Oman Achieves Major Efficiency Gains in Govt. Projects

Oman’s Projects, Tenders and Local Content Authority has announced significant performance improvements across the sultanate’s government projects sector during 2024 and the first half of 2025.

Key achievements include a 43% reduction in tender estimated costs, generating financial savings exceeding RO30 million (US$78.02 million) through enhanced governance frameworks and public expenditure optimisation initiatives.

Tender issuance also showed notable growth, with 100 tenders released in 2024 and an additional 26 tenders in the first half of 2025, reflecting strengthened advance planning capabilities and accelerated project implementation timelines. Change order management improved considerably, with a 24% reduction, indicating more effective project monitoring mechanisms and technical oversight.

In a statement to Oman News Agency, Badr bin Salim al Maamari, Chairman of the Projects, Tenders and Local Content Authority, emphasised that these outcomes demonstrate Oman’s strategic commitment to realising Oman Vision 2040 objectives through optimised public expenditure and enhanced governance standards in government project management.

“The reduction in tender estimated costs and substantial financial savings across government projects and procurement activities represent the successful implementation of project governance frameworks, cost control measures, updated regulatory bylaws, and document cycle management,” Maamari said. He highlighted that coordinated integration among various government entities has been instrumental in achieving optimal resource utilisation and maximising value from public expenditure.

Maamari further noted that the Authority continues to make steady progress in developing comprehensive government project and contract management systems while implementing international best practices. “Our commitment to transparency and operational efficiency is demonstrated through the deployment of electronic platforms for tender management and government project implementation, significantly enhancing performance metrics and accelerating developmental project execution that directly benefits society and national economic growth,” he added.

He affirmed that these initiatives embody core principles of governance, sustainability, and institutional integration, reinforcing Oman’s approach to sustainable development while strengthening its position as an attractive investment destination and a regional centre of excellence in government project management.

Said bin Hamad al Amri, Director General of Tenders at the Authority, reported a 13% increase in awarded tender volume in 2024 compared to 2023, while the total award value decreased by 12.6% to RO786.6 million (US$2.045 billion). Change orders improved significantly, declining to 54 instances in 2024 from 71 in 2023.

“The Authority achieved financial savings exceeding RO15 million (US$39.01 million) through tender optimisation and an additional RO6 million (US$15.6 million) through enhanced project governance and advanced technical methodologies in contract evaluation and implementation,” Amri stated. These results reflect the success of ongoing expenditure rationalisation, cost control measures, and continuous improvement in government project awarding and execution mechanisms.

Regarding government procurement, Amri reported additional savings of RO5.7 million (US$) during the first half of 2025 through strategic initiatives, including Microsoft educational license procurement and renewal for government educational institutions, alongside student desk supply and installation projects for Ministry of Education schools.

Abdullah bin Humaid al Habsi, Head of the Projects Follow-up Office at the Authority, reported that comprehensive procedural reviews of government project implementation frameworks have been conducted in collaboration with multiple government entities and private sector representatives. This re-engineering initiative aims to enhance project management efficiency while elevating governance and transparency standards.