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Observer
04-07-2025
- Business
- Observer
Reforms and Oman Vision 2040 drive recovery, confidence
MUSCAT: Just a few years ago, Oman faced one of the most challenging periods in its fiscal history, grappling with plunging oil prices, mounting public debt and global disruptions that pushed the nation into a deep deficit. Today, however, Oman is on a different path — one defined by recovery, economic reforms and renewed confidence in its future. A June 2025 report by Bahrain-based regional asset manager and investment bank SICO BSC, titled 'Rise of Oman: An Example of Fiscal Prudence,' confirms that Oman ended 2024 with a budget surplus of approximately RO 1 billion. At the same time, the country succeeded in reducing its public debt to RO 15.3 billion, equivalent to just 36.5 per cent of GDP, down from a high of 64 per cent in 2020. The seeds of recovery were planted in 2015 when Oman faced a record budget deficit of RO 4.6 billion. In response, the government implemented aggressive cost-cutting measures. Fuel subsidies were reduced, saving RO 479 million, while electricity subsidies were trimmed by RO 386 million. Defence spending was slashed by RO 350 million and civil ministry budgets were tightly managed. After His Majesty Sultan Haitham bin Tarik assumed leadership in 2020, Oman accelerated its fiscal reforms. The government focused on diversifying its revenue sources and enforcing strict control over expenditures, even during the Covid-19 pandemic. A major milestone was the introduction of VAT in April 2021, which raised RO 301 million in its first year. Between 2020 and 2023, tax and fee revenues increased by approximately 70 per cent, helping reduce dependence on oil revenues. The government's restraint in public sector hiring and wages also played a role. Over the past decade, public sector salaries and benefits have remained largely flat, allowing the state to avoid long-term financial burdens and maintain greater fiscal flexibility. Oman also benefitted from rising oil prices after 2021. While other Gulf states cut production under OPEC+ agreements, Oman maintained strong export volumes, allowing it to capitalise on market conditions. By 2024, Oman had reduced its budget breakeven oil price to $55 per barrel, down from $100 in 2014. This fiscal strength was recognised internationally when Oman's credit rating was upgraded to investment grade (BBB-) in September 2024, a move that is expected to reduce borrowing costs and improve investor confidence. Looking ahead, the 2025 budget projects a modest deficit of RO 620 million, largely due to cautious oil price assumptions. However, analysts — including those at SICO — believe Oman could record another surplus if oil prices remain favourable. To fund priority projects, the government plans to raise RO 750 million through new bonds and sukuk this year. With its finances stabilised, Oman is preparing for a new phase of strategic development aligned with Oman Vision 2040. Key projects include Sultan Haitham City ($2.6 billion), HyDuqm Green Hydrogen Hub ($7.5 billion) and later phases of green hydrogen expansion ($27 billion). Other major initiatives include the Duqm Green Steel Plant, the now-operational Duqm Refinery and revitalisation of Al Khuwair Downtown. Real estate and tourism projects in Yiti, a new UAE–Oman rail network and renewable energy projects such as the Ibri III Solar Plant and five wind power plants are also in the pipeline. 'These projects are not just about infrastructure,' the SICO report notes. 'They're a catalyst for national growth and investor confidence'. Oman is also planning for the long term by broadening its tax base. A domestic minimum top-up tax will be introduced in 2025, followed by the rollout of personal income tax in 2028, representing a major policy shift in the Gulf. At the same time, Oman's capital markets are positioned for growth. Despite returning just 15 per cent over the past decade, the market achieved 10 per cent annualised returns in the past five years. With stocks trading at a forward price-to-earnings ratio of 9.5x, there is potential for market re-rating. The launch of the Tanmia Liquidity Fund in May 2024 is expected to further deepen investor participation. Oman's transformation from fiscal fragility to financial resilience did not happen by chance. It required tough decisions, steady leadership and a focus on long-term stability. As SICO concludes, 'The fiscal consolidation achieved over the past five years provides a strong foundation for Oman to accelerate its ambitious development agenda'.
