Green Finance Boost Oman has taken a bold and promising step toward a cleaner, greener future. National Finance, the largest finance company in the Sultanate of Oman, has officially partnered with the International Finance Corporation (IFC) to launch a massive $120 million green finance initiative. This investment aims to promote environmentally friendly projects, support sustainable transportation, and accelerate renewable energy efforts across the country.
The announcement was made during a high-level event hosted as part of the World Bank Group Day in Muscat, with leaders from both National Finance and IFC expressing a strong shared vision for Oman’s transition to a sustainable economy.
A Strategic Green Partnership for Oman’s Future
The $120 million investment from IFC, a member of the World Bank Group, marks a significant milestone for Oman’s financial and environmental sectors. This partnership is designed to enhance National Finance’s ability to offer green financial products and services, including financing for electric vehicles, support for small and medium-sized enterprises (SMEs), and funding for renewable energy projects such as solar and wind power.
It also reflects growing international confidence in Oman’s potential to become a regional leader in sustainable development and climate-conscious finance.
Mr. Tariq Sulaiman Al Farsi, CEO of National Finance, said the partnership represents both recognition and encouragement for the company’s sustainability efforts:
“We are proud to partner with IFC, a global leader in sustainable development and financial inclusion. This collaboration enables us to strengthen our green finance solutions and expand our environmental impact. It reflects our core values and our commitment to contributing meaningfully to Oman Vision 2040.”
IFC Returns to Oman’s Finance Sector With a Green Focus
This collaboration also marks IFC’s first investment in Oman’s non-banking finance sector in nearly 20 years. The organization is well-known for supporting emerging markets and helping businesses grow in ways that are sustainable and socially responsible.
Momina Aijazuddin, Regional Head of Industry for Financial Institutions Group at IFC, highlighted the importance of empowering smaller businesses and the long-term value of green investment:
“Small and medium enterprises are the foundation of every economy. Through this $120 million investment, we not only boost the resilience of Oman’s financial sector but also advance sustainability. This financing will enable businesses to lead climate-positive initiatives from the ground up.”
IFC’s involvement ensures that international standards and sustainability best practices will be embedded in National Finance’s operations. This also paves the way for greater access to global investors who prioritize environmental, social, and governance (ESG) performance.
Supporting Oman’s Vision 2040 and Net-Zero Goals
This green finance partnership is closely aligned with Oman Vision 2040 – the national strategy that sets the long-term direction for economic growth, diversification, and sustainability. One of its primary goals is to reduce the country’s carbon emissions and reliance on fossil fuels, while increasing the adoption of clean energy sources and sustainable technologies.
Oman has committed to reaching net-zero carbon emissions by the year 2050. By securing this substantial green financing, the country is taking a tangible step toward that ambitious target.
The partnership also aligns with global priorities like the United Nations Sustainable Development Goals (UN-SDGs), especially those focused on affordable clean energy, innovation in industry, and urgent climate action.
A Clear Roadmap for Green Innovation
National Finance has already laid the foundation for green innovation in the country through its sustainability framework, which is built on four key pillars: Environment, Social, Operations, and Governance. This framework ensures that sustainability is not just a buzzword, but a core part of its everyday operations.
Some of National Finance’s notable green initiatives include:
- Green Auto Finance: Tailored financing options for electric and hybrid vehicles to reduce pollution and promote clean mobility across Oman.
- Solar Power Projects: Support for renewable energy installations, especially solar panels on commercial and residential buildings.
- Green Campus Programme: Educating the next generation on sustainability through collaborations with schools and universities.
- Paper Recycling & Office Sustainability: Reducing waste and encouraging eco-friendly practices within corporate operations.
The new funding from IFC will enable National Finance to scale these projects and introduce new green products that meet the evolving needs of Omani consumers and businesses.
A Strong Message to the Global Market
This partnership sends a powerful message to international markets and investors: Oman is open for green business. It demonstrates a readiness to adopt sustainable financing models, attract foreign investment, and support climate-smart ventures.
It also shows how financial institutions can take the lead in addressing global challenges like climate change, not only by financing green projects but also by influencing behaviors and business practices across industries.
With climate risks rising worldwide, and with investors increasingly seeking ESG-compliant opportunities, this move positions Oman as a serious and proactive player on the global sustainability stage.
Looking Ahead: A Greener Oman
The $120 million green finance initiative is just the beginning of what could be a much larger transformation in Oman’s financial ecosystem. As climate consciousness grows and technology continues to evolve, both National Finance and IFC are expected to explore more joint initiatives that focus on resilience, innovation, and impact.
Experts believe this partnership could inspire other financial institutions in the region to follow suit, creating a ripple effect that brings more green capital into the Middle East and North Africa (MENA) region.
In the words of Mr. Al Farsi, “Sustainability is not just a trend – it’s the future of finance. And we are proud to lead the way.”
