Oman's energy transition needs wider funding, says Sohar International

what happened

Expanding renewable energy and power infrastructure in Oman will require broader funding sources and stronger project structures, senior executive vice president Hisham Mousa of Sohar International said. He advised developers to combine domestic bank lending with international capital, equity and debt market instruments.

Mousa named solar, wind and battery storage as areas needing substantial investment under Vision 2040. He said projects become bankable only after clear power purchase agreements, agreed tariffs, permits and experienced technical partners are in place. He also urged banks to play a larger role in originating, structuring and syndicating deals.

He pointed to a planned solar manufacturing ecosystem in Sohar and to regional grid interconnections as further areas for capital. The remarks were made in a presentation on energy infrastructure financing.

why it matters

For energy investors, the message is that Oman's project pipeline will depend on combining bank loans, bonds and sukuk with equity. The comments came from one bank's presentation and included no new funding figures.

market impact

Energy sector in Oman: financing gaps may slow the pace of renewable and grid projects

tags

instruments