المحتوى المحلي بين الإنفاق والأثر المستدامTowards a Framework that Reorients Local Content Towards a Value- and Benefit-Based Partnership, Linking Investment to the Needs of the Governorates through Sustainable Tools such as Waqf (Endowments) and Their Integration with ESG Principles

In this context, local content can be understood more broadly as:

Any economic, social, or environmental benefit resulting from economic activity that can be identified and measured.

These benefits can take various forms, including job creation, local supplier development, knowledge transfer, environmental sustainability, and well-planned contributions that generate sustainable developmental impact. When strategically designed, such contributions form an integral part of the overall value framework.

This approach does not conflict with foreign investment, international expertise, or the role of residents and tourists in the country. Rather, it enhances the attractiveness of the investment environment through partnerships focused on maximizing shared value, instead of imposing local content requirements.

What Do We Need?

1. Negotiating Value (Benefits)

Companies should be engaged in negotiations and agreements on the benefits that can realistically be achieved. Value should not be imposed; rather, it should be mutually agreed upon based on the country’s development needs in all their dimensions, while taking into consideration the capabilities and capacities of companies.

2. Place-Based Development and the Activation of Waqf (Endowments)

Local content should be linked to the specific needs of the governorates, while utilizing Waqf (endowments) to support training, development initiatives, and sustainable development assets.

Examples of Different Development Needs

Development needs are not limited to employment. They may include preparing job seekers for the labour market, supporting Waqf initiatives, or reintegrating individuals who are outside the labour market in ways that enhance the stability of their families.

In some areas, the greatest impact may come from stimulating local markets and small businesses or addressing skills gaps through targeted training.

From an environmental perspective, value may be created through practical initiatives such as improving waste management and recycling, reducing industrial waste, or enhancing the efficient use of resources such as water and energy. These measures can reduce environmental impact while generating sustainable economic savings.

Value does not follow a single pathway; rather, it should be designed according to actual needs in order to achieve sustainable impact.

How Can We Apply This Approach?

The Shift from Percentages to Value Begins with Spending Decisions

Government:

Integrate value into projects based on actual needs, such as the needs of job seekers, skills gaps, and environmental challenges, and link each project to one clear question:

“What need can this project address?”

Companies:

Move from compliance to value design by utilizing channels that help identify and understand community needs and challenges, such as associations and institutions.

Individuals:

Contribute through everyday decisions, such as supporting local products and small businesses, as well as making well-considered contributions.

This approach aligns with the concept of “Creating Shared Value”, introduced by Michael Porter and Mark Kramerin the Harvard Business Review in 2011, which explains that corporate competitiveness can be enhanced by linking economic value creation with addressing social challenges.

Recent studies from Michigan State University (2024) also indicate that designing value through effective partnerships and dialogue among stakeholders contributes to achieving more sustainable and impactful outcomes.

This approach also aligns with the objectives of Oman Vision 2040, particularly in:

• Promoting balanced development across the governorates.
• Empowering the private sector as a partner in development.
• Enhancing economic, social, and environmental sustainability.

Conclusion

• True transformation begins when every government, corporate, or individual spending decision becomes a conscious decision aimed at maximizing value within the nation.