Zawya
02-06-2025
- Business
- Zawya
Oman's HyDuqm hydrogen project eyes FID in 2027
MUSCAT: Hydrogen Duqm LLC (HyDuqm), one of nine large-scale green hydrogen and ammonia projects currently in early development in Oman, anticipates a Final Investment Decision (FID) in 2027, with production slated to commence in 2030. HyDuqm represents a joint venture set up by six leading global companies comprising POSCO Holdings, Samsung Engineering Company Limited, Korea East-West Power Company Limited, Korea Southern Power Company Limited, MESCAT Middle East DMCC (a subsidiary of ENGIE from France), and FutureTech Energy Ventures Limited (FTEV) - the clean energy arm of Thai energy conglomerate PTTEP. In 2023, the JV partners won a concession from Hydrom, the master-planner of Oman's green hydrogen (GH2) economy, to develop a GH2 project in Block Z1-02 in Al Wusta Governorate. The project targets an annual capacity of 1.2 million tonnes of green ammonia, focusing on clean energy production from green hydrogen. According to PTTEP subsidiary FTEV, the partners of HyDuqm are currently 'in the process of assessing wind and solar energy potential (Renewable Resource Assessment) and conducting a feasibility study to evaluate the investment value and profitability of the project prior starting engineering design'. Significantly, FTEV's role as a JV partner in HyDuqm is the latest addition to parent organization PTTEP's expanding presence in Oman's energy industry. 'This investment supports the growth of new businesses aligning with the Company's business plan and provides an opportunity to apply knowledge and experience in green hydrogen production in Thailand, in line with future energy policies,' PTTEP noted in its recently issued 2024 Annual Report. 'PTTEP completed the installation of wind and solar potential measurement stations and has begun collecting data to support the project operations. The ongoing feasibility study phase includes geographical, geotechnical, and hydrological assessments, as well as a Preliminary Environmental and Social Impact Assessment (Pre-ESIA),' it further stated. The feasibility study, according to the Thai state-owned energy giant, will also help determine the amount of required capital expenditure and economic return before proceeding to the engineering design phase in 2025. The Annual Report also shed light on the performance of PTTEP's portfolio of investments in the upstream and midstream segments of Oman's oil and gas sector. One of its largest investments is in Block 61 in central Oman, which accounts for around a third of Oman's gas production. PTTEP owns a 20 per cent interest in the BP-operated concession. In 2024, natural gas and condensate production averaged 1,511 MMSCFD (approximately 267,746 barrels of oil equivalent per day - BOED) and 56,087 bpd respectively. Production from Block 6 – the largest producing oil asset in central Oman – averaged 66,490 bpd of crude oil in 2024. PTTEP Group holds a 2 per cent participating interest in this project, with Petroleum Development Oman (PDO) as the operator. In south Oman, PTTEP Group holds a 1 per cent participating interest in Block 53 (also known as the Mukhaizna field) with Occidental as the operator. In 2024, the average crude oil production was 75,227 bpd. Recently, Oman's Ministry of Energy and Minerals signed an agreement to extend the Block 53 Exploration and Production Sharing Agreement (EPSA) with Occidental and its partners until 2050. Rounding off its upstream assets is Block 12, a large onshore natural gas exploration block in central Oman. PTTEP Group holds a 20 per cent participating interest in the project, with TotalEnergies as the operator. In 2024, two exploration wells were completed, while geological and geophysical studies are currently underway. PTTEP subsidiary PTTEP Oman E&P Corporation (POC), formerly Partex Oman Corporation, also has a 2 percent stake in Oman LNG LLC and an indirect 0.7 per cent stake in Qalhat LNG. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
02-06-2025
- Business
- Zawya
Oman's HyDuqm expects FID in 2027
Hydrogen Duqm (HyDuqm), one of nine large-scale green hydrogen and ammonia projects currently in early development in Oman, anticipates a Final Investment Decision (FID) in 2027, with production slated to commence in 2030. HyDuqm is a joint venture comprising POSCO Holdings, Samsung Engineering , Korea East-West Power Company, Korea Southern Power Company , MESCAT Middle East DMCC (a subsidiary of ENGIE from France), and FutureTech Energy Ventures (FTEV) - the clean energy arm of Thai energy conglomerate PTTEP. In 2023, the JV partners won a concession from Hydrom, the master-planner of Oman's green hydrogen economy, to develop a GH2 project in Block Z1-02 in Al Wusta Governorate. The project targets an annual capacity of 1.2 million tonnes of green ammonia, focusing on clean energy production from green hydrogen. According to PTTEP subsidiary FTEV, the partners of HyDuqm are currently 'in the process of assessing wind and solar energy potential (Renewable Resource Assessment) and conducting a feasibility study to evaluate the investment value and profitability of the project prior to starting engineering design'. FTEV's role as a JV partner in HyDuqm is the latest addition to parent organisation PTTEP's expanding presence in Oman's energy industry. 