Tech
Oman will compete on cryptocurrencies and smart technology in the GCC
Oman is making a bold move to influence the cryptocurrency and smart technology markets in the GCC.
HE Sheikh Mansour Bin Taleb Bin Ali Al Hinai, Chairman of the Oman Public Utilities Regulatory Authority, has publicly stated his country’s government’s support for privately owned bitcoin mining facilities. These are expected to attract a total investment of more than $1.1 billion.
The new cryptocurrency mining center is the second such facility to open in the country in the last 10 months.
“This initiative aligns with our goal of diversifying our economy by integrating modern technologies while upholding our commitment to ethical and sustainable practices,” he said.
The decision follows rigorous regulatory discussions dating back to 2019. Ultimately, Oman deemed bitcoin to be in line with Islamic law and accepted its intended use.
The Sultanate of Oman is a nation of 4.5 million people with a rich history and today competes for influence in the cryptocurrency economy.
The GCC country has the lowest GDP among its peers. Oman has oil reserves, which constitute approx 70% of its revenue and almost 30% of its GDP. but enjoys a low unemployment rate only 3.7%, despite the scarcity of job opportunities. An estimated 24% of Omani graduates specialize in IT, but only a fraction of these manage to secure relevant jobs.
Crypto technology projects like this hope to change that.
Exahertz, a homegrown startup, is setting up a pilot bitcoin mining site with a capacity of 11 MW, along with ambitious expansion plans of up to 800 MW.
Exahertz received the license from local regulators in September 2022 and delivered an operational pilot project within 22 days.
Bitcoin mining, with its ability to function as a “load balancer” for electricity grids, can help reduce fluctuations in electricity supply. By adjusting the intensity of extraction based on available energy, these operations can help maintain a stable power supply, thus ensuring grid stability.
This project’s infrastructure will also support future technology efforts such as supercomputer data centers and machine learning projects.
Light: Muscat-based Exahertz establishes Oman as a blockchain hub
More information on the project
The data hosting and cryptocurrency mining center was opened in the Salalah Free Zone, a special economic zone in the country with low corporate taxes. Exahertz will operate the center in collaboration with Dubai-based blockchain company Moonwalk Systems.
The center cost around $350 million to build and will use the latest mining hardware from Bitmain Technologies. It plans to install around 15,000 mining machines by October 2023, from around 2,000 machines currently.
Another mining center opened in November 2022, this one with a price tag of $389 million.
On July 27, Oman launched a consultation document on a national crypto framework.
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