Muscat: The Oman Investment Authority (OIA) has announced the establishment of the Sultanate of Oman's first investment fund devoted to the energy transition, created through a strategic collaboration between the 'Future Fund Oman (FFO)' and Templewater, a Chinese leading alternative asset management company.
The collaborative fund seeks to accelerate the energy transition in Oman and support efforts to diversify income streams in line with Oman Vision 2040 by investing in innovative projects that achieve net-zero objectives and provide new opportunities for sustainable economic growth.
This 50:50 joint fund, with an initial total capital commitment of RO 77 million (USD 200 million), equally funded by FFO and Templewater, is a trailblazer in clean energy and the transition to a low-carbon economy. The initial capital base acts as a catalyst for unlocking additional capital and attracting high-quality, scalable investment opportunities that support Oman Vision 2040. All investment prospects will be based in the Sultanate of Oman, reinforcing the country's goal to be a regional center for renewable energy innovation.
The fund intends to invest in critical sectors and strategic projects such as clean molecules, green data centers, energy storage, smart mobility, and all forms of renewable energy, including solar and wind. It will also focus on creating new energy efficiency and industrial innovation solutions and technologies designed to fit the demands of the Omani and regional markets.
The Fund, designed as a platform to drive additional investment, aims to co-develop commercially viable energy transition initiatives in collaboration with both public and private sector partners. It also seeks to solicit more institutional investments, both locally and globally, to broaden the size and effect of its future programs and projects.
Abdulsalam Mohammed Al Murshidi, Chairman of OIA, stated that the collaboration is a significant strategic move in establishing the Sultanate of Oman as a regional and global hub for clean and renewable energy solutions. OIA's goal is to attract expertise and global best practices to assist Oman in its aim to become a leading exporter of clean molecules and renewable energy solutions.
On his turn, Cliff Zhang, Chairman and CEO of Templewater, said, “This Fund demonstrates our dedication to investing in solutions that provide not just quantifiable climate benefits and solid profits, but also improve energy security and investor confidence. ” “The Sultanate of Oman’s supportive regulatory environment and forward-looking investment outlook position it as a premier destination for advanced energy transition manufacturing and broader economic diversification. ”
Templewater will utilize its global partner network and technical expertise to localize scalable, innovative solutions in the Sultanate of Oman, which is fully aligned with FFO's goal to stimulate the national economy, foster strategic investment partnerships, and provide economic value to the Sultanate of Oman and investors.
The fund is expected to engage strategic partners and investors from across the world, including significant global players in the renewable energy and clean technology industries, establishing it as an integrated platform for supporting innovation, sustainability, and startup empowerment.
This collaboration represents another significant milestone in FFO's series of activities undertaken since its founding in early 2024, which have a total capital of USD 5. 2 billion. FFO dedicates 90% of its capital to strategic local projects and 10% to supporting SMEs and startups. The fund exemplifies OIA's dedication to allocating investment in initiatives that promote economic diversification, maximize in-country value (ICV), and support digital and technological transformation.
In addition to financial resources, the fund will promote effective collaborations with both public and private organizations, generating opportunities for training and capacity building in the renewable energy industry. It will also aid in research and development and the transfer of best worldwide practices, bolstering the Sultanate of Oman's innovation ecosystem and ensuring both economic and environmental sustainability.
This statement comes at a time of increased regional and worldwide effort to combat climate change and support clean energy alternatives. Oman intends to lead the production and export of clean molecules while creating an investment-friendly climate that supports its Paris Agreement commitments and net zero by 2050.
