The Sultanate of Oman, nestled along the southeastern coast of the Arabian Peninsula, is making strategic moves to position itself as a key player in the Middle East’s rapidly evolving digital economy. With a focused push into cryptocurrency mining, supported by government approvals and major infrastructure investments, Oman aims to build a robust digital ecosystem — and potentially challenge Dubai’s dominance in the regional crypto landscape.
This ambitious vision is being driven by a combination of regulatory support, sustainable energy integration, and large-scale data center developments. As neighboring nations like the UAE have taken early leads in blockchain adoption, Oman is now accelerating its efforts to carve out a competitive niche in the Gulf’s burgeoning crypto economy.
Government-Backed Crypto Mining Initiatives
At the heart of Oman’s strategy is strong governmental backing for blockchain infrastructure. Earlier this month, the Ministry of Transport, Communications, and Information Technology approved Exahertz International, a local tech startup, to launch a major cryptocurrency mining facility within the Salalah Free Zone — a designated economic special zone.
Named Afaaq for Advanced Technologies, this data hosting and mining center marks a significant milestone in Oman’s digital transformation journey. The inauguration ceremony was attended by Minister Said Hamoud al-Maawali, underscoring the project’s national importance.
The facility represents a massive financial commitment, with an initial investment of nearly $370 million**. Currently operating in pilot mode, it already hosts **2,000 mining rigs** powered by Bitmain’s latest hardware, drawing **11 MW** of electricity. Once fully operational, the center is expected to scale up to **15,000 machines** with an energy capacity of **800 MW**, all within a total project budget of **$1.1 billion by October this year.
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Strategic Partnerships Fuel Growth
Beyond domestic ventures, Oman is attracting international interest through strategic partnerships. In a notable development, Abu Dhabi-based Phoenix Group recently entered into a $300 million agreement with Green Data City, a licensed Omani digital infrastructure provider, to co-develop a 150 MW mining facility on Omani soil.
Scheduled to become operational in Q2 2025, this project highlights growing confidence in Oman’s regulatory stability and energy advantages. Green Data City holds the distinction of being the first officially licensed crypto mining entity in Oman, having received its permit in March 2024 — a clear signal of the government’s proactive stance.
With the launch of the first large-scale mining center in November 2024, followed by these two major projects, Oman is set to host three major mining hubs within just over a year. This rapid expansion reflects a coordinated national effort to attract high-tech investment and diversify the economy beyond oil.
According to Sheikh Mansour Bin Taleb Bin Ali Al Hinai, Chairman of Oman’s Public Services Regulatory Authority, the government is actively supporting private-sector Bitcoin mining operations, which are expected to draw over $1.1 billion in total investment.
Minister Said Hamoud al-Maawali emphasized that these developments represent a critical milestone in Oman’s broader digital economy ambitions — one that integrates technology, sustainability, and economic diversification.
A Sustainable Approach to Crypto Mining
One of the most persistent criticisms of cryptocurrency mining has been its environmental impact — particularly high energy consumption and associated carbon emissions. However, Oman is leveraging its geographic and energy advantages to address these concerns head-on.
Unlike many traditional mining hubs reliant on fossil fuels, Oman is exploring ways to integrate renewable energy sources such as solar and wind into its mining operations. The country’s long coastline and abundant sunlight make it well-suited for hybrid power solutions, potentially reducing reliance on non-renewable grids.
Recent studies suggest that Bitcoin mining can actually act as a catalyst for renewable energy expansion. By providing a flexible, always-on demand for electricity, mining operations can help stabilize intermittent renewable outputs — effectively turning excess solar or wind power into revenue during off-peak hours.
As more research emerges supporting this symbiotic relationship between clean energy and blockchain technology, Oman’s model could serve as a blueprint for sustainable digital infrastructure in emerging economies.
Competing with Dubai’s Crypto Hub Ambitions
Dubai has long positioned itself as the Gulf’s premier fintech and blockchain hub, backed by forward-thinking regulations and free zones like the Dubai Virtual Assets Regulatory Authority (VARA). But Oman’s targeted investments suggest it’s no longer content to play second fiddle.
While Dubai focuses on virtual asset trading, regulation, and Web3 startups, Oman is carving out a niche in energy-efficient mining infrastructure — a complementary but equally vital component of the crypto value chain.
By offering lower operational costs, government incentives, and proximity to major shipping lanes and fiber-optic networks, Oman presents an attractive alternative for miners seeking stable, scalable environments.
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FAQ: Understanding Oman’s Rise in the Crypto Economy
Q: Why is Oman investing in cryptocurrency mining?
A: Oman is diversifying its economy beyond oil by investing in high-tech industries. Cryptocurrency mining offers opportunities for job creation, foreign investment, and integration with renewable energy systems.
Q: Is crypto mining legal in Oman?
A: Yes. While cryptocurrencies are not recognized as legal tender, the government permits and regulates crypto mining operations through licensed entities like Green Data City.
Q: How does Oman plan to make mining sustainable?
A: Oman is exploring hybrid energy models that combine solar, wind, and grid power to reduce carbon emissions. Its geographic advantages support large-scale renewable integration.
Q: What role does government support play?
A: The Omani government provides regulatory clarity, land access in free zones, and infrastructure support — all crucial for attracting billion-dollar tech investments.
Q: Can Oman compete with Dubai in the crypto space?
A: Rather than direct competition, Oman complements Dubai’s ecosystem by focusing on mining infrastructure — a foundational layer of the blockchain economy that benefits from low-cost energy and logistical advantages.
Q: Are foreign companies allowed to operate mining facilities in Oman?
A: Yes. International firms like Phoenix Group are already partnering with local entities to develop large-scale projects under government-approved frameworks.
Expanding Horizons: Future Projects on the Horizon
Oman’s ambitions don’t stop at current projects. Officials have revealed plans for additional mining facilities along the Persian Gulf coast, where access to undersea cables and cooling sea air enhances data center efficiency.
These upcoming developments are expected to further increase national computing capacity and attract cloud services, AI training farms, and decentralized storage networks — creating a full-fledged digital ecosystem anchored by blockchain infrastructure.
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Final Thoughts: Building a Digital Future
Oman’s calculated entry into the crypto mining sector reflects more than just technological adoption — it signals a broader economic transformation. By aligning blockchain development with sustainability goals and regional connectivity, the nation is laying the groundwork for long-term digital resilience.
With over $1.1 billion in committed investments, multiple large-scale facilities underway, and strong governmental support, Oman is rapidly emerging as a serious contender in the Gulf’s race for crypto leadership.
As global demand for secure, efficient, and environmentally responsible blockchain infrastructure grows, Oman may well become a model for how traditional energy nations can successfully pivot toward a decentralized digital future.
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