BankDhofar champions Oman’s Green Finance vision
As Oman embarks on a transformative journey toward a low-carbon and sustainable future, BankDhofar proudly aligns its strategy with the Omani government's green finance policy framework. This framework, articulated by the Ministry of Finance and reinforced by the Central Bank of Oman (CBO) and the Financial Services Authority (FSA), serves as a catalyst for mobilizing investments in the nation's green energy transition.
With a legacy of financing industrial and infrastructure projects, BankDhofar is now poised to support Oman’s ambitious clean energy and sustainability goals. Indeed, investments estimated in the billions of dollars will be required to finance solar and wind capacity projects, as well as green hydrogen schemes, in line with the Sultanate’s decarbonization, circular economy, and clean technology development goals.
The Ministry of Finance's recently introduced Sustainable Finance Framework marks a significant milestone in Oman’s climate action strategy. The framework facilitates the issuance of financial instruments such as Green Bonds, Social and Sustainability Bonds, Loans, and Sukuk to support projects aligned with the UN Sustainable Development Goals (SDGs), Oman’s Net Zero targets, and broader climate adaptation objectives.
“The Sustainable Finance Framework sets out how the Oman government intends to allocate financing towards specific environmental and social areas to mitigate the impacts of climate change, promote socioeconomic development and ensure a just transition to a resilient, low-carbon economy,” the Ministry stated in its official overview of the framework.
The framework identifies seven core categories for green financing, ranging from Renewable Energy and Clean Transportation to Climate Change Adaptation and Sustainable Water Management. Social projects, such as Affordable Basic Infrastructure and Employment Generation via SME financing, are also eligible under the framework.
In parallel, the Central Bank of Oman has issued new guidelines to bolster the banking sector's resilience to climate-related risks. The guidelines emphasize the integration of Environmental, Social, and Governance (ESG) considerations into banks' governance, strategy, risk management, and disclosure practices.
CBO's roadmap encourages banks to offer green loans and invest in sustainable assets while enhancing their analytical capabilities to measure climate-related risks. Notably, CBO has mandated all banks, including foreign branches, to align their operations with the framework and develop clear implementation plans with measurable targets.
BankDhofar recognizes the pivotal role of the financial sector in catalyzing these investments. The Bank is developing a suite of green finance products tailored to meet the evolving needs of environmentally-conscious businesses.
As a responsible financial institution, BankDhofar is committed to contributing to Oman’s transition to a low-carbon economy. We see immense potential in renewable energy, clean technology, and circular economy initiatives, and we are ready to play a leading role in financing projects that will shape a sustainable future for generations to come.
Through strategic collaborations and innovative financial solutions, BankDhofar will continue to support Oman’s journey toward Net Zero, ensuring that sustainability remains at the heart of its growth strategy.
