KEY INSIGHTS
- China and Oman signed fourteen Memoranda of Understanding covering AI, BeiDou and digital currencies.
- Oman secured proposed investment funds one point one billion dollars.
- Seven satellites and major renewable energy projects feature in cooperation plans.
China and Oman have agreed to strengthen their partnership in finance and technology. This follows a series of agreements signed during the visit of Sultan Haitham bin Tariq to Beijing on November 2, 2026. One of the recent outcomes is a partnership agreement focused on digital payments and central bank digital currencies or CBDCs.
During the visit the sultan signed agreements and memorandums of understanding, or MoUs, covering satellite navigation, artificial intelligence, renewable energy, and infrastructure investment. Oman and China together signed 14 MoUs. In addition, the sovereign wealth fund of Oman entered into 23 agreements and partnerships with Chinese companies and institutions.
These agreements come at a time when Oman is trying to diversify its economy according to Vision 2040 while China continues to promote its technology across the globe.
China and Oman Enhance Digital Payment Collaboration
The Central Bank of Oman and People’s Bank of China signed an MoU to collaborate in payments and CBDCs. The MoU was signed by Ahmed Al Musalmi, governor of the Central Bank of Oman, and Pan Gongsheng, governor of the People’s Bank of China.
Source: Whale Insider
The two banks will exchange experience and knowledge in payment systems, financial infrastructure, supervision, and emerging technologies.
Oman, however, is attempting to lessen its reliance on oil through Vision 2040, which focuses more on tourism, logistics, and digital technologies.
In addition to this, they set up a currency swap facility through which the two currencies, the rials of Oman and the yuan of China can be swapped for an agreed time period. It was meant to be done such that the currencies will still be owned by the respective central banks, with the process of swapping carried out as per the agreement.
This was meant to provide extra foreign currency liquidity when the need arises. Apart from financial services, the two governments have agreed to look into the use of China’s satellite navigation system called BeiDou.
China’s National Development and Reform Commission announced that the two countries will set up a mechanism to do so.
Chinese Investors in Energy and Infrastructures for Oman
Investment is yet another area that figured heavily during Sultan Haitham’s trip. The Oman Investment Authority (OIA) signed a memorandum for setting up a joint investment fund worth US $800 million with China’s Silk Road Fund. While most of the amount would be invested in Oman, the rest of the sum would go into China and emerging economies.
Another fund of US $300 million is to be set up jointly by China Merchants Bank.
Agreements were also made by OIA with CIC, BoC, and China International Capital Corporation, as well as investment arrangements with IDG Capital, Templewater, and EWP Partners.
Energy investments took the forefront at the meeting. OIA concluded a provisional arrangement with BCG and Hoymiles to form a $100 million solar partnership. This project will consist of solar projects in Oman and a solar inverter manufacturing factory in the Middle East and North Africa regions.
Meanwhile, Nama Holding and State Grid International Development have entered into an agreement for battery energy storage systems to be installed in Duqm and Ibri, having a target of 1 gigawatt capacity.
Mining, Logistics, and Space Projects Included in the Agreements
Other sectors include mining and logistics, with Minerals Development Oman partnering with Hongda International to provide services for the Mazoon Copper and Gold Project. This will involve drilling, loading, transporting, and building roads and ancillary infrastructure.
Logistics has seen the Asyad Group partner with JD.com to build three distribution centres across Muscat Airport Free Zone, Khazaen Economic City and Sohar Free Zone to link to the Gulf and East African markets.
The space sector is also part of the partnership with Oman Lens and Star Vision Aerospace signing two agreements on satellites, education and specialised training.
A total of thirty Omanis will receive a scholarship to study at masters and doctorate level in China. One thousand Omanis will be trained. China and Oman will also establish a laboratory for space AI and build, launch and operate seven satellites.
However O- Green has partnered with Shanghai Electric Wind Power Group to establish a research and development centre and testing facility for wind turbines in Duqm.
