Infrastructure & PPPs in Oman - Q4 2025

YOG INFRA
3 days ago
10 min read

OMAN, with regional partners, is advancing a significant pipeline of sustainable infrastructure and clean energy projects aligned with Vision 2040 and decarbonization goals, with PPP being used as a key procurement modality. Key projects include the OMR 14 Mn Al Muzn integrated housing development, the Kuwait Fund–financed Samail Hospital, and multiple PPP tenders in sewage, roads, and industrial infrastructure. The energy transition is being driven by flagship initiatives such as OETC’s USD 750 Mn green sukuk, new wind and solar IPPs, Oman’s first waste-to-energy project, and a large-scale SuperESCO program. The strategic initiatives in green hydrogen, green steel, and e-fuel bolster Oman's efforts to diversify, mobilize private capital, and promote low-carbon growth.

Read the key developments in Infrastructure and PPPs in three GCC countries in our latest insight of the Q4 2025 series.

OMAN

DNV INITIATES ‘FIRST’ PUBLIC TENDER FOR LONG-TERM ACCESS TO E-METHANOL

DNV (Det Norske Veritas) facilitated an open tender process to offer long-term access to renewable e-methanol, supporting the decarbonization of the industry, transport, and chemical sectors in line with RED III and Fit for 55 targets.

The tender provided a transparent and structured framework for all interested market participants to engage on equal terms. Through the process, qualified offtakers had the opportunity to secure long-term supply contracts (10–15 years) under clear and competitive conditions. The producer’s identity remained confidential during the initial stages to ensure fairness and equal access for all participants.

The tender was accessible to a wide range of companies, including maritime operators, bunker suppliers, industrial users, renewable chemical traders, and organizations pursuing net-zero goals. The e-methanol supply totaled up to 450,000 tonnes annually, with deliveries scheduled to start in the second half of 2028. The product was designed to have a low carbon intensity score, ensuring compliance with sustainability standards and supporting net-zero strategies.

OMR 14 MN AL MUZN PROJECT LAUNCHED IN SAMAYIL

The launch of Al Muzn District, the first fully integrated residential neighbourhood in the Wilayat of Samayil, was announced as part of Oman's modern urban development efforts. The project comes under the national "Sorouh" initiative for integrated residential neighbourhoods, supervised by the Ministry of Housing and Urban Planning, with the aim of providing sustainable, modern communities that meet citizens' needs and enhance their quality of life.

With a total investment of OMR 14 Mn (USD 36.4 Mn), the project is being developed in direct partnership with the Ministry of Housing and Urban Planning, while Signature Properties undertakes the execution and development. The project comprises 160 housing units, to be delivered in three phases and features three different villa designs to meet the diverse needs of families, supported by comprehensive infrastructure and services including road networks, green spaces; and community and recreational facilities.

Al Muzn places special emphasis on eligible citizen groups, offering additional payment facilities and reduced financial requirements, enabling them to own homes at lower costs and under easier terms. This approach supports families in achieving residential stability within a fully integrated urban environment.

The project is expected to generate significant economic and developmental benefits, including stimulating the real estate sector in Samayil and surrounding areas, creating direct and indirect job opportunities during construction and operation; and boosting commercial and service activities linked to the neighbourhood. It will also enhance Samayil's attractiveness as an investment destination, while reinforcing the role of Public-Private Partnerships (PPP) in delivering major development projects.

MADAYN LAUNCHES TENDER FOR PHASE I OF AL SUWAIQ INDUSTRIAL CITY

Oman’s Public Establishment for Industrial Estates (Madayn) launched the tender for the implementation of infrastructure and utilities in Phase I of Al Suwaiq Industrial City in the Al Batinah North Governorate.

This phase covers the development of a 5-million-sq-m area, comprising the construction of internal roads, water, electricity, and sewage networks, as well as other essential services and utilities. The tender also included the establishment of greenhouses to apply modern agritech solutions, with the objective of supporting food security and promoting agricultural investments and related supporting industries.

These incentives aimed to position the city as an attractive destination for local and international investments, given its modern infrastructure and streamlined government services provided by Madayn. Madayn had also conducted studies to identify investment opportunities aligned with the economic diversification strategy and Oman Vision 2040.

OMAN ACROSS AGES MUSEUM PARTNERS WITH BP OMAN ON SOLAR PROJECT

The Oman Across Ages Museum signed a cooperation agreement with BP Oman to fund and implement a grid-connected solar system with a capacity of 800 kW and an annual output of about 1,300 megawatt-hours (MWh).

The project, to be installed at the Museum’s facilities in the Wilayat of Manah, will help reduce approximately 780 tonnes of carbon dioxide emissions generated from conventional energy use. Spanning an area of 8,000 square meters, the installation will include 1,292 solar panels and will contribute to the Museum’s sustainability efforts while lowering its environmental footprint.

The project will also serve as a cultural and educational model for visitors and researchers interested in solar energy systems. The initiative supports Oman Vision 2040 goals by advancing renewable energy, cutting emissions, and promoting awareness of clean energy solutions.