'This investment supports the growth of new businesses aligning with the Company's business plan and provides an opportunity to apply knowledge and experience in green hydrogen production in Thailand, in line with future energy policies,' PTTEP noted in its recently issued 2024 Annual Report. 'PTTEP completed the installation of wind and solar potential measurement stations and has begun collecting data to support the project operations. The ongoing feasibility study phase includes geographical, geotechnical, and hydrological assessments, as well as a Preliminary Environmental and Social Impact Assessment (Pre-ESIA),' it said. The feasibility study, according to the Thai state-owned energy giant, will also help determine the amount of required capital expenditure and economic return before proceeding to the engineering design phase in 2025. (Writing by Nadim Kawach; Editing by Anoop Menon)
Observer
31-05-2025
- Business
- Observer
Oman's HyDuqm hydrogen project eyes FID in 2027
MUSCAT: Hydrogen Duqm LLC (HyDuqm), one of nine large-scale green hydrogen and ammonia projects currently in early development in Oman, anticipates a Final Investment Decision (FID) in 2027, with production slated to commence in 2030. HyDuqm represents a joint venture set up by six leading global companies comprising POSCO Holdings, Samsung Engineering Company Limited, Korea East-West Power Company Limited, Korea Southern Power Company Limited, MESCAT Middle East DMCC (a subsidiary of ENGIE from France), and FutureTech Energy Ventures Limited (FTEV) - the clean energy arm of Thai energy conglomerate PTTEP. In 2023, the JV partners won a concession from Hydrom, the master-planner of Oman's green hydrogen (GH2) economy, to develop a GH2 project in Block Z1-02 in Al Wusta Governorate. The project targets an annual capacity of 1.2 million tonnes of green ammonia, focusing on clean energy production from green hydrogen. According to PTTEP subsidiary FTEV, the partners of HyDuqm are currently 'in the process of assessing wind and solar energy potential (Renewable Resource Assessment) and conducting a feasibility study to evaluate the investment value and profitability of the project prior starting engineering design'. Significantly, FTEV's role as a JV partner in HyDuqm is the latest addition to parent organization PTTEP's expanding presence in Oman's energy industry. 'This investment supports the growth of new businesses aligning with the Company's business plan and provides an opportunity to apply knowledge and experience in green hydrogen production in Thailand, in line with future energy policies,' PTTEP noted in its recently issued 2024 Annual Report. 'PTTEP completed the installation of wind and solar potential measurement stations and has begun collecting data to support the project operations. The ongoing feasibility study phase includes geographical, geotechnical, and hydrological assessments, as well as a Preliminary Environmental and Social Impact Assessment (Pre-ESIA),' it further stated. The feasibility study, according to the Thai state-owned energy giant, will also help determine the amount of required capital expenditure and economic return before proceeding to the engineering design phase in 2025. The Annual Report also shed light on the performance of PTTEP's portfolio of investments in the upstream and midstream segments of Oman's oil and gas sector. One of its largest investments is in Block 61 in central Oman, which accounts for around a third of Oman's gas production. PTTEP owns a 20 per cent interest in the BP-operated concession. In 2024, natural gas and condensate production averaged 1,511 MMSCFD (approximately 267,746 barrels of oil equivalent per day - BOED) and 56,087 bpd respectively. Production from Block 6 – the largest producing oil asset in central Oman – averaged 66,490 bpd of crude oil in 2024. PTTEP Group holds a 2 per cent participating interest in this project, with Petroleum Development Oman (PDO) as the operator. In south Oman, PTTEP Group holds a 1 per cent participating interest in Block 53 (also known as the Mukhaizna field) with Occidental as the operator. In 2024, the average crude oil production was 75,227 bpd. Recently, Oman's Ministry of Energy and Minerals signed an agreement to extend the Block 53 Exploration and Production Sharing Agreement (EPSA) with Occidental and its partners until 2050. Rounding off its upstream assets is Block 12, a large onshore natural gas exploration block in central Oman. PTTEP Group holds a 20 per cent participating interest in the project, with TotalEnergies as the operator. In 2024, two exploration wells were completed, while geological and geophysical studies are currently underway. PTTEP subsidiary PTTEP Oman E&P Corporation (POC), formerly Partex Oman Corporation, also has a 2 percent stake in Oman LNG LLC and an indirect 0.7 per cent stake in Qalhat LNG.
