranteed purchase agreements, technical support, and regional market access. The initiative attracted 84 companies from six countries, signaling robust interest and potential for new factories, investments between RO 30–50 million, and approximately 100 specialized jobs.

Other key players, including Jindal Shadeed in Sohar, Oman Cables Industry, and Vale Oman, have also contributed to expanding Oman’s industrial ecosystem by establishing integrated steel production, regional cable manufacturing standards, and sustainable supplier relationships. Collectively, their activities reveal that well-executed localisation strategies enhance product competitiveness, reduce import dependency, and build human capital in engineering, quality control, and plant management.

Ultimately, Oman’s ICV framework seeks to convert domestic expenditure into national assets that support resilience and economic sustainability consistent with the goals outlined in Oman Vision 2040. While some businesses remain cautious of the perceived costs, proponents emphasize that ICV elevates the domestic value multiplier and fosters enduring industrial capabilities critical for the country’s diversified economic future.