Local Content in Road Projects
Surpasses RO 200 Million

Muscat, 27 Sep 2026 (ONA) — The
total value of local content in road projects implemented by the Ministry of
Transport, Communications and Information Technology exceeded RO 200 million by
the end of the first half of 2026.

The average local content ratio
surpassed 60 percent of total project expenditure during the same period,
reflecting the economic value realized from investments directed toward
developing road projects in the Sultanate of Oman by increasing the
participation of Omani competencies and companies, supporting national
products, and expanding the award of works to small and medium enterprises.

Eng. Mohammed Salim Al Isaee,
Local Content Expert at the Ministry of Transport, Communications and
Information Technology, explained that the Ministry has placed the enhancement
of local content in the projects it implements across various fields among its
core priorities, through a set of requirements and measures applied when
contracting for the implementation of its projects, such as ensuring the
provision of job opportunities for Omanis and the purchase of products and
services from the local market. This also encompasses operation, supply,
manufacturing, the award of works, knowledge transfer, the development of
national institutions, and the building of technical and administrative
capacities, thereby enhancing the national economy’s benefit from project
expenditure.

He noted that the road projects
currently being implemented across the governorates of the Sultanate of Oman
represent one of the fields in which local content opportunities are directly
manifested, given their multiple components and their connection to a range of
economic, industrial, and service activities.

He indicated that approximately
1,500 Omanis are employed in road projects under implementation in direct jobs
linked to these projects. He affirmed that the participation of national
competencies is not limited to providing job opportunities, but extends to
developing their skills and assigning them substantive responsibilities in the
fields of supervision, implementation, and project management, thereby
enhancing their expertise and their ability to assume more specialized roles in
the future.

He added that approximately 70
percent of the materials used in road projects are manufactured in the
Sultanate of Oman, with a value reaching RO 80 million by the end of the first
half of 2026. He noted that increasing reliance on national products, provided
they meet the technical requirements and approved specifications, contributes
to supporting local industry, providing sustainable demand for Omani products,
and strengthening supply chains linked to the construction and infrastructure
sector.

He stated that more than 95
percent of goods used in road projects are purchased from the local market,
whether directly or through local suppliers and small and medium enterprises.
He explained that directing purchases to the local market expands the base of
beneficiaries from project expenditure and supports institutions operating in
the fields of supply, services, and ancillary works.

He noted that the value of
subcontracts awarded to small and medium enterprises within the contracts of
ongoing road projects exceeded RO 50 million by the end of the first half of
2026, at a rate exceeding 10 percent. He affirmed that awarding these works
enables national institutions to develop their technical, administrative, and
financial capabilities, build a track record and executive experience, and
invest in equipment and technologies, thereby enhancing their competitiveness
and capacity to enter larger projects in the future.

He affirmed that the measurement
of local content in road projects is based on a set of indicators related to
employment, supply, the use of national products, local procurement, and the
award of works to Omani institutions. He noted that the importance of these
indicators lies in measuring the economic impact of projects in a manner that
goes beyond the volume of direct expenditure.

He indicated that Sultan Faisal
bin Turki Road project in Musandam Governorate provides a model of the role
played by transport projects in supporting development and empowering national
competencies, explaining that the investment value of the project exceeds RO
151 million.

He noted that the project is
being implemented in a mountainous environment with engineering and executive
challenges, and provides a practical field for developing national expertise in
dealing with projects of a complex technical nature, thereby contributing to the
accumulation of local knowledge and experience in the roads sector.

He explained that the project has
contributed to reducing travel time from approximately two and a half hours to
about 55 minutes, thereby enhancing ease of movement and access to services,
supporting the movement of individuals and goods, and contributing to
stimulating economic and tourism activity in the governorate.

He added that achieving a 100
percent Omanisation rate in the positions of the consultant supervising the Diba–Lima
package reflects the Ministry’s approach toward empowering national
competencies and assigning them professional and technical responsibilities. He
affirmed that Omanisation in transport projects aims, in addition to providing
job opportunities, to build national expertise capable of developing and
assuming greater responsibilities in project management and implementation.

— Ends/AH