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A Bank Born in Eleven Months

Last week, Oman launched its long-awaited African Bank of Oman in Luanda. An investment bank, the institution primarily focuses on energy-related transactions between Angola and the Middle East. Eleven months after Angolan President João Lourenço visited Muscat, Oman had converted diplomacy into a licensed bank.

The move comes off the heels of bilateral agreements between Oman and Botswana covering renewable energy, mineral exploration, and infrastructure.

These developments upend what market analysts had predicted in the wake of the Iran war. With GCC countries emerging as key hubs through which global capital transits, spectators speculated that those very hubs would feel the pressure of the crisis. Mohamed El-Erian of the Financial Times, for instance, warned that the war is a “risk” to Gulf foreign investments.

Yet Muscat’s recent dealings with Southern Africa flip this presumption on its head. Significantly, these aren’t just developments deepening existing agreements. The African Bank of Oman aims to set up new trade ties between Southern Africa and the GCC by targeting roughly 50 multinationals and public entities.

Similarly, the Botswana deal backs a joint 500 MW solar plant, double Botswana’s current generation capacity; officials describe it as part of a wider initiative consisting of 3,000 MW of energy projects. A joint exploration pact was also signed between the Botswana Geoscience Institute and Minerals Development Oman to explore mineral-rich areas across Botswana, covering nearly 70% of the country’s land.

An Empire Remembers Its Ports

While GCC investments in Africa are far from abnormal, the continent has long been dominated by the UAE, Saudi Arabia, and Qatar. During a time of fiscal pressure, Oman’s new investments represent a turning point in the country’s capital strategy.

Oman’s Vision 2040, similar to Saudi Arabia’s Vision 2030, demands diversification away from hydrocarbons, turning to other industries and resources, chief among them critical minerals. In January of last year, Oman made its first export of copper concentrate in 30 years. Later in August, Muscat signed three mineral exploration and mining agreements worth a combined $500 million, covering copper, chromium, salts, and industrial minerals.

Yet these minerals are found not along the shorelines of the Gulf, but deep in the mines of Central and Southern Africa, drawing the Sultanate’s footprint there. Last December, Muscat hosted the “Advantage Oman – South Africa” business dialogue, focused on fostering deeper economic ties with Pretoria; mining was one of four key sectors of focus.

The investments go beyond Southern Africa. With the Omani Empire once holding territory along East Africa, Muscat is reviving its longstanding economic ties with the Horn. Last May, the country hosted the two-day Oman-East Africa Business Forum and East Africa Trade and Investment Exhibition 2025, inviting delegates from across East Africa to engage in investment discussions surrounding port infrastructure and 5G.

Not Catching Up, Carving Out.

In this regard, Oman may be catching up with its Gulf neighbors. According to Business Insider Africa, the GCC invested over $179 billion in Africa, yet those investments have largely been driven by Abu Dhabi, Riyadh, and Doha.

The Sultanate’s aim isn’t to close the gap or compete head-on. Rather, it’s to contribute to the GCC’s wider deepening of African ties through deals and agreements that advance its own national interests.

The concerns of analysts over the Iran crisis’ capital reverberations remain legitimate. Yet the GCC remains far outside the global finance firing line. If anything, the Gulf war has prompted the GCC to assess and reorient its foreign investments toward new priorities. Oman’s deepening financial footprint across Africa represents exactly that reorientation.

For the Sultanate, this is just the beginning. The real question: Can Oman turn these flagship deals and conferences into a repeatable template across more African markets?

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