ICT Sector Local Content Stimulation Program
A supporting ecosystem for the growth and developing of startups & tech companies
• 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 listed as Omani-origin by the Ministry of Commerce, Industry, and Investment Promotion.
Technology Localization:
The transfer of technological knowledge to meet local needs through capability building, research, innovation, 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:
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
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 (1-25,000 OMR)
|
Compliance with the mandatory list and specified company category Compliance with financial circular (1/2015)
|
|
|
Freelancers, Local Tech Startups, Micro and Small Tech Companies |
|
Weight of Local Content Criterion
|
10% |
|
Content Plan | Omanization | At the company level: Compliance with Omanization requirements as per Ministry of Labor certification
|
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: Omanization report SME Development Authority: Riyada Card or startup certification (if applicable), Small and Medium Enterprises Registration and Classification Certificate, Commercial Registration Classification Certificate, Commercial Registration. | |
2) Project budget 25,001 – 50,000
|
Compliance with the mandatory list Contracting - local companies with priority for specified category of companies
|
|
|
Freelancers, Local Tech Startups, Micro, Small, and Medium Tech Companies |
|
Weight of Local Content Criterion
|
20%
|
|
Content Plan | 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 Services List, Subcontracting at least
10% for Large Company Category
| |
Local supplier development | 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: Riyada Card or startup certification (if applicable), Small and Medium Enterprises Registration and Classification Certificate
For
large companies: Submission of a Local Content Plan, Commercial
Registration
| |
3) Project budget 50,001 – 250,000
|
Compliance with the mandatory list Contracting - local companies with priority for specified category of companies
|
|
|
Local Tech Startups, Micro, Small, and Medium Tech Companies |
|
Weight of Local Content Criterion
|
25%
|
|
Content Plan | 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 Services List, Subcontracting at least 15% for Large Company Category
| |
Local supplier development | Achieved if contracting with the specified company categories Required if contracting with large companies to 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: Riyada Card or startup certification (if applicable), Small and Medium Enterprises Registration and Classification Certificate
For
large companies: Submission of a Local Content Plan, Commercial
Registration
| |
4) Project budget 250,001 – 3,000,000
|
Compliance with the mandatory list
Contracting - local companies with priority for specified category of companies
|
|
|
Local Tech Startups, Micro, Small, and Medium Tech Companies |
|
Weight of Local Content Criterion
|
30%
|
|
Content Plan | 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.
| |
Local supplier development | Achieved according to the following company categories: • Local tech startups • Local small and medium-sized tech companies Required from companies to implement a "Supplier Development Program" to support the following SMEs: • Large local tech companies • Gulf tech companies
• International tech companies
| |
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: Riyada Card or startup certification (if applicable), Small and Medium Enterprises Registration and Classification Certificate For large companies: Submission of a Local Content Plan, Commercial Registration
| |
5) Project budget Above 3,000,000
|
Compliance with the mandatory list Contracting - local companies with priority for specified category of companies
|
|
|
Local Tech Startups, Medium and Large Local Tech Companies, |
|
Weight of Local Content Criterion
|
30%
|
|
Content Plan | 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 30% for Large Companies.
| |
Local supplier development | Achieved according to the following company categories: · Local tech startups · Local small and medium-sized tech companies Required from companies to implement a "Vendor Development Program" to support the following SMEs: · Large local tech companies · Gulf tech companies
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: Submission of a Local Content Plan, Commercial Registration
Submission
of a Local Content Plan
| |
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:
| 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.
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
