Renewable energy contributed 11.5% of Oman’s electricity generation as of May 2025, according to the Ministry of Energy and Minerals. The country is targeting 30% renewables by 2030 and 60% by 2040. Existing projects like the Dhofar 1 wind farm, the Ibri 2 solar plant, and the Manah solar projects anchor the strategy. Upcoming developments include Ibri 3 solar (500 MW), Jaalan Bani Bu Ali wind (100 MW), Dhofar 2 wind (120 MW), and major wind projects in Sadah and Mahout. Solar projects like Al Kamel (280 MW) and a 220 MW plant are also advancing.

The Sultanate of Oman, through Hydrom, unveiled new fiscal incentives to strengthen the commercial viability of projects in its ongoing third green hydrogen auction. The package includes a 90% cut in land lease fees during the development stage, possible relief during the FEED phase, reduced base royalties in early production years, and up to 10 years of corporate tax exemptions. These measures aim to improve project economics, accelerate investment decisions, and attract global players. Round 3 offers up to 300 sq km of land in Duqm, with bidders able to propose projects covering at least 100 sq km.

Qatar’s Ministry of Finance is updating its sovereign green assets register to enhance transparency and strengthen the country’s sustainable transformation strategy under Qatar National Vision 2030. In 2024, Qatar issued its first sovereign green bonds worth $2.5 billion in two tranches, achieving record-low spreads and strong investor demand exceeding $14 billion. The ministry also published its first green bond allocation report and contributed to the National Adaptation Plan to build climate resilience.

Oman Data Park partnered with Solar Wadi to launch a 1.4 MW solar project, with an additional 400 kW planned in Phase Two, to power its data centres. The initiative aims to establish Oman’s first Green Energy Data Center, aligning with the nation’s Net Zero 2040 goals. Solar panels will be installed at Rusayl and the Knowledge Oasis Muscat 4 building, with future expansion in car parking areas.

The World Bank’s IFC approved a financing package of up to $250 million, comprising a $200 million loan and $50 million equity investment, for United Solar’s polysilicon plant in Sohar Free Zone, Oman. The facility, under construction since March 2024, will have an annual production capacity of 100,000 tons making it the first polysilicon plant in the Middle East. The project, valued at $1.6 billion, previously secured $156 million from Oman’s sovereign wealth fund.