Oman’s Crypto Mining Expansion Signals Further Economic Diversification
Oman has recently unveiled a state-of-the-art digital asset mining facility, as it continues in its quest to diversify its economy beyond oil exports.
$150 million facility
This cutting-edge mining facility was recently inaugurated, valued at around 135 million Omani rials, approximately $150 million, as a result of collaboration between Exahertz, an Omani company, and Moonwalk Systems, a Dubai-based blockchain solutions firm.
Situated within the Salalah Free Zone, a hub that offers tax benefits to corporate entities, the facility is powered by mining hardware provided by leading Chinese mining equipment manufacturer Bitmain Technologies and is primed to house 2,000 machines, making for an 11-megawatt facility.
Expansion plans
Sam Ferdows, the CEO of Moonwalk Systems, hailed the project, emphasizing the company’s dedication to expanding the facility’s capacity. Ferdows shared that plans are already in motion to increase the mining operation’s capacity to accommodate 15,000 miner units by October, with aspirations to expand to multiple cities. Recognizing the importance of corporate social responsibility relative to sustainability, Moonwalk Systems aims to train citizens through dedicated programs, further promoting the growth of the digital asset sector.
Engineer Said Hamoud, Oman’s Minister of Transport, Communications, and Information Technology, who led the inauguration of the project, underscored its significance as a pivotal step in the nation’s digital transformation. He expressed confidence that the new mining facility would contribute to Oman’s growing digital economy.
Second mining project
This marks Oman’s second major move into the cryptocurrency mining space within nine months. Back in November 2022, the country inaugurated its first mining facility with a price tag of approximately $389 million. The combined investment in these ventures totals $740 million, which aligns with the broader regional push toward embracing the opportunities presented by blockchain and Web3 technologies.
In the Middle East, several governments are actively investing in blockchain-related infrastructure. The United Arab Emirates, a neighbor to Oman, has notably begun to accept applications from Web3-related companies. The Virtual Assets Regulatory Authority (VARA), the local regulator in Dubai, has rolled out comprehensive regulatory directives that govern licensing requirements, company operations, and compliance.
Oman, for its part, is not just focusing on infrastructure. It is also addressing regulatory aspects by requiring registered digital asset firms to establish a presence within the country. Evidence of those efforts emerged earlier this month when the Omani regulator, the Capital Market Authority (CMA), invited public feedback on a consultation paper that feeds into the development of a virtual asset regulatory framework in Oman. This versatile approach suggests that the Sultanate is making a conscious commitment to fostering a thriving blockchain ecosystem within the country.
As Oman attempts to position itself as a regional blockchain hub, it recognizes the transformative power of cryptocurrencies and blockchain technology in propelling its economy forward. On that basis, the Middle Eastern country is making a resolute pivot from its oil-based past to a blockchain-enabled future.
