Localisation of the supply chain: assisting local capacity building and enabling in-country-value

15:00 - 16:00

Localising the supply chain stimulates economic development, the creation of jobs for nationals and increases the competitiveness of local companies. While many countries have local content laws that require foreign companies to use a certain amount of local labour, materials and services in their processes, collaboration between industry, regulators and education institutions is required to build the capacity of local enterprises. In countries such as Oman, In Country Value is promoted by the Ministry of Oil & Gas, with similar initiatives in Saudi Arabia and Kuwait. However in the UAE local companies must be cost competitive and have demonstrable expertise equal to international companies.

In this session we explore a number of initiatives:
– In Oman, we learn of several programmes such as Orpic’s Sohar Refinery Improvement Project (SRIP) which has invested approximately US$375 million in local companies. Also discussed is how Abraaj Energy Services (AES) have maintained Omanisation at 84%
– With a case study of the Khalifa Fund for Enterprise Development, we explore the importance of funding SMEs in the UAE to be able to compete in tender processes
– We learn about two programmes including the Oman Ministry of Oil & Gas’ Joint Supplier Registration System (JSRS) set up for suppliers to register their capabilities and the Vendor Development Programme (VDP) to support local suppliers and stimulate jobs for Omanis

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