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How the ICV (In-Country Value) Program Affects New Businesses

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📋 Table of Contents

  1. Introduction: ICV Oman Program & New Businesses

  2. What Is the ICV Oman Program?

  3. Why ICV Matters for New Businesses in Oman

  4. Core Metrics of the ICV Program: What Counts

  5. ICV Certification: Who Needs It and Why

  6. Impact on Procurement Strategies for New Ventures

  7. Building Local Content: Sourcing, Workforce & Suppliers

  8. Omanisation and Workforce Requirements under ICV

  9. ICV Scorecard & Target Metrics for Startups

  10. How New Businesses Can Prepare an ICV Plan

  11. ICV Submission, Audit & Certification Process in Oman

  12. Benefits of High ICV Scores for New Businesses

  13. ICV Program Challenges Facing Startups in Oman

  14. Tactics to Improve ICV Performance Quickly

  15. ICV and Access to Government or Energy Sector Contracts

  16. SME Inclusion & Riyada Cardholders in ICV Oman Program

  17. Case Studies: New Businesses Excelling with ICV

  18. Aligning Your Business Model with Oman Vision 2040 via ICV

  19. Monitoring, Tracking & Improving ICV Over Time

  20. Conclusion: ICV Oman Program as a Growth Lever for Startups

  21. FAQs – How the ICV Program Affects New Businesses in Oman

Quick Overview: ICV Oman Program & New Businesses

For new businesses in Oman, understanding the ICV Oman program—In‑Country Value—is essential from day one. These regulations shape procurement, hiring, and local business strategy. This guide explains how the ICV certification Oman requirements impact startup formation, procurement eligibility, and long-term growth opportunities.

 

What Is the ICV Oman Program?

The ICV Oman program requires companies, especially in energy and public procurement, to maximize local content retention. ICV is defined as the percentage of spend retained inside Oman that supports local businesses, workforce training, supplier development, and value addition. It goes beyond Omanisation alone and includes sourcing goods, services, fixed assets, and knowledge locally.

 

Why ICV Matters for New Businesses in Oman

New ventures must engage with the ICV ecosystem to compete for procurement from major operators like PDO, OQ, and others. High ICV scores unlock access to tenders, preferential pricing, and supplier onboarding. Failing to align deprives startups of strategic growth and financing opportunities.

 

Core Metrics of the ICV Program: What Counts

ICV score calculation includes:

  • Fixed asset investments in Oman

  • Percentage of procurement from Omani suppliers

  • Subcontracted service sourcing from local SMEs

  • Omanisation targets met at various staff levels

  • Training and national capacity-building activities

  • Partnership with certified Omani suppliers and educational institutions

 

ICV Certification: Who Needs It and Why

Companies participating in major sector tenders—especially energy, mining, and infrastructure—must obtain ICV certification Oman. New businesses aiming for contracts must prepare and submit an ICV scorecard and plan for approval, with audits validating local value contributions.

 

Impact on Procurement Strategies for New Ventures

The ICV Oman program mandates that contractors reserve certain procurement percentages for SMEs and Omani suppliers. New startups can position themselves as high‑ICV partners to larger companies, entering supply chains that value local sourcing and workforce contributions.

 

Building Local Content: Sourcing, Workforce & Suppliers

Startups must build local supply chains by:

  • Procuring at least 20% of goods & services from Omani entities

  • Reserving 10% of project spend for registered SMEs

  • Engaging in training and linkages with Omani educational institutions.

These activities feed into ICV scorecard Oman and drive certification success.

 

Omanisation and Workforce Requirements under ICV

The ICV program enforces Omanisation: achieving a percentage of Omani employees at all functional levels. New businesses must plan workforce composition so they can meet these targets, typically within the first year. This ensures local content beyond procurement, aligning with Omanisation goals.

 

ICV Scorecard & Target Metrics for Startups

New businesses should define:

  • Local spend targets (goods & services)

  • Qualified Omanisation employment percentages

  • Training plans for Omani interns and graduates

  • Local supplier development initiatives

A proper ICV Oman scorecard maps all these numbers ahead of audits.

 

How New Businesses Can Prepare an ICV Plan

Steps include:

  1. Identify business spend categories eligible for ICV score

  2. Map potential Omani suppliers and SMEs

  3. Build an Omanisation hiring roadmap

  4. Partner with universities or training centers for internships

  5. Design a project ICV plan summarizing targets and timelines

Aligning to ICV Oman program principles early builds credibility with tendering authorities.

 

ICV Submission, Audit & Certification Process in Oman

Submission steps:

  • Prepare and submit ICV plan and historical data to the certifying body

  • ICV auditors verify documentation and calculate the ICV score

  • ICV certificate is issued—used to qualify for tenders

  • Re‑certification is required periodically (often annually)

Proper record‑keeping ensures smooth processes for new businesses.

