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ICT Sector Local Content Stimulation Program

A supporting ecosystem for the growth and developing of startups & tech companies

The Ministry of Transport, Communications, and Information Technology (MTCIT) is implementing the Local Content Stimulation Program for ICT Sector to enhance local digital economy content and integrate roles between private and public sector entities. Local content is a key element of Oman Vision 2040, aiming to increase and improve sustainable employment for citizens while enhancing the integration of Omani goods and services into procurement processes of local companies, contributing to their growth and expansion.

• Increase the percentage of local content in the ICT sector.

• Regulate the ICT sector in accordance with procurement laws and local content requirements.

• Establish capable local companies with the potential to expand in local and global ICT markets.

• Identify opportunities to enhance local content for the localization of industries, services, and jobs.

• Support SMEs operating in the ICT sector.

• Regulate opportunities and prioritize local tech startups and companies in the ICT sector.

To view the Local Content Stimulation Framework for the Telecommunications and Information Technology Sector, click here.

For inquiries: tahfeez.tech@mtcit.gov.om

Terminologies



Local Content:

The added value to the national economy resulting from the use of local content elements.


Local Content Elements:

Key factors that contribute to maximizing in-country value, including Omanization of the workforce, utilization of local goods and services, development of local vendors and SMEs, and investment in national assets and capabilities


National Product:

A locally manufactured product recognized with a national product identity by the Ministry of Commerce, Industry, and Investment Promotion.


Local Product:

A good or service manufactured within Oman.



Mandatory List of Goods:

A classified list of goods issued by , Projects, Tenders and Local Content Authority which must be used in contracts, including registered local and national technologies.


Mandatory List of Services:

A classified list of services issued by Projects, Tenders and Local Content Authority, which must be used in contracts, including registered local technologies.



Local Content Plan:

A plan outlining local content targets for all project stages.


Made in Oman:

A product, material, or equipment included in the list of Omani-origin goods issued by the Ministry of Commerce, Industry, and Investment Promotion (https://www.originoman.om/members-list-arabic.aspx ).


Technology Localization:

The process of transferring tech knowledge to align with local needs by developing competencies, enhancing research, innovation, design, development, and local manufacturing of global technologies.


Micro, Small, and Medium Enterprises (MSMEs):

Any micro, small, or medium enterprise registered with the SME Development Authority and the Tender Board in Oman.


Tech Startups:

Any startup registered with the SME Development Authority and holding a startup Ryiada card.


Locally Registered Companies:

Companies with a valid Omani commercial registration (CR).



GCC Tech Companies:

Companies with valid commercial registration from any GCC country.


International Tech Companies:

Companies with valid commercial registration outside Oman and the GCC.


Freelancers:

Independent professionals relying on their skills and expertise to complete work and holding a valid Omani commercial registration.


Tech Companies Directory:

A database maintained by MTCIT containing information on registered ICT companies in Oman (https://oman.om/compinfoAr.aspx ).


Local Supplier Development:

Activities planned by contractors to support locally registered SME suppliers in contract execution, including efforts to improve supplier standards, efficiency, technology localization, and workforce training.

Local content regulations for government tenders in the field of telecommunications and information technology

1)  Project budget in Omani Rial (1-25 thousand Omani Rial)




2) Project budget in Omani Rial (25,001 – 50,000 Omani Rial)






3) Project budget in Omani Rial (50,001 - 250,000 Omani Rial)





4) Project budget in Omani Rial (250,001 – 3 million Omani Rial)





5) Project budget in Omani Rial (above 3 million Omani Rial)




Example of Applying Local Content Regulations in the Tender Document (Tender Form)

This practical example demonstrates how local content elements are incorporated into the tender document, serving as a reference for applying local content regulations when preparing tenders;

Tender Name

Estimated Value

Supply and Installation of Systems and Spare Parts for One of the Centers

330,000 OMR

Table No. 1: Tender Example


In the tender document, the evaluation criteria distribution must total 100%, divided into:

  • Technical Evaluation Criteria (which includes local content)
  • Financial Evaluation Criteria

Step 1:

Project managers and local content specialists in government entities work on the tender document to define the weight of the technical and financial criteria. In this tender, the weights are defined as follows:

  • Technical: 60%
  • Financial: 40%

Step 2:

When working on the technical evaluation, the project manager refers to the Local Content Regulations Table for government tenders in the ICT sector. Based on the defined project budget, the following are determined:

  • The appropriate methodology to be followed in the tender.
  • The weight assigned to local content in the evaluation criteria.
  • The required elements in the local content plan.

In this example:

Since the project budget is OMR 330,000, the methodology for projects valued between 250,000 – 3,000,000 OMR must be applied, and the weight assigned to the local content evaluation criterion is 30%, which forms part of the technical evaluation, as shown in the following table:


No.

Technical Evaluation Criteria

Weight %

1

Experience in the same field of work

5

2

Compliance with the scope of work

35

3

Methodology and approach to work execution

5

4

Delivery and installation timeline

5

5

Testing, support, and warranty

5

6

Team composition and CVs of key staff

5

7

Documentation, knowledge transfer, and training

5

8

Compliance with Ministry’s terms and conditions of contract

5

9

Local content evaluation

30


Total

100

Table No. 2: Technical Evaluation Criteria


Step 3:

Local content criteria are addressed in detail by adding the local content elements to achieve the weight allocated to local content in the current example (30%), as shown in Table No. 3.

