ICT Sector Local Content Stimulation Program
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.
Local content regulations for government tenders in the field of telecommunications and information technology
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Compliance with the mandatory list and specified company category Compliance with financial circular (1/2015)
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Weight of Local Content Criterion
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10% |
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| Omanization | At the company
level:
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Micro, Small, and Medium Enterprises | Achieved According to the Specified Company Categories | |
Local supplier development | Achieved According to the Specified Company Categories | |
Digital goods and products |
Mandatory List of Goods, Priority for Locally
Developed and Manufactured Products
| |
Investment | Not required | |
| Ministry of Labor:
SME
Development Authority: | |
Local Content Stimulation Methodology |
Compliance with the mandatory list Contracting - local companies with priority for specified category of companies
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Weight of Local Content Criterion
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20%
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| Omanization | At the
company level: At the project level: 40%
Compliance
with the mandatory list of Omanized jobs
|
Micro, Small, and Medium Enterprises |
Mandatory Services List, Subcontracting at least
10% for Large Company Category
| |
| Achieved if contracting with the specified company categories.
Optional if
contracting with large companies, provided they implement a "Supplier
Development Program" to support SMEs.
| |
Digital goods and products |
Mandatory Goods List, Priority for Locally
Developed and Manufactured Products
| |
Investment | Not required | |
| Ministry of Labor: Omanization report
SME
Development Authority:
For
large companies: | |
Local Content Stimulation Methodology |
Compliance with the mandatory list Contracting - local companies with priority for specified category of companies
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25% |
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| At the company level: Compliance with Omanization requirements as per Ministry of Labor certification At the project level: 40% Compliance with the mandatory list of Omanized jobs
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Micro, Small, and Medium Enterprises | Mandatory Services List, Subcontracting at least 15% for Large Company Category | |
| Achieved if contracting with the specified company categories.
Optional if
contracting with large companies, provided they implement a "Supplier
Development Program" to support SMEs.
| |
Digital goods and products |
Mandatory Goods List, Priority for Locally
Developed and Manufactured Products
| |
Investment | Not required | |
| Ministry of Labor: Omanization report
SME
Development Authority:
For
large companies: | |
|
Compliance with the mandatory list
Contracting - local companies with priority for specified category of companies
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Local Tech Startups, Micro, Small, and Medium Tech Companies |
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Weight of Local Content Criterion
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30%
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| Omanization | At the company level: Compliance with Omanization requirements as per Ministry of Labor certification At the project level: 40%
Compliance with the mandatory list of Omanized
jobs
|
Micro, Small, and Medium Enterprises |
Mandatory List of Technical Services,
Subcontracting at least 20% for Large, Gulf, and International Companies.
| |
| Achieved according to the following company categories:
Required from companies to implement a "Supplier Development Program" to support the following SMEs:
| |
Digital goods and products |
Mandatory Goods List, Priority for Locally
Developed and Manufactured Products
| |
Investment | Mandatory to have a technology localization
plan. | |
| Ministry of Labor: Omanization report
SME Development
Authority:
For large
companies:
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Compliance with the mandatory list Contracting - local companies with priority for specified category of companies
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Weight of Local Content Criterion
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30%
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|
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| At the company level: Compliance with Omanization requirements as per Ministry of Labor certification At the project level: 40%
Compliance
with the mandatory list of Omanized jobs
|
Micro, Small, and Medium Enterprises |
Mandatory List of Technical Services,
Subcontracting at least 30% for Large Companies.
| |
| Achieved according to the following company categories:
Required from companies to implement a "Vendor Development Program" to support the following SMEs:
International
tech companies
| |
Digital goods and products | Mandatory Goods
List, Priority for Locally Developed and Manufactured Products. | |
Investment | Mandatory to have a local representation. Mandatory to
have a technology localization plan. | |
| Ministry of Labor: Omanization report SME Development Authority: Riyada Card or startup certification (if applicable), Small and Medium Enterprises Registration and Classification Certificate For large
companies: | |
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;
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Tender Name |
Estimated Value |
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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
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%
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
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
- 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.
- 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.
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
o Compliance with the mandatory list of goods, with priority for locally developed and manufactured products (the list is currently being prepared).
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:
| 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:
Required: companies must implement a Vendor Development Program to develop SMEs when contracting with:
| 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.
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 fall 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 |
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Omanization / Capacity Building |
Hiring and developing Omani talent through direct employment and training programs. Sharing knowledge and expertise with local teams, etc. |
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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% | 15% | |
| 4 | 250,001 – 3,000,000 | 30% | 20% | |
| 5 | More than 3,000,000 | 30% | 30% |
For enquiry: tahfeez.tech@mtcit.gov.om
