National Critical Minerals Strategy: Key Insights for Investors and Entrepreneurs in Oman
MUSCAT, JULY 6 — Oman is urged to implement a comprehensive national strategy for critical minerals to support its energy transition goals. A recent policy paper by the Majan Council estimates that this initiative could create approximately 4,000 skilled jobs and generate between $8 billion and $12 billion in economic value over the next decade.
The study, conducted by the Muscat-based think tank, highlights that while Oman has made significant advancements in renewable energy and green hydrogen projects, its long-term energy transition will rely heavily on securing critical mineral supplies alongside the implementation of clean energy technologies.
بعنوان ‘The Mineral Reality of the Energy Transition: Why Oman Needs a Strategic Shift,’ the report emphasizes that Oman’s ambitious plans for solar, wind, and green hydrogen initiatives will necessitate an increasing supply of industrial materials and strategically crucial minerals. Many of these resources are currently sourced through concentrated global supply chains that are susceptible to geopolitical disruptions and price fluctuations.
The paper asserts, “The success of Oman’s energy transition will depend not only on deploying clean technologies but also on building the material and industrial systems that sustain them.”
The report outlines a critical choice for Oman: continued dependence on imported technologies could expose the nation to supply chain vulnerabilities and limit domestic economic advantages. In contrast, fostering local capabilities in mineral processing, advanced manufacturing, and circular industrial systems could greatly enhance economic resilience while advancing clean energy objectives.
According to the authors, an integrated strategy that aligns energy planning with mineral development, industrial policy, and workforce training could yield job opportunities and economic benefits through expanded mineral processing, manufacturing, and resource recovery industries.
The study also points out that Oman holds several competitive advantages that could position it as a regional hub for critical minerals and green industrial development. These include direct access to the Arabian Sea beyond the Strait of Hormuz, a significant mineral concession area of approximately 131,500 square kilometers—with only about 35 بالمئة currently allocated to operators—well-established industrial centers in Suhar, Al Duqm, and Salalah, ambitious renewable energy initiatives, and a Free Trade Agreement with the United States.
The report advocates for the establishment of a dedicated national critical minerals strategy that harmonizes mineral resource planning with renewable energy deployment, industrial policy, and investment incentives. It also recommends structured assessments of future mineral demand, diversification of supply sources, strategic stockpiling of high-risk materials, expanded geological mapping, and enhanced coordination among the mining, energy, and industrial sectors.
Moreover, the study suggests policies aimed at increasing local value creation through procurement requirements, supplier development initiatives, investment incentives, and support for downstream industries, drawing on lessons from successful localization efforts in the Gulf region.
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Oman’s pursuit of a comprehensive national strategy for critical minerals signals a pivotal shift in its energy transition, potentially generating 4,000 skilled jobs and $8-$12 billion in economic value over the next decade. This strategy not only mitigates supply-chain risks but also paves the way for local investment opportunities in mineral processing and advanced manufacturing. Smart investors should focus on leveraging Oman’s geographic advantages and aligning with the country’s ambitious renewable energy goals to capitalize on this evolving landscape.
