Oman Launches $200 Million Energy Transition Fund to Accelerate Green Growth
August 5, 2025By OPES Feature by Swathi Suresh
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The Oman Investment Authority (OIA) has launched the sultanate’s first dedicated energy transition investment platform, signaling a major step forward in the nation’s shift towards sustainable energy. The fund, with an initial capital commitment of USD 200 million, is structured as a 50-50 joint venture between Future Fund Oman and Hong Kong-based Templewater.
The new investment fund will focus on advancing Oman’s clean energy ecosystem through targeted investments in clean molecules, solar and wind energy, smart mobility, energy storage, green data centres, and energy efficiency technologies. All projects will be located within Oman and aligned with the country’s long-term national vision, Oman Vision 2040.
Beyond capital investment, the fund will also contribute to research and development, training and capacity-building, and the transfer of global best practices. The goal is to foster a thriving local innovation ecosystem and embed sustainability at the core of Oman’s energy and industrial future. The initiative is designed to attract additional institutional investors, both local and international, to co-invest in commercially viable energy transition projects in collaboration with public and private stakeholders.
“OIA seeks to attract expertise and global best practices to support Oman’s ambition to become a leading exporter of clean molecules and renewable energy solutions,” said Abdulsalam Al Murshidi, President of the Oman Investment Authority.
Cliff Zhang, Chairman and CEO of Templewater, emphasized the fund’s dual objectives: “This fund reflects our commitment to investing in solutions that not only deliver measurable climate benefits and strong financial returns but also enhance energy security and investor confidence.” Templewater will leverage its international network and technical expertise to adapt and localize scalable innovations in Oman. This approach aligns with the Future Fund Oman’s mission to drive strategic national growth and establish global partnerships that deliver long-term value.
This landmark fund builds on a growing list of initiatives led by Future Fund Oman, which was launched in early 2024 with a total capital base of USD 5.2 billion. Of that, 90% is earmarked for strategic national projects, while the remaining 10% supports SMEs and startups—demonstrating a balanced approach to large-scale development and grassroots innovation. The launch of this fund represents a defining move in Oman’s journey to becoming a regional leader in renewable energy and sustainable investment.
