MUSCAT: Sohar International has stepped up its engagement with Oman’s energy industry, bringing financial and sector leaders together to examine investment opportunities as the country accelerates economic diversification and develops new sources of energy.The bank joined the Oman Energy Association to organise a symposium titled “Oman’s Energy Sector in a Reshaped Gulf: Driving Economic Growth, Investment, and Global Competitiveness”. The August 4 gathering brought together senior executives, specialists and decision-makers from the financial and energy industries.
Discussions focused on how Oman can attract capital into renewable power, natural gas, hydrogen and energy infrastructure while strengthening the contribution of the sector to economic growth. Participants also examined regulatory and policy requirements for developing projects during a period of rapid change across Gulf energy markets.
The initiative reflects growing efforts to connect banks and other financial institutions more closely with energy companies as Oman seeks to convert ambitious development plans into commercially viable projects. The country continues to rely heavily on oil and gas revenues, but investment is increasingly being channelled towards renewables, hydrogen, minerals and industries linked to cleaner energy.
Sohar International Chief Executive Officer Abdulwahid Mohamed Al Murshidi said the bank regarded its role as extending beyond conventional banking activities. Its objective was to help mobilise capital and partnerships for industries considered central to Oman’s future economic development.
The bank sees the energy industry as particularly important because large projects require long-term financing, structured investment and coordination between government entities, developers, investors and lenders. The symposium was designed to create a platform where those groups could assess opportunities and identify obstacles to investment.
Oman Energy Association Chief Executive Officer Mohammed Hamood Al Naabi also emphasised closer cooperation between finance and industry. Such collaboration is expected to be important for attracting investment, encouraging technological development and supporting the diversification objectives set under Oman Vision 2040.
The push comes as Oman pursues an economic programme intended to raise investment and reduce vulnerability to fluctuations in hydrocarbon prices. The country’s 11th Five-Year Development Plan, covering 2026-2030, targets average real gross domestic product growth of 4 per cent and aims for investment equivalent to 28 per cent of GDP. It also sets a target for foreign direct investment inflows equivalent to 11 per cent of GDP.
Oil and gas nevertheless remain crucial to the economy and to funding diversification. Oman opened bidding in April for five oil and gas concession blocks, with registration continuing until September 30, as authorities seek additional foreign capital and exploration activity.
At the same time, the country is positioning renewable power and green hydrogen as potential future export industries. Solar and wind projects are expanding while industrial centres such as Sohar and Duqm are being developed as locations where renewable electricity, manufacturing, logistics and export infrastructure can be combined.
This dual approach — maintaining hydrocarbon production while building lower-carbon businesses — is shaping investment requirements across the energy industry. Gas remains important for electricity generation and industry, while renewable capacity is expected to become increasingly significant as Oman seeks to lower emissions and create energy-intensive industries powered by cleaner sources.
Hydrogen represents another major area of interest. Oman’s geographical position, available land, strong solar resources and access to ports provide advantages for producing hydrogen and derivatives such as green ammonia for export. The challenge is securing large amounts of capital while ensuring projects remain competitive as other Gulf states pursue similar strategies.
Financial institutions are therefore becoming more closely involved at an earlier stage of energy development. Their role can extend from project finance and corporate lending to advisory services, capital markets and the structuring of investment vehicles capable of attracting international investors.
Sohar International has been expanding its engagement with cross-border investment networks as Oman seeks stronger connections with Asian and Gulf capital. The bank signed a strategic partnership with ewpartners in May aimed at supporting financial cooperation, business flows, trade finance and industrial projects connecting Asia with Gulf markets.
Topics
Live News