lead GCC clean energy investments

The Gulf Cooperation Council (GCC) economies represent an enormous opportunity for EIC members. As the region pivots from fossil fuels, GCC states are well-positioned to lead the energy transition through clean hydrogen development and strong policy support.

Across the region, the political will to decarbonise at pace is lining up investors. And although ambitions vary among countries, as do market size and readiness, there is a prevailing sense of dynamism. But which markets should you consider exporting to in 2023? Oman, Saudi Arabia and UAE, says Wan Afiq, Energy Analyst for Middle East and North Africa at EIC

Oman

100% foreign ownership

Low-cost loans

No minimum capital requirement for business setup

Significant tax incentives

100% customs duty exemption

In the GCC, Oman is racing ahead with clean energy investment and development. EICDataStream is tracking 10 active and planned projects worth more than US$26bn CAPEX. The country aims to be a leading green hydrogen hub, with over 99% of estimated CAPEX for energy transition projects in the hydrogen sector; the other 1% is invested in energy storage.

Who are the key players?

Major companies active in Oman’s energy transition sector include

In October 2022, Oman joined the UAE and Saudi Arabia in becoming the third GCC country to commit to achieving net-zero emissions by 2050, in alignment with the goals of the Paris Agreement. Following the UAE and Saudi Arabia, which made their net-zero pledges in 2021, and according to EICDataStream, Oman now leads the way with its plans to capitalise on a range of clean energy investments throughout the country.

Estimated CAPEX spend up to 2029

Oman

10 clean energy projects worth US$26.2bn

Saudi Arabia

7 clean energy projects worth US$20.2bn

UAE

12 clean energy projects worth US$4.2bn

OQ (formerly known as Oman Oil Company), Intercontinental Energy, Marubeni Corporation and ACME. During the last 12 months, international contractors that have been successful in Oman in Oman include KBR, DNV GL and Worley.

Future opportunities worth US$140bn

Clean energy is one of the key sectors targeted by Oman Vision 2040 and the Sultanate’s national strategy for energy. Oman launched its Green Hydrogen Strategy in