 

Benefits of High ICV Scores for New Businesses

High ICV leads to:

  • Prioritization in public sector contracts and energy tenders

  • Access to procurement portals and scoring preferences

  • Improved brand reputation as a local value creator

  • Potential financing or partnership support from OQ, PDO, etc.

New businesses that meet ICV criteria early stand out strategically.

 

ICV Program Challenges Facing Startups in Oman

Common challenges:

  • Lack of historical local spend data for a new entity

  • Difficulty hiring Omanis early when revenue is limited

  • Limited local SME supplier base in niche sectors

  • Administrative burden in compiling scorecard and meeting thresholds

Addressing these early with planning and mentorship is key.

 

Tactics to Improve ICV Performance Quickly

  • Partner with local SMEs for service or component delivery

  • Invest in initial Omanisation hires and trainee programs

  • Lease office space and local assets to boost fixed-asset inclusion

  • Engage with national training institutions for internships and scholarships

These tactical steps enhance new business ICV scorecards right from launch.

 

ICV and Access to Government or Energy Sector Contracts

Major operators now integrate ICV requirements into tender prequalification. A valid ICV certification Oman unlocks access to supply contracts with PDO, OQ, and government entities. Without it, even innovative startups may be excluded from winning bids.

 

SME Inclusion & Riyada Cardholders in ICV Oman Program

New startups registered under SME frameworks—or holding a Riyada Card—benefit from preferential SME procurement quotas under ICV rules. This gives early-stage ventures a higher chance to qualify as local suppliers under the 10% SME spend threshold.

 

Case Studies: New Businesses Excelling with ICV

  • Small energy-component SMEs winning contracts by aligning with PDO’s local supplier targets

  • Training-focused startups embedding internship schemes to raise ICV scores

  • Service-based firms collaborating with larger operators to supply sub-contract services locally

These show how ICV advantages can be leveraged even by newer entrants.

 

Aligning Your Business Model with Oman Vision 2040 via ICV

Vision 2040 emphasizes diversification, SME growth, local content proportion increase, and human capital upliftment. New businesses that design their models around ICV—jobs, procurement, training—are fully aligned with national goals and more likely to gain government support.

 

Monitoring, Tracking & Improving ICV Over Time

Track:

  • Percent of local spend vs total procurement

  • Number of Omani hires and trainee hours

  • SME subcontractor value

  • Engagement in supplier development or training programmes

Use dashboards or spreadsheets to measure performance and raise ICV score in future re-certification cycles.

 

Conclusion: ICV Oman Program as a Growth Lever for Startups

The ICV Oman program is more than a compliance obligation—it’s an opportunity-enhancer for new businesses in Oman. By embedding elements of local procurement, Omanisation, supplier development, and training into your business model from day one, you unlock access to major tenders, strategic partnerships, and visibility in sectors driven by localization. For startups seeking sustainable growth under Vision 2040, aligning to ICV principles is a smart, long-term investment.

FAQs — How the ICV Program Affects New Businesses in Oman

  1. What is the ICV Oman program?
    A national mandate requiring local value creation—sourcing, workforce, training—to improve in-country spend.

  2. Do new businesses need ICV certification?
    If they bid for public or energy sector contracts, yes.

  3. How is ICV score calculated?
    Through metrics on local spend, Omanisation, SME usage, training, and assets.

  4. Can a startup with no revenue get a high ICV score?
    Yes if it demonstrates local procurement and workforce commitments.

  5. How long does certification take?
    Typically several weeks once documentation is ready.

  6. Are there penalties for not having ICV certification?
    Yes—eligible companies may be excluded from bidding or procurement.

  7. Do I need to recertify every year?
    Yes—re-certification is usually annual or tied to tender cycles.

  8. How much local sourcing is required?
    Typically at least 20% goods & services from Omani suppliers.

  9. Does hiring Omanis improve scores?
    Yes—Omanization is a core metric.

  10. Can I partner with SMEs to boost my ICV score?
    Absolutely; subcontracting with SMEs is encouraged.

  11. Does leasing an office in Oman count?
    Yes—fixed assets contribute to ICV.

  12. Is training Omanis required?
    Yes—providing internships or skills development improves score.

  13. What sectors enforce ICV most strictly?
    Energy, mining, government, and infrastructure contracts.

  14. I’m a Riyada Cardholder—does that help?
    Yes—you get access to SME procurement quotas under ICV supply requirements.

  15. Can a new business with foreign investors qualify?
    Yes—as long as local content and workforce metrics are met.

  16. Are ICV requirements flexible for early-stage companies?
    Some allowances exist, but standards generally apply from launch.

  17. Where do I submit ICV plans and scorecards?
    To approved ICV certifying bodies recognized by sector operators.

  18. Can high ICV improve fundraising prospects?
    Yes—demonstrates local commitment and government alignment.

  19. What happens if ICV audit fails?
    You may lose certification or procurement eligibility.

  20. How does ICV fit with Omanisation law?
    They’re complementary—Omanisation is part of ICV, but ICV goes further into sourcing and training.

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