Oman Signs RO 15 Million Agreements to Localize Electrical Transformer Components

Oman Signs 10 Agreements Worth RO 15 Million to Boost Local Manufacturing

Muscat (ONA): Ten agreements were signed today in Muscat with a number of small and medium enterprises (SMEs) and local and international companies to localize the production of key components used in the electrical transformer industry.

The agreements, worth around RO 15 million, are in pursuance of an initiative themed “Localize It: From Vision to Partnerships”. The initiative is undertaken by the Authority for Public Services Regulation (APSR), in cooperation with Voltamp Energy company.

The agreements include 4 signed with local SMEs and 6 signed with local and international companies. They provide for the establishment of 7 new factories and the addition of new production lines to 2 existing factories operating in the same domain.

The agreements will contribute to the expansion of the local manufacturing base, the consolidation of local content and development of supply chains related to the electricity sector.

The agreements’ signing ceremony was held under the auspices of Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals.

Dr. Mansour Talib Al Hinai, Chairman of the Authority for Public Services Regulation, said that these agreements constitute a milestone in localizing strategic industries, enhancing local content and enabling SMEs to integrate into industrial value chains. He added that this will contribute to expanding investment and production opportunities, augmenting local added value and boosting the competitiveness of the national economy.

Dr. Mansour pointed out that the rapid growth in projects of production of electricity, energy, renewable energy and green hydrogen underscores the importance of building a national industrial base capable of efficiently meeting the needs of economic sectors.

He explained that the true value of these agreements lies in their positive impact on investment, industrial localization, the empowering of national talents, the generation of employment opportunities and the development of sustainable economy.

For her part, HH Sayyida Mayan bint Shihab Al Said, Vice Chairperson of the Board of Directors of Voltamp Energy, affirmed that this step stems from national priorities. She expressed the confidence that the initiative will be an inspiring success story and a landmark that contributes to the progress of the electrical components industry in the Sultanate of Oman and the region at large.

HH Sayyida Mayan pointed out that the initiative’s success will spearhead far-reaching national initiatives across various sectors.

The projects are scheduled to cover a total area of ​​34,000 square metres. Commercial production for the new projects is expected to begin in 2027 and 2028.

The agreements are of significant economic and industrial importance, as they expand the participation of national establishments and attract local and international expertise and investment.

The localization of the production of key components used in the electrical transformer industry will contribute to enhancing the resilience and security of supply chains, reducing reliance on imports and mitigating supply risks and global market volatility.

The initiative will also help attract new industrial investments, foster the development of value-added industries and cultivate national expertise in engineering, technical and operational fields.

The impact extends to retaining a larger share of procurement spending within the national economy, building a robust industrial base capable of growth and providing access to regional and global markets.

The initiative seeks to convert the needs of these production sectors into sustainable opportunities, thereby enhancing local economic value, supporting the growth of the industrial sector and expanding private sector participation in domestic development, in line with the objectives of Oman Vision 2040.