The Banking Executive Magazine - August Issue

Oman Banks ON INVESTORS FOR GREEN HYDROGEN PUSH As Oman prepares to host the Green Hydrogen Summit later this year, the spotlight is firmly on, among other imperatives, foreign direct invest- ment (FDI), bankability of projects and the international partnerships needed to anchor the Sultanate of Oman as a global player in the en- ergy transition. Dr Firas al Abduwani, Director Gen- eral of Renewable Energy and Hy- drogen at the Ministry of Energy and Minerals, emphasised that Oman is putting investor confidence at the heart of its green hydrogen strategy. The financial viability of projects will ultimately dictate the pace and scale of development, he said in an inter- view with The Energy Talks. “That’s why we are prioritising the funda- mentals — bankability, clear regula- tions for foreign investors, predictable taxation and transparent land allocation. These are the reas- surances international financiers look for and Oman is working to pro- vide them”. According to the official, Oman’s track record as a reliable energy hub gives it an edge in securing such backing. Having hosted mega oil and gas projects in the past, the country is no stranger to attracting large-scale financing through global banks, ex- port credit agencies and institutional investors. What is different now is the type of project — low-carbon, re- newables-driven ventures that ap- peal to financiers committed to green and ESG-linked investments, he noted. Significantly, many developers are already bringing their own finan- ciers, either through support mecha- nisms from their home governments or through institutions focused on cli- mate finance. Domestically, the Min- istry of Finance is advancing green bond initiatives under the Estidama framework, signalling Oman’s intent to create aligned financing pathways, he said. “The Green Hydrogen Summit pro- vides the right platform”, he ex- plained. “It brings together financiers, developers, policymakers and local banks to build confidence that projects are structured to suc- ceed — even when renegotiations are needed due to shifting market dy- namics”. Oman’s fundamentals also strengthen its case: world-class re- newable energy resources, a stable political and regulatory landscape, a rebounding economy with improved sovereign credit ratings and a strate- gic geography that connects East Asia with Europe. “Oman has always ho- noured its obligations”, Dr Al Ab- duwani emphasised. “That reliability is a competitive advantage for in- vestors”. Beyond financing, the success of Oman’s green hydrogen drive also hinges on strategic international col- laboration, the official pointed out. The country is rapidly building on its legacy LNG and hydrocarbon trad- ing relationships to forge new hydro- gen corridors and partnerships. Recent highlights include the planned liquid hydrogen corridor to Amsterdam, an agreement via the Port of Rotterdam securing access to German markets and expanded part- nerships with the UK, US, Korea, Japan and increasingly China. “It’s really about matchmaking be- tween exporters and importers”, he explained. “These partnerships aren’t only about molecules — they’re about technology transfer, energy se- curity and shared decarbonisation goals”. Dr Al Abduwani pointed to Belgium as a case in point. In addition to opening a channel into Europe, Bel- gium’s energy infrastructure group Fluxys has also become a direct strategic investor in Omani gas trans- portation operator OQGN, moti- vated in part by the green hydrogen opportunity. In Asia, Korea and Japan remain long-term partners, while China’s growing interest promises scale. “All these nations see mutual benefit. The challenge is in defining the right modalities — market vol- umes, hydrogen vectors and subsidy structures. These are complex, evolv- ing questions”, he said. Global platforms like Germany’s H2Global, which now serves as a neutral facilitator of buyer–supplier agreements, illustrate the potential for structured collaboration. “Whether through H2Global or other mechanisms, these forums are essen- tial”, he said. Few countries will achieve self-suffi- ciency in green hydrogen, he added, underscoring Oman’s ambition to position itself as a trusted partner. “Our goal is to create an ecosystem attractive to investors, bankable for financiers and beneficial for our in- ternational partners. The Summit is where those pieces come together”. ISSUE 200 AUGUST 2025 the BANKING EXECUTIVE 15