Oman’s ambition to expand its renewable energy and electricity infrastructure will require diversified funding sources and enhanced project frameworks to attract investment, according to a senior banking executive. Hisham Mousa, Senior Executive Vice President and Head of Government Banking and Strategic Alliance at Sohar International, emphasized the need for developers to combine domestic lending with international capital, equity, and debt instruments to finance solar, wind, and battery storage projects integral to the country’s energy transition under Oman Vision 2040.
Speaking at a recent industry presentation, Mousa stressed that securing investment depends on establishing robust commercial and technical arrangements before engaging lenders. Key elements include clear power purchase agreements, agreed tariff structures, reliable sponsors, required permits, and experienced technical partners. These components help underpin business plans and enable financiers to assess the viability and risks of projects, enhancing their bankability.
Mousa outlined various funding options available, including long-term bank loans, bonds, sukuk, development institution financing, and shareholders’ equity. The optimal mix, he noted, varies depending on each project’s structure and risk allocation. He advised developers to look beyond traditional domestic bank loans, highlighting the importance of international expertise and financing partnerships in bringing complex renewable energy projects to fruition.
Banks, Mousa said, should expand their roles beyond mere lenders. They can contribute by originating transactions, structuring financing packages, syndicating loans among multiple institutions, and innovating methods to mitigate investment risks. This collaborative approach would facilitate closer engagement between lenders, investors, and project sponsors, while spreading financial commitments to reduce exposure.
He further underscored the need for comprehensive financing that supports the broader project ecosystem, including international contractors, subcontractors, and smaller suppliers of equipment and services. Strengthening access to funding throughout this value chain, Mousa said, is crucial for the sustained growth of Oman’s renewable energy sector.
As an example, he pointed to the emerging solar manufacturing hub in Suhar, which begins with polysilicon production and extends through various stages of component manufacturing. This highlights how coordinated technical expertise, investment, and financial support can foster linked industrial activities beyond individual power plants. Additionally, projects involving electricity networks and storage infrastructure are essential to support increased renewable generation capacity.
Mousa also referenced Sohar International’s participation in financing Gulf Cooperation Council electricity interconnection projects, noting that regional grid links require ongoing capital investment. With Oman’s growing population, industrial expansion, and new factory developments driving higher electricity demand, he stressed that new capacity must be introduced in alignment with these needs.
The country’s abundant wind resources and strategic coastal location present further opportunities for renewable projects, while investments in energy storage can enhance power management and grid stability. Mousa concluded that successful development hinges on close cooperation among government agencies, offtakers, technical partners, sponsors, and financiers to ensure projects are well-prepared, commercially sound, and timely funded.