Oman's first energy transition fund launched

10/07/2025 07:10 AST

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.

Times of Oman