Oman eyes global leadership in polysilicon with transformational Sohar investment

MUSCAT: Ahead of the full commercial launch of Oman’s landmark polysilicon production plant at Sohar Freezone, Oman Vision 2040 — which has played a notable role in enabling this strategic investment — has highlighted the project’s far-reaching economic benefits.
In a recent post, Oman Vision 2040 noted that output from United Solar Polysilicon’s project will unlock promising industrial opportunities, reinforcing the Sultanate of Oman’s drive to build a diversified economy anchored in advanced industries and renewable energy, while strengthening its position in global clean energy value chains.
The Sohar plant is the largest facility of its kind in the Middle East, with an investment of approximately RO 616 million (US$1.6 billion) and an annual production capacity of 100,000 tonnes, underscoring its strategic importance to the renewable energy sector.
The facility will produce high-purity polysilicon, a key input in the manufacture of solar panels and semiconductors. This is expected to support renewable energy projects in Oman, lower the cost of solar power generation and enable the expansion of green hydrogen initiatives.
The production process begins with quartz (sand), followed by a series of advanced industrial stages to yield high-purity silicon — a cornerstone of the solar energy value chain. At full capacity, the plant is expected to support the production of around 40 gigawatts of solar panels annually.
Suhar was selected as the project site due to its strategic advantages, including proximity to global markets, world-class logistics infrastructure, integrated industrial ecosystems and government incentives supporting renewable energy development.
The project’s economic value lies in its potential to stimulate downstream metal-based industries, strengthen clean energy supply chains, attract high-quality investment and generate employment, thereby enhancing the competitiveness and export potential of the national economy.
It also represents a significant milestone for both the company and the broader industry, contributing to the resilience and sustainability of global solar supply chains. Notably, more than 80 per cent of the project’s capital has been mobilised from Omani institutions, as well as local and regional banks, alongside support from the International Finance Corporation (IFC).
Looking ahead, the Sohar polysilicon project is poised to serve not merely as an industrial asset, but as a catalyst for structural transformation across Oman’s energy and industrial sectors, driven by rapidly growing global demand for solar energy. It is also expected to enhance Oman’s integration into global supply chains by linking Asian, European and African markets, leveraging the country’s strategic location and logistics capabilities.
With this landmark investment, Oman is positioning itself as a major player in the global polysilicon market, with ambitions to become the world’s second-largest producer after China — a testament to rising international confidence in the Sultanate of Oman’s investment environment and its capacity to lead future-facing industries, Oman Vision 2040 added.