Oman's clean energy transformation is no longer a distant goal
With long-term targets to generate 30% of electricity from renewable sources by 2030, Oman is investing heavily in solar and wind power. Utility-scale solar farms in Manah and Ibri are already under development, and the expansion of wind energy projects in Dhofar and Duqm is underway. These zones were selected for their geographic strengths—solar intensity, wind potential, and access to existing infrastructure—making them ideal for large-scale clean energy deployment.
Yet Oman's ambitions go further. The report highlights the country's emerging role as a green hydrogen leader. Backed by abundant land and renewables, Oman aims to produce one million tonnes of renewable hydrogen annually by 2030, ramping up to 3.75 million tonnes by 2040 and 8.5 million tonnes by 2050. These targets would position Oman as the largest hydrogen exporter in the Middle East and among the top globally.
To enable this, Oman has allocated approximately 50,000 square kilometers of land for hydrogen development—an area equivalent to the size of Slovakia. Through the government-backed entity Hydrom, a total of eight project agreements have been signed to date. These integrated projects combine solar, wind, desalinated water, and hydrogen production infrastructure, all focused on export readiness.
Oman's strategy centers around green ammonia as the primary carrier for hydrogen exports. With existing port infrastructure and planned upgrades in Salalah, Duqm, and Sur, the country is well-positioned to deliver competitively priced ammonia to global markets. By 2030, Oman's hydrogen production costs are projected to fall to around $1.60 per kilogram, supported by some of the world's lowest renewable energy prices—between $25 and $35 per megawatt-hour.
The economic outlook is equally compelling. The clean hydrogen economy could bring in $33 billion in investments by 2030, while generating an estimated $2 billion in annual revenues from exports. Domestically, switching from fossil-based hydrogen to renewable hydrogen in refineries and industry could cut CO₂ emissions by more than 7 million tonnes annually—roughly 7% of Oman's 2021 baseline—and save over 3 billion cubic meters of natural gas each year.
These developments are part of a broader vision aligned with Oman Vision 2040. The government is also advancing regulatory frameworks, land auctions, and international certification to ensure credibility and competitiveness in emerging green markets. In parallel, Oman is exploring domestic hydrogen use in steelmaking and high-temperature industrial processes, setting the stage for low-carbon manufacturing clusters in the future.
While the global hydrogen market remains in its infancy, Oman's proactive approach—coupled with its geographic, economic, and political advantages—makes it a serious contender in the race toward a net-zero future. The Annual Report 2024 paints a picture not just of aspirations, but of measurable progress, real partnerships, and structural reform.
Oman's clean energy transformation is no longer a distant goal. It is an evolving national strategy, already underway—anchored in data, powered by sunlight and wind, and steadily redefining the country's place in the global energy landscape.
2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
9 minutes ago
- Zawya
Oman's credit rating upgrade heralds numerous benefits
Recently, Moody's upgraded the Sultanate of Oman's rating from Ba1 to Baa3, while revising the outlook to stable. The ratings agency attributed the upgrade to the improvement in Oman's public debt indicators and the strength of its financial position, along with the efficiency of its financial management, which has enhanced its ability to withstand shocks, especially in light of the decline in average oil prices and production. The issuer commentary cites financial policies and provisions, as well as the measures taken in many aspects related to the Omani economy, economic diversification policy, and private sector stimulation. Most of us know that an uptick in a country's credit rating contributes to strengthening the stability of its domestic economy, reducing the cost of borrowing, and stimulating foreign investment, especially if the country is free of bureaucracy in its daily operations. An improved rating also increases the ability to finance development and social projects, enhances the country's competitiveness, and contributes to improving the quality of life for citizens. Moody's commentary also points to Oman's government efforts, explaining that they have achieved positive results, particularly with regard to public spending. Government spending declined to 29% of GDP, compared to an average of more than 41% during the period from 2016 to 2020. Debt also declined from 37.5% of GDP at the end of 2023 to 35.5% at the end of 2024 and is expected to continue declining in the coming years. The Moody's report expects the Omani economy to witness further improvement in the coming years and accelerating growth in the non-oil sector and reduce the primary non-oil deficit. Over the past few years, the government has taken numerous measures to diversify sources of income, which can enhance long-term financial stability by working to increase the contribution of non-oil revenues to the general budget, supporting plans to develop the green hydrogen sector and related industries and expanding liquefied natural gas (LNG) production by 2030. Raising Oman's credit rating could have significant positive impacts on the economy, finances and society as a whole. In the coming years, Oman can reap many benefits from this, particularly in terms of improving its ability to attract foreign investment. A good credit rating reflects the stability of the economy and its ability to meet its financial obligations, making Oman a more attractive destination for foreign investors who can contribute to the development of new sectors such as technology, tourism, industry and others. A ratings upgrade can also reduce borrowing costs, enabling the government and companies to borrow at lower costs. Some analysts believe that a rating upgrade would enable the Omani government to issue international or local bonds at lower costs, helping finance important national projects without significantly impacting the general budget. It would contribute to strengthening economic stability, improve the business environment and encourage economic expansion to implement development and social programmes by financing projects to improve education, healthcare and housing, which would positively impact citizens' standard of living. Oman seeks to achieve sustainable economic diversification away from oil and gas. The country is working to accelerate transition to a more sustainable and competitive economy, facilitate negotiations with its international trading partners and enhance its image in global markets. It will also support public-private partnership projects, which will contribute to stimulating social growth. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
