An official from Oman stated on Tuesday that Muscat has the potential to emerge as a key player in sustainable and green financing within the Gulf region, thanks to ongoing reforms under its Vision 2040 agenda.
Mahmood Al Aweini, Oman’s Secretary General of the Ministry of Finance, emphasized that the country’s existing actions could solidify its position in the region.
“We have the infrastructure and the potential, either from the talents or the regulation system, that could support that,” Mr. Al Aweini remarked during a discussion at the Arab Gulf States Institute in Washington.
This year, Oman introduced its sustainable finance framework, aiming to bolster the economy by reducing reliance on fossil fuels and drawing in foreign investments.
Mr. Al Aweini noted that Oman has established approximately eight concession areas for hydrogen production, attracting numerous global energy giants beyond just regional players.
He indicated that these companies are poised to make a final investment decision soon, “which will make a big difference if it happens.”
Additionally, the Oman Investment Authority has launched a 2 billion Omani rial ($5.1 million) fund this year to encourage investments in small and medium-sized enterprises and the private sector.
“That was very important sector for us, a very important sector for economic diversification,” Mr. Al Aweini stated.
He also mentioned that the sultanate has been updating its regulatory framework, including a court system that will significantly enhance its attractiveness for foreign direct investment.
Moreover, Oman aims to foster greater innovation within the financial technology sector.
“The banking system and central bank of Oman has a huge mandate to drive that stability within the financial sector, but also to put it into international standards that can attract important players from the market overall,” he explained.
“We try to widen the level … of service these financial institutions can offer to the international players, so it can become easier for them to get in, as well as to improve the competitiveness of the sector itself. Because to make it sustainable, it has to be very competitive.”
Mr. Al Aweini acknowledged that regional tensions have complicated efforts to assure potential investors of Oman’s stability.
Oman’s major export partners include neighboring countries the UAE and Saudi Arabia, while tensions persist in Yemen.
He suggested that the current regional crisis might provide Oman with opportunities to be seen as a stable source of foreign direct investment due to limited options globally and within the region.
According to the International Monetary Fund, Oman’s economy is expected to grow by 0.9 percent this year, with a forecasted increase to 4.1 percent in 2025. The IMF attributes this growth to reforms implemented under Vision 2040 and a rise in oil prices.
Growth not tied to hydrocarbons is projected to rise to 2.6 percent in 2024 and 3.2 percent in 2025, while headline inflation is anticipated to decelerate, as reported by the IMF.
The fund also warned that geopolitical risks, a sudden global slowdown, and persistently high global interest rates pose downside risks.
