Transforming CSR into Sustainable Investment: What the New Energy Foundation Means for Businesses in Oman

مسقط: In a significant move aimed at enhancing collaboration between government institutions and bolstering the energy sector’s contribution to sustainable development, the Ministry of Social Development has unveiled the Energy Sector Social Responsibility Development Foundation. This initiative was established under Ministerial Decision 323/2025, issued on September 23, 2025. The foundation will serve as the central organization overseeing social responsibility initiatives within the energy sector, ensuring a lasting positive impact across social, economic, and environmental domains.

Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals (MoEM), remarked on the launch, stating, “The foundation signifies a new era in directing the energy sector’s contributions towards long-term projects that create lasting effects. Our goal is to institutionalize social responsibility efforts, supporting communities, empowering youth, fostering innovation, and facilitating entrepreneurship. This aligns with the objectives of Oman Vision 2040, particularly in enhancing quality of life, human development, and economic sustainability. Today, we are formalizing and elevating our longstanding contributions to community initiatives in Oman.”

The foundation is grounded in a comprehensive vision to promote sustainable development, emphasizing the energy sector’s responsibilities to the community. Its objectives include developing human capital through educational, training, and qualification programs, equipping youth with future-ready skills tailored to promising sectors, and contributing to the advancement of community, educational, health, and social infrastructures that enhance welfare and foster sustainable living environments. It will also collaborate with both public and private sectors to support national and charitable initiatives that yield tangible benefits for the community.

Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals

Another vital goal is to foster local value creation by supporting and empowering small and medium enterprises (SMEs), promoting entrepreneurship, and stimulating local innovation to create jobs and enhance the national economy. The foundation plans to empower youth and aspiring entrepreneurs through leadership programs and innovative initiatives aimed at developing a generation equipped to advance community progress.

Additionally, the foundation will prioritize health, safety, and environmental protection by launching awareness campaigns and training programs to bolster public health, occupational safety, and environmental stewardship. These efforts will align with sustainable development objectives and national environmental policies. It will also strive to preserve cultural identity and develop community tourism by endorsing cultural, heritage, and sustainable tourism initiatives, which are significant contributors to both social and economic development.

The foundation was conceived to consolidate the sector’s community contributions under a unified institutional framework, ensuring transparency and strategically directing resources towards projects that align with national sustainable development goals. While the Ministry of Energy and Minerals and energy sector companies have historically supported community initiatives, there was a pressing need for a legal entity to effectively manage these contributions and guarantee their sustainability. This foundation embodies the Ministry’s commitment to enhancing governance and shared responsibility, providing a cohesive executive mechanism to unify company efforts and enable systematic measurement of social impact.

The foundation’s capital is set at no less than RO 1 million, funded through community financial contributions owed to the Ministry of Energy and Minerals based on concession agreements with companies, alongside investment returns, annual membership fees, and other approved support. The Board of Directors, appointed by the Minister of Energy and Minerals, will include representatives from the ministry and energy sector companies, ensuring balanced representation and integrated decision-making. Membership terms will last for three years and are renewable to maintain continuity in institutional operations.

Ultimately, the foundation is poised to effect a qualitative shift in enhancing the social responsibility impact of the energy sector by redirecting community spending toward strategic projects that address societal needs while aligning with the state’s sustainable development initiatives. It will bolster national capacity-building, empower SMEs, encourage local innovation, and enhance the quality of life through infrastructure and social service projects. Furthermore, it will establish a monitoring and evaluation framework to assess the real social impact of these projects, promoting transparency, efficiency, and ongoing value addition.