The following steps illustrate the process:

Local content elements include:

1.      Omanization

  •  At the company level: compliance with Omanization requirements according to the Ministry of Labour certificate.
  •  At the project level (in this project: 40%).
  •  Commitment to the mandatory list of Omanized jobs.

2.      Micro, Small, and Medium Enterprises (MSMEs)

  • Compliance with the mandatory list, with priority given to the specified categories.
  • In this tender, the award goes to local companies with priority given to the specified categories: local tech startups, local micro, small, medium, and large tech companies.
  • If contracting with large, Gulf, or international tech companies, a minimum of 20% subcontracting must be awarded to the specified categories.

3.      Local Supplier Development

o   Achieved: if contracting with the following categories:

  •  Local tech startups
  •  Local small and medium tech companies

o   Not Achieved (Required): companies must implement a Vendor Development Program if they belong to the following categories:

  •  Local large tech companies
  •  Gulf tech companies
  •  International tech companies

4.      Digital Goods and Products

o   Compliance with the mandatory list of goods, with priority for locally developed and manufactured products (the list is currently being prepared).

5.      Investment

o   Not required for the specified budget.

 

No.

Local Content Evaluation Criteria

Weight %

1

Submission of a local content plan covering all required elements

2

2

Compliance with the requirement of appointing a Local Content Manager responsible for implementation

2

3

Omanization:

  • At the company level: compliance with Omanization requirements as per the Ministry of Labour certificate
  • At the project level: 40% (including subcontractors)
  • Commitment to the mandatory list of Omanized jobs

10

4

Micro, Small and Medium Enterprises (MSMEs)

Mandatory list for ICT services: at least 20% subcontracting to SMEs when contracting with large companies

6

5

Local Supplier Development

Achieved when contracting with the following categories:

  •  Local tech startups
  •  Local small and medium tech companies

Required: companies must implement a Vendor Development Program to develop SMEs when contracting with:

  • Local large tech companies
  • Gulf tech companies
  • International tech companies

5

6

Digital Goods and Products

Mandatory goods list, with priority for locally developed and manufactured products

3

7

Investment

Mandatory requirement to provide a Technology Localization Plan

2


 Total

30

Table No. 3: Tender Example


It must be ensured that the local content elements listed in the table above are aligned with the main Local Content Framework table.

It must be clearly stated in the tender document that:

  • Any bids that do not meet the local content requirements will be excluded.



Frequently Asked Questions (FAQ)

If you are seeking more information or have questions regarding the ICT Local Content Stimulation Framework, you can review the frequently asked questions (FAQ) to find the answers you need:


According to the framework, contracts are awarded to the specified categories of companies based on the project budget classified in the framework table. Any specialized company may be engaged according to its category, and referring to the MTCIT database is not required at this stage. The database simply facilitates access to registered companies.


Contracts could be awarded to any company according to the specified category, while companies on the mandatory list receive priority in price preference. Additionally, local companies have a price preference when competing with Gulf or international companies.

It should falls under the operational procedures of the Projects, Tenders, and Local Content Authority  and applies to all government entities subject to the Tender Law. You may consult the Authority for any additional inquiries regarding tendering and contracting procedures.

It is necessary to follow the templates approved by the Projects, Tenders, and Local Content Authority and adhere to local content requirements.

A single template cannot be relied upon due to the varying requirements and characteristics of each ICT project. You may refer to your organization’s Contracts and Tenders team, who have direct communication with the Projects, Tenders, and Local Content Authority team, to obtain the necessary guidance.

Reports should cover all ICT projects, regardless of budget, as they serve as a primary reference to determine the local content achievement rate within the government ICT sector.

The required elements in the local content plan are determined by referring to the framework table and based on the project budget. The following table outlines the local content elements along with their descriptions:

Local Content Element

Description

Omanization / Capacity Building

Hiring and developing Omani talent through direct employment and training programs. Sharing knowledge and expertise with local teams, etc.

SME Participation / Vendor Development

Subcontracting or partnering with Omani SMEs and startups in the ICT sector. Improving their performance and capabilities through training, collaboration, process improvements, certification, and other activities.

ICT Goods & Products

Prioritizing locally developed and manufactured products, supplying hardware, software, and services from Omani vendors, etc.

Investment

Establishing offices, support centers, or data centers within Oman, supporting local research, innovation, and development initiatives, and implementing technology localization activities, etc.

Table 1: Local Content Elements

Note: Elements are determined according to the framework table based on the project budget.

The weight assigned to local content depends on the project budget. Typically, as the tender value increases, the proportion of the score allocated to local content also increases.

No.

Tender Value (OMR)

Local Content Weight (ICV %)

Omanization Requirement

SME Weight

1

1 – 25,000

10%

At the company level: meets Omanization requirements according to Ministry of Labour certificate

Not applicable

2

25,001 – 50,000

20%

At the company level: meets Omanization requirements according to Ministry of Labour certificate

At the project level: minimum 40% Omanization (including subcontracted contracts)

10%

3

50,001 – 250,000

25%

At the company level: meets Omanization requirements according to Ministry of Labour certificate

At the project level: minimum 40% Omanization (including subcontracted contracts)

15%

4

250,001 – 3,000,000

30%

At the company level: meets Omanization requirements according to Ministry of Labour certificate

At the project level: minimum 40% Omanization (including subcontracted contracts)

20%

5

More than 3,000,000

30%

At the company level: meets Omanization requirements according to Ministry of Labour certificate

At the project level: minimum 40% Omanization (including subcontracted contracts)

30%

For enquiry: tahfeez.tech@mtcit.gov.om