Oman’s clean energy and green hydrogen sector will play a central role in shaping the country’s economic future, Economy Minister Dr Said bin Mohammed Al Saqri said, pointing to renewable energy and hydrogen projects as key drivers of long-term growth, reports Zawya.
Speaking at the 29th Economic Council organised by the Omani Economic Association, Dr Al Saqri said clean energy is becoming increasingly important as Oman moves towards a more diversified and sustainable economy.
He said sustainability is no longer a separate objective but a core part of Oman’s economic planning, as countries around the world shift towards cleaner and more competitive growth paths.
Dr Al Saqri said the next Five-Year Plan will focus strongly on building a low-carbon economy, calling it a crucial direction for the country. He said scientific evidence clearly shows the need to cut harmful emissions and added that Oman has a clear strategy and strong commitment to achieve net-zero emissions by 2050.
The minister said renewable energy is not just about protecting the environment but also about strengthening competitiveness and energy security. He said Oman aims to generate around 40% of its electricity from renewable sources such as solar and wind by about 2040.
On green hydrogen, Dr Al Saqri acknowledged that investment activity has slowed recently, both in Oman and globally, due to weaker momentum in the sector. However, he said this slowdown is expected to be temporary, with demand for green hydrogen likely to pick up again around 2030, based on current data.
He also referred to recent decisions by major companies in the sector, saying BP’s move to scale back its green hydrogen involvement was part of a broader global adjustment and not specific to Oman. He said other investments in the country are continuing according to national plans and timelines.
BP recently exited the Duqm Green Hydrogen Project as part of a global portfolio review but continues to be involved in the Hyport Duqm project in Oman.
Commenting on the future role of oil and gas, Dr Al Saqri said traditional energy sources will remain important in the medium and long term, even as cleaner alternatives grow. He said energy use is expected to become more efficient, while clean and alternative sources will take up a much larger share of global energy consumption in the years ahead.
