Oman is strategically positioned to become a global leader in the green iron and steel industry, leveraging its natural advantages, existing industrial infrastructure, and forward-looking policies, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA).
IEEFA notes that Oman already has a rare, fully integrated steelmaking ecosystem, including iron ore concentration, pelletizing, direct reduction, and electric arc furnace (EAF) operations. The country has also plans to develop new domestic iron ore concentration capacity.
Oman’s current industrial base is particularly well suited for the shift to low-emission steelmaking, given its progress in producing direct reduced iron (DRI), which can eventually be produced using green hydrogen instead of fossil gas. However, the report stresses that gas-based DRI remains emissions-intensive and cannot achieve green steel status without transitioning to hydrogen-based production.
Renewables and hydrogen strategy provide competitive edge
Oman’s large-scale solar and wind investments form one of its biggest advantages. Abundant and low-cost renewable energy will be critical for powering electric arc furnaces, DRI modules and electrolyzers needed for green hydrogen production.
The country aims to produce 1.0-1.5 million mt of green hydrogen by 2030, creating a substantial supply base for hydrogen-intensive industries such as steel.
Strategic geography and industrial policy reinforce momentum
Oman benefits from abundant land for industrial development and a strategic geographical position with direct access to major export markets in Europe and Asia.
The green steel agenda is embedded within Oman Vision 2040, which targets a non-oil GDP share above 90 percent. The national hydrogen strategy, which includes infrastructure development, investment incentives and long-term offtake mechanisms, supports these goals.
New investors accelerate low-carbon steel projects
While the Omani steel industry has traditionally been led by Jindal Group and Vale, the sector is now attracting new low-carbon entrants such as Meranti Green Steel, Mitsui, Kobe Steel and ACME Group.
These developers plan next-generation DRI plants that can operate on mixed natural gas-hydrogen inputs initially, with increased hydrogen substitution over time.
Oman positioned to compete in global green iron trade
According to IEEFA, Oman is managing its transition to green iron and steel production in a structured and coordinated manner. Its integrated supply chain, renewable energy potential, and robust industrial and policy foundations collectively position the country to compete effectively in global green steel markets, particularly in supplying cost-competitive green iron to the European Union and other major economies.