Oman’s First Energy Transition Fund Launched

Muscat, 9 Jul (ONA) —- Oman Investment Authority
(OIA) has announced the launch of the Sultanate of Oman’s first investment fund
dedicated to the energy transition, established through a strategic partnership
between the ‘Future Fund Oman (FFO)’ and Templewater, a leading alternative
asset management company based in the People’s Republic of China.

The joint fund aims to accelerate the pace of energy
transition in the Sultanate of Oman and support efforts to diversify income
sources in line with Oman Vision 2040, by investing in innovative projects that
advance net-zero goals and open new horizons for sustainable economic growth.

This 50:50 joint fund—starting with a total capital
commitment of RO 77 million (USD 200 million), equally contributed by FFO and
Templewater—represents a pioneering initiative in clean energy and the shift
towards a low-carbon economy. The initial capital base serves as a catalyst to
unlock further capital and attract high-quality, scalable investment
opportunities aligned with Oman Vision 2040. All investment opportunities will
be located within the Sultanate of Oman, reinforcing its ambition to become a
regional hub for renewable energy innovation.

The Fund aims to invest in vital sectors and
strategic projects, including clean molecules, green data centers, energy
storage, smart mobility, and all forms of renewable energy, such as solar and
wind. It will also prioritize the development of innovative solutions and
technologies in energy efficiency and industrial innovation, tailored to meet
the needs of the Omani and regional markets.

Built as a platform to mobilize further investment,
the Fund seeks to co-develop commercially viable energy transition projects in
collaboration with both public and private sector stakeholders. It also aims to
attract additional institutional investments—locally and globally—to expand the
scale and impact of its future programs and projects.

Abdulsalam Mohammed Al Murshidi, Chairman of OIA,
affirmed that this partnership represents a key strategic step in positioning
the Sultanate of Oman as a regional and global hub for clean and renewable
energy solutions. “OIA seeks to attract expertise and global best practices to
support Oman’s ambition to become a leading exporter of clean molecules and
renewable energy solutions,” he said.

On his turn, Cliff Zhang, Chairman and CEO of
Templewater, stated: “This Fund reflects our commitment to investing in solutions
that not only deliver measurable climate benefits and robust returns but also
enhance energy security and investor confidence. The Sultanate of Oman’s
supportive regulatory environment and progressive investment outlook make it a
standout destination for advanced energy transition manufacturing and broader
economic diversification.”

Templewater will leverage its global partner network
and technical expertise to localize scalable, innovative solutions within the
Sultanate of Oman—fully aligned with FFO’s mandate to stimulate the national
economy, foster strategic investment partnerships, and unlock economic value
for the Sultanate of Oman and investors.

The fund is expected to attract strategic partners
and investors from around the world, including major global players in the
renewable energy and clean technology sectors, positioning it as an integrated
platform that supports innovation, sustainability, and startup empowerment.

This collaboration marks another major step in a
series of initiatives launched by FFO since its establishment in early 2024,
with a total capital of USD 5.2 billion. FFO allocates 90% of its capital to
strategic local projects and 10% to support SMEs and startups. The fund
underscores OIA’s commitment to directing capital toward projects that enhance
economic diversification, maximize in-country value (ICV), and support digital
and technological transformation.

In addition to financial investment, the fund will
foster effective partnerships with both public and private institutions, creating
opportunities for training and capacity building in the renewable energy
sector. It will also contribute to research and development and the transfer of
best international practices, strengthening the Sultanate of Oman’s innovation
ecosystem and ensuring both economic and environmental sustainability.

This announcement comes amid growing regional and
international momentum to address climate change and promote clean energy
alternatives. The Sultanate of Oman aspires to lead in the production and
export of clean molecules, while creating an investment-friendly environment
that supports its Paris Agreement commitments and its journey to net zero by
2050.

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Ends/AH