Oman Investment Authority (OIA), the country's sovereign wealth fund, has signed its largest-ever package of investment agreements in a single day with Chinese institutions and companies.
These deals span various sectors, including renewable energy, mining, logistics, digital technology, space and financial services, thus marking a shift in Oman–China economic relations from traditional trade towards joint investment, industrial localization, technology transfer and long-term capital partnerships.
The agreements were sealed during Omani Sultan Haitham bin Tarik's state visit to China, the first visit by an Omani ruler to the country, and are aimed at expanding bilateral economic ties through joint investments, industrial development and technology transfer.
OIA inked an agreement with China's Silk Road Fund to establish an $800 million joint investment fund, with most of the capital earmarked for the sultanate. It also agreed to establish a $300 million fund with China Merchants Bank.
Separate partnerships with IDG Capital, Templewater and EW Partners involve a further $735 million in investments targeting clean energy, digital technology, smart manufacturing and utilities.
Abdulsalam Al Murshidi, President of OIA, emphasized the agreements reflect the evolution of Oman–China relations from trade towards investment partnerships supporting economic diversification, future industries, job creation and knowledge transfer.
Most projects are planned for Oman, bringing capital, technology, manufacturing and specialized capabilities into the country while connecting Omani businesses with Chinese and international production, distribution and investment networks, he stated.
In the energy sector, Nama Holding and State Grid International Development will cooperate on battery energy storage projects worth about $1 billion, with a combined capacity of 1 gigawatt.
O-Green and Shanghai Electric Wind Power Group signed a strategic partnership to develop wind energy engineering and industrial capabilities in Oman, including a research and development centre and turbine testing facility in Duqm. The agreement also covers green ammonia development, it added.
In mining, Minerals Development Oman awarded Hongda International a $418.7 million contract for the Mazoon Copper and Gold Project for a 10-year period, while a $100 million solar partnership will combine renewable-energy development with solar inverter manufacturing in Oman.
In a major boost to the sultanate’s transport and supply chain system, Oman's state logistics group Asyad Group has sealed a strategic partnership with JD.com to develop logistics facilities at Muscat Airport Free Zone, Khazaen Economic City and Sohar Free Zone, connecting Oman with GCC and East African markets.
Technology and skills development form another key pillar. Agreements included an MoU on Oman's government digital-transformation programme, while Oman's leading integrated telecommunications services provider, Omantel signed an MoU covering the deployment of Ascend neural processing units and high-performance computing infrastructure to support advanced digital applications.-TradeArabia News Service
