US is next stop for Oman’s

clean energy investment

The Sultanate recently partnered with firms in the United States, while also strengthening trade ties with Saudi Arabia, and boosting local sectors like property and construction.

Oman Investment Authority (OIA) is beefing up its clean energy portfolio. The state-owned investment fund bought a stake in Ascend Elements, a US-based company specialising in the recycling of lithium-ion batteries used in electric vehicles.

The US company developed a new technique in electric vehicle battery recycling that focuses on sustainable use of waste lithium-ion batteries, converting them into high-performance batteries for electric vehicles. The technique cuts the cost of recycling electric batteries by 50% and reduces carbon emissions by 87%.

OIA also invested in Group14, a leading US company manufacturing trailblazing battery materials. The investment is part of OIA’s strategy of seeking opportunities in new fields, while partnering with global investors and attracting investment to Oman.

“Group14 specialises in manufacturing innovative lithium-silicon battery materials to replace traditional lithium-ion batteries,” according to the OIA. “The company attracted several leading investors in the battery materials field, including Porsche, SK Materials, and several others.”

The technology deployed by Group14 lowers costs and elevates performance. The company has built a strong customer pipeline with contracted revenue, including engagements with 90% of the world’s battery manufacturers. Through this investment, OIA intends to integrate Oman with the company’s supply chain.

OQ LAYS FOUNDATION OF NEW TEXAS PLANT

Another Omani investment in the US, features OQ Chemicals, a unit of the OQ Group, which laid the foundation of a plant to produce methyl methacrylate in Bay City, Texas, USA, in collaboration with partner Röhm international company. The plant has a production capacity of about 250,000 metric tonnes of methacrylate per year and is expected to be completed in 2024.

OQ Global Integrated Energy Group’s mandate is to boost its investments, expand in foreign markets, and establish investment partnerships with international companies, as OQ is present in 17 countries, and exports its products to more than 70 countries. Methacrylate is used in various applications such as coatings, adhesives, medical products, and road regulations, while methacrylate derivatives are also used in other industries such as automobiles and construction work.

OMAN, SAUDI ARABI FORGE CLOSER TRADE TIES

Saudi Arabia’s Public Investment Fund launched a fund focused on investments in Oman. The sovereign wealth fund aims to spend USD 24 billion for strategic investments across different sectors, including real estate, mining, healthcare, financial services, foodstuff, farming, industrialisation, communications and technology in Oman and other countries in the region including Jordan, Bahrain, Sudan and Iraq.

Separately, Omani and Saudi companies signed several memoranda of understanding (MoU) in the information and communications technology (ICT) sector.

One of the agreements was between ITHCA Group and Saudi THIQAH Company, aimed at boosting co-operation in product conformity, standardisation, and legal calibration system.

Omani firm Osos and Saudi firm Cloud Solutions also signed an MoU on mutual marketing between the two parties in the field of cloud technology solutions, while Oman’s TmDone company and Saudi firm Jahez agreed to study and evaluate collaboration in delivery services.

REAL ESTATE PROSPECTS LOOK BRIGHT

Oman’s real estate sector is on the road to recovery. After a tough period during COVID-19, market conditions are expected to stabilise, with only moderate reduction in rental values expected, according to Savills, a real estate consultancy.

There is even potential for rental value increases for villas and townhouses at Al Mouj and Muscat Hills as they remain the “go to” residential projects in Muscat due to the integrated lifestyle that they offer.

In the office segment, there is opportunity for tenants to secure better quality office space at more favourable price levels, which would attract more companies to Oman. There remains continued pressure on occupancy and rental values, but the pace of rental decline is expected to slow, Savills noted.

USD 190BN PROJECT PIPELINE

Oman’s construction and infrastructure market is expected to be busy in the coming years and currently has USD 327.63 billion worth of projects in the pipeline, according to ProTenders analysis. The construction industry accounts for a 9% share of Oman’s GDP and is the country’s largest employer.

There are 2,410 active construction projects in Oman, with a combined value in excess of USD 190 billion, according to ProTenders report as the Project Oman event kicked off in the country. The three-day event brought together project owners, specifiers, and stakeholders aiming to source building materials, products, and equipment for their projects. With the participation of 200 exhibitors, the exhibition underlined investment opportunities in Oman.