Dr Said bin Mohammed Al Saqri, Minister of Economy, has described the Clean Energy and Green Hydrogen sector as “the economy of the future,” noting that renewable energy and hydrogen projects are expected to shape Oman’s economic structure in the years ahead.
Speaking at the recent 29th Economic Council hosted by the Omani Economic Association, Dr Al Saqri highlighted the growing importance of clean energy in Oman’s economic transition.
In his remarks, the Minister emphasised that sustainability is not a separate track, but a core pillar of Oman’s future economic planning as the world accelerates towards cleaner and more competitive growth models.
“The upcoming Five-Year Plan will prioritise a low-carbon economy — a direction of critical importance. We believe in science and the evidence it provides, and it is clear that reducing harmful carbon emissions is essential. Oman has a comprehensive strategy and a firm commitment to reach net-zero emissions by 2050.”
He underlined that renewable power is not only an environmental choice, but a strategic driver for future competitiveness and energy security. He explained: “Renewable energy offers significant value — whether through solar power or wind. Our goal is that by around 2040, approximately 40% of electricity generation in Oman will come from renewable sources.”
On the pace of green hydrogen investment, the Minister acknowledged recent shifts in global momentum. He said: “There is a slowdown — not only in Oman, but worldwide — due to a decline in investment momentum in green hydrogen projects. However, we believe this phase will be followed by renewed acceleration, and the data indicates a rising demand for green hydrogen by around 2030.”
He also addressed recent corporate decisions in the sector. He added: “BP’s decision to step back from green hydrogen was not specific to Oman; it was part of a broader adjustment across several markets for various reasons. However, all other investments in Oman are progressing as planned, in line with our national strategy and timelines.”
It must be noted that BP, which having concluded its participation in the Duqm Green Hydrogen Project as part of the company’s global portfolio realignment, still remains a key player in the Hyport Duqm project in the Sultanate.
Speaking about the future of oil and gas within this transition, Dr Al Saqri noted that traditional energy sources will remain relevant, even as clean alternatives expand. He said: “I believe demand for oil and gas will continue in the medium and long term. However, we expect greater efficiency in energy use, along with a wider shift towards alternative and clean energy. These sources will form a very significant share of global energy consumption in the future.”
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