MUSCAT: Oman has taken a step towards expanding its downstream chemicals industry after a financing agreement was signed to support the establishment of a major acrylamide and polyacrylamide production plant at SOHAR Port and Freezone, a project expected to boost industrial output, exports and local manufacturing.
The project will be developed by ZL Group, an oilfield services company, under a financing agreement with Dhofar Islamic, the Islamic banking window of BankDhofar, which is acting as the sole financier. The value of the financing was not disclosed.
The financing agreement was signed by ZL Group Chief Executive Officer Echo Liu and Dhofar Islamic Chief Islamic Banking Officer Amor Said al Amri.
Dhofar Islamic said the project reflects the growing role of Sharia-compliant finance in supporting strategic industrial investments that contribute to sustainable economic growth and industrial development in the Sultanate of Oman.
Once fully operational, the facility is expected to produce around 350,000 tonnes of acrylamide and polyacrylamide annually, positioning the Sultanate of Oman as a significant producer of the specialised polymers used in enhanced oil recovery (EOR), hydraulic fracturing and drilling operations.
Located at SOHAR Port and Freezone, the plant will benefit from integrated industrial infrastructure and direct access to global shipping routes, allowing it to supply customers in Oman while expanding exports across the GCC and international markets.
The project supports Oman Vision 2040 by strengthening the country's manufacturing base, increasing industrial value addition and advancing economic diversification beyond the hydrocarbons sector.
Polyacrylamide is widely used in enhanced oil recovery to improve oil extraction from mature reservoirs by increasing the efficiency of water flooding, helping operators raise production while lowering operating costs.
The SOHAR facility forms part of ZL Group's broader strategy to establish a fully integrated enhanced oil recovery value chain in Oman, covering raw material processing, monomer production, polymer manufacturing, laboratory research, field application and technical support.
According to previously released project details, ZL Group secured land for the development in December 2023, began construction in December 2024 and completed installation of major equipment in February 2026.
The 24-hectare complex, with more than 129,000 square metres of covered area, will initially produce 45,000 tonnes of acrylamide monomer and 60,000 tonnes of polyacrylamide annually before expanding to its planned full capacity.
The company has previously said it has invested more than $97 million in the project, with over half of the expenditure made within Oman. Upon completion, the development is expected to create about 450 direct jobs and support more than 5,000 indirect jobs.
The facility is designed to meet all of Oman's domestic demand for EOR polymers while exporting more than 65 per cent of future production, transforming the Sultanate from an importer of specialised oilfield chemicals into a regional exporter of high-value industrial products.
Beyond manufacturing, the project is expected to strengthen local content through technology transfer, research and development, quality control, equipment maintenance and specialised technical services, helping build industrial capabilities and skilled Omani talent.
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