Oman creates national alliance to develop hydrogen supply chain

Oman has decades of experience developing energy supply chains. (Reuters)
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Updated 12 August 2021
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Oman creates national alliance to develop hydrogen supply chain

  • Government agencies, oil and gas operators, educational and research institutions, as well as ports will work together on project
  • In May, Oman announced a plan to build the biggest green hydrogen plant in the world

MUSCAT: Oman has brought together 13 public and private-sector institutions to create a national hydrogen alliance as it seeks to develop a supply chain for the green fuel.

Government agencies, oil and gas operators, educational and research institutions, as well as ports will work together on the local production, transportation, utilization and export of clean hydrogen, the state Oman News Agency reported.

Gulf Arab countries are well positioned for the growing demand for clean hydrogen due to their climate, location, and experience developing large energy supply chains.

The alliance will attract investment and develop technology, policies and expertise throughout the entire hydrogen supply chain under the leadership of the Ministry of Energy and Minerals through the Future Energies Unit of Petroleum Development Oman.

Other members of the alliance include the Public Services Regulatory Authority, Energy Development Oman, Okio Group, Oman Liquefied Natural Gas Company, BP Oman, Shell Oman, Total Energy Oman, Sultan Qaboos University, German University of Technology, Sohar Port and Duqm Port.

In May, Oman announced a plan to build the biggest green hydrogen plant in the world over the coming 27 years along with 25 GW of solar and wind power.

Yesterday, Saudi Arabia said it had signed an agreement with Germany to explore opportunities in clean hydrogen, while earlier in the week Aramco said it is looking for off-take agreements for blue hydrogen in its key markets including Japan and South Korea.

Blue hydrogen uses the traditional Haber-Bosch method of turning natural gas into hydrogen but captures the carbon emissions, while green hydrogen is created by splitting water with renewable energy.

Abu Dhabi National Energy Company (TAQA) has “all the right ingredients” to develop green hydrogen, including cost-efficient renewable power and water, CEO Jasim Husain Thabet told Arab News this week.


Saudi Arabia raises $605m in January sukuk issuance: NDMC

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Saudi Arabia raises $605m in January sukuk issuance: NDMC

RIYADH: Saudi Arabia’s National Debt Management Center has raised SR2.26 billion ($605 million) through its latest sukuk issuance.

Sukuk are Shariah-compliant financial instruments akin to bonds, granting investors a share in the issuer’s assets. Unlike conventional bonds, they comply with Islamic finance principles, which forbid interest-based transactions.

According to the NDMC, the January issuance was divided into five tranches. The first tranche was valued at SR410 million and is set to mature in 2031. The second amounted to SR338 million, maturing in 2033, while the third tranche, worth SR101 million, will expire in 2036. 

The fourth portion, valued at SR523,000, is due in 2039, while the last tranche, due in 2041, was valued at SR1.42 billion.

The January figure represents a decrease of 67.64 percent compared to December, when the Kingdom raised SR7.01 billion from sukuk issuances.

In recent years, the Kingdom’s debt market has experienced swift growth, with investors increasingly turning to fixed-income instruments as rising global interest rates reshape the financial landscape.

This comes as the Gulf Cooperation Council sukuk outstanding climbed 12.7 percent to $1.1 trillion by the end of the third quarter of 2025, according to a recent Fitch Ratings report.

The US-based credit rating agency said debt capital market activity in the GCC is expected to remain strong into 2026, supported by a healthy pipeline of anticipated issuances.

The report noted that sukuk issuances increased 22 percent year on year in the first nine months of this year, accounting for 40 percent of total GCC DCM outstanding.

Sukuk also outpaced bond growth, which expanded 7.2 percent year on year. 

Also known as Islamic bonds, these debt products allow investors to gain partial ownership of an issuer’s assets until maturity.