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Oman is aiming for a future driven by clean energy, with ambitious plans to establish itself as a global leader in the production of green hydrogen.

This initiative, supported by Fitch Ratings, aims to transform the nation’s economy, draw in foreign investments, and generate new job opportunities.

The sultanate envisions producing an impressive 1 million tonnes of green hydrogen annually by 2030, a quantity poised to triple by 2040 and surpass the current demand of Europe by 2050.

This eco-friendly fuel, produced from water using renewable energy, aligns with Oman’s commitment to achieving net-zero emissions by 2050 and transitioning away from fossil fuels.

“The significant inflows of foreign direct investment would boost GDP, but the lift would be counterbalanced by rising imports for project delivery. We estimate that in-country value-added requirements for these investments will support existing GDP and ancillary services,” said Fitch.

The project’s exports will strengthen Oman’s balance of payments, fostering job creation and attracting foreign direct investments (FDIs) keen on seizing opportunities in this renewable energy revolution. While certain external debt repayments and dividends to parent companies may offset these gains, the anticipated overall economic impact is substantial.

“Fiscal and export revenues from green hydrogen may still be susceptible to global energy-price cycles, but if Oman is able to develop an export base for green steel, this could diversify its exports,” Fitch said.

Oman’s ambitions are further bolstered by a recent analysis from the International Energy Agency (IEA), predicting the sultanate to become the world’s sixth-largest hydrogen exporter by 2030, and the biggest in the Middle Eastern market.