OQAE LAUNCHES OMAN’S FIRST LARGE-SCALE SUPERESCO PROJECT

OQ Alternative Energy (OQAE), a subsidiary of OQ, Oman’s global energy investment group, announced the launch of Oman’s first large-scale SuperESCO project.

Through the SuperESCO model, OQAE will implement comprehensive energy efficiency upgrades at OQ Refineries & Petroleum Industries (OQRPI) facilities, including equipment replacement, system optimisation and operational improvements. The initiative will generate annual savings of 22.5 GWh and reduce CO₂ emissions by 9.4 kilotons, delivering long-term value through optimised operating costs and improved asset performance. In doing so, SuperESCO model supports Oman’s decarbonisation and sustainability objectives under Oman’s Net Zero 2050.

This project is a turning point for energy efficiency in Oman. By introducing a scalable SuperESCO model that funds itself through guaranteed performance, we are setting a national benchmark for industrial decarbonisation. OQAE oversees the full project lifecycle. From feasibility studies and tendering to contractor selection, implementation and verification, OQAE ensures best-in-class technical delivery and guaranteed performance outcomes. This approach allows industrial entities to unlock their energy efficiency potential without upfront capital expenditure, while benefiting from verified financial and environmental returns.

OETC ISSUES USD 750 MN WORTH GREEN SUKUK

Oman Electricity Transmission Company (OETC), the sole owner and operator of Oman’s electricity transmission network, successfully priced and issued its inaugural green sukuk, amounting to OMR 288.5 Mn (USD 750 Mn) for a term of five years. This issuance represented a significant advancement in sustainable financing and reinforced OETC’s commitment to Oman Vision 2040.

Investor demand for the sukuk surpassed 2.8 times the subscription volume, demonstrating robust confidence in OETC’s strategic role and financial strength, which was underpinned by credit ratings of Ba1 (stable) from Moody’s and BB+ (stable) from Fitch, along with a strong sustainability track record.

The issuance was aligned with the priorities of Oman Vision 2040, focusing on economic diversification, environmental sustainability, and the transition to a low-carbon economy. It supported the national objective of achieving 30% renewable energy production by 2030 and Oman’s ambition to attain carbon neutrality by 2050. The proceeds from the sukuk were to be used to finance and refinance eligible green projects, including renewable energy interconnection, grid modernization, energy efficiency improvements, and enhancements to the electrical transmission system to facilitate the integration of clean energy.

OMAN LAUNCHES PPP TENDER FOR EXPANSION OF TWO KEY SEWAGE TREATMENT PLANTS

Nama Water Services (NWS), part of the Nama Group, has opened a Public-Private Partnership (PPP) tender inviting local, regional, and international consortia to apply for the Request for Qualification (RFQ) for two sewage treatment plant (STP) projects.

The two projects include the development and long-term operation of the Al Ansab STP (Phase III) and the Al Amerat STP (Phase II). The scope covers capacity expansion as well as the long-term operation and maintenance of both new facilities and existing assets. The Al Ansab STP is planned for an expansion of approximately 82,000 cubic metres per day, increasing its total capacity from 125,000 to about 207,000 cubic metres per day. The Al Amerat STP will see an expansion of about 36,000 cubic metres per day, raising its capacity from 18,000 to 54,000 cubic metres per day. Together, the projects represent a significant increase in wastewater treatment capacity to support demand across Oman.

The Project will be procured under a Build-Own-Operate-Transfer (BOOT) model, covering design, financing, construction, operation, and maintenance of new facilities alongside the long-term operation of existing assets.

OMAN INVITES GLOBAL BIDS FOR KEY ROAD PROJECTS

The Ministry of Transport, Communications and Information Technology (MoTCIT) has announced a major invitation for investment proposals from both local and international companies to participate in the design, build, finance, operate and transfer (DBFOT) of several key road projects across the Sultanate of Oman. This initiative underscores the government's ongoing commitment to enhancing road infrastructure and connectivity through Public-Private Partnerships (PPPs).

The ministry is seeking experienced companies with proven expertise in road construction and infrastructure development to submit bids for three major projects. These include the Salalah-Thamrait Road, the Muscat-Al Dakhiliyah Road (Al Maabela-Thumayd) and the Bausher-Al Amerat Tunnel Road alongside the Al Amerat-Dima W'attayeen Road. Each project is expected to serve as an alternative route to existing roads, offering improved efficiency, safety and reduced travel times for commuters and freight transport.

The DBFOT model, which combines private investment with public oversight, will enable the government to accelerate infrastructure delivery while ensuring long-term operational efficiency. This approach is aligned with Oman Vision 2040 goal of developing world-class transport networks that support economic diversification, trade facilitation and regional integration.

OMAN, KUWAIT FUND SIGN AGREEMENT TO FINANCE NEW SAMAIL HOSPITAL PROJECT

The Government of the Sultanate of Oman has signed a landmark financing agreement with the Kuwait Fund for Arab Economic Development to support the construction of the new Samayil Hospital in Al Dakhiliyah Governorate, marking a significant step in enhancing the country’s healthcare infrastructure.

