Oman Aims to Lead Gulf in Sustainable Green Financing with Vision 2040 Reforms
Oman is positioning itself as a leader in green financing in the Gulf region, according to Mahmood Al Aweini, Secretary General of the Ministry of Finance.
As part of its Vision 2040 agenda, Oman has launched a sustainable finance framework, developed eight hydrogen production areas, and attracted major global energy players. The country has also established a 2 billion Omani rial fund to boost investment in small and medium-sized enterprises, key for economic diversification.
Mahmood Al Aweini, Oman’s Secretary General of the Ministry of Finance, said the country could become a leading player in the region because of actions it has already undertaken. Oman seeks to support the economy by reducing reliance on fossil fuels and attracting foreign investment.
“We have the infrastructure and the potential, either from the talents or the regulation system, that could support that,” he said during a discussion at the Arab Gulf States Institute in Washington.
Oman is modernizing its regulatory framework to attract foreign investment and enhance its financial sector’s competitiveness, especially in fintech. Despite regional tensions, Al Aweini sees Oman as a stable destination for foreign direct investment.
“The banking system and central bank of Oman has a huge mandate to drive that stability within the financial sector, but also to put it into international standards that can attract important players from the market overall,” he said.
“We try to widen the level … of service these financial institutions can offer to the international players, so it can become easier for them to get in, as well as to improve the competitiveness of the sector itself. Because to make it sustainable, it has to be very competitive.”
The International Monetary Fund projects Oman’s economy will grow by 0.9% in 2023, with reforms and rising oil prices expected to push growth to 4.1% by 2025. However, global risks remain challenges to this outlook.
Date: October 23, 2024
