Oman opens a $350 million cryptocurrency mine
An economic zone with favourable tax rates
The Sultanate of Oman has inaugurated its second cryptocurrency mining center within a span of 10 months, marking a significant step towards advancing the nation's digital economy. The new facility, situated in the Salalah Free Zone—an economic zone with favourable corporate tax rates—combines data hosting and cryptocurrency mining. Operated by the local company Exahertz in collaboration with the Dubai-based blockchain firm Moonwalk Systems, the center is equipped with cutting-edge hardware from Bitmain Technologies.
The construction of this state-of-the-art mining facility incurred a cost of 135 million Omani rials, equivalent to approximately $350 million. The center aims to deploy 15,000 machines by October 2023, utilizing the latest technology to enhance efficiency. Currently, the facility is in a pilot phase, operating 2,000 machines and consuming 11 megawatts of power. This initiative aligns with Oman's strategic plan to diversify its economy, which has traditionally relied heavily on oil exports. This development follows the opening of another mining center in November 2022, which had a total cost of 150 million Omani rials, approximately $389 million. As of 2022, business operators in Oman were paying electricity prices of 0.064 rials (approximately $0.166) per kilowatt hour.
In a parallel effort to regulate the cryptocurrency sector, the Omani government released a consultation paper on July 27 outlining a national crypto framework. This framework proposes potential requirements for digital asset providers, such as establishing a local office in Oman, maintaining a specified fraction of assets in hot wallets, conducting audits of safeguarded assets, and providing proof of reserves. These measures aim to ensure responsible and secure practices within the burgeoning crypto industry as Oman strives to embrace the digital era.
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