The project aims to enhance healthcare services in the Wilayat of Samail and nearby areas by establishing a comprehensive medical facility that met the growing healthcare needs of citizens and residents. The new Samail Hospital is planned to feature a capacity of 170 beds, expandable to 300 beds, with a building area of 65,804 square meters and a total site area of 250,000 square meters.

The initiative aligns with the government’s broader efforts to develop the national health sector, improve the quality of medical services, and strengthen healthcare infrastructure in line with the goals of Oman Vision 2040. It also aims to reduce pressure on referral hospitals, enhance medical staff training, and support the development of a world-class healthcare system across the Sultanate.

OMAN’S NAMA PWP SIGNS DEAL WITH SEMBCORP-OQAE CONSORTIUM FOR 125 MW DHOFAR II WIND PROJECT

Nama Power and Water Procurement Company (Nama PWP), Oman’s sole offtaker for power and water projects, has signed an agreement with a consortium comprising Sembcorp Utilities (a subsidiary of Singapore-based Sembcorp) and local company OQ Alternative Energy (OQAE) to develop the 125-megawatt (MW) Dhofar II Wind Power Project.

The project, with an estimated value of at OMR 43 Mn (USD 112 Mn), will be developed under a 20-year Power Purchase Agreement (PPA). The wind farm, which will cover approximately 12 million square metres (sqm), is scheduled to begin in the Q3 of 2027. The project will reduce carbon dioxide emissions by around 158,000 tonnes annually while supplying clean power to more than 18,000 homes.

NAMA PWP RECEIVES 18 BIDS FOR OMAN’S FIRST WASTE-TO-ENERGY PROJECT IN AL BARKA

Oman’s Nama Power and Water Procurement Company (PWP) announced it has received 18 submissions for qualification from international and local consortiums and companies for the Sultanate’s first waste-to-energy (WtE) project, to be developed in Al Barka in the South Al Batinah Governorate.

PWP, the country’s sole offtaker for electricity and water, is coordinating the project with Oman Environmental Services Holding Company (be’ah). The estimated project cost is SAR 385 Mn (USD 102.66 Mn).

The Barka WtE project will process up to 3,000 tonnes per day of municipal solid waste using grate incineration technology over a 190,000-square-metre site, producing between 90 and 100 megawatts (MW) of power. The facility is expected to generate 757 gigawatt-hours (GWh) annually, while reducing carbon dioxide emissions by about 302,000 tonnes per year. The project’s commercial operation date has been advanced to the Q4 of 2030, from the earlier target of the Q2 of 2031.

NAMA POWER AND PARTNERS SIGN AGREEMENT TO DEVELOP 120 MW JBB WIND IPP IN OMAN

A consortium led by EDF power solutions, Al Khadra Partners and OQ Alternative Energy (OQAE) the National Champion for Clean Energy, signed a 20-year Power Purchase Agreement (PPA) with Nama Power and Water Procurement Company (Nama PWP) to develop the 120 MW Jaalan Bani Bu Ali (JBB) Wind Power Plant in the Sultanate of Oman.

The JBB Wind Project is located in the Ash Sharqiyah South Governorate, approximately 440km from the Port of Duqm and spans an area of 10.7km2 of land. The wind farm will consist of 16 wind turbines, each with a power output of 7.7 MW. The project is expected to reach financial close in 2026 and connect to the grid in Q3 2027.

Upon completion, JBB Wind Farm will generate renewable electricity sufficient to power over 13,500 Omani households. The project will enable to avoid more than 270,000 tonnes of CO₂ annually, contributing to Oman's climate change mitigation goals, while creating jobs and sharing expertise with the local population.

MERANTI GREEN STEEL OMAN AND AMNAH ENERGY COOPERATE ON GREEN HYDROGEN SUPPLY

Meranti Green Steel Oman has signed a Memorandum of Understanding with Amnah Energy, a consortium comprised of Copenhagen Infrastructure Partners’ Energy Transition Fund (CIP), Blue Power Partners (BPP) and Al Khadra (Hind Bahwan Group), to cooperate on the supply of green hydrogen to Meranti’s proposed 2.5 Mtpa green HBI facility in Duqm, Oman.

The collaboration targets green hydrogen volumes aligned with Oman’s Energy Transition Plan and supports the country’s ambition to establish competitive, large-scale green hydrogen production. By linking green hydrogen development with long-term, onshore industrial offtake, this work helps address the sequencing challenge of bringing new hydrogen supply and new industrial demand in parallel. The collaboration with Amnah also directly supports Meranti’s ambition to deliver cost-competitive, low-carbon HBI to global markets.

Under the MoU, Meranti and Amnah will work together on a green hydrogen supply-offtake solution, matching Meranti’s requirements with green hydrogen produced upstream by Amnah’s wind, solar and electrolyzer facilities. Both parties share the objective of designing the most reliable and competitive solution and are strongly aligned on the vision for long-term partnership and decarbonization of the steel industry. The collaboration will be in alignment with Oman’s hydrogen infrastructure framework and wider energy transition objectives, undertaken in close coordination with Hydrom, OQGN and other relevant Omani authorities.

List of key transactions - Oman Q4 2025

Source: YOG INFRA analysis

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