Around the world, capital is shifting towards cleaner and more responsible growth. Investors are directing more funds to projects that cut emissions and protect natural resources; and they now expect clear, measurable outcomes for every rial or dollar they commit “Green finance” captures this concept: financing renewable energy, energy-efficient industries and buildings, cleaner transport, better water and waste systems; and climate-resilient infrastructure. The aim is simple yet powerful — to make economic growth and environmental stewardship work hand in hand.

For Oman, this vision aligns perfectly with the aspirations of Oman Vision 2040. It promises a stronger, more diversified economy built on innovation, skilled jobs and sustainability — a model that preserves Oman’s natural beauty while enhancing its global competitiveness. It also sends a strong signal to international partners that Oman is ready to grow responsibly, sustainably and confidently.

The tools are practical and already in use worldwide. Green bonds and loans channel funding into projects such as solar parks, factory retrofits, or energy-efficient desalination plants. Sustainability‑linked loans and bonds reward companies with lower borrowing costs when they hit agreed targets, for example a drop in energy use or a rise in recycled water. Carbon markets can provide additional revenue when projects demonstrate verified emissions reductions.

When these tools are backed by honest data and good reporting, the benefits are strong: access to new international investors, longer maturities, better pricing, a stronger national image and jobs in engineering, project finance, digital monitoring, maritime services, logistics and the circular economy. Global capital is clearly moving in this direction and Oman is well-positioned to capture its share.

Oman’s starting point is strong. The Sultanate of Oman has abundant solar and wind resources, a strategic location, reliable institutions and a growing base of industrial and logistics expertise. These strengths line up perfectly with the next wave of investment in green hydrogen, power grids, storage and cleaner manufacturing. Local banks are building the right capabilities and policy makers are giving helpful signals. The Central Bank of Oman is encouraging the development of sustainable finance practices and transparent disclosures, while capital‑market rules now allow green and sustainability bonds and sukuk to be issued with confidence. Within the banking sector, Sohar International has emerged as one of the early movers by building internal teams, engaging clients and exploring climate‑aligned lending so that more Omani projects can qualify for green finance on fair terms.

Real progress is already visible. In shipping and logistics, an Omani company secured a green loan to finance energy‑efficient vessels with international lenders after it presented a clear business case and a credible plan to cut fuel use and emissions. Local retail programmes have supported rooftop solar and efficiency, helping households and small businesses see the benefit in lower bills. In heavy industry and energy, the push around green hydrogen has started to attract global developers who bring both capital and technology. Each example shows the same principle: clarity plus data equals money. When a company can explain how much energy it will save or how many tonnes of carbon it will avoid — and get those numbers independently checked — lenders become more confident and pricing improves.

At the enterprise level, preparedness is key. A simple sustainability plan that explains the project, the expected environmental benefit and how results will be measured is the first step. Next comes a baseline for emissions: Scope 1 (direct), Scope 2 (indirect) and, where it matters, the most important parts of Scope 3 (value chain) — builds credibility. Choose the right instrument: a green loan or bond when the use of proceeds is clearly green and a sustainability‑linked structure when the goal is to improve performance over time. Collect the facts early — feasibility studies, permits, contracts and a one‑page summary of the impact per rial invested. Get an external review to build trust. Engage your bank at the start and ask what documentation, KPIs and reports it needs so there are no surprises later.

Awareness and skills make the whole market move faster. Many Omani businesses, especially SMEs, want to join this wave but are unsure where to start. A national “Green Finance Starter Programme” run with chambers and industry groups would help businesses calculate a basic emissions baseline, select the right financing tool, prepare a short sustainability report and understand assurance requirements. Training should also target bankers, credit officers and FDI professionals, ensuring they speak the same technical language of green finance — eligibility, KPIs, verification and reporting. When everyone aligns on these terms, deals close faster. This is also where the Central Bank and investment authorities can keep nudging the system forward by supporting standard templates, sharing examples and celebrating early successes so that others follow.

SAFEGUARDING NATIONAL INTERESTS

While global cooperation and financing play a vital role in advancing sustainable development, Oman’s approach to green finance is firmly grounded in national priorities and financial independence. The objective is not to follow external agendas, but to channel capital towards projects that strengthen Oman’s economic base, industrial competitiveness and environmental resilience. Policies led by the Central Bank of Oman, the Capital Market Authority and the Ministry of Finance ensure that all green financing instruments serve domestic objectives, with clear disclosure and accountability standards. This framework protects national interests, attracts credible partners and ensures that the transformation towards sustainability remains both sovereign and strategic.

With these pieces in place, Oman can lead in our region by focusing on three simple priorities. First is clarity: keep the rules practical and stable so companies and banks know exactly what counts as green and which documents are needed. Second is capability: invest in short, targeted training so lenders and borrowers speak the same language and can measure and verify impact with confidence. Third is pipeline: present a visible list of priority projects — renewables, storage, efficiency in industry, low‑carbon logistics and green hydrogen.

Targeted government support — such as a sovereign sustainable finance framework or credit-enhancement facility for early projects — can help attract private capital without distorting the market. The payoff: lower financing costs, greater international investment, stronger Omani enterprises and sustainable, high-quality jobs.

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