Oman’s Green Hydrogen Drive: What It Means for Investors and Businesses in the Sultanate
MUSCAT, AUGUST 24 – As Oman prepares to host the Green Hydrogen Summit later this year, attention is focused on critical factors such as foreign direct investment (FDI), project bankability, and strategic international partnerships essential to establishing the Sultanate as a global leader in the energy transition.
Dr. Firas al Abduwani, Director General of Renewable Energy and Hydrogen at the Ministry of Energy and Minerals, highlighted that investor confidence is central to Oman’s green hydrogen strategy. In an interview with The Energy Talks, he stressed that the financial viability of projects will ultimately determine the pace and scale of development. “This is why we are prioritising fundamentals — bankability, clear regulations for foreign investors, predictable taxation, and transparent land allocation. These reassurances are what international financiers seek, and Oman is committed to providing them.”
Dr. Al Abduwani noted Oman’s established reputation as a reliable energy hub gives it a distinct advantage in securing financial support. Having successfully hosted large-scale oil and gas projects, Oman has experience attracting substantial funding from global banks, export credit agencies, and institutional investors. What sets current initiatives apart are their focus on low-carbon, renewable energy projects appealing to financiers dedicated to green and ESG-linked investments.
Significantly, many developers already bring their own financiers, leveraging support from home governments or climate finance institutions. Domestically, Oman’s Ministry of Finance is advancing green bond initiatives within the Estidama framework, underlining the nation’s commitment to aligned financing pathways.
“The Green Hydrogen Summit offers the perfect platform,” Dr. Al Abduwani explained. “It convenes financiers, developers, policymakers, and local banks to foster confidence that projects are structured for success — even when renegotiations become necessary due to market shifts.”
Oman’s strengths extend beyond financing: its world-class renewable resources, stable political and regulatory environment, improving sovereign credit ratings, and strategic location connecting East Asia with Europe all bolster its appeal. “Oman has always honoured its obligations,” he emphasized. “That reliability is a competitive advantage for investors.”
Strategic international collaboration is also critical to Oman’s green hydrogen ambitions. Building on its LNG and hydrocarbon trading legacy, Oman is forging new hydrogen corridors and partnerships, including a planned liquid hydrogen route to Amsterdam, an agreement through the Port of Rotterdam accessing German markets, and expanded alliances with the UK, US, South Korea, Japan, and increasingly China.
“It’s really about matchmaking between exporters and importers,” Dr. Al Abduwani said. “These partnerships go beyond molecules to encompass technology transfer, energy security, and shared decarbonisation goals.”
He cited Belgium as a key example. Beyond opening European market access, Belgium’s energy infrastructure group Fluxys has become a direct strategic investor in Omani gas transporter OQGN, partly motivated by green hydrogen opportunities. Meanwhile, Korea and Japan remain steadfast long-term partners in Asia, with China’s growing involvement promising significant scale. “All these countries see mutual benefits. The challenge lies in defining modalities around market volumes, hydrogen vectors, and subsidy frameworks. These are complex and evolving issues,” he noted.
Global initiatives like Germany’s H2Global, which facilitates neutral buyer–supplier agreements, demonstrate the potential for structured international collaboration. “Whether through H2Global or other mechanisms, these forums are indispensable,” he stated.
Dr. Al Abduwani emphasized that few countries are expected to achieve green hydrogen self-sufficiency, underscoring Oman’s goal to be a trusted and reliable partner. “Our ambition is to cultivate an ecosystem that is attractive to investors, bankable for financiers, and beneficial for international partners. The Summit is where these elements come together.”
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This rewritten report maintains all factual details while enhancing clarity and professionalism, with selective bolding used only in the opening to emphasize the critical focus of Oman’s strategy.
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Oman’s focused drive to enhance investor confidence through clear regulations, predictable taxation, and transparent land allocation creates a compelling environment for green hydrogen investments. For businesses and investors, this signals a robust opportunity to engage in pioneering low-carbon energy projects backed by international partnerships and strong financial frameworks. Smart entrepreneurs should prioritize strategic collaborations and align with Oman’s evolving ecosystem to capitalize on its position as a reliable, bankable hub in the global energy transition.
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