Oman Joins IMEC Green Corridor with Historic Agreement
The Joint Development Agreement bolsters Oman's role within the IMEC and illustrates its growing desire for diversified international ties.
During Sultan Haitham bin Tarik’s state visit to the Netherlands, Oman signed a historic Joint Development Agreement (JDA) to establish the world’s first liquid hydrogen corridor , led by Oman’s state-owned energy company, OQ, in collaboration with 11 companies . The Salalah-based project underscores Oman’s ambition to align with the Gulf Cooperation Council’s clean energy objectives and transition away from oil dependency. Furthermore, with the Sultanate positioned as a key destination for Chinese investment, it reflects Oman’s deliberate efforts to broaden its international partnerships, balancing ties between the East and the West . The JDA ensures an active role for Oman in the Indo-Middle East Corridor (IMEC) alongside other GCC partners like the UAE and Saudi Arabia, which have also engaged in similar projects .
Gulf Green Push
The Gulf has made significant efforts to secure a non-oil future through clean energy initiatives. These efforts have been accompanied by substantial investments and commitments: the UAE has pledged $163 billion to renewable energy by 2050, Saudi Arabia has committed over $186 billion to a green economy by 2060, and, most recently, in February 2025, the bloc collectively committed to a $100 billion investment in renewable energy by 2030. The Omani-Dutch JDA aligns with this regional momentum, enhancing its role as a pivotal player in the global clean energy landscape.
The JDA will establish a liquid hydrogen corridor connecting the Port of Duqm in Oman to the Port of Amsterdam in the Netherlands, with further distribution to key logistics hubs in Germany, including the Port of Duisburg. The project involves Omani entities (Hydrom, OQ, and Port of Duqm), German organisations (Hamburger Hafen und Logistik AG, EnBW, and Port of Duisport), and Tata Steel Nederland, an Indian-owned company. This historic initiative builds on the Memorandum of Understanding (MoU) on green energy cooperation signed between Oman and the Netherlands in 2022. It aims to deliver Oman’s large-scale, renewable fuel of non-biological origin (RFNBO)-compliant liquid hydrogen to Europe by 2029, reinforcing Oman’s role as a global leader in green hydrogen production.
The China Factor
Oman’s engagement with the Netherlands reflects its calculated approach to international relations. While China remains Oman’s largest trading partner, with significant investments in sectors like steel and iron ore—such as the recent $627 million Brazilian-Chinese joint venture in Sohar involving Vale and Jinnan Steel & Iron Group—the Sultanate is diversifying its partnerships to mitigate geopolitical risks. U.S. pressure on Chinese companies, notably over the stalled Duqm Port development since 2017, has prompted Oman to seek alternative allies in Europe. The JDA with the Netherlands not only bypasses these tensions but also aligns with broader GCC efforts to counterbalance Iran’s influence in the region
Simultaneously, Oman is deepening ties with Beijing. In April 2025, Energy Development Oman (EDO) and Jiangsu Changbao Steel Tube Company agreed to explore an Oil Country Tubular Goods (OCTG) manufacturing facility , further strengthening Sino-Omani industrial collaboration. These dual-track strategies—engaging both China and Europe—highlight Oman’s role as a neutral yet influential actor in a multipolar world.
Strategic Implications for the IMEC and Global Trade
The JDA directly bolsters Oman’s role in the Indo-Middle East Corridor (IMEC) , a proposed trade and infrastructure network connecting the Gulf to Asia and Europe. By establishing a hydrogen supply chain from Duqm to Amsterdam and Duisburg, Oman becomes a critical node in this corridor, facilitating energy exports to Europe while leveraging its strategic location at the gateway to the Indian Ocean. This project complements existing GCC-ASEAN collaborations, such as Qatar’s $4 billion investment in Indonesia’s Danantara sovereign wealth fund, underscoring the Gulf’s broader pivot to Asia
For the Netherlands, the agreement aligns with its ambition to become a global hub for green hydrogen, with Amsterdam and Duisburg serving as key import and distribution centers. Germany, a major industrial power, will benefit from secure access to low-cost, sustainable hydrogen to decarbonise its steel and chemical sectors. The involvement of Tata Steel Nederland , an Indian-owned firm, further illustrates the multinational nature of the project, blending Gulf, European, and Asian expertise.
Oman’s leadership
Oman’s JDA with the Netherlands exemplifies the Sultanate’s proactive approach to economic diversification and geopolitical balancing. By anchoring the world’s first liquid hydrogen corridor, Oman not only advances its own energy transition but also strengthens its position within the GCC and IMEC frameworks. As global demand for clean energy surges, Oman’s ability to navigate East-West dynamics and forge multilateral partnerships will determine its success in this new energy paradigm. With the support of European allies and continued engagement with China, the Sultanate is poised to emerge as a cornerstone of the global green economy.