For decades, Gulf economies followed a familiar formula: produce energy, export it abroad and build growth around the revenues that came back.
Oil left by tanker. Gas moved through pipelines. Economic value was largely created once energy reached foreign markets.
But the next phase of global competition may look very different. The countries that succeed in the future may not necessarily be the ones exporting the most energy. They may be the ones using energy to attract industry, technology and investment at home.
Quietly, Oman seems to be moving in that direction. At first glance, the Sultanate of Oman’s latest electricity projects appear straightforward enough — new power plants, transmission upgrades and grid interconnections designed to support future demand. But beneath the technical details lies a bigger economic story.
Oman may be starting to shift from exporting energy to building industries around it.
That matters because electricity itself is changing. Around the world, it is becoming more than just a utility service. It is increasingly turning into a competitive economic advantage.
Artificial intelligence, data centres, desalination, advanced manufacturing and low-carbon heavy industries are all expected to drive a major increase in electricity demand over the coming years. At the same time, companies are paying closer attention to where they can secure stable, affordable and lower-carbon power for the long term.
In many ways, electricity is becoming industrial policy.
This is where Oman’s current investments start to take on greater significance.
Projects such as the 1,700-megawatt Misfah plant, the 877-megawatt Duqm project and the north-south electricity interconnection are not simply infrastructure upgrades. Together, they point to the early foundations of a more electricity-intensive industrial economy.
The hydrogen-ready technology planned for future generation projects is particularly revealing. While hydrogen is often discussed mainly as an export opportunity, its deeper value may lie in giving Oman more flexibility as the global energy system evolves.
The transition away from traditional energy systems is unlikely to happen in a straight line. Gas, renewables, hydrogen and industrial-scale electricity demand are likely to coexist for years. Countries that manage that transition efficiently could gain a long-term advantage.
Oman appears to understand this.
The north-south electricity interconnection may prove especially important. Officially, it is a transmission project linking different parts of the national grid. In practice, it could reshape the country’s industrial geography.
A stronger and more integrated grid improves the long-term attractiveness of places such as Al Duqm and Dhofar for manufacturing, minerals processing, logistics and energy-intensive industries. Future investors may increasingly look not only at ports and taxes, but also at grid reliability, electricity costs and carbon intensity.
This could become one of Oman’s biggest opportunities. The Sultanate of Oman already has several important advantages: strategic ports, industrial zones, renewable energy potential and established gas infrastructure. But these strengths become far more valuable if they are connected through a resilient and future-ready electricity system.
Still, building infrastructure alone is not enough.
The real challenge is whether Oman can create enough economic activity to absorb this growing electricity capacity.
Who will use this power? If the country succeeds in attracting large-scale manufacturing, digital infrastructure, green industrial projects and advanced processing industries, today’s electricity investments could become one of the foundations of Oman’s post-oil economy.
But if industrial growth and private investment fail to keep pace, some of the new infrastructure risks becoming underutilised and financially costly over time.
That is why electricity planning cannot be separated from industrial strategy.
The real value of Oman’s evolving energy system may not ultimately come from exporting more energy abroad. It may come from using that energy more intelligently at home to create industries, jobs and long-term economic resilience.
For decades, Oman’s economy benefitted from moving energy outwards.
The next chapter may depend on what the country can build around that energy at home.
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