- Fitch Solutions
Oman Power SWOT
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data are solely derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.
|Strengths ||Weaknesses |
- The government is keen to attract private investment, including foreign companies, and has a strong market-oriented approach.
- Use of independent power projects and scope for private investment attracting foreign firms.
- Tendering process is among the most transparent and streamlined in the Middle East and North Africa region.
- Oman has extensive oil and gas reserves, bolstering overall supply security.
- Dominance of state-owned firms limits scope for private/overseas investors.
- Transmission losses are high and grid coverage needs expansion.
- Lack of track record in developing significant renewables infrastructure.
- The country's economy remains tied to oil exports, leaving it vulnerable to volatility in the global market despite diversification efforts.
|Opportunities ||Threats |
- Planned green hydrogen plant opens scope for new renewables investments.
- Rapid growth in consumption driving demand for greater generation and capacity.
- Government promotion of electric vehicles could boost power consumption further.
- Scope for renewables to be developed in support of oil and gas extraction.
- Over-dependence on gas-fired power (though Oman does have its own gas reserves).
- Volatile oil prices due to ongoing Covid-19 pandemic and impact of Russia/Ukraine crisis on global energy markets.
- Stricter implementation of localisation policies to boost employment of Omani nationals will compound labour shortages.
This report from Fitch Solutions Country Risk & Industry Research is a product of Fitch Solutions Group Ltd, UK Company registration number 08789939 ('FSG'). FSG is an affiliate of Fitch Ratings Inc. ('Fitch Ratings'). FSG is solely responsible for the content of this report, without any input from Fitch Ratings.