KEEN ON GREEN
Population growth and the expansion of heavy industry have put a strain on Oman's power infrastructure and, by extension, its oil and gas reserves, leaving Oman with the need to pursue other sources of energy.
According to the US Energy Information Administration (EIA), whilst Oman has proven oil reserves of 5.37 billion barrels (as of January 2017), and proven natural gas reserves of 24 trillion cubic feet (as of January 2016), neither resource is as easily accessible or as large as those of its neighbors Saudi Arabia, Kuwait, the UAE, and Qatar. With a predicted lifespan of only 40 years, the government is currently faced with the question of what will replace these valuable sources of energy when they run out.
On one hand, Oman oil fields are using pioneering oil extraction technologies to maximize the amount of recoverable oil, therefore extending the life of these reserves. In 2015, Petroleum Development Oman (PDO), the largest producer of oil and gas in Oman, and GlassPoint Solar, the leader in solar enhanced oil recovery (EOR), announced plans to build one of the world's largest solar plants. The 1.021-GW thermal facility in south Oman will harness the sun's rays to produce steam which will then be used in thermal EOR to extract heavy and viscous oil at the Amal oil field.
On the other hand, 44% of Oman's natural gas production is exported, 22% is used to power oil extraction, and the remaining 34% is consumed locally for utilities and industry, resulting in domestic demand consistently outstripping production. As a result, Oman is currently importing natural gas from Qatar through the Al-Ain–Fujairah pipeline, which has a capacity of 20 billion cbm per annum, just to maintain electricity generation.
Given the evident need to diversify and reduce dependency on oil and natural gas, in 2007 Oman created the Ministry of Environment and Climate Affairs, making it the only country in the region with a dedicated ministry to tackle this subject. With a royal decree and a vision promulgated under Sultan Qaboos bin Said Al Said's Vision 2020 to produce 10% of its total electricity requirement from renewable energy sources, it is clear that Oman has serious intentions to invest heavily in the development of its renewable energy capacity over the coming years.
Solar power is especially attractive as Oman has one of the highest solar energy densities in the world. In 2017, the Authority for Electricity Regulation (AER) announced a solar scheme, the Sahim Plan, aimed to slash the current OMR500 million (USD1.3 billion) annual electricity subsidies as solar supplies increase. According to Qais Al Zakwani, Executive Director of AER, the scheme consists of allowing homeowners to set up solar panels on their rooftops, generate electricity for their own usage, reduce their dependency on the grid, and sell excess solar power back to the national grid.
In addition, the Chinese firm Ningxia Zhongke Jiaye New Energy and Technology Management Company signed an MoU with the Oman Investment Fund for a USD94-million solar panel venture in the Duqm Special Economic Zone. In the first phase, the proposed company plans to produce solar panels that can generate 400MW of energy per annum, which will be increased to 1,000MW in the second phase. The company also anticipates USD215 million in sales revenue per annum in its first phase.
In regards to eolic sources of energy, Oman's first large-scale, commercial wind project is expected to begin operations in 2020. According to the seven-year outlook for the power and water sector released by the Oman Power and Water Procurement Company (OPWP), the project will consist of a 25-turbine wind farm near Harweel in Dhofar. It will be built by state-owned Rural Areas Electricity Company (RAECO) in partnership with Abu Dhabi's Masdar, and is expected to generate 50MW of electricity. No longer wishing to be dependent on natural gas imports and increasing energy demands have Oman making serious moves toward renewable sources.
KEEN ON GREEN
TABLE OF CONTENTS
Focus: Oman-Iran Relations
Nothing Personal
A new automotive production venture and undersea gas pipeline project highlight the long-term and historic friendship between Oman and Iran, underscoring their policies of transparency and non-interference with the aim of achieving the best possible conditions for the economies and people of both countries.
read articleInterview
Abdullah Nasser Abdullah Al Bakri, Minister , Manpower (MoM)
TBY talks to Abdullah Nasser Abdullah Al Bakri, Minister of Manpower (MoM), on its ongoing efforts to boost Omanization across sectors, streamlining the employment process in the private sector, and developing human resources in the country.
read articleInterview
HE Talal Al Rahbi, Deputy Secretary General , Supreme Council for Planning (SCP)
TBY talks to HE Talal Al Rahbi, Deputy Secretary General of the Supreme Council for Planning (SCP), on its key responsibilities, ensuring a more sustainable policy, and the importance of economic diversification.
read articleInterview
Dr. Hilal Al-Qamshoey, Project Director, Oman National Spatial Strategy (ONSS)
TBY talks to Dr. Hilal Al-Qamshoey, Project Director of Oman National Spatial Strategy (ONSS), on the importance of addressing the challenges to growth, assessing potential, and attracting greater FDI.
read articleInterview
Khalid Al Yahmadi, CEO, Muscat National Development and Investment Company (ASAAS)
TBY talks to Khalid Al Yahmadi, CEO of Muscat National Development and Investment Company (ASAAS), on its projects to diversify Oman's economy, sectors with growth potential, and its goals for 2018.
read articleCommuniqué: Ithraa
Exports Matter
Exports matter because they represent the very sectors that drive wealth, attract investment and talent, boost productivity and innovation, and generate employment. Industry accounted for 47.6% of Oman's GDP in 2017 and our non-oil exports were over USD6.2 billion. Today, Omani firms export to 135 countries.
read articleInterview
Khalifa Abdullah Al-Barwani, CEO, National Center for Statistics and Information (NCSI)
TBY talks to Khalifa Abdullah Al-Barwani, CEO of the National Center for Statistics and Information (NCSI), on the many benefits of its information apps, the growing focus on logistics, and supporting the public and private sectors with valuable data.
