Oman’s ambitious green hydrogen plans to boost FDI inflows, GDP– Fitch

Oman’s ambitious green hydrogen plans to boost FDI inflows, GDP– Fitch

Oman’s plans to boost its production of green hydrogen could boost the country’s economy, with developments being planned to attract more foreign direct investments (FDIs) and generate more jobs, according to Fitch Ratings.

The sultanate looks to produce more than 1 million tonnes of clean “green” hydrogen every year by 2030 as part of a strategy to transition to more sustainable energy.

Annual output is set to climb to 3.75 million tonnes ten years later and expand further to 8.5 million tonnes every year by 2050, exceeding Europe’s current hydrogen demand.

The ratings agency said Oman’s ambitious targets could support Oman’s key credit metrics, including GDP, fiscal revenue and the balance of payments, over the long term.

“The main impact of the green hydrogen development plan in the near term is likely to be on investment, external metrics and employment,” Fitch said.

“The significant inflows of foreign direct investment would boost GDP, but the lift would be counterbalanced by rising imports for project delivery. We estimate that in-country value-added requirements for these investments will support existing GDP and ancillary services.”

Current account balance

The projects’ exports would boost the country’s current account balance. However, this will be partly offset by external debt repayments and dividend payments to