Zawya
29-04-2025
- Business
- Zawya
Oman: Advantage Oman Forum 2025 unveils guide on investment opportunities
MUSCAT: A comprehensive investment guide, titled 'World of Opportunities', was launched against the backdrop of the Advantage Oman Forum 2025, which concluded at The St. Regis Al Mouj Muscat Resort, here on Monday, April 28, 2025. The guide details seven priority sectors poised for growth, aligning with Oman Vision 2040 and the nation's commitment to economic diversification. Oman is rapidly emerging as a leader in the Renewable Energy Sector, particularly in green hydrogen production. The country has allocated 50,000 square kilometres for hydrogen projects, aiming to become a competitive low-emissions hydrogen supplier by 2030. Notably, the HyDuqm project, led by France's Engie and South Korea's Posco, anticipates attracting between $7 billion and $8 billion in investments to develop up to 5 GW of new wind and solar capacity and produce 200,000 tonnes of renewable hydrogen annually. The Logistics Sector remains a cornerstone of Oman's economic development. Strategically located at the crossroads of global trade routes, Oman is enhancing its logistics infrastructure to serve as a regional trade hub. The country's major ports — Suhar, Salalah, and Duqm — handled over 4.6 million TEUs and 63.1 million tonnes of cargo in 2023, reinforcing its status as a global logistics powerhouse. Recent collaborations, such as the expanded joint venture between Oman Rail and Etihad Rail, aim to enhance connectivity and boost trade volumes. In the Manufacturing Sector, Oman is focusing on diversifying its industrial base by promoting sectors like petrochemicals, mining, and technology-driven manufacturing. The Salalah Free Zone has attracted investments in pharmaceuticals, petrochemicals, and mining, while the Sohar Free Zone has become a hub for mining, ceramics, and construction materials. Additionally, the country is venturing into semiconductor manufacturing, with plans to develop advanced AI chips, enhancing its position in the global semiconductor industry. The Tourism Sector is a major pillar under Oman Vision 2040, with the country targeting 12 million visitors by 2040. The government is investing RO 3 billion (approximately $7.8 billion) to develop 13 integrated tourism complex projects, with 12 more in the pipeline. These complexes combine residential, hospitality, recreational, and commercial facilities, offering comprehensive experiences to tourists and residents alike, further positioning Oman as a top regional destination. Oman's commitment to building a digital economy is reflected in the country's broader investments in ICT infrastructure. Oman is encouraging innovation in areas like artificial intelligence and cybersecurity, with its ICT market projected to grow from $5.96 billion in 2025 to $9.11 billion by 2030, at a CAGR of 8.88 per cent. Initiatives such as the National Digital Economy Programme are designed to enhance digital services, promote e-governance, and support the growth of tech startups, contributing to a more sustainable and circular economic model. In the Agriculture & Fisheries Sector, Oman is reinforcing its food security agenda. The government has launched 30 projects focusing on strategic crops, aquaculture, and water resources, aiming to increase local production, reduce reliance on imports, and create job opportunities for Omanis. These initiatives are not only ensuring sustainable food production but are also enhancing Oman's exports in the fisheries sector. The Advantage Oman Forum 2025 showcased Oman's commitment to economic diversification and sustainable development. By focusing on these seven strategic sectors, Oman is positioning itself as a competitive and attractive destination for global investors seeking sustainable and diversified opportunities. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
