OIA launches 4 strategic projects worth RO 935m

Muscat: Oman Investment Authority (OIA) continues to translate national priorities into tangible investments that support economic diversification and promote local content, launching four major industrial projects during the initial month of Oman’s 11th Five‑Year Development Plan. Focused on manufacturing industries, tourism and the digital economy, the projects strengthen OIA’s strategic footprint in manufacturing industries, one of the key drivers of Oman Vision 2040, through global partnerships and investments implemented by its subsidiaries that enhance local supply chain and contribute to localising technologies.
One of the most prominent projects is the fully financed United Solar project, supported by Future Fund Oman (FFO), to establish a state-of-the-art polysilicon production facility in Sohar Free Zone, the company’s largest plant outside the People’s Republic of China. With a total investment of RO 700 million ($1.8 billion), this project is among the region’s largest industrial renewable energy investments.
A joint financing agreement was signed between United Solar Polysilicon Company (a subsidiary of United Solar Holding), the International Finance Corporation (IFC) and a consortium of regional and local banks. The project will enable Oman to enter the global solar energy supply chain by localising advanced technologies, boosting local content and creating 1,012 direct jobs in engineering, manufacturing, maintenance and clean energy services.
In the maritime manufacturing sector, ASYAD Group has launched a project to manufacture the first fully built tugboat in Oman. The project is being executed under a tripartite agreement between ASYAD Drydock, Oman LNG and global maritime leader Svitzer. It is expected to create direct and indirect employment opportunities across supply chains and port services, with approximately 50% local content in project execution.
The project aims to build national capabilities in advanced marine manufacturing and logistics services, leveraging local resources and expertise. It will also facilitate knowledge transfer from the international partner to Omani talent, positioning Oman as a competitive regional hub for advanced industrial and logistic services.
Commenting on the announcement, Hisham bin Ahmed al Sheedi, Chief Investment Officer — Economic Diversification Investments at OIA, stated: “These projects mark a new chapter in OIA’s continuous efforts over the past five years to grow and transform OIA’s National Development Fund (NDF). Through these initiatives, we aim to maximise the synergies among OIA’s subsidiaries, deepen local content, create new job opportunities and localise advanced technologies, all contributing to Oman Vision 2040 economic pillar”. In support of the petrochemical sector and high-value manufacturing industries, OQ Group, in collaboration with Sohar Free Zone, has initiated a landmark project to localise advanced technologies. OQ Refineries and Petrochemical Industries (OQ RPI) signed a memorandum of understanding (MoU) with Germany’s MAK Group to establish an integrated industrial complex producing Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET), key materials used in the packaging industry, especially for consumer goods like water bottles and food containers.
The project aims to establish an integrated plant in the Sohar Free Zone, with an annual production capacity of 700,000 tonnes of PTA and PET annually; and 425,000 tonnes of para-xylene (PX) as a key input. The project total investment value exceeds RO 192 million ($500 million) and is expected to create around 700 direct jobs, in addition to indirect employment through local supply chains. It will enhance Oman’s ability to reduce imports, localise plastic-related value chains, support SMEs and expand non-oil industrial exports.
OQ Base Industries (OQ BI) has also launched a new project in Salalah Free Zone in partnership with India’s Deepak. The project will establish a facility to produce specialised chemicals used in pharmaceuticals and fertilisers. It will use ammonia as a raw material to produce sodium nitrate and sodium nitrite, with a production capacity of up to 70,000 tonnes per year. By complementing the industrial ecosystem in Salalah and leveraging the port’s advanced infrastructure and strategic location, the project is set to strengthen export opportunities across regional and international markets.
With an investment of over RO 38 million ($110 million), the project will create 150 direct jobs and contribute to Oman’s strategic goals of boosting industrial and pharmaceutical security, transferring technical know-how and developing specialised local talent, all in line with the country’s Oman Vision 2040 for a sustainable and diversified economy.