The state visit of Oman’s Sultan Haitham bin Tariq to France led to a series of significant economic agreements. At the center are billion-dollar contracts for the French corporations EDF and Suez, which will carry out key infrastructure projects in the sultanate. The agreements underscore Oman’s growing importance as France’s partner in the Gulf region and also reflect the sultanate’s modernization strategy.
EDF to build Oman’s first pumped-storage plant
The largest contract went to the French energy group EDF. The company will develop, build and operate Oman’s first pumped-storage plant at the Wadi Daysat dam, about 90 kilometers south of the capital Muscat.
The project has a volume of around four billion US dollars (approximately 3.4 billion euros). The facility will be able to store up to two gigawatts of electricity. Pumped-storage hydropower plants are regarded worldwide as one of the most efficient technologies for storing large amounts of energy. They make it possible to make surplus electricity – for example from solar or wind installations – available for periods of high demand and thus make an important contribution to stabilizing the power grid.
For Oman, the undertaking represents a significant step in expanding renewable energies. The sultanate aims to gradually diversify its energy supply, which has so far been heavily shaped by oil and gas, and to significantly increase the share of climate-friendly energy sources.
Suez wins record contract in the water sector
The French environmental and water services provider Suez also secured an exceptionally large contract. The company will take over the drinking water and wastewater supply for the Muscat metropolitan area and the North and South Sharqiyah governorates for the next 15 years.
With a contract value of two billion euros, this is Suez’s largest project in the Middle East and one of the three largest contracts in the company’s history.
Some 2.3 million people will benefit from the contract, which corresponds to about 43 percent of Oman’s population. Suez will operate more than 10,700 kilometers of water pipelines, modernize four desalination plants and manage over 400,000 smart water meters. In addition, the efficiency of the entire pipeline network is to be improved in order to significantly reduce water losses – a decisive factor in a region that is among the most water-scarce in the world.
Vision 2040 as the blueprint for modernization
The new investments fit into the long-term development strategy “Vision 2040”. With this program, Oman aims to broaden its economy, build modern infrastructure and reduce dependence on revenues from the oil and gas sector.
In addition to economic diversification, investments in energy supply, water management, digitalization and sustainable development are central. Improving supply security and expanding technological competencies are intended to establish the sultanate as a competitive economic location in the Gulf in the long term.
Other French companies benefit
The closer cooperation between Paris and Muscat also benefits other French companies. The logistics and shipping group CMA CGM agreed a partnership with Oman’s Asyad Group in the port and logistics sector.
In addition, Airbus will be involved in the development of Oman’s first satellite. The project is intended to strengthen the country’s technological capabilities and open up new possibilities in the fields of communications, earth observation and digitalization.
France strengthens its position in the Gulf
For France, the signed contracts represent far more than individual industrial projects. They are an expression of a strategic deepening of economic relations with the states of the Gulf Cooperation Council. As the region increasingly modernizes its economies and invests billions in infrastructure, energy and digitalization, French companies are positioning themselves as important technology and infrastructure partners.
For Oman, the agreements mean access to European know-how in key areas of the energy transition and water management. France, in turn, strengthens its economic presence in a geopolitically significant region whose investment programs promise considerable growth potential in the coming years.
Author: P. Tiko