The pillars for building a sustainable green economy in Oman

Zawya

20-05-2025

In recent years, the global conversation around sustainability has shifted from vision to action. Oman, through its ambitious Vision 2040, is aligning itself with this transformation by laying the foundation for a sustainable, inclusive green economy. While hydrocarbons still account for 68% of government revenue (NCSI 2023), this transition represents both a challenge and an opportunity to redefine economic development through a strategic, holistic lens that addresses Oman's unique conditions - including water scarcity (only 89m³ renewable water per capita annually) and growing energy demand (projected 5% annual increase to 2040).
To succeed, Oman must build its green economy on four interdependent pillars, such as transition to renewable energy, sustainable resource management, innovations in the green technology area, and green legislation and international partnership that leverage its natural advantages while addressing its constraints. These pillars are not only aligned with the United Nations Sustainable Development Goals (SDGs) but also rooted in Oman's geographic, environmental, and economic realities.
TRANSITION TO RENEWABLE ENERGY
Oman's economy has long relied on oil, but the shift toward sustainability demands transformative change. Fortunately, the Sultanate of Oman is rich in untapped renewable resources, particularly solar and wind energy.
Pioneering projects like the 'Miraah Solar Plant' in Amal and the 'Dhofar Wind Farm' are already reshaping the country's energy landscape. Developed through a partnership between Petroleum Development Oman (PDO) and GlassPoint, the Miraah plant generates over 1,000 MWth (megawatts thermal) of solar steam, making it one of the world's largest solar thermal facilities. Meanwhile, the Dhofar Wind Farm, a collaboration with Masdar of the UAE, supplies clean power to thousands of homes in the south. Parallel initiatives from industrial energy retrofits to smart metering are enhancing efficiency and minimizing waste, ensuring optimal use of clean energy.
Complementing these efforts is Oman's ambitious push into green hydrogen. Through Hydrom, the Sultanate has signed $30 billion worth of Memoranda of Understanding (MoUs) with global players like BP, ACME, and Posco, positioning itself as a future exporter of green fuels to Asia and Europe by 2030–2035. One of the promising green fuels in the energy transition is ammonia, and within the SalalaH2 consortium, Marubeni, OQ Alternative Energy, Samsung C&T, and Dutco are jointly developing a 1 million-ton per year renewable ammonia project in Salalah.
Together, these projects from Miraah's solar steam to Dhofar's wind power and Oman's $30 billion green hydrogen drive are not just reducing carbon emissions but future proofing the economy. The target is clear about the cut reliance on oil, diversify the energy mix, and ensure 30% of Oman's energy comes from renewables by 2030, as outlined in the National Energy Strategy.
SUSTAINABLE RESOURCE MANAGEMENT
Oman is redefining sustainability through circular economy principles that turn waste into resources. The nation now recycles 12% of its 1.6 million annual tons of plastic waste, targeting 30% by 2030, while Be'ah processes 4,500 tons of e-waste yearly. Industrial byproducts like steel slag see 90% reuse rates in Sohar's construction sector.
Water innovation shines through projects like Barka IV solar desalination (250,000 m³/day, 20% emissions reduction) and Darsait's wastewater recycling (70% reuse). Agriculture undergoes revolution with Nizwa's smart irrigation (40% water savings) and Barka's hydroponics (8x yield per water unit).
The sultanate's comprehensive transition to the utilization of all resources, regardless of their energy potential, serves as a regional model for sustainable resource management.
INNOVATION AND DEPLOYMENT OF GREEN TECHNOLOGY
Oman's green economy transition is gaining momentum through targeted investments in the innovation and deployment of green technologies. Institutions like Sultan Qaboos University (SQU) have filed 17 green tech patents since 2020, focusing on solar efficiency and hydrogen storage, while GUtech has developed solar panels that retain 92% efficiency in dusty desert conditions. At Innovation Park Muscat, 62 cleantech startups are now active, with over 40% specializing in renewable energy applications.
Smart infrastructure is also evolving rapidly. Muscat's AI-driven water management system has reduced losses by 25%, and Duqm is piloting blockchain-based energy trading within its smart grid. The electric vehicle sector is expanding, with 48 public charging stations installed in 2023 and a government target to electrify 30% of its fleet by 2025.
Through these integrated efforts, Oman is positioning itself as a regional hub where sustainable technologies are developed, tested, and deployed at scale.
GREEN LEGISLATION AND GLOBAL PARTNERSHIPS
Oman is cementing its sustainable transition through robust policy frameworks and strategic alliances. The government has implemented mandatory carbon standards for 82 industrial facilities (73% compliance in 2023) and introduced tax incentives for green businesses, driving a 40% increase in ESG-compliant investments since 2022. The Oman Sustainability Centre, established in 2023, now tracks 65+ indicators to align with net-zero targets.
Internationally, partnerships with IRENA and UNDP have secured $120 million in climate financing for renewable projects, while local campaigns like "National Green Awareness" engage 200+ schools and 5,000+ businesses in sustainability practices. This dual approach combining legislative muscle with global cooperation positions Oman as a regional model for systemic green transformation.
Oman's energy transition presents both unprecedented opportunities and complex challenges. With oil revenues constituting 68% of national income (2023), the pivot to renewables requires careful economic recalibration. The four-pillar approach demonstrates Oman's comprehensive strategy, but true leadership will demand:
1) Effective strategies to attract national and international firms to multiply the investment in renewables (currently at $1.2bn annually)
2) Addressing technical bottlenecks in grid integration and decentralized renewable power and green fuel generation.
3) Developing local expertise through programs like the National Green Skills Initiative.
The Sultanate of Oman's unique advantage lies in its ability to leverage hydrocarbon expertise for green hydrogen and ammonia development. As Vision 2040 enters its decisive phase, Oman's energy transformation may well become the GCC's most instructive case study in managed transition.
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