The Sultanate of Oman, located on the southeastern coast of the Arabian Peninsula, is accelerating its push into cryptocurrency with multi-million-dollar investments. This West Asian nation is pursuing a strategic vision to establish itself as a digital hub in an increasingly competitive region.
Oman’s Crypto Mining Investments
In August, the Omani government announced nearly $800 million in new investments for cryptocurrency mining operations. Key developments include:
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Phoenix Group & Green Data City Partnership (August 23):
Abu Dhabi’s Phoenix Group partnered with Green Data City to develop a 1.5 gigawatt crypto mining farm. This $300 million project will be operated by Green Data City—Oman’s first licensed crypto mining entity—and is set to launch next year. -
Exahertz International Project:
Weeks earlier, Muscat approved a $370 million mining farm operated by Exahertz International. Local reports indicate plans to deploy 15,000 machines by October.
These investments represent “significant milestones” in Oman’s efforts to “help accelerate” digital economic growth, according to H.E. Said Hamood Al-Maawali, Minister of Transport, Communications, and Information Technology.
The Sharia Compliance Question
Oman’s crypto mining ventures coincide with warming regional attitudes toward digital assets—and follow careful consideration of a crucial question in the Islamic world: Is cryptocurrency halal (permissible) or haram (forbidden)?
Islamic finance principles under Sharia law determine whether financial activities are morally acceptable. Key concerns among scholars include:
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Speculation Risks: Some view crypto’s volatility as akin to gambling (maisir), prompting fatwas (Islamic rulings) against it in Turkey, Egypt, and Indonesia.
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Interest-Free Nature: Others argue cryptocurrencies like Bitcoin are permissible because they involve no riba (usury/interest), which Sharia prohibits.
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Growing Acceptance: Widespread adoption as a medium of exchange supports the halal argument for some scholars.
👉 Explore how Islamic finance intersects with modern technology
Crypto Adoption in Muslim-Majority Nations
Despite ongoing debates, Muslim countries have emerged as leading crypto adopters:
- 2022 Chainalysis Report Findings:
The Middle East and North Africa (MENA)—home to 20+ Muslim-majority nations—was the fastest-growing crypto market that year. Four Muslim countries ranked in the top 20 of Chainalysis’ Global Crypto Adoption Index, alongside nations with large Muslim populations like India and Nigeria.
Regulatory Landscape
Muslim nations showcase divergent approaches to crypto regulation:
| Country | Stance |
|---|---|
| UAE | Proactive hub for crypto businesses with clear licensing frameworks |
| Turkey | Allows trading but bans crypto payments and financial intermediation |
| Oman | Embracing mining while monitoring Sharia compliance |
FAQ: Cryptocurrency and Islamic Finance
Q: Is Bitcoin halal according to Sharia law?
A: Opinions differ. Some scholars approve its lack of interest, while others reject it due to speculation risks.
Q: Which Muslim countries lead in crypto adoption?
A: The UAE, Oman, and Pakistan show high adoption rates, with UAE establishing regulatory frameworks.
Q: How does crypto mining align with Oman’s economic goals?
A: It supports diversification from oil dependence and positions Oman as a digital infrastructure leader.
👉 Learn about sustainable crypto mining practices
Q: What makes an asset “haram” in Islamic finance?
A: Prohibited elements include excessive uncertainty (gharar), gambling, and interest-based transactions.
Q: Are there Sharia-compliant cryptocurrencies?
A: Yes, some tokens are designed to comply with Islamic finance principles through transparent, asset-backed models.
Q: How might Oman’s climate benefit crypto mining?
A: Its arid regions offer cost-effective cooling solutions, reducing energy needs for mining operations.
Conclusion
Oman’s crypto investments reflect a strategic bet on blockchain technology’s potential, even as the Islamic world continues deliberating its religious permissibility. With thoughtful regulation and energy-efficient mining infrastructure, Oman could emerge as a bridge between traditional Islamic finance and the digital asset revolution—provided it navigates Sharia compliance concerns effectively. The nation’s approach may offer a template for other Muslim-majority countries weighing economic modernization against religious principles.