In an ambitious effort to shift its economic reliance away from oil exports, the Middle Eastern country of Oman has unveiled its second digital asset mining facility in mere months. The facility, which reportedly cost around 135 million Omani rials (~$150 million), will be operated jointly by local firm Exahertz and Woonwalk Systems, a Dubai-based enterprise. The mining hub, established in the tax-advantaged Salalah Free Zone, is set to boost investment in Oman’s emerging digital economy.
A significant aspect of the new facility is its functonality. Boasting 2000 modern machines from Bitmain Technologies and running on 11 megawatts of power, the operation’s capacity will elevate Oman’s position in the digital asset mining space. Sam Ferdows, CEO of Moonwalk Systems, voices the company’s intention to raise this number to 15,000 pieces of equipment by October.
Oman’s Transport, Communications, and Information Technology Minister, Engineer Said Hamoud, underlined the project’s salience, labeling it as a “major milestone” in the nation’s digital transformation. Drawing tech companies and promoting digital literacy, the project will reportedly include educational programs for citizens.
The decision to invest in digital asset mining aligns Oman with its Middle Eastern neighbors, many of which have recently started constructing significant infrastructure for blockchain-related enterprises. This expansive initiative was mirrored in November 2022 when Oman introduced its first mining facility, carrying a hefty price tag of 150 million rials, or approximately $389 million. The total amount invested in the sector amounts to a staggering $740 million.
However, transforming Oman into an infrastructure hub for blockchain businesses is not without complications. The country has issued a consultation paper on blockchain and digital assets calling for registered corporations to set up offices in Oman.
Similar moves are also witnessed in the UAE, where new directives have been put forth by the Securities and Exchange Commission and the UAE Central Bank. Known as the Virtual Asset Regulatory Authority (VARA), the framework lays out licensing requirements, Full Market Products (FMP) rules, company regulations, and other regulatory compliance directives.
While Oman’s efforts signal an ambitious push towards blockchain technology, these endeavors might cause a slight discomfort amongst traditionalists. However, the underlying message is clear – Oman is willing to embrace the inevitable digital era and progress beyond oil-dependency. Only time will yield the ultimate verdict on this strategic shift.
Source: Cryptonews
