- Omani government invested $800 million in crypto mining; and $300 million with Abu Dhabi’s Phoenix Group.
- Crypto-mining center inaugurated in Salalah Free Zone, overseen by Exahertz and Moonwalk Systems.
- Oman released a consultation paper on the national crypto framework, requiring local presence and asset safeguards.
In August, the Omani government declared approximately $800 million in investments in cryptocurrency mining activities. An agreement of $300 million was publicized on August 23rd, involving the collaboration of the Abu Dhabi-based Phoenix Group. This partnership aims to establish a crypto-mining facility with a capacity of 150 megawatts, in conjunction with Green Data City—the pioneering licensed crypto-mining entity in Oman. This mining farm’s slated commencement of operations is set for the coming year.
Preceding these events by a few weeks, regulatory approval was granted in Muscat for a separate $370 million project operated by Exahertz International. According to local news reports, Their ambitious plan entails deploying 15,000 additional machines to augment the existing crypto-mining setup by October.
In the announcement, Said Hamoud al-Maawali, Oman’s Minister of Transport, Communications, and Information Technology, noted that these investments signify a significant achievement in Oman’s efforts to expedite the expansion of its digital economy. Oman’s recent ventures into the realm of crypto-mining coincide with a period during which the wider region is becoming increasingly receptive to cryptocurrencies.
On August 22, the Oman Daily Observer reported that an establishment for data hosting and cryptocurrency mining has been inaugurated within the Salalah Free Zone. This economic zone holds a special status in the country due to its advantageous low corporate tax rates. The operation of this center will be overseen by a domestic enterprise named Exahertz, operating in collaboration with Moonwalk Systems—a blockchain company headquartered in Dubai.
The construction of the center is said to have incurred a cost of 135 million Omani rials, equivalent to approximately $350 million. It is anticipated that the facility will be equipped with cutting-edge hardware provided by Bitmain Technologies. The objective is to establish a total of 15,000 machines by October 2023. At present, the center is in its pilot phase, housing 2,000 operational machines, and consuming 11 megawatts of power, as detailed in the report.
As of July 27, the Omani government initiated the release of a consultation paper outlining a potential national framework for cryptocurrency. This proposed framework might necessitate digital asset providers to establish a physical presence within Oman. Additionally, it could mandate these providers to maintain a reduced portion of their assets in hot wallets, perform audits on secured assets, and furnish evidence of reserve holdings.
“The CMA is seeking to provide an alternative financing and investment platform for issuers and investors while mitigating the risks associated with the [virtual asset] class.”
The Capital Market Authority of Oman
As stated in a report from October 2022 by Chainalysis, the regions of the Middle East and North Africa, predominantly composed of Muslim-majority nations, exhibited the most rapid expansion in the cryptocurrency markets during that year. The Crypto Adoption Index formulated by Chainalysis revealed that among the leading twenty adopters, four were countries with Muslim-majority populations. Additionally, these nations were accompanied by states boasting substantial Muslim communities, such as India and Nigeria.
