Key Takeaways
- • Oman Investment Authority signed its largest-ever package of investment agreements in a single day with Chinese institutions and companies, worth billions of dollars, during the state visit of Sultan Haitham bin Tarik to China, the first visit by an Omani Sultan to the country.
- • The Silk Road Fund committed USD 800 million to a joint fund with the majority of capital to be invested in Oman, alongside a USD 300 million fund with China Merchants Bank.
- • Partnerships with IDG Capital, Templewater and EW Partners account for another USD 735 million, targeting clean energy, digital technology, smart manufacturing and utilities.
- • Hongda International was awarded a USD 418.7 million, 10-year contract for the Mazoon Copper and Gold Project by Minerals Development Oman.
- • Most projects are planned for Oman, spanning renewable energy, mining, logistics, digital technology, space and financial services.
Summary
Oman Investment Authority (OIA), the sovereign wealth fund of the Sultanate of Oman, signed its largest-ever package of investment agreements in a single day with Chinese institutions and companies during the state visit of His Majesty Sultan Haitham bin Tarik to China, according to a PR Newswire release issued by OIA. The agreements, worth billions of dollars, span renewable energy, mining, logistics, digital technology, space and financial services, and the company characterized them as a shift in Oman-China economic relations from traditional trade toward joint investment, industrial localization, technology transfer and long-term capital partnerships.
The largest financing components include a USD 800 million joint fund with China's Silk Road Fund, the majority of which will be invested in Oman, and a further USD 300 million fund with China Merchants Bank. Partnerships with IDG Capital, Templewater and EW Partners represent another USD 735 million, targeting clean energy, digital technology, smart manufacturing and utilities. Nama Holding and State Grid International Development will cooperate on approximately USD 1 billion of battery energy storage with a combined capacity of 1 gigawatt.
In energy and mining, O-Green and Shanghai Electric Wind Power Group signed a strategic partnership to develop wind-energy engineering and industrial capabilities in Oman, including an R&D centre and turbine testing site in Duqm, also covering green ammonia. Minerals Development Oman awarded Hongda International a USD 418.7 million, 10-year contract for the Mazoon Copper and Gold Project, and a USD 100 million solar partnership will combine renewable development with solar inverter manufacturing in Oman.
Logistics and technology agreements include Asyad Group and JD.com developing facilities at Muscat Airport Free Zone, Khazaen Economic City and Sohar Free Zone to connect Oman with GCC and East African markets. Agreements also cover a Memorandum of Understanding on Oman's government digital-transformation programme and an MoU between Omantel and Chinese partners for deployment of Ascend neural processing units and high-performance computing infrastructure.
A space programme will train 1,000 Omani specialists, sponsor 30 Omanis for postgraduate studies in China and establish a joint space AI laboratory. A Space Silk Road agreement covers development, launch and operation of seven satellites in its first phase, with plans for satellite assembly, integration and testing capabilities in Oman. OIA AbdulSalam Al Murshidi, President of OIA, said the agreements support economic diversification, future industries, job creation and knowledge transfer, with most projects planned for Oman.
The largest financing components include a USD 800 million joint fund with China's Silk Road Fund, the majority of which will be invested in Oman, and a further USD 300 million fund with China Merchants Bank. Partnerships with IDG Capital, Templewater and EW Partners represent another USD 735 million, targeting clean energy, digital technology, smart manufacturing and utilities. Nama Holding and State Grid International Development will cooperate on approximately USD 1 billion of battery energy storage with a combined capacity of 1 gigawatt.
In energy and mining, O-Green and Shanghai Electric Wind Power Group signed a strategic partnership to develop wind-energy engineering and industrial capabilities in Oman, including an R&D centre and turbine testing site in Duqm, also covering green ammonia. Minerals Development Oman awarded Hongda International a USD 418.7 million, 10-year contract for the Mazoon Copper and Gold Project, and a USD 100 million solar partnership will combine renewable development with solar inverter manufacturing in Oman.
Logistics and technology agreements include Asyad Group and JD.com developing facilities at Muscat Airport Free Zone, Khazaen Economic City and Sohar Free Zone to connect Oman with GCC and East African markets. Agreements also cover a Memorandum of Understanding on Oman's government digital-transformation programme and an MoU between Omantel and Chinese partners for deployment of Ascend neural processing units and high-performance computing infrastructure.
A space programme will train 1,000 Omani specialists, sponsor 30 Omanis for postgraduate studies in China and establish a joint space AI laboratory. A Space Silk Road agreement covers development, launch and operation of seven satellites in its first phase, with plans for satellite assembly, integration and testing capabilities in Oman. OIA AbdulSalam Al Murshidi, President of OIA, said the agreements support economic diversification, future industries, job creation and knowledge transfer, with most projects planned for Oman.
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