Oman declares a framework for sustainable sovereign financing.

Oman has announced a framework for sustainable sovereign financing in order to reduce its dependence on fossil fuels and attract a new segment of investors interested in funding projects that have environmental and social impact.

The Ministry of Finance stated in a late-night statement on Wednesday that the Sultanate intends, as part of the initiative, to issue and offer financial instruments such as green and sustainable bonds, loans, and sukuk, which will be used to finance renewable energy projects.

The ministry mentioned that the endeavor comes at a time when electricity supplies and fossil fuel reserves are under pressure due to population growth and rapid industrial development, which has prompted the country to focus on the potential offered by renewable energy technology.

As part of the Vision Oman 2040, which is an economic development plan launched by the Sultanate in 2021, the country aims to reduce the share of oil in the Gross Domestic Product to 16 percent by 2030 and to 8.4 percent by 2040, compared to the 39 percent recorded in 2017.