National critical minerals strategy vital for Oman: Report

MUSCAT, JULY 6
Oman should adopt a comprehensive national strategy for critical minerals to safeguard its energy transition ambitions - a move that could create around 4,000 skilled jobs, and unlock between $8 billion and $12 billion in cumulative economic value over the next decade, according to a new policy paper published by the Majan Council.
The study by the Muscat-based think-tank argues that while Oman has made significant progress in renewable energy and green hydrogen development, the success of its long-term energy transition will depend as much on securing supplies of critical minerals as on deploying clean energy technologies.
Titled 'The Mineral Reality of the Energy Transition: Why Oman Needs a Strategic Shift', the report warns that the Sultanate of Oman's ambitious plans for solar, wind and green hydrogen projects will require growing volumes of industrial materials and strategically important minerals, many of which are sourced through highly concentrated global supply chains vulnerable to geopolitical shocks and price volatility.
'The success of Oman's energy transition will depend not only on deploying clean technologies, but on building the material and industrial systems that sustain them,' the paper states.
The report contends that Oman faces a strategic choice. Continuing to rely primarily on imported technologies would expose the country to supply-chain risks while limiting domestic economic benefits. Conversely, developing local capabilities in mineral processing, advanced manufacturing and circular industrial systems could significantly enhance economic resilience while supporting the country's clean energy ambitions.
The authors estimate that an integrated strategy linking energy planning with mineral development, industrial policy and workforce development could generate jobs and economic value through expanded mineral processing, manufacturing and resource recovery industries.
According to the study, Oman possesses several competitive advantages that position it to become a regional hub for critical minerals and green industrial development. These include direct access to the Arabian Sea outside the Strait of Hormuz, an extensive mineral concession area of around 131,500 square kilometres - of which only about 35 per cent has been allocated to operators—well-established industrial hubs at Suhar, Al Duqm and Salalah, ambitious renewable energy and green hydrogen programmes, and a Free Trade Agreement with the United States.
The report argues that these assets provide the foundation for developing domestic mineral processing industries, manufacturing components for clean energy technologies, and integrating industrial clusters around the country's major energy hubs.
Among its recommendations is the development of a dedicated national critical minerals strategy that integrates mineral resource planning with renewable energy deployment, industrial policy and investment promotion. It also calls for structured assessments of future mineral demand, diversification of supply sources, strategic stockpiles of high-risk materials, expanded geological mapping, and stronger coordination between the mining, energy and industrial sectors.
The study further advocates policies to increase local value creation through procurement requirements, supplier development programmes, investment incentives and support for downstream industries, drawing lessons from successful localisation initiatives elsewhere in the Gulf.