In a strategic move to position itself as a regional leader in blockchain innovation, the Sultanate of Oman is investing $1.1 billion into building state-of-the-art cryptocurrency mining infrastructure. This ambitious initiative marks a significant shift for the oil-dependent Gulf nation, signaling its intent to diversify its economy and compete with neighboring UAE in the rapidly growing digital asset space.
Unlike Dubai, which has taken early steps in crypto adoption, Oman is now accelerating its efforts with strong government backing, sustainable energy integration, and partnerships with international firms. Over the past year, three major crypto mining facilities have been announced in the country—each supported by regulatory approvals and long-term energy strategies.
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Oman’s Strategic Push into Cryptocurrency Mining
According to a report by Forbes, Sheikh Mansour Bin Taleb Bin Ali Al Hinai, Chairman of Oman’s Public Authority for Special Economic Zones and Free Zones, confirmed that the government is actively supporting private-sector Bitcoin mining ventures. These projects are expected to attract more than $1.1 billion in total investment, laying the foundation for a robust digital ecosystem.
One of the most significant developments came on August 23, when Phoenix Group from Abu Dhabi partnered with Green Data City, the first entity in Oman to receive a sustainable cryptocurrency mining license. The collaboration involves a $300 million investment to establish a 150 MW crypto mining data center within Green Data City’s premises. Once fully operational in Q2 of next year, this facility is projected to become one of the largest mining hubs in the Middle East.
The use of renewable energy and efficient cooling systems—leveraging Oman’s arid climate and access to solar power—makes this project both economically viable and environmentally sustainable. This aligns with Oman’s broader vision of becoming a green technology hub in the region.
Major Mining Facilities Driving Digital Transformation
Oman’s commitment to blockchain infrastructure isn’t limited to one project. In mid-August, the Afaaq Advanced Technology Data Hosting and Crypto Mining Center was officially inaugurated in the Salalah Free Zone—a special economic area designed to attract foreign investment.
Operated by Omani startup Exahertz, the facility required an investment of approximately $370 million** and uses cutting-edge ASIC miners from Bitmain. While currently operating in pilot mode with **2,000 machines running at 11 MW capacity**, the center plans to scale up to **15,000 units by October 2023**. With full support from the national $1.1 billion mining budget, Afaaq aims to expand its power capacity to 800 MW** in the coming years.
This expansion underscores Oman’s long-term strategy: transforming from a fossil fuel economy into a knowledge-based, digitally empowered nation.
Additionally, Oman launched its first large-scale crypto mining center in November 2022, costing $389 million**. Combined with Afaaq’s project, these two centers represent **$760 million in investments, marking critical milestones in Oman’s digital transformation journey.
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Why Oman Is Poised to Outpace Regional Rivals
While the UAE—particularly Dubai—has gained early recognition as a crypto-friendly destination, Oman is taking a more structured and sustainability-focused approach. Key advantages include:
- Abundant solar energy potential: Ideal for powering energy-intensive mining operations.
- Cooling efficiency: Natural desert conditions reduce cooling costs for data centers.
- Government-backed licensing: Clear regulatory frameworks encourage institutional investment.
- Strategic geographic location: Proximity to major shipping lanes and fiber-optic networks enhances connectivity.
These factors make Oman an increasingly attractive alternative to traditional mining hubs like Kazakhstan or even parts of North America.
Global Trends: Nations Embracing State-Supported Mining
Oman is not alone in recognizing the economic potential of crypto mining. Around the world, governments are stepping in to support or directly participate in mining initiatives:
- Bhutan: The Himalayan kingdom partnered with Bitdeer to launch a $500 million green mining fund, leveraging hydropower for sustainable Bitcoin extraction.
- El Salvador: The first country to adopt Bitcoin as legal tender plans to build a $1 billion national Bitcoin mining pool, powered by volcanic geothermal energy.
- United States: A Pentagon-commissioned report recently urged the U.S. government to promote domestic Bitcoin mining to strengthen national security and energy grid resilience.
These examples reflect a growing consensus: cryptocurrency mining is no longer just a speculative venture—it’s evolving into a strategic industry with geopolitical implications.
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Frequently Asked Questions (FAQ)
Q: Is cryptocurrency mining legal in Oman?
A: Yes. Oman has issued official licenses for sustainable crypto mining operations, including Green Data City—the first licensed entity in the country. Regulatory support indicates a clear path for legal, large-scale mining activities.
Q: How is Oman making crypto mining sustainable?
A: By leveraging solar energy and efficient desert cooling systems, Oman minimizes the environmental impact of mining. Projects like Green Data City prioritize renewable power sources and energy-efficient infrastructure.
Q: What role does the government play in Oman’s crypto mining plans?
A: The Omani government provides regulatory clarity, land access in free zones, and indirect funding through public-private partnerships. It views blockchain development as part of its broader Vision 2040 economic diversification strategy.
Q: How does Oman compare to UAE in crypto mining development?
A: While UAE cities like Dubai lead in fintech innovation, Oman focuses more on sustainable, utility-driven mining powered by clean energy. This could give it a long-term advantage in cost-efficiency and environmental compliance.
Q: Are foreign companies allowed to invest in Oman’s mining sector?
A: Yes. International firms like Phoenix Group (UAE) are already investing heavily. Oman offers favorable conditions in special economic zones, including tax incentives and streamlined permitting processes.
Q: What is the future outlook for crypto mining in Oman?
A: With $1.1 billion committed and multiple projects underway, Oman is on track to become a top-tier mining destination in the Middle East. If current trends continue, it may surpass regional competitors in green mining output within five years.
Conclusion
Oman’s bold entry into the global crypto mining arena reflects a calculated pivot toward technological sovereignty and economic resilience. By combining government support, renewable resources, and strategic partnerships, the nation is building a future-proof digital economy—one hash at a time.
As more countries recognize the value of state-backed, sustainable mining initiatives, Oman stands out as a model of responsible innovation in the blockchain era.