Oil & Gas Value Chain and Local Content Role in Aiding Job Creation and Adding Human Resource Value to the Omani Economy

Abstract

Abundance of oil in the GCC has provided countries within the region with large amount of wealth. This has enabled countries in the GCC to achieve economic progress, especially in the 21st century. As one of the oil rich countries in the GCC, Oman has been economically dependent on oil and gas as a major source of its revenues for a long time. The Omani government has recognized how dependent the economy has been on the oil sector and is implementing a number of programs to help diversify development. The implementation of the In-Country Value (ICV), together with the country’s Local Workforce Development Programme has defined a curriculum that sets the required skills and standards not only within the oil and gas industry but also within other sectors. Thus, within the local content framework, the research finds it necessary to evaluate how the oil & gas value chain and local content play a vital role in job creation for the future. Through the descriptive and exploratory research carried out in gathering primary data and compiling the secondary sources to gain support of the analysis the study has presented the following findings:  Gained a comprehensive understanding of job creation and added value within the context of Oman’s economy and determine how human resource development can impact the oil and gas sector.  Brought forth the gaps that are present in the development of human resources and how government initiatives can bridge the gap to the advantage of the aggregate economy. And,  Evaluated the extent to which the local content policies of the government have been achieved. This includes an evaluation of the incorporation of such policies and programs within the value chains within the various spheres of the Omani economy in terms of creating and adding human resource values in different economic domains. Based on the findings the study has furthermore recommended certain necessary factors which aims to bridge the gaps identified in implementing the policies and in practicing the Human Resource Development within organizations. Human resource development should be structured by private and public sector organizations in such a way which will produce welltrained professionals who will have the knowledge to strengthen cost-effectiveness in production. The government as well as the public enterprises should develop means to thrive innovation and creativity within its workforce, besides providing financial and security benefits. The private enterprises need to provide job security to the nationals which will encourage them to prefer the sector just as they are interested in working for the government. In order to utilize the potential of its nationals to the fullest thereby adding value to the economic domain, it is important for the government to formulate policies for diversification of workforces providing women and people with disabilities equal opportunities to project their potential and skills. Keywords: In-Country Value (ICV), Local Content, Omanization, Oil and Gas Industry, Government Initiatives, Oman