In January 2024, the Government of Oman, represented by the Ministry of Finance, took a historic step and unveiled a sustainable finance framework to aims to reduce its reliance on fossil fuels and attract environmental, social and governance (ESG) investors in line with the Government's efforts to promote foreign direct investment in the country.
The framework outlines Oman's plans to issue financial instruments like green, social and sustainable bonds as well as loans and sukuks (i.e. bonds that comply with Islamic law) whose proceeds will be used to fund and refinance renewable energy projects. The framework emphasises Oman's commitment to addressing climate change including publishing its first update of the second Nationally Determined Contribution (NDC) in November 2023, which demonstrates the country's ongoing commitment to address the climate emergency and offers a comprehensive view of Oman's ambition to achieve net zero GHG emissions by 2050 by transitioning to sustainable, low-carbon economy as well as striving towards economic diversification.
