ع
The Projects, Tenders and Local Content Authority implemented a new governance framework for government contracts that produced a 43 percent reduction in estimated tender costs alongside financial savings exceeding RO30m during 2024 and the first half of 2025, according to an Oman News Agency dispatch. Change orders fell to 54 instances in 2024 from 71 the year before as part of the same initiative, the authority’s figures show. The framework also shortened average procurement cycles by 40 to 50 percent, generating efficiencies across multiple sectors. These outcomes emerged from stricter oversight applied to contracts awarded through the Government Tender Board.
Development spending has climbed steadily, with the Tender Board awarding projects valued at RO1.7bn across 2025, a government projects forum presentation indicated. In the first seven months of 2026 alone, 74 contracts worth RO734m were awarded, led by a RO200m pharmaceuticals supply deal and a RO157m Muscat Expressway expansion, the Public Authority for Projects, Tenders and Local Content reported. Additional tenders valued at RO365m were issued in the same period, focusing on flood protection and digital infrastructure. The RO280m in cumulative savings identified by the Oman Observer will help sustain this momentum without increasing overall fiscal outlays.
Procurement initiatives contributed further efficiencies, delivering RO5.7m in savings during the first half of 2025 through contracts for Microsoft educational licenses and student desks for the Ministry of Education, the Oman News Agency stated. Similar measures in 2024 produced RO3.9m in savings via air conditioning replacements in schools, student transport services and textbook printing framework agreements. The Directorate General of Government Procurement at the General Secretariat of the Tender Board highlighted these results in its quarterly updates. Such targeted rationalization has become a core element of annual contract management.
Engineer Badr Al Maamari, chairman of the Projects, Tenders and Local Content Authority, described the cost reductions as evidence of successful regulatory updates and improved planning, according to the Oman News Agency. Al Maamari noted that 100 tenders were issued in 2024 with 26 more in the first half of 2025, reflecting stronger advance preparation. A KPMG assessment of Oman’s 2026 state budget praised parallel procurement reforms that streamlined documentation by 70 percent and generated over RO7m in additional savings during the first half of 2025. These steps align with broader fiscal discipline goals.
The cumulative RO280m savings reported by the Oman Observer are projected to grow as the framework applies to future contracts exceeding RO1bn annually. Government data places total awarded development projects at RO505.3m in 2022, up from RO252.5m the prior year, underscoring the scale of potential ongoing benefits. SME opportunities within approved and studied projects surpass RO293m combined, the authority’s 2026 forum presentation showed. Officials continue to monitor implementation to ensure sustained impact across all governorates.
