Muscat – In The Business Year’s Oman 2024 report, OIA President H.E. Abdulsalam bin Mohammed bin Abdullah Al Murshidi revealed ambitious plans to unlock the full potential of hydrogen for investment and economic development across the nation.

He pointed out that the sovereign wealth fund’s subsidiaries and affiliates are gearing up to contribute significantly to hydrogen production and the localization of manufacturing capacity and technological expertise in this vital industry.

Explaining further, he stated that the OIA and its companies are working on projects across the hydrogen industry value chain, including electrolyzers, storage, and shipping. “The aim is to localize the technologies and industries needed to produce, store, utilize, and export hydrogen,” he added.
The hydrogen sector is expected to attract approximately $48 billion in investments over the next decade, supporting eight large-scale green hydrogen projects in the Al Wusta and Dhofar Governorates. These projects are projected to have a combined production capacity of a staggering 1.4 million tonnes per year by 2030.

This growth aligns with Oman’s broader commitment to achieving complete decarbonization across all sectors by 2050, as mandated by the Paris Agreement, indicated the OIA President, highlighting the targets for sectors like electricity, real estate, transportation, and even oil and gas to achieve carbon neutrality.

Explaining that Oman’s decarbonization strategy is multifaceted, H.E. Al Murshidi stated that it encompasses short-term initiatives such as efficiency projects, medium-term plans for renewable energy and green mobility solutions, and long-term considerations for carbon capture and storage technologies. This comprehensive approach aims to significantly reduce current CO2 emissions of 105 million tonnes per year and achieve net-zero by 2050.
Additional initiatives are expected to target emission reductions in challenging sectors such as hydrocarbons.

H.E. Al Murshidi also highlighted the success of OIA’s divestment strategy, which has delivered significant results in the energy, logistics, and infrastructure sectors through direct sales and three successful IPOs of indirectly owned assets—Abraj Energy, OQ Gas Networks, and Pearl REIF.
“This not only increases market liquidity but also democratizes ownership,” he said, pointing out the importance of allowing a wider section of Omanis to participate more directly in the country’s economic growth.

With its focus not just on production but also on infrastructure and technology development, Oman is poised to become a major player in the hydrogen value chain.