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Oman’s Utilities Sector Growth Surges with Digital Transformation and Renewable Energy

Oman’s utilities sector growth is accelerating as the country adopts digital and renewable energy solutions. This progress reflects its economic expansion and urban development.

The Authority for Public Services Regulation reported water consumption rose 13 percent between 2021 and 2025, while subscriber numbers grew 12 percent. Electricity subscribers increased 14 percent, and consumption surged 27 percent over the same period. Oman’s utilities sector growth shows no signs of slowing.

The Authority also emphasized improved governance, separating roles between policymakers, regulators, and operators. Service standards improved, with double compensation for repeated failures. Renewable energy production reached 9.46 percent in 2025, up from 1.95 percent in 2021. This output powers roughly 155,000 homes.

The sector embraced digital transformation. Service digitization reached 100 percent coverage, while smart meter adoption hit 99 percent for water and 80 percent for electricity. Actual meter readings exceeded 97 percent for both sectors, ensuring accurate billing.

Over five years, the Authority introduced 17 regulations, issued 14 licenses, and developed frameworks for subscriber rights, safety, and network reliability. Digital platforms resolved more than 7,000 complaints in 2025. Authorities paid OMR 153,000 in compensation to over 9,000 subscribers.

Customer satisfaction rose to 75 percent. Electricity service delivery averaged 1.17 days, while water services took six days. Omanization reached 98.55 percent, creating 2,050 new jobs. SME spending increased 80 percent to OMR 119 million. Local added value grew 35 percent to OMR 50 million.

Infrastructure expansion remains a top priority. Electricity transmission lines increased 40 percent, and distribution networks grew 13 percent. Billing systems now fully support electronic payments, which cover 78 percent of transactions. Gas sector volumes rose 22 percent, while water and wastewater networks expanded 32 percent. Wastewater treatment reached 98 percent, as well as water quality compliance hit 99.81 percent.

However, 97 projects worth OMR 966 million are underway in water infrastructure. Total investments in regulated sectors reached OMR 3.4 billion from 2021 to 2025. Looking ahead, investments are projected to reach OMR 8.8 billion between 2026 and 2030. Most funding will focus on electricity, water, and gas expansion.

Overall, Oman’s utilities sector growth, paired with technology adoption, positions the country as a leader in efficient, sustainable public services.

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