Local suppliers are considered an integral part of any economy due to their significant contributions to the gross domestic product (GDP) and their role in creating employment opportunities for the local workforce. In addition, supply chains are only as strong as their weakest links, which are - in this case - the low-tier suppliers in the oil and gas operations. However, local suppliers face numerous challenges that might hinder their growth and impact their survival in the volatile market environment. Therefore, the oil and gas sector in Oman, being the major contributor to the national economy, has adopted several initiatives that support local suppliers in developing a competitive Indigenous market that is up to global health, safety, environment, and quality standards such as the International Organization for Standardization (ISO) standards, American Petroleum Institute (API) standards, and other industry-specific standards. This study aimed to explore the relationship between In-country Value (ICV) vendor development programs as long-term initiatives using theories and experiences from the oil and gas sector in Oman. To collect the required data for this study, a survey questionnaire was used and distributed to selected professionals, who exhibit competence, extensive industry knowledge, and specialized skills, from the oil and gas sector in Oman to provide insights on the influence that vendor development initiatives play on the organizational performance of local suppliers and how those initiatives impact the business sustainability and competitive advantage within the local industry. The Results showed that there is a strong relationship between the vendor development initiatives and the organizational performance of suppliers, and those initiatives helped local suppliers overcome numerous challenges, sustain their businesses, and provide competitive products and services.