read articleInterview
Dr. Dhafir Awadh Al-Shanfari, CEO, Oman Authority for Partnership for Development (OAPFD)
TBY talks to Dr. Dhafir Awadh Al-Shanfari, CEO of Oman Authority for Partnership for Development (OAPFD), on the goals of the authority, its current projects, and its focus for the medium term.
read articleInterview
Khalid bin Al Safi Al Haribi, Acting CEO, Public Authority for SMEs Development (Riyada)
TBY talks to Khalid bin Al Safi Al Haribi, Acting CEO of the Public Authority for SMEs Development (Riyada), on instilling an entrepreneurship culture amongst Omanis, key areas for development, and doing more with less.
read articleInterview
Yaqoob Saif Al Kiyumi, CEO, Oman Power and Water Procurement Company (OPWP)
TBY talks to Yaqoob Saif Al Kiyumi, CEO of Oman Power and Water Procurement Company (OPWP), on the challenges of growing water and electricity demand, planning for renewable energy projects, and its key objectives in the long term.
read articleInterview
HE Tahir Bin Salim Bin Abdullah Al Amri, Executive President, Central Bank of Oman (CBO)
TBY talks to HE Tahir Bin Salim Bin Abdullah Al Amri, Executive President of the Central Bank of Oman (CBO), on revising the country's FDI laws, financing the fiscal debt via issuing bonds, and its efforts to promote SMEs.
read articleInterview
HE Abdullah Salim Al Salmi, Executive President, Capital Market Authority (CMA)
TBY talks to HE Abdullah Salim Al Salmi, Executive President of the Capital Market Authority (CMA), on promoting greater activity in the financial services sector, encouraging investors to go beyond the banking sector, and its upcoming projects.
read articleInterview
Dr. Ashraf bin Nabhan Al Nabhani, Chairman, Muscat Securities Market (MSM)
TBY talks to Dr. Ashraf bin Nabhan Al Nabhani, Chairman of Muscat Securities Market (MSM), on the evolution and maturity of the stock market, increased privatization initiatives, and plans to demutualize.
read articleInterview
Murtaza Jariwala, Executive Director, Vanguard Engineering & Oilfield Service
TBY talks to Murtaza Jariwala, Executive Director of Vanguard Engineering & Oilfield Services, on manufacturing and value addition, successful long-term partnerships, and how to best thrive as a truly local company.
read articleInterview
Hilal Mohammed Hamoud Al Busaidi, CEO, Public Authority for Mining (PAM)
TBY talks to Hilal Mohammed Hamoud Al Busaidi, CEO of the Public Authority for Mining (PAM), on increasing metal exploration, sharing the risk with investors, and banking on the rare commodity of quality.
read articleInterview
Dr. Salim Sultan Al Ruzaiqi, CEO, Information Technology Authority (ITA)
TBY talks to Dr. Salim Sultan Al Ruzaiqi, CEO of Information Technology Authority (ITA), on facilitating the investment experience in Oman, taking a coordinated approach to cybersecurity, and giving young people the right exposure.
read articleInterview
Firas A. H. Al-Abduwani, Founder & CEO, Hussam Technology Company (HTC)
TBY talks to Firas A. H. Al-Abduwani, Founder & CEO, and Mohammed Al-Abduwani, COO of Hussam Technology Company (HTC), on making Oman a better place to do business, meeting an ever-expanding customer base, and diversifying one's project capacity.
read articleInterview
Sheikh Aimen Ahmed Sultan Al-Hosni, CEO, Oman Airports Management Company (OAMC)
TBY talks to Sheikh Aimen Ahmed Sultan Al-Hosni, CEO of Oman Airports Management Company (OAMC), on providing a functioning operational platform, top notch end-to-end logistics, and creating competitive advantages for Omani shippers.
read articleFocus: Integrated Tourism Complexes
A Land for All
Oman's integrated tourism complexes (ITCs) allow foreign nationals to own property on a freehold basis. They have given the country's tourism and real estate sectors an innovative boost and might pave the way for further liberalization.
read articleInterview
HE Hamed Said Al-Oufi, Undersecretary, Fisheries Wealth of the Ministry of Agriculture & Fisheries Wealth
TBY talks to HE Hamed Said Al-Oufi, Undersecretary of Fisheries Wealth of the Ministry of Agriculture & Fisheries Wealth, on food security, opportunities for development in the industry, and new infrastructure projects.
read articleInterview
Eng. Saleh M. Al Shanfari, CEO, Oman Food Investment Holding Company (OFIC)
TBY talks to Eng. Saleh M. Al Shanfari, CEO of Oman Food Investment Holding Company (OFIC), on Oman's competitive advantages in food, growing demand for diverse food products, and becoming a regional food hub.
read articleInterview
Ahmed Akaak, Chairman, Oman National Livestock Development Company (ONLDC)
TBY talks to Ahmed Akaak, Chairman of the Oman National Livestock Development Company (ONLDC), on partnerships to boost the quality of animal feeds, the agriculture industry, and the Sultanate's national economy.
read articleReview: Education
New School
Oman's education sector has made massive strides in recent years, and moving forward, government officials see improving teacher quality and increasing international exchange as keys to giving a young and growing population the tools they need for the future.
read articleInterview
HE Dr. Hamood Khalfan Al Harthi, Undersecretary of Education & Curriculum , Ministry of Education
TBY talks to HE Dr. Hamood Khalfan Al Harthi, Undersecretary of Education & Curriculum of the Ministry of Education, on meeting international standards, increasing the teaching staff, and implementing reforms.
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