Oman’s green energy sector gains solid new momentum

The Sultanate of Oman, like other countries in the region, seeks to diversify its economic sources of income and attract foreign investment to create more new jobs in economic sectors, provide employment opportunities for citizens, and preserve natural resources and the environment. Among these sectors, the green sector is at the forefront. Its impact is numerous on safe investment policies in the field of clean energy in light of the security challenges posed by climate change.
Oman currently has numerous renewable energy projects in this sector, including the Ibri-3 solar venture, in addition to other proposed projects worth billions of dollars that will be implemented through to 2030. There are also wind energy projects in North and South Sharqiyah, Al Wusta and Dhofar Governorates. Several other projects are being implemented in this sector between 2025 and 2027, valued at over 1 billion dollars, in Duqm, Mahout, Harweel and Sadah.
In addition, Oman is interested in establishing green hydrogen and ammonia projects to boost electricity generation. The value of these projects, being implemented between 2025 and 2030, amounts to approximately RO 2 billion, belonging to Omani and foreign companies. Overall, Omani investments in solar and wind energy are approaching $4 billion, while investments in the green hydrogen sector could attract between $30 and $50 billion in the coming decades, given the Sultanate's location and the environmental factors that distinguish it in the fields of solar, wind, and other natural resources.
Several companies and funds are contributing to the implementation of these projects with the Omani government, including Saudi Arabia, Japan, China, Singapore, and others. Arab and foreign companies are also participating in the bidding process, coming from the United Arab Emirates, France, Saudi Arabia, Belgium, Germany, and others. All of these clean energy projects will have a positive economic impact and environmental sustainability over the coming years. Their economic impact lies in diversifying sources of national income, thus enhancing Oman's 2040 strategy to reduce dependence on oil and gas.
Green hydrogen and its derivatives from clean energy projects could also become major export commodities in promising markets in Europe and Asia. Finally, these projects will attract more foreign investment in the coming period. This is in addition to creating thousands of direct and indirect quality job opportunities in the construction and infrastructure sectors, operations and maintenance, research and development in renewable energy, local employment, and the qualification of Omani cadres in the sector to support local industries, and strengthening equipment and clean energy supply chains. These projects also contribute to environmental sustainability, reducing carbon dioxide emissions, conserving water resources, reducing air and noise pollution, and preserving biodiversity.
All countries in the region are considering these projects to move toward more economically and environmentally sustainable energy sector management. They are reviewing current energy policies and implementing incentive measures, encouraging investments in clean oil and gas exploration and production technologies, adopting measures to mitigate environmental and social impacts, and promoting interconnection of electricity grids and natural gas grid projects, while encouraging private sector participation in establishing these projects, energy facilities, and related industries.