Al Duqm emerges as Oman’s launchpad for Petrochemicals 2.0

MUSCAT, DEC 28
A new chapter in Oman’s industrial development is taking shape in Al Duqm, as policymakers, energy companies and industrial leaders converge around a shared vision for “Petrochemicals 2.0” — a lower-carbon, integrated and higher-value evolution of the sector.
That was the central message of a recent episode of the Duqm Now podcast, organised by the Special Economic Zone at Duqm (SEZAD). The podcast, hosted by Talal al Shahri, brought together Mohammed al Hashmi, Chief Operating Officer of OQ8; Khalid al Qassabi, Director General of Industry at the Ministry of Commerce, Industry and Investment Promotion (MoCIIP); and Dr Idris al Siyabi, Renewable Energy Lead at Petroleum Development Oman (PDO).
Petrochemicals 2.0, as outlined in the discussion, represents a shift away from volume-driven growth towards a model anchored in decarbonisation, circularity and digitalisation. The aim is to significantly reduce lifecycle emissions by integrating renewable energy, green hydrogen and advanced process optimisation across the petrochemical value chain.
“Petrochemical production is highly energy-intensive and increasingly that energy must come from low-carbon sources”, said Dr Al Siyabi. Solar and wind power, he noted, can supply clean energy from feedstock handling through to production and delivery, helping producers meet tightening global regulations on carbon intensity.
From a policy standpoint, petrochemicals remain a strategic pillar of Oman’s industrial strategy. Al Qassabi described the sector as both natural-resource-based and capital-intensive — a combination that underpins its long-term relevance across industries ranging from plastics and manufacturing to healthcare.
However, competitiveness is no longer defined by cost alone. “Low carbon footprint is now as important as low cost”, Al Qassabi said, highlighting growing consumer and regulatory demands for sustainable products. As a result, Oman is placing emphasis on full supply-chain compliance, supported by new monitoring frameworks and incentives.
According to Al Hashmi, petrochemical companies are already embedding net-zero targets into operational KPIs and capital investment decisions, with tangible impacts expected over the next five years. Multiple pathways are being pursued, including process engineering improvements, closed-loop systems, carbon capture and a shift from grey to green hydrogen — a critical input for refineries and chemical plants.
Al Duqm’s unique appeal lies in its ability to bring these elements together at scale. As a greenfield industrial zone, it offers vast land availability, strong solar and wind resources; and proximity to emerging green hydrogen projects. This enables petrochemical facilities to be designed from the outset for low-carbon performance, rather than retrofitted at higher cost.
“Integration is both logical and powerful in Al Duqm”, Dr Al Siyabi said, pointing to the co-location of refineries, renewable energy assets and future chemical value chains. He stressed that Petrochemicals 2.0 is not about replicating existing models, but about deploying advanced technologies such as AI-driven optimisation, automation, green chemistry and chemical recycling.
Beyond technology, Al Duqm is also positioned as a talent and employment hub. Petrochemicals already account for around 10% of industrial jobs in Oman, a figure expected to rise as downstream value chains expand. Strong alignment with universities and research institutions is helping prepare a new generation of specialists in renewables, hydrogen and advanced manufacturing.
With existing feedstock, modern infrastructure, upstream industries and a skilled workforce built on decades of oil and gas expertise, Al Hashmi said Al Duqm is ready to define its niche. “We are well qualified to lead the next era of petrochemicals”, he said. “Petrochemicals 2.0 is the future — and Al Duqm is where it can be realised”.