German fund to invest in sultanate’s solar industry

Comprising of high net worth individuals, banks, hedge funds and private equity funds, the investors will jointly make a large investment in Oman to develop an entire value chain in the renewable energy sector through Middle East Best Select Fund.

The fund is managed by Terra Nex Financial Engineering AG, a Swiss global wealth management company that specialises in identifying and developing investment opportunities in the Middle East.

Speaking to Muscat Daily on Wednesday, David Heimhofer, chairman of Terra Nex and managing director of Middle East Best Select Fund, said the capital expenditure for the solar panel factory will be approximately US$400-500mn, but the entire value chain project will see a much larger investment.

He said, “We will produce solar panels in Oman for local use in solar power plants as well as for exports in the Middle East and other countries Oman has free trade agreements with. The annual capacity of the solar panel factory will be to produce the required number of panels for 120MW electricity generation annually.”

He said that the project will create 2,000 jobs in Oman. “For the training centre, we have a collaboration with the University of Zurich and with a German clean technology provider company to send Omanis to Germany for training at their factories.”

Heimhofer revealed that Terra Nex has completed the feasibility studies for the project and is setting up a joint venture company with local partner H E Sheikh Hilal bin Khalid bin Nasser al Maawali, the former Minister of Civil Service, to launch the project.

He added that German businesses, which are renowned worldwide for clean and renewable energy, could contribute greatly to boost Oman's competitiveness in the renewable energy sector. “We have identified Oman as a stable and attractive investment destination and considers renewable energy as one of the most promising and growing sector in the decade to come,” added Heimhofer.

The group of German investors will visit Oman on Sunday touring key sights and attending a high level meeting led by Terra Nex with local partner HE Maawali.

HE Maawali said, “This is an incredible opportunity for the sultanate to showcase its strong industrial base and the world-class investment opportunities it offers to the global investment community.

“This particular group of investors is gaining first-hand experience and getting to know more of the region and Oman. They have already invested in several GCC countries in various sectors and they are very interested to further invest in the Middle East, Oman in particular.”