9 minutes ago
- Zawya
Job security scheme vital safety net for Omanis
MUSCAT: In a dynamic labour market shaped by economic transitions and global uncertainties, Oman's Job Security Scheme has emerged as a vital safety net for Omanis who face sudden job loss. Introduced under Royal Decree No 82/2020 and implemented in early 2021, the programme provides temporary financial relief and stability, allowing individuals to navigate unemployment with a sense of security. The Job Security Benefit offers 60 per cent of the average insured salary over the last two years, with a minimum of RO 115 per month, paid for up to six consecutive or non-consecutive months. This support enables beneficiaries to manage essential living expenses while actively searching for new opportunities, easing the emotional and financial strain that comes with involuntary unemployment. Social experts emphasise that the scheme's value is not merely financial. 'Receiving the benefit gave me the confidence to focus on finding a new job without worrying about my family's immediate needs,' said Khalid al Tamtami, a former tourism employee affected by the sector slowdown. The scheme is mandatory for all Omani employees in both the public and private sectors, including those on permanent, temporary, or part-time contracts, as well as retirees still engaged in employment. Beyond individual support, the Job Security Scheme reinforces the national economy by maintaining household purchasing power during periods of job loss. Economists note that the programme stabilises domestic demand, mitigates the ripple effects of layoffs and reduces pressure on other social assistance programmes. Psychologically, it instils confidence in citizens, reflecting the government's commitment to social stability. Linking the benefit with training programmes and career development initiatives will strengthen its long-term impact. By early 2025, the Social Protection Fund (SPF) reported that over 590,000 Omanis are active in various social insurance programmes, with thousands benefitting from the Job Security Scheme since its inception. The SPF has also launched 'Mazaya', a complementary programme for retirees and job security beneficiaries, offering additional perks such as interest-free loans, delayed loan repayments and consumer support packages. Experts recommend further steps to maximise the scheme's impact, like strengthening links with vocational training and reskilling programmes, reviewing phased benefit reductions to ensure fair support, conducting regular actuarial studies to maintain financial sustainability and expanding programmes like 'Mazaya' to provide comprehensive family support. The Job Security Scheme reflects Oman's broader commitment to human-centred development under Oman Vision 2040. By protecting workers during times of economic transition and promoting workforce resilience, the programme stands as a model of modern social protection in the region. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
2 hours ago
- Zawya
Empowering SMEs: Sohar International sponsors Tamkeen and Summo Exhibition 2025
Muscat: Reaffirming its longstanding commitment to advancing Oman's entrepreneurial landscape and driving inclusive economic growth, Sohar International has assumed the role of Official and Exclusive Banking Sector Sponsor of the 'Tamkeen and Sumou' (Empowerment and Elevation) Exhibition for Small and Medium Enterprises. Organized by the Oman Chamber of Commerce and Industry (OCCI), represented by the SME Committee, the exhibition is being held under the patronage of HH Sayyid Harib bin Thuwaini Al Said, Assistant Secretary General of the Council of Ministers for Conferences, and runs from 5 to 20 August 2025 in Dhofar Governorate. The event brings together more than 75 Omani SMEs from nine key economic sectors, including light manufacturing, technology and innovation, Omani handicrafts, tourism, and agriproducts such as honey and dates. It serves as a vital national platform for promoting local products, enhancing SME competitiveness, and facilitating direct engagement with private sector stakeholders all in alignment with Oman Vision 2040 and the bank's strategy to empower the private sector as a catalyst for sustainable development. Commenting on the bank's participation, Abdulwahid Mohamed Al Murshidi, Chief Executive Officer of Sohar International, stated: 'SMEs represent a vital force within any dynamic economy. Their capacity to innovate, stimulate domestic value chains, and respond swiftly to market needs contributes meaningfully to economic resilience. Our engagement in this exhibition is a reflection of our long-term dedication to empowering this segment; beyond offering impactful financial solutions, we prioritize opportunities that enhance visibility, strengthen capabilities, and support sustainable growth. Platforms such as these are integral to cultivating robust, future-ready enterprises that will ultimately steer Oman towards a more diversified and competitive economy.' As part of its active engagement, Sohar International has launched the 'Sohar International Competition for SMEs', aimed at elevating exhibition standards, encouraging innovation, and recognizing excellence. The competition features six categories Best Booth Design, Best Brand Identity, Best Visitor Engagement, Most Innovative Idea, Best Internal Organization and Layout, and the Audience Choice Award. Winners will be selected through a robust evaluation framework that rewards creativity, executional excellence, and public appeal. The exhibition also highlights the Chamber's ongoing efforts to enhance the business environment and provide the enablers necessary for SME sustainability. It underscores the importance of fostering market access, brand visibility, and strategic collaboration between SMEs and the broader private sector. Sohar International's partnership in this flagship event builds on its broader mandate to serve as an active enabler of SME development across all governorates by supporting platforms that inspire innovation, build commercial networks, and reinforce the competitiveness of Omani entrepreneurs in local and regional markets. About Sohar International With the vision to become a world-class Omani services company that helps customers, community and people to prosper and grow, Sohar International operates with a purpose to help people 'win' by delivering responsive banking for their ever-changing world, complementing their growth and prosperity with international standard service delivery. The Bank seeks to redefine banking in Oman through transformational developments centred on the principles of More Velocity, making everything simple and fast; More Value, ensuring relevance and connectivity to customers' world; and More Vision, liberating stakeholders through talented leadership.
